TFSA or RRSP? Which is more popular—and why + MORE Feb 3rd

How to go about securing the best Retirement Plan in Canada.
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How to transfer from an RRSP to a TFSA —and why you shouldn’t + MORE Mar 3rd

Flickr When transferring a stock from an RRSP to a TFSA, is there any advantage whether it is in a loss or gain position? Why or why not? – Darryl If you hold a stock in your RRSP and you want to hold it in a TFSA instead, there is no way to simply transfer it from one account to the other. At lea.... More »
 retirement savings

What’s the right retirement asset mix if you have a DB pension? + MORE Mar 10th

(Shutterstock) Q: When calculating your asset mix can you include a pension as part of your bond/cash holdings in a portfolio with a 60% equity, 20% bond and 20% cash mix? If you had a pension that was paying $50,000 a year this would be equal to a million dollar GIC at 5%. —B. McLeod A: Hi B. Mc.... More »
 retirement planning

Should I contribute to my TFSA when I’m 68? + MORE Mar 17th

iStock Q. I am 68 years old and already retired. Is there any point in contributing to a TFSA? – Michelle A. Any point? Why yes. There are lots and lots of points. I’ll make a few of them here. The Tax-Free Savings Account is a great vehicle to reduce your taxes whatever your age. You’re .... More »

Why Canada must simplify the tax code + MORE Feb 24th

Aaron Wudrick is the federal director of the Canadian Taxpayers’ Federation. Are you paying all the tax you’re legally required to pay—and if not, is that okay? That’s the question at the heart of the controversy over offshore tax havens, whereby mostly wealthy individuals structure their fi.... More »

Should Pete sell mutual fund to pay down the mortgage? + MORE Mar 24th

Shutterstock Q. I have $103,490 left on my mortgage and I pay $325 bi-weekly on it @2.89% fixed rate (mortgage is being renewed shortly). I have the ability to pay off up to 15% ($18,700) of the original mortgage annually in a lump sum without fees. Should I pull money out of my mutual funds (averag.... More »
Should I withdraw from my TFSA to contribute to an RRSP?
Q. When does it make sense to withdraw money from a TFSA and move it to an RRSP? I am in my late 50s and considering doing this as I have a fairly high income and not much cash on hand to make RRSP contributions. Is that a good move for me? – Deirdre T.
I like that you are thinking about ways to reduce tax, Deirdre, and if you’re careful it may be a good move; if not, it could be a big mistake.
There are two things to think about:

Will your tax rate in retirement be lower than it is now? If so this could be a good strategy.  Also think about things like the OAS clawback, the age credit, GIS, GST credit etc…
A TFSA contribution is an after-tax contribution and an RRSP contribution is a pre-tax contribution. A $5,000 contribution to a TFSA is not the same as a $5,000 contribution to an RRSP. If your marginal tax rate is 40% and you draw $5,000 from your TFSA you’ll have $5,000.  The same $5,000 withdrawal from your RRSP will leave you with $3,000, and that’s where you could make your mistake…

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TFSA or RRSP? Which is more popular—and whyTFSAs win when it comes to flexibility. (Flickr)
Q. TFSA or RRSP, which one is more popular today—and why? – Phyllis D.
The RRSP marked its 50th-anniversary last year —but it looks like its Golden Age has already passed. While the RRSP still has more contributors than the TFSA, its lead is narrowing. According to StatsCan, the number of RRSP contributors aged 25 to 54, “declined by 16% from 2000 to 2013, from five million in 2000 to 4.2 million in 2013.”  The dollar amounts are on the decline as well. RRSP contributions hit $30 billion in 2000 but fell to $22.5 billion by 2013.
A part of that decline can be blamed on the Tax-Free Savings Account, which was introduced in 2009. StatsCan says there was a slight decline in RRSP use over the last few years and that, “coincided with an increase in the number of individuals who contributed to a TFSA, from 2 million in 2009 to 3 million in 2013.”
Why does the TFSA have a leg-up?  Flexibility is one thing. The RRSP was designed for retirement savings, while the TFSA works well as a place to save for retirement and anything else—a dream vacation, a new car, or a house down payment…

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Bruce Sellery answers your retirement savings questions
Personal finance expert Bruce Sellery will be answering your questions about retirement savings on Facebook Live. Tune in at 10 AM EST on February 6 to learn the steps to retiring rich, how to rock your RRSP and more. Leave a retirement question during the livestream and Bruce might just answer it for you. Plus, you can send a question for him to answer in advance.
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The post Bruce Sellery answers your retirement savings questions appeared first on MoneySense.

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TORONTO _ Great-West Lifeco’s real estate arm has acquired the business of Colorado-based EverWest Real Estate Partners, marking its first move into the U.S.
The terms of the deal announced today were not disclosed.
The president of GWL Realty Advisors says the acquisition of EverWest provides the Canadian insurer’s wholly-owned subsidiary with a real estate platform south of the border and opens up investment opportunities for its clients.
Paul Finkbeiner adds that the purchase is an important step in the long-term growth strategy of GWL Realty Advisors, a Toronto-based real estate investment advisor which services pension funds and institutional clients.
Great-West Life is one of Canada’s largest insurance and wealth management companies and is part of the Power Corporation group of companies, one of Canada’s largest non-bank financial conglomerates.
EverWest, based in Denver, is a privately-held real estate investment and operating company which operates in several U…

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Should I withdraw from my RRSP to contribute to a TFSA?
I am 52 years old and have $200,000 in my RRSP and $5,000 in my TFSA. I have a lot of unused TFSA room, but no new money to contribute. Does it make sense to withdraw some money from the RRSP each year, and then move it over to the TFSA? I realize the tax implications, so perhaps the best thing to do is always withdraw under $5,000 so I pay only 10% tax? My annual income is about $75,000. — Alex
There are situations when it might make sense to withdraw money from your RRSP and recontribute it to your TFSA. But these are rare, and Alex, I don’t think this is one of them.
You recognize that RRSP withdrawals are taxable, but I think you have underestimated the amount of tax you will pay. When you make an RRSP withdrawal of $5,000 or less, your brokerage is required to withhold 10% for income taxes. (The withholding tax rate is 20% on withdrawals between $5,001 and $15,000, and 30% on larger amounts. Rates are higher in Quebec.) But that doesn’t mean your total tax bill for the withdrawal is limited to 10%…

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