How to go about securing the best Retirement Plan in Canada.
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“Where do we pay income tax if we retire abroad?” Apr 27th
Q. We’re thinking about moving to Mexico full-time when we retire. Where would we pay income tax on our monthly Canadian pensions?
–Marianna
A. Many Canadians dream of a retirement that includes travel abroad. Some even move abroad part of the year, most of the year, or give up their Canadian r.... More »
Should you be worried about retirement? If you don’t have a pension, you probably should + MORE Feb 24th
A new survey reveals that many Canadians suffer from an appalling lack of knowledge when it comes to retirement planning, writes Gordon Pape..... More »
Should I invest my money or buy a life insurance policy instead? + MORE Feb 10th
Q: My wife and I are both 40 and have two kids—ages 5 and 7. We are considering buying a joint last-to-die life insurance policy that would cost a fixed $7,105 per year for ten years. That’s a total of $71,050 and the policy would pay $500,000 when the last of us dies. This is a proposition.... More »
Paying yourself first Nov 2nd
There is perhaps no single piece of financial advice more frequently repeated than “pay yourself first.” And with good reason. It’s tough to grow savings if you prioritize all your spending needs and wants ahead of putting money away. While some of us fully intend to stash whatever is left at .... More »
Making sense of the markets this week: October 15, 2023 + MORE Oct 19th
Kyle Prevost, creator of 4 Steps to a Worry-Free Retirement, Canada’s DIY retirement planning course, shares financial headlines and offers context for Canadian investors.
Clearly, the biggest world news is the conflict in Israel and Gaza. This week we are holding off discussing the effects.... More »
Using your TFSA as a learning tool
– moneysense.ca
Raj Thirumeni
AGE: 28
PLACE: Vancouver
TFSA TOTAL: $17,000
STRATEGY: Stocks
Me and my TFSA
Raj Thirumeni is 28-years-old and works for the banking operations of a large financial institution. He has several degrees, including a Master of Science in project management, an MBA, as well as a mechanical engineering undergraduate degree from the University of Windsor. After all those years of study, he now has a full-time job but since he isn’t earning enough yet to make contributing to an RRSP feasible, he’s decided to concentrate on beefing up his investing through his TFSA.
Raj opened his TFSA in 2015 with a $5,500 contribution. “I learned about it from my TD Bank branch,” says Raj. “I was applying for a credit card and the teller told me about it and explained the basics to me.”
TFSA contribution room calculator »
Before making his first investment, Raj spent a few months watching the oil and gas markets. As oil prices were falling in 2016 he bought his first stock: TransCanada Pipeline…
Retirees should be happy not to qualify for GIS
– moneysense.ca
(Izabela Habur/Getty Images)Canada’s chief actuary has released a report that says the enhanced Canada Pension Plan could eventually “disqualify” 243,000 low-income seniors from receiving the Guaranteed Income Supplement (GIS). No doubt this makes for compelling media headlines but really, so what?
If your employer suddenly offered you a gold-plated inflation-indexed pension plan, you’d welcome it even if it meant you would no longer qualify for the GIS, which is a supplement to Old Age Security and goes to only the poorest third of OAS recipients after the qualifying age of 65.
GIS benefits are “means-tested” and tax-free, but single seniors who earn more than $17,688 a year won’t qualify for them. Currently, maximum CPP benefits taken at the normal retirement age of 65 max out at $13,110 per person, but the enhanced CPP would eventually raise this to $20,000, which is above the GIS threshold. Keep in mind that even as things stand, CPP benefits can be increased 42% by waiting till age 70 to start receipt of benefits…
Q. I was surprised to find out from a friend that making an in-kind transfer of losing stocks from a non-registered account to a TFSA would not trigger a “deemed disposition” for tax purposes. However, if the stocks had gone up in value, there would be a deemed disposition and you would have to pay the tax on any capital gains. That doesn’t make any sense to me. Can you confirm this policy and provide some explanation? — Rudy B.
A. Your friend is correct, Rudy. If you hold stocks showing a loss in a non-registered account and you transfer them in kind to your TFSA (or your RRSP, for that matter), you cannot claim a capital loss. However, if you transfer stocks with unrealized gains, then Canada Revenue Agency considers this a “deemed disposition,” and you would be responsible for reporting the capital gains and paying tax on them.
This sounds unfair, but it’s really not. To understand why we need to review the CRA’s treatment of capital gains and losses.
Normally, when you sell an investment for less than you paid, you can claim a capital loss, which you can use to offset capital gains you have realized in the current year or up to three years in the past…
If you don’t know if you’re on track for retirement, who does?
