Can my ETF pay me $3,000 a month in retirement? + MORE Feb 1st
COVID-19: Preparing for Financial Uncertainty + MORE Apr 4th
I lost my home in a fire. Can I tap my LIRA to cover costs? + MORE Nov 16th
This Montreal millennial couple makes $316,000 combined. Monthly child care costs? $203. With an excess in savings, they want to have their second child. What advice can they get? + MORE Feb 6th
The best RRSP investments 2022 + MORE Oct 31st
Should I add to an RRSP in retirement?
– moneysense.ca
Q: I’m 70 years old, retired on a fixed income, and my tax bracket is not forecasted to change going forward. My question is, I have $15,000 in unused RRSP room. Should I contribute the $15,000 prior to converting to a RRIF?
—Bruce
A: The intent of an RRSP contribution is to make this savings amount taxable not now but much later on when you retire. This deferring of tax immediately shows up as lower income tax and/or a tax refund. This works in your favour if you are taxed in a higher income bracket when contributing then when you are withdrawing the taxable RRSP/RRIF for income.
Taxable Income
Federal Tax Rate
Taxable Income
Ontario Tax Rate
$0
to
$45,916
15.0%
$0
to
$42,201
5.05%
$45,916
to
$91,831
20.5%
$42,201
to
$84,404
9.15%
$91,831
to
$142,353
26.0%
$84,404
to
$150,000
11.16%
$142,353
to
$202,800
29.0%
$150,000
to
$220,000
12.16%
$202,800
to
over
33.0%
$220,000
to
over
13.16%
From Canada Revenue Agency website (Jan 2017)
You are permitted to contribute up to 18% of your gross income…
Canadians have fewer credit cards but rising balances
– moneysense.ca
VANCOUVER (NEWS 1130) – More Canadians than ever have access to some form of credit, according to a new report from TransUnion.
More than 27 million consumers have access to some type of credit, which is just under 75 per cent of the country’s population and also a record.
“And we’ve seen it across most credit products, auto loans, mortgages, credit cards, although the demand for credit cards isn’t as strong. So more and more consumers are getting access to credit. Lenders are granting it because it’s a low-risk environment, low-interest-rate-environment,” says the credit bureau’s Matt Fabian.
How much total ‘credit’ should a couple have?
But our wallets are actually lighter because we’re carrying fewer credit cards, which might seem misleading at first glance.
“The actual credit lines and balances for credit cards are rising. So consumers are still using their credit cards; they’re just not taking out two or three credit cards. They’re using one or two, but they’re using them as much or more than they ever have,” says Fabian…
How the Interest Rate Hike Can Affect Canadian Post-Secondary Students
– ratesupermarket.ca
If you haven’t heard, the Bank of Canada raised its key overnight lending rate by 25 basis points last month. And while mortgage affordability is usually the first thing that comes to mind when people discuss an interest rate hike (or drop), students heading to university or college may also be affected by this move.
As the prime rate rises, so does the cost of borrowing money, or taking out any type of loan. Here’s where students can expect rising interest rates to affect their finances come September:
Student lines of credit
To supplement the cost of tuition, books and residence, many post-secondary students use a student line of credit. It’s a flexible solution, typically with lower interest rates than credit cards or government loans. However, when interest rates rise, so do the floating rates tied to lines of credit. The interest rate on a line of credit is calculated using the banks’ prime interest rate, which fluctuates, and often follows the Central bank when it changes its rate…