How to go about securing the best Retirement Plan in Canada.
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Marriage or mortgage: Which is the better investment? Mar 30th
Weddings can be expensive, but so can many of the things that come after a wedding—like a home purchase, starting a family and saving for retirement. And so money is an important relationship issue even before a couple ties the knot.
Both weddings and home purchases can both cause people to thin.... More »
Watch: 4 things to consider before putting your money in a TFSA or RRSP Sep 28th
You know both can help lower how much income tax you pay—both are registered accounts, after all—but how do you decide whether to put your money into a tax-free savings account (TFSA) or a registered retirement savings plan (RRSP)? Watch this video to learn about the four things to consider befo.... More »
Nicholas Hui, P.Eng, Certified Financial Planner + MORE Mar 22nd
Who is Nicholas Hui?
Nicholas Hui was an automotive engineer for 20 years before becoming a Certified Financial Planner. He brings the same systematic approach from his engineering background to his practise now as an advice-only planner. Nicholas specializes in helping young families and profess.... More »
CPP vs RRSP: Can you transfer your CPP to an RRSP? Dec 21st
I’m 40 years old. Can I transfer my accumulated CPP to an RRSP?
—Franco
I am going to cut to the chase here, Franco. You cannot transfer your Canada Pension Plan (CPP) to a registered retirement savings plan (RRSP). Some pensions can be transferred to an RRSP, and there are ways .... More »
Here’s what’s changed — and what hasn’t — in a pandemic RRSP season + MORE Jan 19th
If you’ve been earning a good salary from a secure job, investing your savings in a tax-advantaged RRSP is a good idea. But if your income has suffered or your job security is uncertain, keeping what money you have saved in a TFSA is a better bet..... More »
Is the 4% Rule obsolete?
– moneysense.ca
Over the half decade I’ve written this column and attempted to practice what it preaches, a central pillar has been the so-called 4% Rule. As originally postulated by Certified Financial Planner and author William Bengen, that’s the rule of thumb that retirees can safely withdraw 4% of the value of their portfolio each year without fear of running out of money in retirement. (That’s the gist, although you have to make adjustments for inflation.)
Problem is, with “lower for longer” interest rates and the spectre of negative interest rates, is it still realistic for retirees to count on this guideline? Personally, I find it useful, even though I mentally take it down to 3% to adjust for my own pessimism about rates and optimism that I will live a long, healthy life. I polled several sources to see if they still believe in the 4% Rule, or whether a 3% or even 2% rule might be more appropriate now.
“I think the 4% Rule is a reasonable rule of thumb,” says financial planner Aaron Hector, vice-president of Calgary-based Doherty & Bryant Financial Consultants…
Problem is, with “lower for longer” interest rates and the spectre of negative interest rates, is it still realistic for retirees to count on this guideline? Personally, I find it useful, even though I mentally take it down to 3% to adjust for my own pessimism about rates and optimism that I will live a long, healthy life. I polled several sources to see if they still believe in the 4% Rule, or whether a 3% or even 2% rule might be more appropriate now.
“I think the 4% Rule is a reasonable rule of thumb,” says financial planner Aaron Hector, vice-president of Calgary-based Doherty & Bryant Financial Consultants…
Which savings plans should a 37-year-old with a military disability income contribute to, and when?
– moneysense.ca
Q. I am 37 with a military disability income that will pay monthly until I die. Could you give your advice on which savings plans I should be investing in, and the order in which I should make my investments?
To date, I contribute to my and my spouse’s registered disability savings plan (RDSP), then our TFSAs. When I max out these savings plans, should I contribute to a RRSP, or should I use an unregistered trading account?
–Jason
A. Structuring your cash flow so that you have more money coming in than going out is an important first step in the retirement planning process. But once you have that extra cash flow, deciding the best ways to allocate it is not always simple.
I would generally prioritize paying off high interest-rate debt like credit cards before saving, but I will assume that is not a consideration for you and your wife, Jason.
It sounds as though you both qualify for the disability tax credit (DTC), which is a requirement to open a registered disability savings plan (RDSP)…
To date, I contribute to my and my spouse’s registered disability savings plan (RDSP), then our TFSAs. When I max out these savings plans, should I contribute to a RRSP, or should I use an unregistered trading account?
–Jason
A. Structuring your cash flow so that you have more money coming in than going out is an important first step in the retirement planning process. But once you have that extra cash flow, deciding the best ways to allocate it is not always simple.
I would generally prioritize paying off high interest-rate debt like credit cards before saving, but I will assume that is not a consideration for you and your wife, Jason.
It sounds as though you both qualify for the disability tax credit (DTC), which is a requirement to open a registered disability savings plan (RDSP)…
