Retirement planning getting you down? There are always smart ways to plan the financial aspects of your retirement.
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Suze Orman on why you should work until you’re 70, be careful giving money to your kids and sell your home sooner rather than later Mar 9th
Superstar personal finance guru Suze Orman, a frequent guest on the Oprah Winfrey Show, has some retirement advice just for Canadians.... More »
Planning for the (potential) costs of long-term care + MORE Feb 17th
According to the Ontario Long Term Care Association’s report This is Long-Term Care 2019, 82% of long-term care residents are 75 years of age or older, and 55% are 85 or older. Residents under 75 are generally those who “have experienced a brain injury, stroke, and other conditions that require .... More »
How does income from a rental property create RRSP contribution room? + MORE Jan 13th
Q. I understand that net rental income creates RRSP contribution room—so, even as a retiree, I should be able to accumulate additional RRSP room. Does foreign net rental income add to RRSP room?
When I do my Canadian taxes using tax preparation software, the reported net foreign rental income does.... More »
Best high-interest savings accounts in Canada 2021 + MORE Jan 5th
Regular savings accounts offer very low interest rates, so if you want to earn on your deposits (rather than simply use your account as a temporary “holding tank” for funds you’ll soon be using for purchases, or directing to longer-term saving and investing vehicles), a high-interest savings a.... More »
How GICs can help you save for your short-term goals + MORE Nov 23rd
Let’s talk about short-term savings. By short-term, we’re talking about putting away money for a few months, or even a few years, for a big goal, like a vacation, a wedding or a down payment on a home. Where should you put your savings so they’ll be secure and work for you?
When saving,.... More »
The truth about public sector pensions
– moneysense.ca
Getty ImagesThe large (and growing) discrepancy between private and public sector pensions in Canada has spawned the use of the term “pension envy.” I can certainly think of acquaintances who joined the federal civil service or became teachers right after graduating from university. On the whole, they put in their 30 years or so in the accompanying defined-benefit pension plan and were sitting pretty by their late 50s. In some cases, both halves of couples enjoyed such pensions, all back-stopped by taxpayers like you and me, who enjoy no comparable plan. The combined value could easily be the equivalent of dual RRSP nest eggs of between $1 million and $2 million (or more in the case of senior managers or executives).
Even if you’re fortunate to have a comparable DB pension in the private sector, these days corporate job security is such that there’s little assurance you’ll stay in any one place long enough to accrue a major pension payout. If you change jobs, whether voluntarily or not, there’s not likely to be the kind of pension portability provisions that may be available in the public sector…
