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This Investment Specialist Made the Leap From Finance to Farming Jul 28th
Many entrepreneurs will tell you that what they’re doing now is not what they initially set out to do. Making major professional changes—even mid- to late-career—can often lead to more fulfilling and successful outcomes. That’s what our series The Pivot is all about. Each month, we speak to .... More »
Why Vanguard’s ETF aimed at retirees is currently cautious in its asset allocation Feb 27th
As a semi-retired investor who recently started a registered retirement income fund (RRIF), I regard exchange-traded funds (ETFs) from Vanguard Group as a major part of my core portfolio, along with low-volatility ETFs from BMO ETFs, and income-oriented ETFs from various other vendors.
After the .... More »
Before you borrow: Navigating back-to-school financial aid in Canada + MORE Jun 26th
Each year, more than half a million Canadians take out student loans to cover tuition, books, and living costs. But according to some recent research, including a study from Royal Bank of Canada (RBC), many students are unprepared for how these loans work and how to manage repayment.
Understandin.... More »
2022 tax season primer: Our roundup of the best tax tips for Canadians + MORE Nov 10th
Before the payment deadline rolls around on May 1, 2023, there are ways to avoid racking up a higher tax bill than you need to (especially given this year’s record levels of inflation and rising cost of living). Plus, look for any deductions, rebates or tax credits that will help you put some mone.... More »
Can you save tax by moving into your rental property? Apr 18th
Ask MoneySense
I have a house I was renting in the past and now want to move into as my primary residence. Is there a length of time that I need to live in it to ensure capital gains will not apply on my death, or will capital gains apply based on the years it was rented?
Also, if I co-own this h.... More »
How much to take out of your RRSP in your 60s
– moneysense.ca
Many retirees have the bulk of their retirement savings in registered retirement savings plans (RRSPs) or similar tax-deferred registered accounts. RRSPs need to be used to buy an annuity or more commonly converted to a registered retirement income fund (RRIF) by Dec. 31 of the year someone turns 71. Required RRIF withdrawals begin the next year, with each withdrawal based on a percentage of the account value.
Locked-in RRSPs, defined contributions (DC) pensions, and deferred profit sharing plans (DPSPs) all have the same rule requiring conversion at age 71.
The two big questions for a retiree prior to age 71 are: When should I start withdrawals? And how much should I take out each year?
If we take a simplistic approach to the RRSP drawdown, a sustainable withdrawal rate may be 2% to 5% of the account value. That is, between 2% and 5% of the starting account value may be withdrawn each year with subsequent withdrawals increased each year with inflation for life. There are many asterisks depending on age, life expectancy, investment risk tolerance, investment fees and other factors…
