How to go about securing the best Retirement Plan in Canada.
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Why I’m taking OAS right at 65 + MORE Aug 19th
During the “Victory Lap” stage of life between full-time employment and traditional “no-nothing” retirement, a key strategy is deciding when to commence receipt of various streams of income.
This commonly occurs in one’s 60s. As you move from a salaried single stream of income to the “mu.... More »
Proposed CPP Expansion To Be Put Under The Microscope Sep 9th
OTTAWA — The federal government's bid to expand the Canada Pension Plan is being put under the microscope, including an examination of the impact it could have on sluggish economic numbers — or so the opposition hopes.
The Commons finance committee is scheduled to hold an emergency meeting Frid.... More »
Stock news for investors: Air Canada profit drops more than 50% in Q2 amid “challenging environment” Aug 1st
Here’s a round-up of news for Canadian investors this week.
Air Canada
George Weston
Lightspeed
Bombardier
Gildan Activewear
TFI
Algoma Steel
Featured RRSP Accounts
featured
EQ Bank
.... More »
What to do when you overcontribute to your RRSP + MORE Jun 22nd
Ask MoneySense
I overcontributed to my RRSP by accident, and I am looking for some advice on how to deal with it. I contributed $3,550 to my 2022 RRSP in October 2022. I then forgot I made this contribution and again in February 2023 I made a $3,550 contribution.
What options to I have to address.... More »
Maxed out your TFSA and RRSP? Here’s where to put cash Jan 24th
Canadians have many options for saving and growing their money. They can use registered savings and investment accounts, which offer powerful tax advantages. If you’re saving up a retirement nest egg, you likely have a registered retirement savings plan (RRSP) and a tax-free savings account (TFSA).... More »
Chicago Pension Nightmare
– online.wsj.com
A court nixes reform. Maybe the mayor should try bankruptcy.Corporate class investment funds to lose key advantage
– moneysense.ca
OTTAWA – A key tax advantage for corporate class investment funds is coming to an end later this year under a change announced in the federal budget.
Ottawa is ending the ability for investors to switch between funds in corporate class investments without paying tax on capital gains.
However, the new rules give corporate class fund investors a chance to make any changes under the old rules until the end of September.
“For investors, the encouragement is a call to action and a call to action prior to September of 2016 to review your portfolio to make sure you make use of your corporate class investments prior to the changes kicking in,” said Tony Salgado, manager on tax and estate planning at Investors Group.
“This is going to apply to a lot of senior investors and people that wanted to make use of the corporate class structure.”
3 ways the federal budget will affect investors »
Corporate class funds had been used by investors who had already maxed out their RRSP and TFSA contribution limits as a tax efficient way to invest…
Ottawa is ending the ability for investors to switch between funds in corporate class investments without paying tax on capital gains.
However, the new rules give corporate class fund investors a chance to make any changes under the old rules until the end of September.
“For investors, the encouragement is a call to action and a call to action prior to September of 2016 to review your portfolio to make sure you make use of your corporate class investments prior to the changes kicking in,” said Tony Salgado, manager on tax and estate planning at Investors Group.
“This is going to apply to a lot of senior investors and people that wanted to make use of the corporate class structure.”
3 ways the federal budget will affect investors »
Corporate class funds had been used by investors who had already maxed out their RRSP and TFSA contribution limits as a tax efficient way to invest…
Budget winners and losers: Watch out for clawbacks
– moneysense.ca
It’s reasonably common knowledge that higher wealth accumulators in Canada will want to do some extra planning to avoid the 33% high income tax rate in the terminal return of the last surviving spouse. This is generally accomplished by averaging in their taxable pension amounts throughout retirement, if possible.
However, a sharp eye on marginal tax rates is important in this activity, because clawbacks of the Age Amount and Old Age Security can make income averaging opportunities challenging.
In fact, when you ask the question, who pays the highest marginal tax rates in Canada, you might be surprised to know it’s not always those whose income exceeds $200,000. The answer depends on the type of income sources and also depends on whether the taxpayer is subject to a clawback of social benefits and credits.
Let’s see how clawbacks affect seniors and investors in 2016 under various scenarios.
In the first, seniors are subject to clawbacks of the age amount, the GST/HST Credit and the Old Age Security at various income levels…
