Should you loan money to someone who is house rich and cash poor? May 18th

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Making sense of the markets this week: July 3 + MORE Jul 6th

While regular “Making sense of the markets” columnist Kyle Prevost is on vacation, Dale Roberts and I are filling in. Dale’s piece ran last week, and it’s my turn this week. Dale will return next week, after which a well-rested Kyle will resume.  Speaking of Dale, this week he wrote .... More »

How much are withholding taxes on RRSPs and RRIFs? Jun 15th

I need to withdraw $6,600 from my RRIF over the next six months. This amount is in addition to my annual minimum. If I do the withdrawals in six monthly amounts of $1,100 (total of $6,600), will the tax withholding rate be 10% on each $1,100, or will it be a higher rate on the total $6,600 over the .... More »

Can a LIRA be transferred to an RRSP with no contribution room in Ontario? Aug 10th

Can 50% of my LIRA be transferred to my RRSP if I do not have contribution room in Ontario Canada? Is it better to transfer to an RRSP or RRIF if funds are not needed and are used for investment purposes?—Katherine How much can you transfer from a LIRA to an RRSP? Katherine, Ontario resident.... More »

Bear markets: What’s a long-term investor supposed to do right now? + MORE Jul 13th

My mutual funds are doing terribly, and I know they always say that it is better to stay the course and ride out this market crash and whatever. But I’ve been thinking about divorcing my big bank for awhile now. I have RRSP with mutual funds that have high management fees with RBC, slightly b.... More »
My daughter is 60, divorced, owns a house, perhaps $800,000 house value. She has a small mortgage and no savings of any kind. She lives on a line of credit and a credit card. Her only income is about $300 to $400 monthly CPP.

She is wondering how best to manage. Should she sell now and rent for a short term? 

She is worried about investing since CDIC guarantees only up to $100,000. 

The next five years will be rough until OAS & GIS kick in. Even then, she will be short of money. I have funds but may need that to cover possible care for myself so I cannot help her now. But if I don’t need that money, she will inherit and should be okay in her later years.

—Sandy

(Letter was edited for length.)

Loaning money to family

I’m sorry to hear you have been stressing about your daughter’s financial situation, Joan. I guess you always worry about your kids, even when they are 60! I do think there are several potential solutions to her problem.

I assume she has already explored increasing her line of credit, otherwise she would not be using her credit cards…

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