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What’s my RRSP contribution limit for 2022? + MORE Dec 21st
This RRSP contribution room calculator will get you the numbers you need, but keep reading for a better understanding of RRSPs.
If you’re like many Canadians, you’re hoping you’ve paid enough tax in 2022 and may even be looking forward to a hefty tax refund. (The deadline for filing th.... More »
Is the Longevity Pension Fund a cure for retirement income worries? Jun 15th
Many retirees and near-retirees are enthused about the June 1 release of Purpose Investments Inc.’s Longevity Pension Fund. (For the sake of space, we’ll refer to it as LPF henceforth.)
Taking on the challenge of providing retirement income for the vast army of people who don’t have classica.... More »
Should I work past 70 while collecting CPP and OAS? Sep 2nd
Q: I turned 67 in February of 2016. I still work full time and my yearly income is about $96,000 annually. I also collect a survivor benefit of $389 per month and have contributed to CPP for 14 years. I would like to delay collecting CPP and OAS until 70 but can I still work after age 70 while I.... More »
Should I draw down my RRIF to avoid estate taxes? + MORE Apr 25th
Ask MoneySense
Is it a good idea to withdraw more money monthly than one needs from one’s RRIF? What about beginning a regularly automated transfer of this extra money to one’s non-registered investments so that there is less money in the RRIF account upon death? As a result, the estate will be .... More »
What is the Canada Pension Plan death benefit? + MORE Sep 26th
Ask MoneySense
Your recent article is the first time I have seen reference to a CPP death benefit of $2,500. Can you explain it, please?
—Sam
The primary purpose of the Canada Pension Plan (CPP) is to pay a retirement pension to contributors. Employers as well as employed and self-employed .... More »
Building a low-fee portfolio that lasts
– moneysense.ca
Edward and Penelope Arneson of Cochrane, Alta. (Photo by CHRIS BOLIN)THE PROBLEM
Cochrane, Alta. residents Edward, 60, and Penelope, 58, retired five years ago. Ed feels grateful to his former employer for his defined benefit pension plan, but he doesn’t feel that way about his adviser of 25 years. “We’re getting mediocre returns—we’re not even hitting the benchmarks,” he says. “We want a change.” Their portfolio includes $250,000 worth of Imperial Oil shares as well as registered and non-registered mutual funds. Their holdings are mostly in funds charging 2.2% in fees, with a whopping 80% weighted in Canadian equities. Their goal? “More income, more tax efficiency, and less fees.”
THE FIX
Calgary money coach Tom Feigs says the Arnesons first need to adjust their asset allocation. Right now, their after-tax guaranteed income for life from Ed’s company pensions is $58,000 annually (indexed to inflation) and will bump up to $78,000 when Ed turns 65. If they can get an average annual 4% return on their portfolio, the couple can easily supplement their lifestyle up to $95,000 in income per year to age 95…
With the job cuts winding down, Robinson argued that the rate of retirement will drive more hiring.
The federal Crown corporation that invests civil servants’ pensions used a complex network of European companies that its own advisers called an “avoidance scheme” to avoid paying foreign taxes — a revelation that could undermine Canada’s standing as countries crack down on corporate tax avoidance.
