Can Canadian seniors collect government benefits while still working? + MORE May 26th

All about Retirement Planning in Canada. Learn the ins and outs and get the latest news.
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 rrsp

How long can you put off saving for retirement? Surprisingly, waiting until your 50s makes sense for some + MORE Jan 6th

Ideally you should draw up a saving plan in your late 30s or early 40s. But it can still be an enormous help if you don’t manage to get to it until your late 40s or 50s or even later..... More »
 cpp

This 30-year-old freelancer makes $125,000 a year and pays modest rent living with his parents. Should he invest in retirement or buy a home? + MORE Feb 3rd

Jeremy says his main goal is to save for retirement, but after looking at condos online, he’s trying to decide if that will be a worthy investment..... More »

DIY investing for busy people—the portfolio management tool you didn’t know you needed + MORE Jul 13th

If you’ve been on the fence about managing a self-directed brokerage account because you think DIY investing is too much of a time commitment, think again. While DIY investing certainly can be an all-consuming “hobby” filled with spreadsheets, calculations and trade activity, it doesn’t have.... More »
 retirement planning

Close to retirement? Don’t panic, say financial experts Mar 23rd

If you are going to dip into your savings, do so in a planned way and track what you remove..... More »

Looking for reliable books and online resources on retirement? Here are a few + MORE Nov 4th

Q. Are there books or good self-help websites on retirement planning for Canadians that you can recommend? I live in Ontario and want to retire earlier than age 60 but I’m unsure how taxes will affect me when I can (and should) begin to draw down on my registered and non-registered savings. I’d .... More »
Q. This fall, I will celebrate my 65th birthday, and plan to reduce my work hours to three days a week, from my current full-time hours now. I also plan to begin collecting my Canada Pension Plan and Old Age Security benefits—but, at the same time, I want to avoid being taxed on my income if possible. What would you suggest I do?
– Rose
A. From a lifestyle perspective, Rose, I think the phased retirement you’ve opted for is a great way to make the transition from full-time work. Not everyone has the option to go from full- to part-time, but if you can, it’s worth considering.
There is a common misconception that you can’t work while receiving your government pensions, or that there is some sort of reduction or clawback. You can, in fact, receive your Canada Pension Plan (CPP) retirement pension and your Old Age Security (OAS) pension while still working, but there are some important considerations.
You can start CPP as early as age 60; if you’re still working at that point, you need to keep contributing to CPP…

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Two of the more promising measures in the recent federal budget could pave the way for deferred annuities and pooled-risk pension products designed to prevent retirees from outliving their money.
The budget proposed two new types of annuities that can be used for registered plans. The headline-grabber was ALDA: an acronym for Advanced Life Deferred Annuity. As of 2020, ALDAs could become an investment option for those with registered plans like RRSPs or RRIFs, Defined Contribution (DC) Registered Pension Plans and Pooled Registered Pension Plans (PRPPs).
The other proposal is for Variable Payment Life Annuities (VPLAs), which would pool investment risk in groups of at least 10 people within defined-contribution RPPs and PRPPs. This, to me, rings of a relatively obscure academic concept called a “tontine,” which, in its most extreme form—famously depicted in The Wrong Box—pools investments by a group, with the single survivor “winning” the whole pot by outliving all the unfortunates who die sooner…

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Q. I have just turned 40, am single, and earn $86,000 a year. I also have zero debt. I just finished paying off my house, worth $315,000, and I would like to continue to put away my mortgage payment of $1,000 every two weeks as savings.
Because all money went to debt repayment, I’ve never really invested before, but I do have $20,000 in my RRSP that a family member manages for me. I also have a small amount in my TFSA. I will receive a pension upon retirement, but as I would like to retire early, I won’t receive the full amount, and the pension payments will not fully sustain my lifestyle. So some advice on how I should invest the $26,000 in annual disposable income would be appreciated.
– Mara
A. Despite your lack of investing experience, Mara, your instincts are right on target. Most of us don’t want financial independence, which can easily be achieved by selling everything we own and buying a hut in an impoverished country; we want to achieve and maintain our desired lifestyle…

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