All about Retirement Planning in Canada. Learn the ins and outs and get the latest news.
Latest News
RRIF withdrawals: What should seniors with million-dollar portfolios do? Nov 16th
Ask MoneySense
I have invested well and now I am in my 80s. My RIF is almost $3 million and is going to attract heavy taxes. My other investments are about $2 million, some with capital gains which we are going to donate to charity.
Any suggestions on how to reduce the huge tax liability? Should .... More »
Corporate investments for retirees + MORE Feb 15th
I’m not using my Canadian corporate company anymore. I’m 67, delaying CPP and OAS. I have $210K in my company that I need to take out. What is the best way to do this with minimal tax?
My accountant is working with me but really doesn’t think it’s the best strategy. He has a three-y.... 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 »
The 60/40 portfolio: A phoenix or a dud for retirees? + MORE Oct 26th
For Canadian investors, one of the biggest shocks of 2022 is how poorly balanced mutual funds, exchange-traded funds (ETFs) and portfolios have performed. Investors with funds based on the classic pension fund asset allocation of 60% in stocks and 40% in bonds have been bewildered to experience loss.... More »
The best RRSP investments 2022 Jan 11th
A registered retirement savings plan (RRSP) is an investment that is registered with the Canadian federal government. RRSPs are often described as being “tax-advantaged.” That means you don’t pay income tax on the amount you are contributing to an RRSP, in the year you earn that contribution. .... More »
Investing in your 50s? Stick with equities
– moneysense.ca
Being a 50-something today is not like it was years ago, when retirement at 65 was the norm and adult children were out of the house, trying to make it on their own.
Now, many Canadian are working well into their golden years, while dependents – both aging parents and still-at-home kids – are putting added pressure on household finances.
The good news? Many people hit their peak earnings years in their 50s, mortgages tend to dwindle substantially and the light at the end of employment tunnel can be seen, if only dimly.
Most people this age should be saving more than they have in prior years and if they’re not, they have to start, says Matthew Williams, senior vice-president with Franklin Templeton Investments.
Get rid of debt
The first step to financial freedom, which is what many 50-year-olds should be thinking about as they approach 60, is to pay down any non-deductible debt, says Williams.
It’s a must-do for two reasons: it’s rarely a good idea to go into retirement owing money, especially if a regular paycheque isn’t coming in anymore, and it frees up your finances to increase your retirement savings…
Should I add new ETFs and REITs to my portfolio?
– moneysense.ca
Q I have opened accounts with a discount brokerage and built a portfolio with the following ETFs:
Vanguard FTSE Canada All Cap Index (VCN)
Vanguard U.S. Total Market Index ETF (VUN)
iShares Core MSCI EAFE IMI Index ETF (XEF)
iShares Core MSCI Emerging Markets IMI Index ETF (XEC)
BMO Aggregate Bond Index ETF (ZAG)
Are these ETFs enough for my RRSP and TFSA, or should I add others, like a dividend-producing funds and real estate investment trusts (REITs)?
– Natalie
A Carl Richards, a financial planner and author of The Behavior Gap, has observed an odd human tendency. “People say they want things to be simpler—investing, life insurance, retirement planning, etc.,” he writes. “But when a simpler (and effective) option is proposed, they reject it as too simple.”
The Couch Potato portfolio is a shining example. The appearance of ETFs has made building a diversified portfolio easy and shockingly cheap, yet many investors seem bent on making it more complicated and more expensive…
We have few assets. Can we skip having a will?
– moneysense.ca
Q: Ed, my husband and I do not have a will. We have no house but do have an RRSP, a little cash, and two children (ages 14 and 12). Should we have a will? If so, what type of will is acceptable/legal without seeing a lawyer, seeing that we do not have much in the way of assets.
—Pam
A: Pam, the short answer is “any will that works.” What if you make the will yourself? How do you know it will work?
Wills do not need to be prepared by lawyers. A lawyer-prepared will is your best investment to protect your family. Financial advisors cannot provide legal opinions on wills—only lawyers can.
Lawyers and their fees come in all shapes and size, as I will explain.
DIY wills are land mines
These wills are set to explode when they’re really needed. Wills prepared by lawyers can cost hundreds of dollars. Compare that with the cost of going to court to fix homemade wills. Going to court costs thousands of dollars per day for each lawyer.
Lawyer-prepared wills have different price tags…
