Personal Savings getting you down? There are always smart ways to increase your savings.
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How to Improve Your Credit Score – Student Edition Sep 13th
The new school year is in full swing and if you’re a university or college student, then you’ve probably already settled comfortably into your new routine and dorm room. As you buy books, begin assignments and make new friends, the last thing you’re likely thinking about is your credit.
But.... More »
Inflation: How It Affects Your Finances + MORE Jun 13th
Much of Canada’s economy has ground to a halt amid the COVID-19 pandemic. One of the effects of this has been a drop in prices for many items. Most notably, gas.
As a result of consumer prices dropping, Canada’s inflation rate went negative to -0.2% in April, according to Statistics Canada, whi.... More »
Can I withdraw from RRSPs to pay bills? + MORE Apr 17th
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 »
The best TFSA investments in Canada for 2020 May 23rd
Table of contents
GICs
Bonds
ETFs
Mutual Funds
If you’re using your tax-free savings account solely to deposit cash over the long term, Certified Financial Planner Trevor Kearns says you’re not using the TFSA to its full potential.
You have more options (and better potential gains) than th.... More »
Climbing Debt, Diminishing Savings Highlighted in CBC Documentary + MORE Mar 8th
When it comes to debt management, many Canadians are struggling to keep up, with their housing situation being a source of stress. That was one of the key takeaways from the latest episode of CBC Television’s The Stats of Life, which focused on Canadian statistics surrounding savings (or lack.... More »
How to get the pension income tax credit
– moneysense.ca
Q: I am 65 years old and will have income for the next three years. I want to open a Registered Retirement Income Fund (RRIF) and transfer some money into it to take advantage of the pension credit on a $2,000 withdrawal. While doing so, can I then turn around and use that $2,000 as part of my contribution to my RRSP? In other words, can you withdraw from an RRIF and contribute to your RRSP in the same year?
—Rhonda P.
A: Thank you, Rhonda, for your question. I assume that you do not have a pension—and you didn’t mention the value of your RRSPs. For many, it’s a great strategy to open an RRIF and transfer net $2,000 from your RRSP in order to take advantage of the pension credit. Be sure to transfer a little bit extra to the RRIF so the $2,000 withdrawal does not deplete the RRIF and cause it to close. Your financial institution will advise you on what the minimum amount is to keep the RRIF open. Or you can transfer as a lump sum.
And yes—you can technically withdraw from an RRIF and then contribute to an RRSP—if you have the room and are still under 71 years of age…
How to start investing late in life
– moneysense.ca
FlickrQ: I am a late bloomer. I finally have an empty nest, but I had low income employment and always lived with my nose 1 inch under the water. I finally have a good paying job at a bank, minimal debt, and I want to save. I have no idea where to go. My bank opened an investment account and I can finally put money into it this month. Please help.
—Pamela
A: Don’t feel bad about being a late bloomer, Pamela. Life happens, and we do our best. And don’t feel bad about needing help with your investment strategy. They don’t teach you this stuff in school and I frequently meet intelligent, successful people who don’t know the first thing about personal finance or investing.
First things first, you should figure out what kind of investment account the bank opened for you. Given you work at a bank, I’m wondering if this is some sort of account related to your employment? Often employers will offer defined contribution (DC) pension plans or group registered retirement savings plans (RRSPs) with matching contributions made by the company…
RRSP vs TFSA: Where to store your retirement savings
– moneysense.ca
—In partnership with Scotiabank—
The post RRSP vs TFSA: Where to store your retirement savings appeared first on MoneySense.
A guide to having retirement income for life
– moneysense.ca
With 1,100 Canadians reaching the official retirement age of 65 every day, there’s a sea of change occurring in the investment world. The move from wealth accumulation is rapidly moving to its opposite, de-accumulation or “decumulation.”Decumulation is actuary Fred Vettese’s preferred term over “drawdown” and his new book Retirement Income for Life (Milner & Associates, Toronto, 2018) seems destined to become the bible of any new or near retiree challenged with converting large RRSPs and other savings into reliable income.
The only retirees who may not need this book are the fortunate few and increasingly rare members of traditional Defined Benefit (DB) pensions. As Vettese says – the chief actuary for Morneau Shepell Inc. – decumulation is a much trickier act than accumulation. The book covers some ground previously occupied by Moshe Milevsky’s Pensionize Your Nest Egg or Daryl Diamond’s Retirement Income Blueprint but Vettese takes the topic further.
What I like about Vettese’s book is a 5-part strategy involving what he terms “enhancements…
