All about Retirement Planning in Canada. Learn the ins and outs and get the latest news.
Latest News
News for investors: Nvidia smashes Q3 expectations as AI frenzy continues + MORE Nov 22nd
Here’s a round-up of news for Canadian investors this week.
Nvidia
Metro
Questrade
Featured RRSP Accounts
featured
EQ Bank
Build your retirement savings with 1.50% interest, ta.... More »
Can you have too much invested inside an RRSP? + MORE Dec 9th
While not quite up there with outliving your money, for many seniors the idea of dying with too large an RRSP (Registered Retirement Savings Plan) or RRIF (Registered Retirement Income Fund) rankles. Handing over nearly half your nest egg to Ottawa after a lifetime of tax-deferred saving seems to ma.... 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 »
When are tax-deferred and tax-free accounts actually taxable? + MORE Feb 9th
Q. I saw your blog online; thank you so much for the wonderful job that you are doing—it was very informative! That motivated me to start investing too, but now I have a couple of questions. I understand that there is tax on US dividends in TFSA, do we pay tax as well when we sell:
U.S. stocks in.... More »
Making sense of the markets this week: December 10, 2023 Dec 14th
Kyle Prevost, creator of 4 Steps to a Worry-Free Retirement, Canada’s DIY retirement planning course, shares financial headlines and offers context for Canadian investors.
Interest rates stay the same—bank accounts, not so much
As was widely anticipated, the Bank of Canada (BoC) chose to k.... More »
Quebec’s giant pension fund manager, Caisse de dépôt et placement du Québec, posted a 7.6 per cent return on investment last year, bringing its net assets to $270.7 billion.
Doubts grow over stock market’s Trump inspired surge
– canadianbusiness.com
How much more can the “Trump Bump” lift the stock market?
U.S. stocks have screamed to records since Election Day because investors are expecting Donald Trump’s White House to cut taxes for business, make regulations easier for them and goose more growth out of the economy. But investors around the world are questioning whether the rally is exhausting itself.
The big jump for stocks has come at a time when some investors had already seen markets as overpriced. Plus, skeptics see cause for caution with a president who prides himself on unpredictability. That has some favouring bonds or stocks from other countries over the U.S. stock market.
“When we had the election, there was initially shock,” said Darrell Riley, a vice-president at T. Rowe Price who helps set the strategy for how $240 billion in target-date retirement and other mutual funds are invested. “Investors were really shocked, and then we went into this period of euphoria, and now we’re in a state of confusion…
U.S. stocks have screamed to records since Election Day because investors are expecting Donald Trump’s White House to cut taxes for business, make regulations easier for them and goose more growth out of the economy. But investors around the world are questioning whether the rally is exhausting itself.
The big jump for stocks has come at a time when some investors had already seen markets as overpriced. Plus, skeptics see cause for caution with a president who prides himself on unpredictability. That has some favouring bonds or stocks from other countries over the U.S. stock market.
“When we had the election, there was initially shock,” said Darrell Riley, a vice-president at T. Rowe Price who helps set the strategy for how $240 billion in target-date retirement and other mutual funds are invested. “Investors were really shocked, and then we went into this period of euphoria, and now we’re in a state of confusion…
Tax strategies using spousal RRSPs
– moneysense.ca
Generally speaking, income splitting works best for families when two spouses are in different tax brackets. The classic case would be a high-earning female executive with a stay-at-home husband. As we saw in the previous article on pension income splitting, if this woman retires with a lucrative employer pension plan, it would be a no-brainer to split the pension income so half of it is taxed in the lower-taxed hands of the husband.
A similar principal is at work with spousal RRSPs. All those years the high-earning spouse is saving for retirement, the ideal solution would be to get a tax deduction for RRSP contributions but when it comes time to receive the income, to receive it in the hands of the lower-income spouse.
A similar principal is at work with spousal RRSPs. All those years the high-earning spouse is saving for retirement, the ideal solution would be to get a tax deduction for RRSP contributions but when it comes time to receive the income, to receive it in the hands of the lower-income spouse.
The new rules of retirement »
That’s exactly what a spousal RRSP does. The contributor can deduct the amount of the spousal RRSP deposit from his/her (higher) earned income, while the recipient (the husband in our example) owns the investments. The aim is to equalize retirement income of both spouses, and to have the RRSP funds withdrawn by the recipient spouse at his or her lower tax rate…
