How to go about securing the best Retirement Plan in Canada.
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Can you receive a government pension if you live outside of Canada? Jul 20th
Q. My father, who was born in 1945, left Canada to live in Thailand when was 26 years old. That was 50 years ago and he has never returned. If he comes back to Canada for one year to apply for his OAS, would he be eligible to receive a full pension? And would they be able to calculate his pension an.... More »
Can you maximize your RRSP and TFSA with an income of $0? Feb 22nd
Ask MoneySense
I have $119,000 room allowed in my RRSP and $81,000 room in my TFSA.
I am 47, live in B.C., currently not earning income as a caregiver for a parent. I have a business with a registered GST number to claim income now or in the future. But for my question, let’s assume I will be c.... More »
Retiring on bonds? + MORE Jun 24th
This is the fourth post of Jonathan Chevreau’s new column, Retired Money, which will explore smart ways to draw down income in retirement and semi-retirement.
Just how tough is it for modern retirees to generate a liveable income solely from fixed-income investments? According to BMO Asset Man.... More »
Caisse to sell off remaining oil assets by next year - CBC.ca Sep 28th
Caisse to sell off remaining oil assets by next year CBC.caQuebec pension giant Caisse to exit remaining oil-producing assets, setting up $10-billion green fund The Globe and MailCaisse de dépôt to exit oil production by end of next year in new climate strategy Fin.... More »
The 60/40 portfolio: A phoenix or a dud for retirees? + MORE Oct 26th
For Canadian investors, one of the biggest shocks of 2022 is how poorly balanced mutual funds, exchange-traded funds (ETFs) and portfolios have performed. Investors with funds based on the classic pension fund asset allocation of 60% in stocks and 40% in bonds have been bewildered to experience loss.... More »
How banning bottled water can backfire
– macleans.ca
Markus Mainka/iStockHaving announced Montreal will ban single-use plastic shopping bags as of Jan. 1, 2018, the city’s mayor, Denis Coderre, recently set his sights on his next target—erasing plastic water bottles from the city.
While the move drew hackles from beverage companies, it was cheered by environmental groups and community leaders who have long viewed bottled water as wasteful and polluting. (Never mind this is the city that dumped nearly five billion litres of raw sewage into the St. Lawrence River last year.) But it turns out banning bottled water might not have the green, consumer-friendly result its supporters hope. If anything, it could turn out to be a boon for the bottled sugar-water business instead, and potentially fill trash bins with even more plastic.
That’s the finding of a researcher who studied what happened at the University of Vermont after the school banned the sale of plastic water bottles on its campus in 2013.
Expectations were high. The school threw a “retirement party” for the plastic bottle, where it erected a sculpture made of 2,000 used plastic water bottles…
How income splitting can save taxes
– moneysense.ca
(Getty Images)One mistake many retirees make is not taking out enough money to maximize income splitting (especially if it helps them avoid an OAS clawback), says accountant Paul Panabaker. Up to 50% of the money withdrawn from a RRIF can be transferred from a higher-income spouse to a lower-income spouse to reduce taxes and to hold onto more government benefits. So to get the biggest break, make sure that enough is taken out to get both you and your spouse to the top of a lower tax bracket. Remember that a pension can also be split with a spouse, so if you do get one, then RRIF splitting may not be the right move as it could push you into a higher bracket.
The bottom line: This strategy could save you thousands, depending on how much a higher-earning spouse can reduce his or her taxable income.
More tax tips here.
The post How income splitting can save taxes appeared first on MoneySense.
