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2022 Income Tax: New tax credits for Canadians Nov 30th
It’s that time again… to get all your paperwork ready for tax season. We all know about having our T4 and registered retirement savings plan (RRSP) contribution statements ready, but what about the new tax credits for the 2022 tax filing season? What are they and how do they work? Don’t wo.... More »
Financial independence and travel: Can you have both? + MORE Apr 25th
In February and early March, as is increasingly our custom, my wife Ruth and I spent five weeks in a sunny clime in order to avoid the tail end of Canada’s winter. On our return from Malta, regular guest blogger Devin Partida contributed a relevant article titled “Can you pursue financial indepe.... More »
How to retire at 55 on $55,000 a year + MORE Jan 7th
Paula Lorimer and husband Pierre Sopel save $30,000 annually. They hope to retire at age 55 with a net annual income of $55,000.
The current situation
Paula Lorimer, 40, is a psychologist living in Montreal. Right now, Paula is self-employed but is looking forward to changing gears at age 55. “I.... More »
How does a mortgage inside an RRSP work? + MORE Jun 3rd
Q: Is it possible to arrange a mortgage inside my RRSP, so the interest payments are paid back to me?
A: I love the question, but recommend you pursue a less risky hobby. Say, axe throwing or BASE jumping? Setting up your mortgage inside an RRSP requires a lot of work with low return, says Joe Jacob.... More »
Working to live better, longer + MORE Mar 19th
(Corbis)
Whenever I suggest in a blog that investors might want to rethink early retirement, I usually hear from a few readers who insist that after 30 or 40 or more years in the workforce, they have a “right” to spend their last decade or so in the pursuit of leisure.
Readers are of course perf.... More »
Who’s in and who’s out of Ontario’s pension plan: Mayers
– thestar.com
The province wants to cast a wide net to include as many of us as possible in its goal of building a provincial pension plan by 2017.Decumulation resources for retirees
– moneysense.ca
(Getty Images)With 10,000 American baby boomers turning 65 every day, plus 1,200 Canadian boomers, there is fast approaching a major sea change in how this generation handles their investments.
When you’re working, things are somewhat automatic. Your employer deposits your paycheque into your bank account perhaps every second week, conveniently withholding income taxes at source. Perhaps you’ve automated your savings program and pension contributions.
In short, you are in wealth accumulation mode, and so likely is your financial adviser, since he or she is also probably personally in the same mode.
But once you turn 65 or cease to draw a full-time salary, you are now in the “decumulation” zone. We devoted a column to decumulation in the September issue of MoneySense, in which we highlighted a new undertaking by John Por called the Decumulation Institute.
Last week, I attended the second meeting of this group, which includes Malcolm Hamilton, the retired actuary who continues to be quoted by this magazine and others…
Logically, we should save for retirement first, then buy and pay off a house, and nearing retirement have children. Life doesn’t work like that.Ontario launches consultations on new pension plan
– moneysense.ca
Ontario Premier Kathleen Wynn (The Canadian Press)TORONTO – Ontario’s Liberal government is looking for public feedback on its plan to create a provincial pension plan with mandatory contributions from workers and employers.
The government released a consultation paper on “key design questions” such as a minimum income threshold — the $3,500 used by the Canada Pension Plan is suggested — and on exactly who would be eligible for the provincial plan.
Associate Finance Minister Mitzie Hunter says about two-thirds of Ontario workers do not have a workplace pension, so virtually all of them would be required to join the Ontario Retirement Pension Plan.
The government will phase-in mandatory 1.9 per cent contributions from employers and workers over two years, starting with larger companies in 2017 before moving on to smaller operations like convenience stores and dry cleaners.
Business groups like the Ontario Chamber of Commerce say requiring workers to pay up to $1,643 a year for a provincial pension — and forcing their employers to match those contributions — will drive up costs and result in fewer jobs…
