There are plenty of retirement plan options in Canada! Stay on top of the best plans right here.
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Stock news: Dividend hikes, earnings results, and what moved Canadian stocks this week + MORE Feb 7th
Here’s a round-up of news for Canadian investors this week.
Suncor
ATS
Brookfield
Thomson Reuters
BCE
Canada Goose
Featured RRSP Accounts
featured
EQ Bank
Build your r.... More »
I’m decades from retirement. Do I really need to contribute to my RRSP? + MORE Mar 15th
The biggest issue with contributing to an RRSP too early is the need down the road to withdraw the money for expenses other than retirement that come along, says experts.... More »
Should you borrow to pay expenses on an investment property? + MORE Nov 18th
Q. I have an investment property that I rent out. Now that I’m retired, I would like to use the income to supplement my retirement income. That would leave me with no money to pay the expenses on the property (mortgage payment, maintenance, utilities, etc.).
I’m wondering two things: One, can I .... More »
We have few assets. Can we skip having a will? + MORE Jun 3rd
Q: Ed, my husband and I do not have a will. We have no house but do have an RRSP, a little cash, and two children (ages 14 and 12). Should we have a will? If so, what type of will is acceptable/legal without seeing a lawyer, seeing that we do not have much in the way of assets.
—Pam
A: Pam, the .... More »
Reasons to tap RRSPs before age 71 + MORE Jul 15th
Q: If you are self-employed and have a holding company, does it not make sense to use your RRSP funds before 71 and then opt for funds from your holding company after?
—Tom
A: You’ve asked a good question and you’ve already got your answer, Tom, but I’m going to help validate why it makes.... More »
Should you wait out an investment loss?
– moneysense.ca
Q: My $50,000 investment in gold is now worth $27,000. Over the last three years I haven’t had the stomach to invest in anything more. I’m 50 and my earning power is running out. Do I stick with the gold to prevent locking in a big loss or sell and try to make it up?
—Jordan, Canmore, Alta.
A: It’s hard for any of us to admit when we’ve made a mistake, and it’s even more difficult when a blunder costs us a big chunk of our retirement savings. But don’t compound your error by hanging on to an investment you never should have bought in the first place. Doing so is what gamblers call throwing good money after bad.
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As it stands, you’ll need an 85% return to turn your $27,000 back to $50,000. That’s just over 13% compounded annually for five years, or about 6…
Am I on track to retire in 10 years?
– moneysense.ca
(Photo by Amanda Skuse)The current situation
Shannon Jimenez, 47, lives in Chilliwack, B.C. with her husband Hector, 55. She’s a part-time customer service rep while Hector is a manager. “We’ve spent the last 25 years building up the equity in our home and in our Mexican rental property so savings are slim,” says Shannon. Right now, the couple has $45,000 in RRSPs earning 3.5% annually after fees. Neither has an employer pension but they are saving $1,000 a month from their $95,000 household income (which includes $10,000 in rental income). They also put $1,400 per month towards their mortgage—an amount that will be reduced to $700 in two years, allowing them to increase their savings to $1,700 per month for the next eight years. “We hope that by beefing up our savings in two years we can retire in 10 years on $40,000 net per year,” says Shannon.
The verdict
Janet Gray of Money Coaches Canada says the couple is on track to retire in 10 years, but only if they sell their Mexico rental property when
Hector reaches age 75…
7 tips to plan a smarter retirement
– moneysense.ca
This cheat sheet on retirement planning tips is part of our series on the basics of personal finance as part of Financial Literacy Month. On Friday, MoneySense will have a special Facebook Live testing other magazine editors on their money sense. Tune in live at 3 p.m. on our Facebook page to watch us put them to the test. Follow us and participate if you think you know your stuff.
1. Face the facts
Saving for retirement is always a challenge. But a number of factors have added up in recent years that make it even tougher on those entering or preparing to enter retirement. Jonathan Chevreau, Retired Money columnist for MoneySense, says the strength and predictability of defined benefit pensions (which pay out until death based on your earnings) is disappearing, as corporate plans move to defined contribution pensions (which build wealth based on employee and corporate contributions but do not pay out based on guaranteed formulas). That’s hard enough, Chevreau argues, but where “financial oppression” really takes hold is that retirees are stuck with bond yields that are sitting close to zero, which means nest eggs stop growing as fast and have to be drawn down a lot faster than they were for past generations…
