Not sure how to make a retirement plan? Read on…
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The best RRSP investments 2022 Jan 11th
A registered retirement savings plan (RRSP) is an investment that is registered with the Canadian federal government. RRSPs are often described as being “tax-advantaged.” That means you don’t pay income tax on the amount you are contributing to an RRSP, in the year you earn that contribution. .... More »
Should RRIF withdrawals be based on the younger spouse’s age? Nov 9th
I am wondering about the minimum RRIF withdrawal calculation. We are wondering if it would be beneficial to use the younger spouse’s age to result in a lower annual combined income. Can you explain the reasoning behind this?—Bernie
When can you convert an RRSP to a RRIF?
Registered retirem.... More »
Is a personal injury settlement taxable, and can it impact OAS or GIS benefits? + MORE Aug 24th
Q. I received a small settlement for an Ontario car accident, which my lawyer says is non-taxable, and so noT4A will be issued. If I deposit the funds into a bank account, will this one-time settlement clawback my OAS and GIS benefits?
–J
A. I’m sorry to hear about your accident, J. Hopefully .... More »
Reducing risk in an RESP: How to invest as your kid approaches college or university + MORE Oct 5th
If you’ve opened a registered education savings plan (RESP) for your child or grandchild, congratulations. You’ve taken the first step towards financing their future college, university or trade school education. And now your family can start benefiting from generous government grants worth thou.... More »
In Your Corner: My house is my retirement plan. Am I doomed? + MORE Aug 24th
Owning a home is a great investment but we all should have other investments socked away for retirement — ideally inside a Registered Retirement Savings Plan (RRSP), says this week’s expert..... More »
Q. I’m 47 years old and, after suffering a personal injury, have just been awarded a medical pension of $400 per month. The money is indexed annually and payable for life. I can opt for a cash-out and receive $120,000 upfront, but I’m unsure which is the smarter option.
My mortgage renews in 2020 and my current interest rate is 2.3%. I will have a mortgage balance of $380,000 on renewal. I receive a monthly pension of $2,300 from the job I just retired from, and will earn additional income when I return to work next year. Should I cash out and pay off my mortgage sooner, or keep the monthly pension?
–Vince
A. As you’ve discovered, Vince, settlements for personal injuries are often offered as structured settlements with monthly payments; or, you may be able to select a lump-sum payout in lieu of those ongoing payments.
The indexing feature you have been offered—such that the $400 per month rises based on some sort of measure of inflation—may sound enticing. And it is, to an extent, because it protects you against the rising cost of living…
My mortgage renews in 2020 and my current interest rate is 2.3%. I will have a mortgage balance of $380,000 on renewal. I receive a monthly pension of $2,300 from the job I just retired from, and will earn additional income when I return to work next year. Should I cash out and pay off my mortgage sooner, or keep the monthly pension?
–Vince
A. As you’ve discovered, Vince, settlements for personal injuries are often offered as structured settlements with monthly payments; or, you may be able to select a lump-sum payout in lieu of those ongoing payments.
The indexing feature you have been offered—such that the $400 per month rises based on some sort of measure of inflation—may sound enticing. And it is, to an extent, because it protects you against the rising cost of living…
