The upside to waiting until age 70 to take CPP benefits + MORE Oct 5th

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If you are like most Canadians, the investment choices you make during your working years may have a significant impact on your retirement. But the importance of smart investing doesn’t end when you retire. In fact, post-retirement investing can have an even larger impact on your retirement well-b.... More »
Q. I currently own a house in Edmonton that is mortgaged, and looking to purchase a property in Vernon, BC, that I will eventually retire to. Until then, I am liking the idea of renting out that property to help support the additional mortgage. 
I am wondering if it’s possible to transfer my existing mortgage into my RRSP and access the cash there by reducing the amount of additional mortgage I would need to purchase the Vernon property? Otherwise, is there a way to purchase the Vernon property using my RRSP funds?
–Yvonne
A. I am often asked about buying a home to retire to eventually, and renting it out in the meantime. I question the approach because a home you want to live in is not necessarily a good property to rent out to a tenant. A property that is easily rentable to tenants may be close to transit and jobs for example, whereas a property you may want to retire to could be more rural or have different attributes.
In addition, there are things that could change in your life by the time you retire…

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Q. I am retiring next year at age 65 and I don’t know if I should take my CPP immediately, or wait. My friends and other people I know from work took their CPP when they retired and they are telling me I should take it when I retire. Are they right?  When is the best time to draw CPP?
–Jit
A. Hey Jit, ask one of your friends who waited until age 70 to take Canada Pension Plan benefits, and see what they say.  I’m just having fun—I’d be surprised if you knew anyone who delayed their CPP to age 70.
But, according to a new report by the Canadian Institute of Actuaries, most Canadians should start their CPP at age 70.
These are the points from the report that really jumped out at me, and I’ve provided my thoughts below.

The only two factors to consider when making your CPP start decision are your life expectancy and expected investment returns. Taxes don’t come into play.   
Use your RRSPs to bridge the income gap (CPP shortfall) between 65 and 70 using this formula: 7…

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