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Dating dilemma: When to talk about finances Mar 16th
When it comes to popular first-date conversation topics, credit scores and debt levels aren’t at the top of the list. Even committed couples may find it hard to broach financial topics like retirement planning or estate planning. But as the cost of living goes up and people try to plan for the fut.... More »
TD Canada Trust Hikes Prime Mortgage Rate – What’s Next? Nov 7th
It was a move that came as a shock to some but not was not a surprise to others. On November 1st, TD Canada Trust became the first of the big five banks in Canada to raise its prime mortgage rate from 2.7 per cent to 2.85 per cent. The news comes only two weeks after the implementation of brand-new.... More »
Every mortgage calculator you will ever need Jun 13th
Owning a home can be a powerful wealth-building tool, but it can also be expensive when you account for mortgage payments, property taxes, insurance premiums, utilities and maintenance.
To get a clear picture of how a home purchase impacts your finances, you’ll need to determine how much you ca.... More »
How does a reverse mortgage work in Canada? Sep 1st
More than ever, Canadians are relying on reverse mortgages—a “don’t-pay-till-you-die” option to borrow up to 55% of the appraised value of your home—and the trend is turning conventional wisdom about debt and retirement on its head. While past generations fought hard to avoid debt in their.... More »
5 questions you have about the housing market Jul 29th
(Getty Images / Dimitri Otis)
Markets are frothy. Emotions are high. Yet, all you really want is to know whether or not the single largest investment you made will avoid a price crash and continue to add substantial value to your net worth statement. To help, here are five answers to questions you m.... More »
MoneySense magazine: April 2015
– moneysense.ca
April 2015Volume 17, Number 2
Download the MoneySense app to read this issue on your tablet or smartphone now.
Best Deals in Real Estate: Canada’s Cities & Neighbourhoods
The Small Cap 100
28 Ways to pay less tax
Editor’s Letter
By: Duncan Hood
Intelligence
Assisted suicide & life insurance: Dignity but no indemnity, and other stories
Ask MoneySense
By: Bruce Sellery
Am I On Track
By: Julie Cazzin
Instant Expert
What do if you’ve (just) been fired
Portfolio Makeover
By: Julie Cazzin
Index Investor
By: Dan Bortolotti
Financial Independence
By: Jonathan Chevreau
Jacks On Tax
By: Evelyn Jacks
Family Profile
By: Julie Cazzin
Retirement
By: David Aston
Smart Spender
Outdoor kitchens & more
How I Did It
Made $60,000 investment return in just 16 months
The post MoneySense magazine: April 2015 appeared first on MoneySense.
Is An Insured Annuity For You?
– ratesupermarket.ca
GICs are typically the investment of choice for retirees who want guaranteed income. However, with interest rates still so low, they just don’t provide much income these days.
One frequently overlooked alternative for improving returns while still guaranteeing your money is something called an ‘insured’ annuity, a combination of a prescribed life annuity and a life insurance policy, which together will produce a guaranteed income stream and protect the value of your estate.
Let’s say you were considering investing $100,000 in GICs from which you’d earn about $3,000 per year. If that income was taxed at roughly 33 per cent, you’d get approximately $2,000 to spend.
By buying a single life annuity with no survivor benefits, a 60 year-old woman could receive an annual income of roughly $6,093 at today’s rates.
Improving Your After-Tax Income
Since only $1,819 of this amount is taxable (a portion of the income stream in the annuity is considered to be a return of capital), the tax on that amount at 33 per cent would be roughly $600 each year, leaving you with approximately $5,493 to spend – considerably more than a GIC might provide…
