How to go about securing the best Retirement Plan in Canada.
Latest News
DIY investing for busy people—the portfolio management tool you didn’t know you needed + MORE Jul 13th
If you’ve been on the fence about managing a self-directed brokerage account because you think DIY investing is too much of a time commitment, think again. While DIY investing certainly can be an all-consuming “hobby” filled with spreadsheets, calculations and trade activity, it doesn’t have.... More »
The upside to waiting until age 70 to take CPP benefits + MORE Oct 5th
Q. I am retiring next year at age 65 and I don’t know if I should take my CPP immediately, or wait. My friends and other people I know from work took their CPP when they retired and they are telling me I should take it when I retire. Are they right? When is the best time to draw CPP?
–Jit
A. H.... More »
What it’s like to work with a financial advisor + MORE Apr 6th
If you’re like many Canadians, you’re probably weighing working with a financial advisor. Maybe you’ve just gotten married, started a business, expanded your family or come into an inheritance, or you’re planning your financial future as you approach retirement.
A financial advisor can be.... More »
Why “unretirement” may be the fate of so many Canadians Mar 14th
The idea of “unretirement” seems to be making a comeback as more Canadians find themselves under economic stress. Even before the tariff threats emerged under Trump 2.0, seniors and near-retirees were finding the economic uncertainty and rising cost of living becoming uncomfortable. No surprise .... More »
Can you receive a government pension if you live outside of Canada? Jul 20th
Q. My father, who was born in 1945, left Canada to live in Thailand when was 26 years old. That was 50 years ago and he has never returned. If he comes back to Canada for one year to apply for his OAS, would he be eligible to receive a full pension? And would they be able to calculate his pension an.... More »
Q. I am torn about making a key financial decision in my life. First, a little about myself. I worked for about seven years (actually, six years and 360 days) as a teacher in the Arctic. I resigned this year and have returned to the “south.”
Now, I have about a year to decide whether I cash out my federal public service pension plan or transfer the holdings into an annuity (about $93,000) and RRSP (about $71,500).
I have consulted with a financial planner at one of the large banks, who has made a seemingly convincing argument in favour of transferring the entire pension amount out. But I am well aware that I don’t know enough to be able to ask the right questions and make an informed decision. I am also aware the bank will benefit from my investment, as will my financial planner.
Can you give me some good advice on what I should do at this important juncture in my financial life?
–Kathy
A. I recently wrote an article on making the decision to keep your pension or take the cash, and you can read it here…
Now, I have about a year to decide whether I cash out my federal public service pension plan or transfer the holdings into an annuity (about $93,000) and RRSP (about $71,500).
I have consulted with a financial planner at one of the large banks, who has made a seemingly convincing argument in favour of transferring the entire pension amount out. But I am well aware that I don’t know enough to be able to ask the right questions and make an informed decision. I am also aware the bank will benefit from my investment, as will my financial planner.
Can you give me some good advice on what I should do at this important juncture in my financial life?
–Kathy
A. I recently wrote an article on making the decision to keep your pension or take the cash, and you can read it here…
12 top personal finance books to read this summer
– moneysense.ca
For obvious reasons, a lot of personal finance and retirement books come my way and, from time to time, we’ve dedicated a particular edition of this column to a single book. This one looks at a dozen noteworthy books I’ve read lately, or plan to—most of them published in the last few years.
If you want to learn about…global macroeconomics
Let’s start with global macroeconomics, which is top-of-mind for many investors and would-be retirees these days. With central banks around the world putting their printing presses into overdrive to combat the coronavirus bear market (however brief it may have been), I suggest reading Graham Summers’ The Everything Bubble: The Endgame for Central Bank Policy, first published in 2017. It describes what the author calls “serial bubbles”—not just stocks but virtually every asset class, including fixed income and real estate. The U.S. tech bubble was $7 trillion (U.S.) in size; the subsequent U.S. housing bubble, $14 trillion; and the U…
If you want to learn about…global macroeconomics
Let’s start with global macroeconomics, which is top-of-mind for many investors and would-be retirees these days. With central banks around the world putting their printing presses into overdrive to combat the coronavirus bear market (however brief it may have been), I suggest reading Graham Summers’ The Everything Bubble: The Endgame for Central Bank Policy, first published in 2017. It describes what the author calls “serial bubbles”—not just stocks but virtually every asset class, including fixed income and real estate. The U.S. tech bubble was $7 trillion (U.S.) in size; the subsequent U.S. housing bubble, $14 trillion; and the U…
Borrowing money to invest
– moneysense.ca
There are different ways to borrow to invest.
Opening a margin account
A simple option is with a margin account at a brokerage. Depending on the existing investments in the account, a brokerage will lend up to a certain percentage of the value to an investor, at a specified interest rate.
The amount of “maintenance excess” that needs to be kept in the account as collateral for borrowed securities generally ranges from 30% to 100% of the market value. Larger, established, blue-chip stocks may only have a 30% margin requirement, meaning up to $70 borrowed for every $100 invested.
Margin interest rates generally range from 5% to 10%, but can vary. The interest is tax-deductible when the borrowed money is being used to invest. If stocks fall, a margin account investor could have a “margin call” and need to deposit more funds, or sell stocks to reduce leverage.
Investment and RRSP loans
Investment loans with required monthly principal and interest payments are another option for borrowing to invest…
Opening a margin account
A simple option is with a margin account at a brokerage. Depending on the existing investments in the account, a brokerage will lend up to a certain percentage of the value to an investor, at a specified interest rate.
The amount of “maintenance excess” that needs to be kept in the account as collateral for borrowed securities generally ranges from 30% to 100% of the market value. Larger, established, blue-chip stocks may only have a 30% margin requirement, meaning up to $70 borrowed for every $100 invested.
Margin interest rates generally range from 5% to 10%, but can vary. The interest is tax-deductible when the borrowed money is being used to invest. If stocks fall, a margin account investor could have a “margin call” and need to deposit more funds, or sell stocks to reduce leverage.
Investment and RRSP loans
Investment loans with required monthly principal and interest payments are another option for borrowing to invest…
