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Kathleen Wynne’s re-election bid is off to a bad start + MORE Mar 28th
As a rule, voters love to be bribed with their own money. However, I am cautiously pessimistic that this maxim is not going to work for the Ontario Liberals.
The election is only three months away and Premier Kathleen Wynne—deeply unpopular and behind in the polls—is handing out multi-billion do.... More »
Ayana Forward, financial advisor Feb 14th
Meet Ayana Forward
Ayana Forward is a Certified Financial Planner based in Ottawa, Ont. She owns Retirement in View, a fee only financial planning firm that specializes in helping clients within one to five years of retirement navigate the financial and lifestyle aspects of transitioning out of t.... More »
Disney to Invest $1 Billion in OpenAI and License Characters for Use in ChatGPT, Sora - The Wall Street Journal Dec 11th
Disney to Invest $1 Billion in OpenAI and License Characters for Use in ChatGPT, Sora The Wall Street JournalThe Walt Disney Company and OpenAI reach landmark agreement to bring beloved characters from across Disney’s brands to Sora OpenAIDisney wants you to AI-generate yours.... More »
Big banks poised to follow suit as RBC trims 5-year fixed mortgage rate - Global News Jan 16th
Big banks poised to follow suit as RBC trims 5-year fixed mortgage rate Global NewsCanada's main financial institutions were expected to lower their five-year fixed rates because of a decline in the government bond market.View full coverage on Google News.... More »
Do you need a planner if you’re a DIY investor? May 21st
In today’s digital age, there’s an increasing number of Canadians who choose do-it-yourself investing. Online brokerages and low-cost trading platforms allowed for a new style of investing to emerge: a new generation of DIYers. We’ve seen a shift in the financial planning industry. Well, self-.... More »
The smart way to invest for you kids’ inheritance
– moneysense.ca
iStockQ. I am a 64-year-old widow with two adult children who are the beneficiaries of my estate. My pension is adequate for my living expenses. I have $380,000 in RRSPs, which will be taxed at 40% upon my death. I plan to convert a portion of my RRSP to a RRIF and withdraw $10,000 annually starting 2019. I would rather pay tax on this additional income every year.
As I don’t need the money, I plan to open an investment brokerage account with my kids and transfer the assets in kind equivalent to $10,000 annually. This way, upon my death, my kids can divide the investment assets in the account equally without having to pay tax. Whatever is left in my RRSP/RRIF will be subject to 30-40% tax, which I am aware of. Is this a good strategy? Am I missing something?
– Alex
Well done, Alex. A+. You have clearly done your homework. The strategy is reasonable, says Kurt Rosentreter, Senior Financial Advisor at Manulife Securities. But he does highlight a few areas to consider, for bonus marks…
Can Brenda and hubby retire at 60 with $45,000 in income?
– moneysense.ca
Q. If my spouse and I retire at age 60 in about three years—and want to have $45,000 net annually to spend—how much money will we need to have saved? We have no company pensions—only full CPP and OAS. We expect to live to age 85. – Brenda B.
Brenda, there are several ways you can set up your investments and drawdown strategy in retirement to accomplish this.
Here are a just few questions to guide you:
Will the $45,000 come from RRSP/RRIF, TFSA, or non-registered accounts?
When are you planning to start your CPP? Age 60, 70, or somewhere in between?
Do you have children? Are you planning on leaving them anything?
What rate of return are you expecting?
If you’re spending $45,000 a year. at 60, will you be spending the same amount at 75?
Did you know that if you receive the maximum CPP and OAS you’ll have a combined income of $44,876/year at age 65? That’s almost all the money you need! Most of your savings will be used to get you from age 60 to 65.
Related: Can this couple retire at age 59?
I’ve modelled a few different solutions you can see in this video…
