Not sure how to make a retirement plan? Read on…
Latest News
Why Canada must simplify the tax code + MORE Feb 24th
Aaron Wudrick is the federal director of the Canadian Taxpayers’ Federation.
Are you paying all the tax you’re legally required to pay—and if not, is that okay?
That’s the question at the heart of the controversy over offshore tax havens, whereby mostly wealthy individuals structure their fi.... More »
How to start saving for retirement at 45 + MORE Mar 14th
Saving for retirement at age 45 means you’ll have a 20-year runway toward a traditional age 65 retirement. But what’s your starting point? The National Bank of Canada suggests that by age 40 you should have 2.1 times your annual income saved for retirement, while the U.S.-based firm Fidelity rec.... More »
How to change a past tax return Apr 11th
Ask MoneySense
I have non-registered investment management fees from 2021 and 2022 that were not claimed on my returns for those years. Can they be deducted on my 2023 return? If not, is there another way to utilize those deductions now?
—Ian
How to change a tax filing to claim investment m.... More »
The best ETFs for retirement income + MORE Aug 24th
While exchange-traded funds (ETFs) are appropriate for investors of all ages and life stages, they make particular sense for retirees and those close to retiring. Things like quick and easy broad diversification of asset classes and geographic exposure at a reasonable price are especially relevant w.... More »
When should you start taking CPP? Take it too early or too late and you could sell yourself short + MORE Dec 16th
Age 65 is considered the “standard” age for beginning both CPP and OAS, but you can start taking CPP any time between ages 60 and 70 and you can start OAS any time between 65 and 70..... More »
Gina says she is uncomfortable with owning a rental property. There are better choices for a risk-averse investor.How seniors can avoid financial abuse
– moneysense.ca
TORONTO — Elder abuse expert Lynn McDonald routinely fields calls concerning financial exploitation, but none more dramatic than a recent incident involving a woman in Saskatchewan who was nearly bankrupted by one of her own adult children as she underwent hip replacement surgery.
“The daughter convinced the mother to sign over everything to her while she was sick in hospital and then she’d get it back after she came out,” says McDonald, director of the Institute for Human Development, Life Course and Aging at the University of Toronto.
“But she sold the mother’s house right under her, and took all her possessions. When the discharge went through, the mother came out of hospital with nothing but a pension.”
“The daughter convinced the mother to sign over everything to her while she was sick in hospital and then she’d get it back after she came out,” says McDonald, director of the Institute for Human Development, Life Course and Aging at the University of Toronto.
“But she sold the mother’s house right under her, and took all her possessions. When the discharge went through, the mother came out of hospital with nothing but a pension.”
Managing assets under power of attorney »
McDonald says 2.6 per cent of Canada’s growing population of residents 55 years of age and older are financially abused, making it the second most common form of elder abuse.
With the spotlight on elder abuse awareness throughout June, she says it’s critical for seniors to understand how to protect themselves from financial abuse given that the majority of cases will involve people who are close to them…
Retiring to Mexico— for a lower tax rate
– moneysense.ca
Q: We have a friend living in Mexico 10 months of the year.
She says she pays a flat 15% income tax on her total Canadian incomes. This is a working pension, CPP and OAS.
Is this for real?
—Merry
A: I gather your friend has you interested in retiring to Mexico as well, Merry? Her story sounds good at first pass – but it may or may not be upon closer examination.
If someone has a “permanent home” in Mexico, they are generally considered a Mexican tax resident. A permanent home can be rented or owned. The permanence just means it’s not just for occasional use, like a rental for the winter. It needs to be a long-term lease or a property they own.
If your friend has a permanent home available in Canada as well as Mexico, her residency would also depend on her “centre of vital interests.” So the taxation authorities would consider things like family, job, memberships, assets, etc. to assess personal and economic ties to see if she had a closer tie to one country or the other…
