Not sure how to make a retirement plan? Read on…
Latest News
Divorce over 50: managing your finances if you find yourself single in the run-up to retirement Aug 3rd
Divorce is certainly not new—but what’s emerging as a trend is the choice to split later in life. Dubbed grey divorce, these marital splits, happening close to or in retirement, are reportedly on the rise, and they can have a significant financial impact.
Married couples are generally subject .... More »
The best free personal finance and investing courses in Canada Nov 29th
Financial literacy is an essential life skill. Whether you want to budget, saving, invest or plan for retirement, understanding how to manage money can help you achieve financial stability. Fortunately, there are many free courses that can help Canadians develop greater financial literacy. Below, fi.... 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’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 »
How much to take out of your RRSP in your 60s Oct 5th
Many retirees have the bulk of their retirement savings in registered retirement savings plans (RRSPs) or similar tax-deferred registered accounts. RRSPs need to be used to buy an annuity or more commonly converted to a registered retirement income fund (RRIF) by Dec. 31 of the year someone turns 71.... More »
Investing inside a corporation: what you need to know
– moneysense.ca
A MoneySense reader writes:
We have $550,000 to invest in our corporation and need something tax-efficient. Although we’re retired, we don’t need this money for the foreseeable future, so we’re investing for the long term. We’re considering either DIY investing following one of the Couch Potato-model portfolios or using a robo-advisor. As a third alternative, we’re also wondering if we should just buy Canadian bank stocks. Can you help?
FPAC responds:
Congratulations on your successful retirement! At a stage when most people are focussed on decumulation, you’re asking about establishing an approach for long-term, tax-efficient investing inside your corporation. Let’s walk through these important considerations:
Investment decisions: robo-advisor or DIY—and ETFs or bank stocks?
A robo-advisor is a great choice for automated, tax-efficient and low-cost investing. A robo-advisor will be able to set you up with a portfolio of low-cost, widely diversified ETFs. Regular rebalancing, quarterly reporting and ease of use will make this option attractive if you are looking for a hands-off approach…
We have $550,000 to invest in our corporation and need something tax-efficient. Although we’re retired, we don’t need this money for the foreseeable future, so we’re investing for the long term. We’re considering either DIY investing following one of the Couch Potato-model portfolios or using a robo-advisor. As a third alternative, we’re also wondering if we should just buy Canadian bank stocks. Can you help?
FPAC responds:
Congratulations on your successful retirement! At a stage when most people are focussed on decumulation, you’re asking about establishing an approach for long-term, tax-efficient investing inside your corporation. Let’s walk through these important considerations:
Investment decisions: robo-advisor or DIY—and ETFs or bank stocks?
A robo-advisor is a great choice for automated, tax-efficient and low-cost investing. A robo-advisor will be able to set you up with a portfolio of low-cost, widely diversified ETFs. Regular rebalancing, quarterly reporting and ease of use will make this option attractive if you are looking for a hands-off approach…
How might inflation impact your retirement plans?
– moneysense.ca
For retirees and near-retirees, at least five dire possibilities can threaten a long and fruitful retirement: taxes, investment fees, crumbling stock markets, soaring interest rates and inflation.
We can largely control the first two by maximizing the use of tax-effective vehicles like TFSAs and RRIFs, and avoiding high-fee investment solutions. Stocks and interest rates are trickier, typically addressed by ensuring that the traditional free lunch of diversification and asset allocation are commensurate with your financial resources and lifestyle objectives.
But what about inflation? Throughout the first half of 2021, inflation has variously been depicted as an ominous looming threat, or merely a “temporary” spike, triggered by the COVID recovery. It’s certainly been inching up this summer: food prices are at their highest level in almost three decades, and the prices of housing, energy and even used cars are soaring. U.S. inflation is up 5.4% versus a year ago and is at a 13-year high…
We can largely control the first two by maximizing the use of tax-effective vehicles like TFSAs and RRIFs, and avoiding high-fee investment solutions. Stocks and interest rates are trickier, typically addressed by ensuring that the traditional free lunch of diversification and asset allocation are commensurate with your financial resources and lifestyle objectives.
But what about inflation? Throughout the first half of 2021, inflation has variously been depicted as an ominous looming threat, or merely a “temporary” spike, triggered by the COVID recovery. It’s certainly been inching up this summer: food prices are at their highest level in almost three decades, and the prices of housing, energy and even used cars are soaring. U.S. inflation is up 5.4% versus a year ago and is at a 13-year high…
