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Latest News
Close to retirement? Don’t panic, say financial experts Mar 23rd
If you are going to dip into your savings, do so in a planned way and track what you remove..... More »
Can you make a transfer from an RESP to a spouse’s RRSP? Sep 1st
Q. I have an RESP account that I plan to wind down—and I have very little RRSP contribution room, but my wife has quite a lot. I just read this article you wrote for MoneySense about transferring money from an RESP to an RRSP. I thought it was permissible for a subscriber (that would be me in this.... More »
Financial planning in your 70s + MORE Oct 12th
When most people think about financial planning, they think about saving and investing for retirement. That is certainly a part of it, but financial planning is much more holistic.
Here are a few financial planning strategies for those approaching or into their 70s. If you are not there yet, bookmar.... More »
Slashing debt is Canadians’ number one priority in 2018 + MORE Dec 30th
TORONTO — Canadians are keen to lighten their debt loads in 2018, according to an annual opinion survey conducted for CIBC.
The Toronto-based bank says debt reduction or elimination was the top priority for 25 per cent of the poll respondents.
Paying bills or just getting by .... More »
Watch: 4 things to consider before putting your money in a TFSA or RRSP Sep 28th
You know both can help lower how much income tax you pay—both are registered accounts, after all—but how do you decide whether to put your money into a tax-free savings account (TFSA) or a registered retirement savings plan (RRSP)? Watch this video to learn about the four things to consider befo.... 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…
