How much credit card debt does the average Canadian have? + MORE Nov 7th

Vasek Pospisil started playing tennis as a full-time job at the age of six and has been striving for excellence in all areas of his life ever since. He debuted at the Olympics, Wimbledon, the U.S. Open and, recently, the Tel Aviv Open, where he played against 21-time Grand Slam champion Novak Djokovic in the quarter-finals. You can watch him compete in the Calgary National Bank Challenger for the second time this Sunday, November 6, 2022. Most days, Pospisil trains to keep up his impressive track record on the court, but when he’s off the court, he’s working toward his financial goals. No stranger to the ups and downs of investing, he still wouldn’t want to settle with just letting his earnings sit in savings. Here’s what he has to say about his money philosophy, and how he found the guts to seize the opportunities that come his way. 

Who are your finance heroes?

I have several. I really look up to Bill Ackman, and I know him on a personal level as well, so I’ve come to learn about his strategies…

Many retirees have the bulk of their retirement savings in registered retirement savings plans (RRSPs) or similar tax-deferred registered accounts. RRSPs need to be used to buy an annuity or more commonly converted to a registered retirement income fund (RRIF) by Dec. 31 of the year someone turns 71. Required RRIF withdrawals begin the next year, with each withdrawal based on a percentage of the account value. 

Locked-in RRSPs, defined contributions (DC) pensions, and deferred profit sharing plans (DPSPs) all have the same rule requiring conversion at age 71. 

The two big questions for a retiree prior to age 71 are: When should I start withdrawals? And how much should I take out each year?

If we take a simplistic approach to the RRSP drawdown, a sustainable withdrawal rate may be 2% to 5% of the account value. That is, between 2% and 5% of the starting account value may be withdrawn each year with subsequent withdrawals increased each year with inflation for life. There are many asterisks depending on age, life expectancy, investment risk tolerance, investment fees and other factors…

As the country re-opens after COVID-related restrictions, Canadians are faced with a worrying financial picture. Many have moved, others are looking to travel, and the cost of living is ballooning with unusual rates of inflation. Meanwhile, the Bank of Canada (BoC) rate hikes designed to curb these forces are adding pressure to those with variable-rate loans and mortgages. Unsurprisingly, many Canadians are using their credit cards to charge their expenses.

How much debt does the average Canadian carry? 

The average credit card debt Canadians had in September 2022 was $2,121, according to Equifax. And another report the Canadian credit bureau, Canadian consumer debt has risen to $2.32 trillion, with an average debt load of approximately $21,000—excluding mortgages. These numbers represent an increase of 8.2% over last year, and 6.4% between the first and second quarters of 2022. And Canadians are using credit cards more, as there was a 6.4% increase in credit balances from the first quarter to the second…

“Stick to a budget” is one of the most common pieces of advice you’ll hear if you’re trying to save money. But not everyone wants to make decisions according to a spreadsheet—and there are many ways to manage your money that don’t involve a budget. Often, a simple, critical look at your regular expenses can reveal unnecessary spends or untapped rewards that can translate to serious savings. In this article, we’ve gathered some simple strategies and practices that can help you save—without necessarily giving up your daily latte.

Look at how you bank

Look at the banking services available to you—these are designed to help you manage your money, as well as save more money.

Check out promotional offers

As the financial services industry has become increasingly competitive, banks have begun to offer promotions designed to attract new clients. And some are incredibly lucrative. It’s not uncommon for banks to offer hundreds of dollars in value back when you open an account…