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

There are plenty of retirement plan options in Canada! Stay on top of the best plans right here.
Latest News

Should you collect CPP and OAS while working in your 60s? Dec 7th

I have lived in Canada for 24 years and I’m 65 years old now. I am still working at a company making a $78,000 salary. Since my health condition is OK, I am going to continue to work for two to four years. My question is: In my situation, it is better for me to apply for OAS and CPP now or delay t.... More »
 retirement savings plan

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 »

2022 Income Tax: New tax credits for Canadians Nov 30th

It’s that time again… to get all your paperwork ready for tax season. We all know about having our T4 and registered retirement savings plan (RRSP) contribution statements ready, but what about the new tax credits for the 2022 tax filing season? What are they and how do they work? Don’t wo.... More »

What time of year should you retire? Sep 7th

Is there a better time of the year to retire based on tax implications: December 31 versus June 30 versus January 30? —Laf The best date to retire for tax purposes For most Canadians planning their retirement, tax isn’t the primary factor, Laf. However, there are instances when tax can com.... More »
 canada pension plan

How to model retirement income in Canada Feb 15th

Ask MoneySense I am retired early at 58 years old. My wife is 56 years old. We live on a Christmas tree farm, which was paid for years ago.  I have a work pension, and my wife was bought out for her pension.  We have considerable RRSPs, farm income, and farm property. Where do w.... 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…

Continue Reading On moneysense.ca »

Share

PinIt
Compare insurance quotes through Kanetix.ca - save time and money!