Not sure how to make a retirement plan? Read on…
Latest News
“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 »
Argentine economy closing 2013 in trouble, with tough times looming for Cristina Fernandez Dec 25th
BUENOS AIRES, Argentina – President Cristina Fernandez has tried to reinvent her image since her return from skull surgery. She’s put aside the all-black wardrobe she wore for three years mourning her late husband Nestor Kirchner, and reshuffled her Cabinet. This week, her economy minist.... More »
Stock news for investors: Cineplex and Aritzia post strong results despite industry headwinds + MORE Oct 11th
Here’s a round-up of news for Canadian investors this week.
Cineplex
Aritzia
Trilogy Metals
Barrick Mining
Cenovus-MEG Energy
Featured RRSP Accounts
featured
EQ Bank
Buil.... More »
How to make sure you have enough money to fund your RRIF withdrawals + MORE Apr 18th
After decades of using registered retirement savings plans (RRSPs) to reduce taxable income, it can come as a shock to discover the shoe will one day be on the other foot. At the end of the year you turn 71, you have to either cash out your RRSP (not recommended), annuitize it or convert it into a R.... More »
The new rules of retirement + MORE Sep 30th
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 bene.... More »
Trial retirement
– moneysense.ca
Read how and why Graham, a 42-year-old bank analyst, took a year off from work to spend more time with his family.
Which billionaire recently paid $27.5 million for a vintage Ferrari? Here’s a hint: The fashion entrepreneur helped build an iconic American label. And he’s Canadian.
Which billionaire recently paid $27.5 million for a vintage Ferrari? Here’s a hint: The fashion entrepreneur helped build an iconic American label. And he’s Canadian.
You can play with retirement planning calculators from now until you’re 90, but it’s unlikely any of them will factor in expenses like a $1,000 custom-made satin-and rhinestone stage outfit.
What is your Safe Withdrawal Rate?
– rhondasherwood.com
One of the single most important questions you need to get clear about before entering retirement is to know what your safe withdraw rate is. In other words, how much you can ‘safely’ take as an income each year from your portfolio so you don’t outlive your money?Although your personal withdrawal rate really depends on the date you retire, how you invest your money and what returns or how much your money grows in retirement (especially in the early years), the average or rule of thumb has always been somewhere around 4 percent.
How much Money do I Need to Save?
Using the 4 percent withdraw rate as an example, the amount of savings you should have in place before deciding to retire is 25 times the dollar amount you require annually from your investments. So let’s say you want to generate $30,000 annual income from your portfolio, using the 4 percent withdrawal rate you would need $750,000 in saving (25 x 30,000 or 4 percent x 750,000). If you only have $500,000 saved then using the same withdrawal rate you should only take an annual income of $20,000 from your investments…
