All about Retirement Planning in Canada. Learn the ins and outs and get the latest news.
Latest News
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 »
Is the 4% Rule obsolete? + MORE Aug 3rd
Over the half decade I’ve written this column and attempted to practice what it preaches, a central pillar has been the so-called 4% Rule. As originally postulated by Certified Financial Planner and author William Bengen, that’s the rule of thumb that retirees can safely withdraw 4% of the value.... 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 »
Best high-interest savings accounts in Canada 2021 + MORE Aug 31st
Generally savings accounts offer very low interest rates. So, if you want to earn on your deposits (rather than simply using your account as a temporary “holding tank” or directing to longer-term saving and investing vehicles), a savings account with a high interest is a no-brainer.
However, whe.... More »
Why GICs are a good addition to an RRSP or a TFSA + MORE Feb 8th
It’s tax time again, which means Canadians may be thinking about tax-smart ways to invest to reduce their tax burden next year. Chances are, you’ve seen and heard more about guaranteed investment certificates (GICs) in recent months than ever before, and there are concrete reasons why. Read on t.... 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…
