All about Retirement Planning in Canada. Learn the ins and outs and get the latest news.
Latest News
Why Canada must simplify the tax code + MORE Feb 24th
Aaron Wudrick is the federal director of the Canadian Taxpayers’ Federation.
Are you paying all the tax you’re legally required to pay—and if not, is that okay?
That’s the question at the heart of the controversy over offshore tax havens, whereby mostly wealthy individuals structure their fi.... More »
Where should working retirees put extra income: A TFSA or an RRSP? Jan 11th
Ask MoneySense
I will be receiving CPP and OAS as of June 2024. I intend on working one more year until I reach 66. My question is: Should I put all my CPP money into an RRSP to shelter it from tax? Or should I pay the tax on it and invest in a tax-free savings account?
–Gary
Where to put r.... More »
Stock news for investors: Canopy Growth to acquire MTL Cannabis in $125-million deal + MORE Dec 20th
Here’s a round-up of news for Canadian investors this week.
Canopy Growth
Blackberry
Transat
Featured RRSP Accounts
featured
EQ Bank
Build your retirement savings with 1.50% in.... More »
What’s my RRSP contribution limit for 2022? Nov 16th
If you’re like many Canadians, you’re hoping you’ve paid enough tax in 2022 and may even be looking forward to a hefty tax refund. (The deadline for filing this year is April 30, 2023, and since that date falls on a Sunday, you actually have until May 1, 2023 to file.) You can help ensure that.... More »
Should you sell stocks you inherit? + MORE Sep 12th
An inheritance can be comprised of cash, securities, real estate, or other assets. When you inherit securities like stocks, there are income tax and strategic considerations. Here are some that you should keep in mind.
How are stocks taxed when you inherit them?
When a spouse or co.... 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…
