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Latest News
Where to find and apply for COVID-19 financial relief Aug 20th
The COVID-19 outbreak has dealt a shock to our economy, shuttering entire industries and leaving many more businesses in limbo, forcing layoffs and loss of income on many people. Fortunately, the Canadian government and several other institutions are offering financial relief for Canadians during th.... More »
Making sense of the markets this week: November 9 + MORE Nov 6th
Each week, Cut the Crap Investing founder Dale Roberts shares financial headlines and offers context for Canadian investors.
Did the stock markets predict the U.S. presidential election?
This past week, the headlines were all about the U.S. election, all the time. I’ve seen so many predictions, in.... More »
Making sense of the markets this week: August 25, 2024 + MORE Aug 23rd
Kyle Prevost, creator of 4 Steps to a Worry-Free Retirement, Canada’s DIY retirement planning course, shares financial headlines and offers context for Canadian investors.
Canada’s economy off the rails
Many Canadians feel that “Canada is broken,” according to an Ipsos poll. And .... More »
Should you leave corporate savings in your company? + MORE Mar 1st
I have $1 million accumulated in my corporate account. I don’t need that money for my corporation. What is the best way to take that money out with minimal tax? I’m 39 and I’m not planning to retire soon.—Chris
Withdrawing money from a corporation to invest
One of the first things to i.... More »
Unlocking the Annuity Puzzle: Why Canadians avoid what seems to be the perfect retirement vehicle + MORE Dec 18th
The Annuity Puzzle is about a curious phenomenon in Canada: while life annuities sold by insurance companies seem to have all sorts of compelling reasons to acquire them, more often than not, retirees shun them.
Financial planner Robb Engen recently tackled this puzzle in his Boome.... More »
Britain to be first in line to shake up financial services with open banking
– theglobeandmail.com
Britain’s Open Banking Standard comes into force on Saturday, imposing sweeping changes to how banks operate and offering new opportunities for non-bank competitors
How Green Card holders can get the most out of TFSAs and RRSPs
– moneysense.ca
Getty Images/Chris CheadleQ. I am a Green Card holder as well as a Canadian resident, and have two questions: No.1. Which are the best securities to invest inside my TFSA to be “friendly” from an Internal Revenue Service and Federal Treasury Board (IRS/FTB) tax point of view? And No. 2. Which are the best securities to invest in an RRSP—again, to be “friendly” from an IRS/FTB tax point of view? Thank you, Mirjana G.
Hi Mirjana. Regarding your RRSP account, you can own any investment you like inside of an RRSP without any issue while you live in Canada. You may even want to hold any dividend-paying U.S .stocks inside your RRSP instead of a non-registered account.
Generally, dividends paid by U.S. companies to Canadians are subject to a tax treaty withholding rate of 15%. The tax treaty waives the withholding on U.S. stocks owned inside of RRSP accounts and is not subject to the passive foreign investment rules (PFICs).
TFSA accounts do not receive any special treatment by the Internal Revenue Service (IRS)…
Three MoneySense stock picking strategies for 2018
– moneysense.ca
Here are two of the three portfolio strategies updated for 2018 by Norm Rothery. All that’s missing is the potato. Source: ShutterstockTo ring in the New Year I’ve updated three of my popular MoneySense investment strategies. Lift the winter chill with a hearty serving of the Hot Potato and a review of the best performing asset classes of 2017. Conservative stock pickers can then cozy up with the latest pack of Safer Dogs while the more adventurous might enjoy the Climbing CATS.
But, before you dig in, I’d like to wish you, your family, and friends a happy, healthy, and prosperous New Year!
The January Hot Potato
Each month the global hot potato looks back over the last 12 months and picks the asset class that has performed the best. The four classes it considers are Canadian bonds, Canadian stocks, U.S. stocks and International stocks.
In 2017 the best performing asset class of the four was international stocks with the EAFE index returning 17.4%. U.S. stocks came in second with the S&P 500 gaining 13…
Herman VanGenderen
AGE: 60
PLACE: Calgary
TFSA TOTAL: $104,565
STRATEGY: Mostly Canadian And U.K. dividend and value stocks held for the long term
Herman VanGenderen, 60, is an agriculturalist who runs a seed business in Calgary, Alta. He has been investing diligently in his TFSA since 2009 and he likes TFSAs for several reasons. For instance, he likes that you can start with small amounts and that small differences compounded over time can make a big difference and when he finds good value stocks that meet his criteria, he buys. “My favourite holding period is forever,” says Herman. “A forever holding period reduces my workload managing the account. And of course, starting to invest early in life, in general, is important, but starting is of utmost importance, and I’ve tried to teach my two 20-something sons that lesson over the years.”
Herman’s TFSA now stands at $104,565 and his criteria for choosing his TFSA investments over the years (like his RRSP and non-registered accounts) is fairly simple…
How to bridge from early retirement to taking a pension
– moneysense.ca
Drawing down savings the smart way involves keeping the right assets in the right accounts and having a plan to manage income streams.Q. I’d like some advice about what is the best way to keep your portfolio at your target allocation when you start to withdraw money when you retire.
My situation is as follows:
I’m a 54-year-old single woman, no kids, retiring next summer and I am debt-free.
I have a small defined benefit pension plan (Quebec government). I could receive money (16% of my annual income) at age 55 but decided to wait until age 60 to avoid the first-five-years penalty (4%/year if the pension is taken before age 60). That way I’ll get $17,000 a year from that pension plan.
I can live on my nest egg for these five years.
My assets are as follows;
House: $150,000
RRSP: $300,000
Non-registered investments: $177,000
TFSA: $61,000
My asset allocation is based on the Couch Potato portfolio and is comprised of:
70% fixed income (25% in exchange-traded fund ZAG…
