Millennial homebuyers and seniors among the winners of Budget 2019 + MORE Mar 24th

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Creating a will is the “adulting” milestone you need to hit this year Jul 21st

When it comes to self-improvement, most of us have a hard time with follow-through—and whether you stuck to your Keto diet or not, there are likely items on your financial to-do list that just never get crossed off. One of the easy actions to delay is creating a will. After all, no one wants to th.... More »

Can Canadian seniors collect government benefits while still working? + MORE May 26th

Q. This fall, I will celebrate my 65th birthday, and plan to reduce my work hours to three days a week, from my current full-time hours now. I also plan to begin collecting my Canada Pension Plan and Old Age Security benefits—but, at the same time, I want to avoid being taxed on my income if possi.... More »
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How will a pension buyback impact your income tax return? + MORE Apr 7th

Q. I plan to do a pension buyback for my service with the Government of Canada. Can I deduct the lump sum payment from my total income if I fully pay the amount at once? And will the total income reported on my T4 be reduced if I choose to deduct a certain amount from each pay stub? Looking forward .... More »

Can you make a transfer from an RESP to a spouse’s RRSP? Sep 1st

Q. I have an RESP account that I plan to wind down—and I have very little RRSP contribution room, but my wife has quite a lot. I just read this article you wrote for MoneySense about transferring money from an RESP to an RRSP. I thought it was permissible for a subscriber (that would be me in this.... More »

UFC Notebook: Cormier undecided on retirement after loss - TSN Aug 18th

UFC Notebook: Cormier undecided on retirement after loss  TSNLeading up to UFC 231, Daniel Cormier acknowledged that facing Stipe Miocic in a rematch for the UFC heavyweight title was a high risk proposition. With the ...View full coverage on Google News.... More »
On the eve of a federal election this fall, the Liberal government is looking to help more Canadians buy their first homes by picking up a portion of their mortgage costs and increasing the amount they can borrow from their retirement savings for a down payment.
Helping people enter the housing market has been a growing preoccupation for the Liberals ever since they were elected in 2015, with soaring real-estate prices in some of Canada’s largest cities putting home ownership beyond the reach of many.
An estimated 1.6 million Canadian households are considered in “core housing need,” meaning people who are living in places that are either too expensive or don’t suit their needs.
The means-tested incentive the Liberals unveiled Tuesday would only be available to households with incomes under $120,000—roughly $50,000 more than the median household income as calculated by Statistics Canada—and on mortgages no more than four times the household’s total income…

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When does investing in flow-through shares make sense?
Q. My wife and I are nearing the end of our working careers. We are big planners and have a financial plan that we have been successfully working with for over 15 years. My wife will be retiring from teaching in two to three years with a full pension. As a part of our plan I left my job this May prior to my 50th birthday to pull my Pension (I know this is a controversial move, but did I mention our 15-year plan?), I am planning on returning to work for the next few years.
My question is around flow-through shares as investments. With my Pension withdrawal, a good portion of it is taxable, pushing my taxable income to $440,000 of which $220,000 will be at a combined Fed/ON tax rate of almost 54%. I have maxed out both our RRSPs and TFSAs so I’m looking at flow-through investments to recoup a good portion of those tax dollars.
I have found several investment firms, including some flow-through niche players. What are the risks, other than the investment going to zero? If it did, are there capital losses here that I could leverage later?
—Thanks, Stacy
A…

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Q. Several years ago, an advisor recommended I hold a Canadian dividend ETF in an RESP for my son. Would this still be a good approach for someone just starting an RESP for their baby, or is there a better alternative, given the increasing number of ETF options?
– Pete in Halifax
A. In many ways, RESPs are fundamentally different from retirement accounts such as RRSPs. They typically have a shorter time horizon, and they are usually depleted within four or five years, once your child reaches post-secondary school. In general, they are also much smaller than retirement accounts, since the most you can contribute is $50,000. But the same principles of risk management apply, and holding nothing more than a Canadian dividend ETF in an education account doesn’t provide enough diversification.
READ: What is an RESP?
If you’re opening a new RESP for a baby, then you have at least 18 years before you need to start withdrawing the money. So you should start with the goal of building a globally diversified portfolio, which includes all asset classes, not just Canadian dividend stocks…

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The Liberals’ last budget of this mandate sets the stage for the October federal election and includes a sprinkling of money for voters across a wide spectrum. But there are also gaps in spending for some groups.
Here’s what the budget does and doesn’t do, for five key voting groups:
Veterans
The Liberals will enter the election campaign facing an uphill battle with veterans after Tuesday’s federal budget promised some new money to those who have served in uniform but otherwise failed to address the community’s largest grievances.
The budget includes funding for chronic-pain research, for survivors of veterans who married after they were 60 years old, for measures to ease the transition from military to civilian life and for Second World War commemorations.
But it doesn’t make any changes to the Trudeau government’s controversial disability pension plan, which will come into effect on April 1. The plan has been blasted by many veterans as falling far short of what the Liberals promised in the last election and was recently found by the parliamentary budget officer to provide less support for the most severely injured veterans than the current system of benefits…

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Is paying off debt with a $250,000 inheritance a good idea?Q. I have a question about my soon-to-be gift/early inheritance. My amazing parents are (as I type!) downsizing and moving into a seniors community. With this downsizing, they have decided to gift between $200,000 and $250,000 to me when the literal and figurative dust settles, which should be about 3 months from now. This leaves me with a lot of … options? Questions? Let’s go with thoughts…
I am married, very happily, for 15 years this fall. We have 2 kids, ages 10 and 8. We own a home worth about $800,000 and have a mortgage of just less than $214,000. We own both cars. We do not have credit card debt.  We have a credit line with a balance of about $12,000 from a renovation last fall.
We both work full time, grossing about $150,000/yr. My husband, whose 40, just started a job with a defined benefit pension (federal) this year. I’m 39 years old and have been in a defined benefit pension (municipal) job for 7 years now.  We have $67,000 in RRSPs (adding about $4,000/yr…

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