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How to retire at 55 with $586,000 + MORE Jan 27th
Nathalie Ouelett, 54, works in the audit department of the Quebec government in Quebec City. She loves her job but says she has so much that she still wants to do in life that she’s going to hang up her hat from full-time work this July. “I have 177 sleeps to go,” says Nathalie, who laughs an.... More »
Planning to cash in on your home to help fund retirement? Here’s how to do it right + MORE Dec 14th
Elizabeth and Charles have a home worth about $1.3 million. They’re considering selling and downsizing to a smaller unit to bulk up retirement savings. We ask experts for advice on the right move..... More »
Am I on track to retire in 10 years? + MORE Nov 18th
(Photo by Amanda Skuse)
The current situation
Shannon Jimenez, 47, lives in Chilliwack, B.C. with her husband Hector, 55. She’s a part-time customer service rep while Hector is a manager. “We’ve spent the last 25 years building up the equity in our home and in our Mexican rental property so sa.... More »
Could selling a vacation property affect government pensions? Sep 7th
Q. I was wondering what would happen if I sold my mobile home this year for $100,000. Currently, I receive Canada Pension Plan, Old Age Security and Guaranteed Income Supplement benefits totalling about $1,800 a month. Would the sale affect my pensions?
–Colleen
A. When you sell what is known as .... More »
Retirement Income for Life: Why Canadian retirees love Frederick Vettese’s books and his PERC + MORE Feb 22nd
Since I turn 71 soon, my attention is naturally becoming focussed on the inevitable question of what to do when my registered retirement savings plan (RRSP) must be collapsed. Do I keep it as a registered retirement income fund (RRIF)? Or should I convert it into an annuity? Maybe I do a combination.... More »
How to avoid splitting CPP credits
– moneysense.ca
Q: Many years after my marriage failed, my spouse and I finalized our divorce, but we remained on good terms. Can we choose not to split the CPP credits? If so, what do I need to do to make this happen?
—Kate Thorburn, Vancouver
A: Here is one case where doing nothing will get you what you want. (If only this happened when it came to six-pack abs!) What I mean is that unless you file an application with Service Canada, you will not be splitting the CPP credits.
Many soon-to-be-former couples want to split the CPP credits and do the paperwork as a part of their separation. It can make a big financial difference if one spouse was out of the workforce for an extended period. The rules are complex and include some limitations so check out the Service Canada website for details.
If you really are sure that not splitting CPP is the best path for both of you, you have saved yourself some work. But you should go back and check your separation agreement, just in case it mentioned anything about CPP, says Rona Birenbaum, a CFP with Toronto-based Caring for Clients…
Am I on track to quit my job now?
– moneysense.ca
(Photograph by Gemma Robillard)The current situation
Lana, 42, works in Toronto’s financial sector and is the mother of two children aged 8 and 10. “I have been working for 15 years and now I’m ready to step away from the corporate ladder and be a full-time mom,” she says. However, her husband Jeremy, 43, is nervous they won’t make ends meet even on his take-home pay of $7,500 a month. The couple currently owns $1.1 million in real estate, but owe $350,000 in mortgages and an auto loan. They plan to pay $20,000 annually to eliminate their mortgages, until Jeremy retires in 11 years. But despite the plan, doubts remain. “I don’t want to jeopardize a comfortable retirement since we won’t be able to save much when we switch to living on just one salary,” says Lana.
The verdict
According to Janet Gray, a certified financial planner with Money Coaches Canada in Ottawa, Lana’s on track to leave her job now with enough in her RRSP to last until she’s 100, provided Jeremy doesn’t retire before age 54 and remains a member of his employer’s defined-benefit pension plan…
The new rules of retirement
– moneysense.ca
If you’re anything like my dear departed father, you may not need to read any of my new “Retired Money” columns, which are dedicated to solving money management challenges for retirees. You see, my dad was an Ontario high-school teacher and the fortunate beneficiary of the famous defined benefit (DB) teachers’ pension plan.He didn’t need to worry about investing—he owned only GICs and would proudly declare that he didn’t know a stock from a bond. Unlike you, dear reader, he didn’t need to. With a paid-for home, his GICs, teacher’s pension and government CPP and OAS, Dad was laughing in his classic “do-nothing” retirement. He could take long walks, read to his heart’s content and entertain neighbours with glasses of sherry. Oh, and cheer for the Montreal Canadiens.
His two sons, and readers of their generation, may be less fortunate. For starters, only a minority of workers enjoy the kind of inflation-indexed guaranteed pension that Dad—and his widow—enjoyed…
