All about Retirement Planning in Canada. Learn the ins and outs and get the latest news.
Latest News
The best RRSPs in Canada for 2023 + MORE Jan 4th
Registered retirement savings plans (RRSPs) are often described as “tax-advantaged,” meaning they offer tax-efficient ways for savers and investors to build wealth for the future, usually for retirement. To maximize their potential, you must understand how RRSPs work compared to other registered.... More »
Paying yourself first Nov 2nd
There is perhaps no single piece of financial advice more frequently repeated than “pay yourself first.” And with good reason. It’s tough to grow savings if you prioritize all your spending needs and wants ahead of putting money away. While some of us fully intend to stash whatever is left at .... More »
How GICs can help you save for your short-term goals + MORE Nov 23rd
Let’s talk about short-term savings. By short-term, we’re talking about putting away money for a few months, or even a few years, for a big goal, like a vacation, a wedding or a down payment on a home. Where should you put your savings so they’ll be secure and work for you?
When saving,.... More »
Should you buy back pension service from your employer? Jun 22nd
While defined benefit (DB) pensions are the Cadillac of retirement plans, they also entail a unique set of decisions. Buybacks are one of them.
There are a few ways to build up the value of your DB pension: by working to accumulate years of “pensionable service,” of course; by transferring servi.... More »
Why contributing to a TFSA is a good resolution Dec 28th
If nothing else, tax-free savings accounts (TFSAs) have been a boon to Canadian financial writers and bloggers. Two noteworthy examples: A blog on Boomer & Echo by CFP Robb Engen (also a MoneySense ETF expert panelist for the annual Best ETFs in Canada feature) comparing TFSAs to registered reti.... More »
Is Carol better off withdrawing all the money from her RRIF now?
– moneysense.ca
Q. I am considering deregistering my Registered Retirement Income Fund (RRIF) of $89,000 and taking the tax hit for the 2019 tax year. Doing this would leave me eligible to maximize the Guaranteed Income Supplement (GIS) as well as the Shelter Aid for Elderly Renters (SAFER) in the future.
Right now, I am 73 years old, and my income includes Old Age Security (OAS) and Canada Pension Plan (CPP) at a combined total of $622 per month; a small company pension of $228 per month; and a RRIF payment of $500 per month; for a total of $1,350 a month. Funds from deregistering the RRIF would be used to top up my TFSA, pay medical bills, as well as to pay off a bit of personal debt. I currently also receive GIS benefits of $400 a month, and SAFER benefits of $179 a month. Am I doing the right thing to make the most of my retirement money? Your comments on this strategy would be appreciated.
–Carol
A. Hi Caroline, I believe you may be correct in that it makes sense to:
Right now, I am 73 years old, and my income includes Old Age Security (OAS) and Canada Pension Plan (CPP) at a combined total of $622 per month; a small company pension of $228 per month; and a RRIF payment of $500 per month; for a total of $1,350 a month. Funds from deregistering the RRIF would be used to top up my TFSA, pay medical bills, as well as to pay off a bit of personal debt. I currently also receive GIS benefits of $400 a month, and SAFER benefits of $179 a month. Am I doing the right thing to make the most of my retirement money? Your comments on this strategy would be appreciated.
–Carol
A. Hi Caroline, I believe you may be correct in that it makes sense to:
withdraw all of the funds from your RRIF account;
forgo your GIS and SAFER income for one year;
deposit your after-tax RRIF proceeds into your TFSA; and
maximize your future GIS and SAFER benefits…
How long can you put off saving for retirement? Surprisingly, waiting until your 50s makes sense for some
– thestar.com
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.
