Retirement planning getting you down? There are always smart ways to plan the financial aspects of your retirement.
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More Canadians are pressing pause on retirement savings to pay for things now. Just how long should you do that? The answer may surprise you + MORE Jun 1st
Be aware of the setbacks of putting saving for the future on the back burner in the face of high inflation, experts caution..... More »
Should I contribute to my TFSA when I’m 68? + MORE Mar 17th
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Q. I am 68 years old and already retired. Is there any point in contributing to a TFSA?
– Michelle
A. Any point? Why yes. There are lots and lots of points. I’ll make a few of them here.
The Tax-Free Savings Account is a great vehicle to reduce your taxes whatever your age. You’re .... More »
How to boost your returns in retirement + MORE Oct 21st
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What’s the single biggest fear retirees face? Undoubtedly it’s the prospect of outliving their money. And as this column has pointed out before, retiring in this second decade of the 21st century poses challenges for just about any healthy person who lacks an inflation-indexed emplo.... More »
RRSP withdrawals in your 40s Oct 7th
Q: I’m a federal government employee and was thinking about take some time and using my RRSPs to live on during that time (1 year). My bank said I could turn my RRSPs into a RRIF and withdraw monthly from that for income. I’m only 40. Is this possible? I’ve read online that you m.... More »
Stock news for investors: Mixed Q4 results with big profit gains for Enbridge, Nutrien, and Cenovus + MORE Feb 21st
Here’s a round-up of news for Canadian investors this week.
Enbridge
Nutrien
Teck Resources
Canadian Tire
MTY Food Group
Cenovus Energy
Featured RRSP Accounts
featured
EQ Bank
.... More »
Reduce tax brackets by organizing where you hold investments
– moneysense.ca
(Getty Images / Peter Dazeley)Nobody likes to pay taxes.
But while they are inevitable, you can minimize the amount you pay.
Brent Vandermeer, a portfolio manager with HollisWealth, says to build a tax efficient portfolio you need to pay attention to what you hold and where it’s held.
“A lot of people view each of their own accounts that they have set up as distinct little buckets that they manage,” he said.
“From a tax efficiency point of view that actually negates some of the benefit of having certain kinds of investments in more tax efficient accounts.”
That’s because in the eyes of the Canada Revenue Agency, not all investment income is created equal.
Under the tax rules, interest income from investments like savings accounts, GICs and bonds are fully taxable at your marginal tax rate, while dividends benefit from the dividend tax credit that helps reduce the amount of tax you owe.
And only half of any capital gain is included when calculating your taxes.
Vandermeer says those differences mean you need to pay attention to where your investments are held, whether it is your RRSP, tax-free savings account or other non-registered account…
With ‘good genes,’ Ian, 68, works to stretch retirement savings
– theglobeandmail.com
Consultant runs his own business from home and says continuing to work past 65 for a few extra years will allow his nest egg to last longer
Corporate Boards Turn Up Heat on Management to Think Short Term
– blogs.wsj.com
The head of Canada’s biggest pension fund wants to curb the spread of short-term thinking in corporate boardrooms as management teams face increasing pressure to focus on short-term earnings growth and stock-price gains over long-term growth.
