Not sure how to make a savings plan? Read on…
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This 33-year-old analyst makes $100,000 a year including bonus. She paid off her student loans and wants to buy a home. Is now the right time? + MORE Jul 25th
Like many millennials, Anna’s main long-term goal is to save up for a down payment. Now, because of the pandemic, she’s looking to buy sooner than later because of the real estate market..... More »
News for investors: Barrick settles Mali dispute and Couche-Tard profit climbs + MORE Dec 3rd
Here’s a round-up of news for Canadian investors this week.
Barrick Mining
Alimentation Couche-Tard
Blue Ant Media
Brookfield
Featured RRSP Accounts
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EQ Bank
Build y.... More »
CPP payment dates this year, and more to know about the Canada Pension Plan + MORE Aug 6th
In Canada, no retirement plan is complete without considering the CPP. Whether you’re approaching retirement or still several years away from it, the Canada Pension Plan will likely play a role in your retirement income. How big a role depends on several factors. You may have other questions, too..... More »
Should you max out your RRSP before converting it to a RRIF? Apr 30th
Ask MoneySense
My husband and I retired last September. We have moved into a condo and are now travelling. Enjoying life but I’m concerned about his RRIF. My husband turns 71 in June 2025. So, I understand we can contribute to his RRSP for 2025 before he turns 71 and claim the contribution for the.... More »
How has inflation affected Canadians’ finances in recent years? + MORE Oct 15th
Inflation and higher interest rates have eroded Canadians’ purchasing power since 2022, particularly for lower-income households, a new report from the parliamentary budget officer has found.
But wealthier households have seen their purchasing power rise thanks in big part to their i.... More »
“Should I sell off some investments to avoid OAS clawbacks?”
– moneysense.ca
Q. I’m due to receive Old Age Security (OAS) benefits next year. I’m concerned because the dividends I receive from my investments will bring my income to $90,000, putting me in a situation where my OAS will be clawed back. Should I be selling some of my dividend stocks to stay below the threshold for clawbacks? I already pay more in income tax than I receive from my Canada Pension Plan benefits.
–Cam
A. Old Age Security (OAS) is a federal government pension payable to those age 65 and older. Unlike Canada Pension Plan (CPP), it is based on years of residency in Canada, and not work history or historical contributions. Those who have lived in Canada for at least 40 years since the age of 18 are entitled to the maximum of $613.53 per month at age 65 (as of the fourth quarter of 2019). That’s $7,363.36 annualized.
OAS can be lower or higher than the standard maximum. Those with fewer than 40 years of residency may receive a prorated pension. Recipients can also defer their OAS pension past age 65 and start it as late as age 70…
–Cam
A. Old Age Security (OAS) is a federal government pension payable to those age 65 and older. Unlike Canada Pension Plan (CPP), it is based on years of residency in Canada, and not work history or historical contributions. Those who have lived in Canada for at least 40 years since the age of 18 are entitled to the maximum of $613.53 per month at age 65 (as of the fourth quarter of 2019). That’s $7,363.36 annualized.
OAS can be lower or higher than the standard maximum. Those with fewer than 40 years of residency may receive a prorated pension. Recipients can also defer their OAS pension past age 65 and start it as late as age 70…
Employees should actively investigate their options and invest accordingly.Q. Are there books or good self-help websites on retirement planning for Canadians that you can recommend? I live in Ontario and want to retire earlier than age 60 but I’m unsure how taxes will affect me when I can (and should) begin to draw down on my registered and non-registered savings. I’d also like to understand what I can do to maximize my after-tax retirement income. Any suggestions you have would be appreciated.
–Rob
A. This is a great question. There are so many sites in the web universe for online help and resources that it’s important to confirm the background and credentials of the information you are looking at.
Before you even begin, always check and make sure you are looking at Canadian sites because sometimes U.S. and U.K. sites have similar-sounding products and advice, but they work within a different regulatory framework in those countries. So those sites aren’t as helpful to you.
I would start with Canadian federal or provincial government websites that are unbiased and well researched…
–Rob
A. This is a great question. There are so many sites in the web universe for online help and resources that it’s important to confirm the background and credentials of the information you are looking at.
Before you even begin, always check and make sure you are looking at Canadian sites because sometimes U.S. and U.K. sites have similar-sounding products and advice, but they work within a different regulatory framework in those countries. So those sites aren’t as helpful to you.
I would start with Canadian federal or provincial government websites that are unbiased and well researched…
Employees should actively investigate their options and invest accordingly.
