How to go about securing the best Retirement Plan in Canada.
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Could selling a vacation property affect government pensions? Sep 7th
Q. I was wondering what would happen if I sold my mobile home this year for $100,000. Currently, I receive Canada Pension Plan, Old Age Security and Guaranteed Income Supplement benefits totalling about $1,800 a month. Would the sale affect my pensions?
–Colleen
A. When you sell what is known as â.... More »
How financial advisors can help at different life stages + MORE Mar 23rd
When it comes to figuring out your finances and planning for the future, working with a pro can make this process easier. Canadians who feel hopeful about their financial future are more likely to be working with a financial professional, according to research by FP Canada.
Depending on you.... More »
How much are withholding taxes on RRSPs and RRIFs? Jun 15th
I need to withdraw $6,600 from my RRIF over the next six months. This amount is in addition to my annual minimum. If I do the withdrawals in six monthly amounts of $1,100 (total of $6,600), will the tax withholding rate be 10% on each $1,100, or will it be a higher rate on the total $6,600 over the .... More »
What’s my RRSP contribution limit for 2021? + MORE Jan 18th
If you’re like many Canadians, you’re hoping you’ve paid enough tax in 2021 and may even be looking forward to a hefty tax refund. (The deadline for filing this year is April 30, 2022, which is on a Saturday, by the way. So you actually have until May 2, 2022 to file.) You can help ensure that.... More »
Nicholas Hui, P.Eng, Certified Financial Planner + MORE Mar 22nd
Who is Nicholas Hui?
Nicholas Hui was an automotive engineer for 20 years before becoming a Certified Financial Planner. He brings the same systematic approach from his engineering background to his practise now as an advice-only planner. Nicholas specializes in helping young families and profess.... More »
Does a spouse’s real estate ownership cancel out first-time homebuyer qualifications?
– moneysense.ca
Q. My husband and I married recently, and we have lived together in a rental apartment since we got engaged and married. He has a condo, which he purchased seven years ago, but he has not lived there for the past three years. I’ve never lived in that condo and he didn’t use the Home Buyers’ Plan to purchase it. If we were to purchase a property together, to live in as our matrimonial home:
Am I eligible to use first-time homebuyer programs? How about my husband?
If I am eligible, but my husband is not, can I buy a joint property and I still use first-time homebuyer benefits?
–Meredith
A. There are a few first-time home buyer incentives from the federal and provincial governments. The Home Buyers’ Plan (HBP) allows a withdrawal of up to $35,000 from your Registered Retirement Savings Plan (RRSP) to use towards the purchase of a qualifying home. Both spouses can utilize the $35,000 limit if they qualify.
And to qualify, you must be a first-time home buyer, meaning you did not occupy a home that you or your spouse owned in the four years prior to buying a home…
Q. A few years ago, I joined a public sector employer with a hybrid defined-benefit, minimum-guarantee pension plan that will allow me to move RRSP contributions made elsewhere, into the employer’s plan.
I have been told that the transferred money would have to remain locked-in until I retire or leave the organization. The total value of the pension plan, including the contribution of employees, employer and returns, is around $2 billion.
Recently, I compared the last 10 years of performance of my RRSP investments with my employer’s DB pension returns, and I noticed the DB pension plan would have offered around 36% more accumulated growth on the original starting capital.
I have 10 to 12 years until retirement and I am seriously considering having my RRSP money transferred to the pension plan. Should I be taking anything else into consideration before making this decision?
–Jaspal
A. Jaspal, great that you are paying attention to your investments and doing a double-check before making a big change…
I have been told that the transferred money would have to remain locked-in until I retire or leave the organization. The total value of the pension plan, including the contribution of employees, employer and returns, is around $2 billion.
Recently, I compared the last 10 years of performance of my RRSP investments with my employer’s DB pension returns, and I noticed the DB pension plan would have offered around 36% more accumulated growth on the original starting capital.
I have 10 to 12 years until retirement and I am seriously considering having my RRSP money transferred to the pension plan. Should I be taking anything else into consideration before making this decision?
–Jaspal
A. Jaspal, great that you are paying attention to your investments and doing a double-check before making a big change…