Not sure how to make a retirement plan? Read on…
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Retirement Income for Life: Why Canadian retirees love Frederick Vettese’s books and his PERC + MORE Feb 22nd
Since I turn 71 soon, my attention is naturally becoming focussed on the inevitable question of what to do when my registered retirement savings plan (RRSP) must be collapsed. Do I keep it as a registered retirement income fund (RRIF)? Or should I convert it into an annuity? Maybe I do a combination.... More »
RRIF withdrawals: What should seniors with million-dollar portfolios do? Nov 16th
Ask MoneySense
I have invested well and now I am in my 80s. My RIF is almost $3 million and is going to attract heavy taxes. My other investments are about $2 million, some with capital gains which we are going to donate to charity.
Any suggestions on how to reduce the huge tax liability? Should .... More »
“Which reverse mortgage is right for me?” + MORE Sep 14th
When Vancouver condo owners Maggie and Rob found out they were on the hook for $400,000 in improvement costs to their building and unit as required by an assessment from their Strata Council, they weren’t sure what to do. (We’ve changed their names and some details to protect their privacy.)
.... More »
Millennial homebuyers and seniors among the winners of Budget 2019 + MORE Mar 24th
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 group.... More »
What’s the best way of using your home equity during retirement? Nov 9th
Not sure how to make a retirement plan? Read on...
What’s the best way of using your home equity during retirement? - thestar.comContinue Reading On thestar.com »Getting the most out of your Retirement Plan in Canada can be tricky - let us help! Visit our Retirement page for.... More »
Should I contribute to my TFSA when I’m 68?
– moneysense.ca
iStockQ. 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 already retired, so you’re not saving for that phase of your life. But you may have assets that could benefit from the tax shelter that the TFSA provides.
Money that you withdraw from an RRSP or a RRIF is taxed as income. But TFSA contributions are made with after-tax income, so you don’t pay a second time when you pull the money out. This means that whatever you draw from the TFSA will not impact “income-tested” benefits like Old Age Security or the Guaranteed Income Supplement.
Related: Should we tap the RRSP and feed the TFSA?
Remember, too, that you can’t contribute to an RRSP after age 71 and you’ll have to start withdrawing money from your RRIF, according to the amounts the government mandates…
When to watch out for OAS clawbacks
– moneysense.ca
Beware of the clawback!(Shutterstock)Q: I have been trying to find out how much extra income a person can earn without having to report the income while drawing OAS and CPP.
I have tried looking this up online, but every site I have been to wants to charge me just to get the answer or does not answer my question and ends up talking about other things.
I just need to know the limit they are allowed to earn before they need to report it.
—Marcella
A: By default, Marcella, you should assume that most income sources are taxable and need to be reported on your tax return. There are a few exceptions, like GST/HST credits, Canada child benefits, lottery winnings, gifts, inheritances, post-secondary scholarships for full-time students, and Tax Free Savings Account (TFSA) withdrawals.
Ask a Planner: Leave your question for Jason Heath »
There are also amounts that may end up being tax-free, like if your income is low, or if you have lots of tax credits, or on the sale of certain types of assets, like a business or farm…
