Not sure how to make a retirement plan? Read on…
Latest News
Can I withdraw from RRSPs to pay bills? + MORE Apr 20th
What are the cons to withdrawing RRSP savings of $25,000 to pay off some unexpected bills I have incurred?—Anonymous
Withdrawing RRSPs when you’re not retired
Ahh, the unexpected bills.
Anonymous, I’ll give you my initial thoughts first, and then I’ll review the cons of withdrawing .... More »
Contribute to RRSP or pay off mortgage? Oct 12th
Ask MoneySense
We have a small mortgage, only $80,000, coming up for renewal. We have some money (approximately $25,000) that we can either put on the mortgage or invest or put into our RRSP. What is the best way to go?
—Linda
Which should Canadians prioritize: RRSP or mortgage?
Most of .... More »
Investing inside a corporation: what you need to know + MORE Jul 27th
A MoneySense reader writes:
We have $550,000 to invest in our corporation and need something tax-efficient. Although we’re retired, we don’t need this money for the foreseeable future, so we’re investing for the long term. We’re considering either DIY investing following one of the Couch Pot.... More »
Downsizing vs reverse mortgage: which option is right for you? Feb 2nd
For many Canadians approaching retirement, their home is by far their largest asset. With detached homes in major cities selling for well above $1 million, it’s not surprising that owners expect to tap into that equity to help fund their golden years, prompting the common refrain: “My home is my.... More »
DIY investing for busy people—the portfolio management tool you didn’t know you needed + MORE Jul 13th
If you’ve been on the fence about managing a self-directed brokerage account because you think DIY investing is too much of a time commitment, think again. While DIY investing certainly can be an all-consuming “hobby” filled with spreadsheets, calculations and trade activity, it doesn’t have.... More »
When is the best time to start taking your CPP payments?
– moneysense.ca
For retirees or near-retirees who lack traditional employer-sponsored Defined Benefit pension plans, the federal government’s Canada Pension Plan (CPP) and Old Age Security (OAS) are the closest most of us will get to such a valuable pension.
True, RRSPs and TFSAs do allow you, in a tax-effective way, to build up nest eggs that can ultimately be converted to an annuitized stream of retirement income for as long as you live. But the good news is that just about every working Canadian eventually qualifies for the Canada Pension Plan, as well as Old Age Security, and both are inflation-indexed to boot, unlike many private-sector pensions.
Normally, those ready to retire contact Service Canada to get a record of past CPP contributions. They send you benefit estimates (both for CPP and OAS) some months before you turn 65 but you can also obtain this information before or after by visiting Canada.ca. There, you can find a CPP/OAS calculator provided by Ottawa, providing an estimate of expected sources of income…
True, RRSPs and TFSAs do allow you, in a tax-effective way, to build up nest eggs that can ultimately be converted to an annuitized stream of retirement income for as long as you live. But the good news is that just about every working Canadian eventually qualifies for the Canada Pension Plan, as well as Old Age Security, and both are inflation-indexed to boot, unlike many private-sector pensions.
Normally, those ready to retire contact Service Canada to get a record of past CPP contributions. They send you benefit estimates (both for CPP and OAS) some months before you turn 65 but you can also obtain this information before or after by visiting Canada.ca. There, you can find a CPP/OAS calculator provided by Ottawa, providing an estimate of expected sources of income…
