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RESP vs RRSP and TFSA: What’s the best option for education savings? + MORE Aug 28th
Welcome to Education Money, a new column that covers the questions and concerns parents and investors have about funding their child’s education. Andrew Lo, CEO of Embark, shares his thoughts and insights on how to make the most of RESPs. To kick off the column, he explains the different options C.... More »
New year, new spending habits Dec 5th
Money-wise, it’s been a challenging year for Canadians but the new year is also a chance to build better strategies around how you spend money. Steer clear of these three common pitfalls for financial success in 2023.
Money mistake #1: Not paying off debt quickly
If you’re in the red, you.... More »
The holidays on a budget: How to avoid credit card debt Nov 28th
For many Canadians, managing debt is a year-round challenge. Common tips tend to be simplistic or downright insulting (we’re looking at you, “skip your daily coffee”). Staying on top of your finances gets even more difficult during the holidays, when everywhere we look there are messages urgin.... More »
Wealthsimple Cash review 2024 + MORE Jul 16th
Wealthsimple Cash is a high-interest chequing/savings account that offers one of the highest interest rates in Canada. It has appealing yields and includes a prepaid Mastercard with no foreign exchange fee, so many consumers are naturally attracted to the account. Is it any good? The short answ.... More »
High interest rates and unemployment: Expectations for June’s rate announcement May 14th
The odds of a June interest rate cut from the Bank of Canada (BoC) appear to have fallen after the latest jobs report from Statistics Canada showed employment jumped by 90,000 last month. The jobs gain far surpassed forecasters’ expectations and marked the largest employment increase in more than .... More »
“I don’t care about my retirement right now, I care about staying alive.”
Walter Schultz, who is in his 40s, lives in Kitchener, Ont., and through his employment as a technician at a lab, he has a deferred profit-sharing plan and an employee Registered Retirement Savings Plan (RRSP). For now, at least, he says that’s as much as he’s willing to invest towards his so-called golden years.
“I watched how the markets were tanking last spring and while you want to do the right thing, you don’t want to throw money down a rat hole,” says Schultz of his decision to hold off on individual contributions to his RRSP early in 2020.
On top of the effect COVID-19 was having on the market, he worried about the virus itself. “Without going into detail, I’m classified in the at-risk category when you do the screening for COVID,” he says. “Seeing how the economics of the world was going and as my life could be in jeopardy here, I thought ‘OK, it’s time to suspend putting that little bit extra that was being stashed away and not having access…
Walter Schultz, who is in his 40s, lives in Kitchener, Ont., and through his employment as a technician at a lab, he has a deferred profit-sharing plan and an employee Registered Retirement Savings Plan (RRSP). For now, at least, he says that’s as much as he’s willing to invest towards his so-called golden years.
“I watched how the markets were tanking last spring and while you want to do the right thing, you don’t want to throw money down a rat hole,” says Schultz of his decision to hold off on individual contributions to his RRSP early in 2020.
On top of the effect COVID-19 was having on the market, he worried about the virus itself. “Without going into detail, I’m classified in the at-risk category when you do the screening for COVID,” he says. “Seeing how the economics of the world was going and as my life could be in jeopardy here, I thought ‘OK, it’s time to suspend putting that little bit extra that was being stashed away and not having access…
Financial planning in your 70s
– moneysense.ca
When most people think about financial planning, they think about saving and investing for retirement. That is a part of it, but financial planning is much more holistic.
Here are a few financial planning strategies for those approaching or into their 70s. If you’re not there yet, bookmark this for Future You, or share with older family members.
RRSPs
An account holder can only have a Registered Retirement Savings Plan (RRSP) until December 31 of the year they turn 71. By that time, they must either convert their RRSP to a registered retirement income fund (RRIF) or purchase an annuity that provides a regular payment for life from an insurance company.
The conversion age used to be 69, but was increased to the current age 71 in 2007. (I find in the course of my work as a Certified Financial Planner that some people still think it is 69.) It often makes sense to take RRSP withdrawals prior to age 72, and even convert your RRSP to a RRIF as early as age 65.
Minimum RRIF withdrawals at age 72 are 5…
Here are a few financial planning strategies for those approaching or into their 70s. If you’re not there yet, bookmark this for Future You, or share with older family members.
RRSPs
An account holder can only have a Registered Retirement Savings Plan (RRSP) until December 31 of the year they turn 71. By that time, they must either convert their RRSP to a registered retirement income fund (RRIF) or purchase an annuity that provides a regular payment for life from an insurance company.
The conversion age used to be 69, but was increased to the current age 71 in 2007. (I find in the course of my work as a Certified Financial Planner that some people still think it is 69.) It often makes sense to take RRSP withdrawals prior to age 72, and even convert your RRSP to a RRIF as early as age 65.
Minimum RRIF withdrawals at age 72 are 5…
