There are plenty of retirement plan options in Canada! Stay on top of the best plans right here.
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Where should working retirees put extra income: A TFSA or an RRSP? Jan 11th
Ask MoneySense
I will be receiving CPP and OAS as of June 2024. I intend on working one more year until I reach 66. My question is: Should I put all my CPP money into an RRSP to shelter it from tax? Or should I pay the tax on it and invest in a tax-free savings account?
–Gary
Where to put r.... More »
30 and no pension: What are your options? Sep 6th
Alexandre Crupi has a lot of expenses. The 31-year-old investment specialist at Steadyhand Investment Funds, along with his fiancee, are paying for a September wedding. Then there’s the cost of their forthcoming honeymoon. They hope some day to buy a house. On top of all that, Crupi doesn’t curr.... More »
How much of a pension does a survivor receive? + MORE Jun 27th
Ask MoneySense
When my husband dies, do I still receive his or a portion of his pension, and if so, how do I find out what it is?
–Donna
Pensions can make up a significant portion of a someone’s income in retirement. As a result, it is important to understand what happens if a spouse—or.... More »
Affordability tips for first-time home buyers to securing a mortgage Nov 2nd
Q. My partner and I rent a two-bedroom apartment in Toronto in a great neighbourhood for $1,850 a month—so, a great deal. We have been living together for three years and would like to buy a house together next year, when we both turn 30.
Get the mortgage rate that works for you.Find the bes.... More »
RRIF withdrawals: What should seniors with million-dollar portfolios do? Nov 16th
Ask MoneySense
I have invested well and now I am in my 80s. My RIF is almost $3 million and is going to attract heavy taxes. My other investments are about $2 million, some with capital gains which we are going to donate to charity.
Any suggestions on how to reduce the huge tax liability? Should .... More »
How to maximize your last-minute RRSP contribution
– moneysense.ca
Mark your calendars: the deadline for Registered Retirement Savings Plan (RRSP) contributions for the 2020 tax year is March 1, 2021. But before you rush to deposit your money in a GIC or high-interest RRSP savings account at a local bank and call it a win, you should know there are other options that are just as simple and convenient—and better for your bottom line. Here’s how you can get the most out of your retirement savings all year long.
Get more than a tax deduction
Sure, it’s great that you can deduct allowable RRSP contributions (up to 18% of your previous year’s gross earnings) from this year’s taxable income—which will fatten up your tax refund—but that’s just the beginning. You also want your hard-earned savings to grow over time and compound into a nice retirement nest egg. Unfortunately, the amount of interest you can earn on a GIC is quite low, sometimes even lower than the rate of inflation. So, by the time you’re ready to spend those funds, they won’t buy you as much as they could today…
Get more than a tax deduction
Sure, it’s great that you can deduct allowable RRSP contributions (up to 18% of your previous year’s gross earnings) from this year’s taxable income—which will fatten up your tax refund—but that’s just the beginning. You also want your hard-earned savings to grow over time and compound into a nice retirement nest egg. Unfortunately, the amount of interest you can earn on a GIC is quite low, sometimes even lower than the rate of inflation. So, by the time you’re ready to spend those funds, they won’t buy you as much as they could today…
What to consider if you still have RRSP contribution room
– moneysense.ca
Registered retirement savings plans (RRSPs) have been around since 1957, and each February is commonly referred to as “RRSP season.” The banks and financial media used to make a bigger deal about RRSPs in the new year, but ever since Tax-Free Savings Accounts (TFSAs) were introduced in 2009, RRSP season has seemed a bit watered down. That does not mean RRSPs are not good tax and investment options, it just reflects the fact that Canadians now have alternatives.
Maybe you’ve run some preliminary numbers on your 2020 tax return software, and discovered that you owe the CRA; or perhaps life simply got in the way of your organizing a contribution earlier (and if that’s the case, here are some tips on making last-minute RRSP contributions). Whatever the reason, if you are planning to make an RRSP contribution before the deadline, here’s a quick-reference roundup of key facts and myths to guide you.
RRSP facts
RRSP deadline for the 2020 tax year: March 1, 2021.
Maximum RRSP contribution for 2020: $27,230 (requires $151,278 of earned income in 2019 and no pension adjustment), plus any accumulated RRSP room the contributor has from past years…
Maybe you’ve run some preliminary numbers on your 2020 tax return software, and discovered that you owe the CRA; or perhaps life simply got in the way of your organizing a contribution earlier (and if that’s the case, here are some tips on making last-minute RRSP contributions). Whatever the reason, if you are planning to make an RRSP contribution before the deadline, here’s a quick-reference roundup of key facts and myths to guide you.
RRSP facts
RRSP deadline for the 2020 tax year: March 1, 2021.
Maximum RRSP contribution for 2020: $27,230 (requires $151,278 of earned income in 2019 and no pension adjustment), plus any accumulated RRSP room the contributor has from past years…
