Do you invest too much in Canada? + MORE Nov 10th

Q: I am turning 71 this year and I will be converting my RRSP to a RRIF. I understand I have an option to withdraw a lesser amount since my wife is six years younger. How do I calculate what percentage I will need to withdraw from my RRIF at age 72 considering my wife’s age—she will be 66.
—Bruce
A: Minimizing the mandatory portion of the RRIF withdrawal is a good strategy to maximize income flexibility. Bruce can choose the age 66 (spouse’s age) minimum withdrawal schedule making him effectively six years younger for the purpose of calculating the minimum withdrawal amount. Bruce must convert his RRSP to a RRIF by the end of the year he turns age 71 which is 2017.
Bruce’s age at the beginning of the year becomes his age for the entire year for withdrawal purposes so he is considered to be age 71 in 2018 and then age 72 in 2019. Bruce must note the RRIF balance at the beginning of the year for the purpose of calculating the minimum amount for that year.

Year
Bruce’s age at beginning of year
Bruce’s age for RRIF minimum
RRSP/RRIF balance at the beginning of the year
Minimum withdrawal rate
Minimum withdrawal amount

2017
Year Bruce converts his RRSP to a RRIF

2018
71
65
$100,000
4…

Canada is the second-largest country in the world.  But is there such a thing as too much Canada?
Too much natural beauty, no. Too much poutine, never. Too much snow, yep.  Too much Justin Bieber, yes. And too much held in Canadian stocks?  Definitely yes.
The Canadian stock market represents less than 4% of the world’s market cap.  But most Canadians hold way more than that in their portfolios.  And that patriotism could be holding back your performance.
Canadian stocks do not represent the world
You can be the proudest Canadian there is.  You can watch Hockey Night in Canada, while drinking a Molson, then binge on Baroness Von Sketch on CBC, and go to sleep listening to the Tragically Hip on shuffle.  But when you wake up, please do yourself a favour and reconsider your asset allocation. Here’s why:

Diversification:  The Canadian market is teeny tiny compared to the U.S., Europe and Asia, so you don’t have much regional diversification.  Our market is also skewed towards two sectors – the banks represent about 35%, and energy is about 20%…

Fairfax Financial Holdings Ltd. has paid nearly $11.8 million to increase its holding of Torstar Corp.’s non-voting shares to 40.6 per cent.

CBC.caCPPIB using its shareholder votes to push for more women on corporate boards: CEOFinancial PostTORONTO — Canada's largest retirement fund manager is pushing to have more women on corporate boards because diversity makes for better business decisions, CPPIB chief executive Mark Machin said Friday. “This is a high priority for us,” Machin said in …Canada Pension Plan assets inch up to $328.2BCBC.caUPDATE 2-Canada Pension Plan hit by strength of Canadian dollarReutersStrong Canadian dollar squeezes CPPIB resultsThe Globe and MailDigital Journal -Benefits Canadaall 9 news articles »

Canada’s national pension plan had $328.2 billion in assets at the end of September, and posted a net return of 0.7 per cent over the previous three months.