How to go about securing the best Retirement Plan in Canada.
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CPP and disability: When should you retire and start your pension? Sep 28th
Ask MoneySense
I have a brain injury and I’m collecting CPP disability of $15,000 a year, along with a workplace disability income of $16,000 a year. I am 61 years old, married, and I can’t figure out if I should retire now and start my pension or wait until I turn 65. My pension projectio.... More »
TFSA vs RRSP: How to decide between the two Jun 29th
One of the most common questions out there is whether to invest in a registered retirement savings plan (RRSP) or a tax-free savings account (TFSA). Both will help you save, and save on taxes, but each works in different ways. Understanding these investments will help you know when to use one or the.... More »
The scoop: What Canadian investors need to know now + MORE Sep 21st
For those who like surprises, the stock markets have not disappointed in 2020. The S&P 500 surged to new heights despite the economy-clenching COVID-19 pandemic powering around the globe, and individual investors’ participation in trading reached a 10-year high during the first half of this ye.... More »
Should I use my RRSP to pay down debt at retirement? + MORE Mar 24th
Q: I have a friend who has just retired and is carrying a debt load of $96,000. She wants to eliminate this debt over a fairly short period of time—about 4 years. The debt is a line of credit that she is paying 4% on. She’s a widow and has $423,000 in RRSPs. How would you approach this problem?.... More »
They’re poised for retirement, but don’t know when that will be + MORE Apr 7th
Hank and Hennie plan to sell their city home and move to a less expensive town when they retire. Ideally they'd like to hang up their hats at the same time, but how feasible is that?
.... More »
No time? Consider target date funds
– moneysense.ca
OTTAWA – For investors who don’t have the time or the interest to manage their retirement savings, target date funds might be a solution worth considering.
“You’re busy doing your day-to-day job, so what we do here is manage an appropriate amount of risk to achieve a goal of return for 65 years,” said Peter Walsh, institutional portfolio manager at Fidelity Investments.
Target date funds are used when you’re saving for a specific objective such as retirement or in a child’s registered education savings plan.
They gradually decrease the proportion of stocks and increase their holdings of fixed income and short-term funds as they close in on their target date.
Funds that are decades from their target take an aggressive stance, with a high proportion of their money in stocks, while those closer to their target are far more conservative.
Portfolio rebalancing: Why, when and how much»
“You’re busy doing your day-to-day job, so what we do here is manage an appropriate amount of risk to achieve a goal of return for 65 years,” said Peter Walsh, institutional portfolio manager at Fidelity Investments.
Target date funds are used when you’re saving for a specific objective such as retirement or in a child’s registered education savings plan.
They gradually decrease the proportion of stocks and increase their holdings of fixed income and short-term funds as they close in on their target date.
Funds that are decades from their target take an aggressive stance, with a high proportion of their money in stocks, while those closer to their target are far more conservative.
Portfolio rebalancing: Why, when and how much»
That compares with a typical balanced mutual fund which has 60 per cent of its money in stocks and 40 per cent in bonds, and doesn’t change much from that mix regardless of your individual needs…
China slump not short-term concern for Canadians
– moneysense.ca
TORONTO – Experts say Canadians don’t need to worry about China’s plunging stock markets affecting their retirement portfolio in the short term, but a potential slowdown in an economy hungry for natural resources could spell long-term trouble.
While the Greek debt crisis has grabbed many headlines, in the last month the Shanghai Composite Index has lost nearly a third of its value.
Finance professor Stephen Foerster of Western University’s Ivey School of Business says the sell-off won’t necessarily have a big impact on Canadian investors.
Canadians buy more goods from China than vice versa, he said, so even if Chinese consumers have less money to spend because of stock market losses it won’t have a major effect on exports.
“We have a substantial trade deficit,” he said. “From a Canadian perspective, it’s less of an impact compared with if the trade balance were the other way.”
On Wednesday, the Chinese securities regulator warned of a “panic sentiment” among investors as Beijing scrambled to halt the slide, buying up shares through state-owned companies and promising support for brokerages reeling from the sell-off…
While the Greek debt crisis has grabbed many headlines, in the last month the Shanghai Composite Index has lost nearly a third of its value.
Finance professor Stephen Foerster of Western University’s Ivey School of Business says the sell-off won’t necessarily have a big impact on Canadian investors.
Canadians buy more goods from China than vice versa, he said, so even if Chinese consumers have less money to spend because of stock market losses it won’t have a major effect on exports.
“We have a substantial trade deficit,” he said. “From a Canadian perspective, it’s less of an impact compared with if the trade balance were the other way.”
On Wednesday, the Chinese securities regulator warned of a “panic sentiment” among investors as Beijing scrambled to halt the slide, buying up shares through state-owned companies and promising support for brokerages reeling from the sell-off…
