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Latest News
Moving money from RRSPs, RRIFs and TFSAs in retirement + MORE Jan 14th
Ask MoneySense
My husband and I are retired with $200,000 in our TFSAs, $230,000 in our RRSPs and RRIFs, and we have an emergency fund. Our household income is $85,000 a year.
My husband may need nursing home care at some point, so I have been moving assets from the RRSPs to our TFSAs for flexibi.... More »
Canada’s 10 best Mastercard credit cards for 2021 + MORE May 16th
As one of the top credit card companies in the world, Mastercard is extremely popular and also widely accepted. For those already banking at BMO Bank of Montreal, a major Canadian bank that’s associated with Mastercard, these cards may offer all the perks you’re after, along with opportunities t.... 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 »
Can you have too much invested inside an RRSP? + MORE Dec 6th
While not quite up there with outliving your money, for many seniors the idea of dying with too large an RRSP (Registered Retirement Savings Plan) or RRIF (Registered Retirement Income Fund) rankles. Handing over nearly half your nest egg to Ottawa after a lifetime of tax-deferred saving seems to ma.... More »
Need a Loan ASAP? Don’t Stress. Get Pre-Approved in Minutes + MORE Jun 28th
Looking for a personal loan? Let’s face it, circumstances can change unexpectedly. And, an emergency can pop up at the worst possible time. From an unexpected home improvement bill or tax liability to your kids asking for a loan, don’t stress it. Personal loans are a way to obtain the m.... More »
Q. How safe or wise is it to invest some savings in gold? Many of my friends say it’s a great inflation hedge. But I have a very well-diversified portfolio that’s mainly equity index funds right now. Is having a small portion of gold, say 5% or 10%, a good option? Why or why not?— Thanks, Mary R.
A. I love my friends. I ask them for advice on all sorts of things. Like how to peel butternut squash without losing a finger, or how to gel my daughter’s hair for her synchronized swimming competitions. (Knox Gelatin, for the record). But unless we are talking about one of my friends who works full time as a portfolio manager in the investment industry, I don’t ask my friends for investing advice.
Your question is best directed to an advisor who can look at your complete financial picture. And I bet that before she recommends you buy gold, she’ll want to talk more about your fixed income position and whether or not you need some to balance out your equity.
But you didn’t ask me to opine on your friendships…
The ins and outs of tax and estate planning for a RRIF
– moneysense.ca
Q: I’m 81, single, female, with around $265,000 in a RRIF (invested in two different financial institutions, both mutual funds). My withdrawal is about $12,000 a year.
How can I minimize tax payable (by my beneficiaries) at death?
— Lydia
A: The tax savings and deferral from contributing to a Registered Retirement Savings Plan (RRSP) can be a good thing. But in retirement, and on death, the tax payable on withdrawals from a registered account is an important tax and estate consideration.
As you may know, Lydia, a Registered Retirement Income Fund (RRIF) can be left on your death to a surviving spouse or common-law partner on a tax-deferred basis. In certain instances, a RRIF can also be left to a financially dependent child or grandchild. They must live with you, be dependent upon you, and have an income below the basic personal exemption in the year of your death. If these conditions apply, some or all of the value of your RRIF can be taxed on their tax return instead of having all of it taxed on your tax return…
How can I minimize tax payable (by my beneficiaries) at death?
— Lydia
A: The tax savings and deferral from contributing to a Registered Retirement Savings Plan (RRSP) can be a good thing. But in retirement, and on death, the tax payable on withdrawals from a registered account is an important tax and estate consideration.
As you may know, Lydia, a Registered Retirement Income Fund (RRIF) can be left on your death to a surviving spouse or common-law partner on a tax-deferred basis. In certain instances, a RRIF can also be left to a financially dependent child or grandchild. They must live with you, be dependent upon you, and have an income below the basic personal exemption in the year of your death. If these conditions apply, some or all of the value of your RRIF can be taxed on their tax return instead of having all of it taxed on your tax return…
