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Mapping out a clear path for your investments at retirement May 11th
Q. I retired last year at age 60 and am fortunate to have defined benefit pension, which I can live off comfortably.
I have accumulated some savings, which I am now looking to invest more productively. My risk tolerance is on the low end—a 2 out of 5 based on an online survey I completed. My goal .... More »
How non-residents are taxed on dividends and other forms of income Mar 3rd
Q. I have been retired and living in the Philippines since 2009. I file my taxes as a non-resident of Canada. I have an RRSP, a LIRA, as well as a non-registered account with a major Canadian bank. My world income is 100% from Canada consisting of CPP, systematic withdrawals from retirement saving.... More »
Timing the withdrawal of RRSP savings to minimize your tax hit + MORE Sep 14th
Q. I’ve been fully retired since 2018, and living only on government pension (QPP, OAS and GIS). I have some RRSP and TFSA investments, and would like some help with determining when I should start withdrawing funds—and whether I will need to pay tax. I’ll be turning 71 in December 202.... More »
“Get to know and minimize the investing fees you pay”: Michael McCullough, MoneySense contributing editor + MORE Nov 1st
Financial writer and editor Michael McCullough has made a career of helping Canadians understand a wide range of money topics, from real estate to alternative investments. In addition to being a MoneySense contributor and contributing editor, Michael writes for The Globe and Mail and BCBusiness, and.... More »
The best ETFs for retirement income + MORE Aug 24th
While exchange-traded funds (ETFs) are appropriate for investors of all ages and life stages, they make particular sense for retirees and those close to retiring. Things like quick and easy broad diversification of asset classes and geographic exposure at a reasonable price are especially relevant w.... More »
The best way to transfer RESP money to an RRSP
– moneysense.ca
Q: When transferring my unused RESP accumulated income into my RRSP, am I able to do it as is, i.e. bank stocks, or do I have to cash them in and transfer as cash?
—Johanna
A: If you end up with money in a Registered Education Savings Plan (RESP) that you can’t use for a child’s education, you can get back your original contributions tax-free.
The remaining Canada Education Savings Grant (CESG) money or Canada Learning Bond (CLB) money is repaid to the government, but that’s money you wouldn’t have had in the first place.
Ask a Planner: Leave your question for Jason Heath »
The excess accumulated income in an RESP is taxable upon withdrawal, plus a punitive 20% penalty tax. But as you have noted, Johanna, you can transfer up to $50,000 of this income to a Registered Retirement Savings Plan (RRSP) on a tax-deferred basis. This back-up option is one of the reasons I think an RESP far outshines other education savings options for children – like trust accounts – in addition to the 20%+ government grants…
Why you should top up your TFSA
– moneysense.ca
It’s not uncommon for people with unused space in their tax-free savings account or RRSP room to hold non-registered investments simultaneously. While you could make a case for not maxing out your RRSP, it’s tough to justify leaving room in your TFSA if you have the savings available. (One exception might be if you have non-registered investments with accrued capital gains that will trigger a large tax liability if you sell or transfer the investments.) Here’s what could happen if you move your non-registered savings into a TFSA and limit the amount of taxable income you’re earning.
This article was first published January 2016
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The post Why you should top up your TFSA appeared first on MoneySense.
