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Latest News
Eight solid alternatives to the Capital One Costco Mastercard for Canadians + MORE Jun 6th
Costco wasn’t the world’s first retail warehouse club, but in the nearly 35 years since opening in Canada, it’s become a staple shopping destination for families and groups who want deep discounts on bulk buys. The way that Costco works is that it relies on membership—you can’t walk into a.... More »
Planning a Trip or Cruise? Best Travel Tips for More Money May 24th
Want to save money on your cruise? Want to know how to save big on your next vacation? If you’re spending cash-only for your cruise, hotel and rental car, you might be missing out. There are lots of travel tips and cash reward perks you can take advantage of to stretch your dollars fur.... More »
The Power of Points: CIBC Survey Shows Canadians Missing Out on Valuable Reward Point Redemptions Jul 26th
Canadians are missing out on some major savings on merchandise, travel, and even chances to pay down their debt. And the answer to “why?” is right under their noses, or at least, right on their monthly bank statement.
According to a recent CIBC survey that reviewed if and how Canadians are usin.... More »
What are climate action incentive payments? + MORE Aug 14th
If you’ve received a climate action incentive payment (CAIP) from the Canadian government recently, you might be wondering why—is it free money? Do you have to pay tax on it? And what does it have to do with Canada’s climate strategy?
These deposits are the first round of climate action inc.... More »
RRSP vs TFSA: Where to store your retirement savings + MORE Feb 15th
—In partnership with Scotiabank—
The post RRSP vs TFSA: Where to store your retirement savings appeared first on MoneySense..... More »
Tips on how to stick to your savings goal: Vaz-Oxlade
– thestar.com
It’s easy enough to set a savings goal, but it can be really tough to actually achieve it.
It’s the first time the census has probed the question, taking advantage of tax data to correct a picture which experts say has long been distorted by suspect numbers and aggressive investment marketing.
Two thirds of Canadian households saving for retirement, census suggests
– canadianbusiness.com
TORONTO _ Two-thirds of households are setting aside money for retirement, taking advantage of either a registered pension plan, an RRSP or a tax-free savings account, Statistics Canada said Wednesday as it released the latest batch of numbers from the 2016 census.
Of 14 million households, 65.2 per cent made a contribution in 2015 _ the most recent year for which data was available _ to one or more of the three major savings vehicles, an apparent counterpoint to the prevailing narrative that too many Canadians take a cavalier approach to retirement.
Different generations took different approaches: Major income earners aged 35 to 54 were prone to make use of registered pension plans and RRSPs, while those younger than 35 and those older than 54 were more likely to contribute to a TFSA.
Or, in Statistics Canada’s words: “Participation in savings plans followed strong life-cycle patterns.”
It’s the first time the census has probed the question, taking advantage of tax data to paint a more accurate picture of just how seriously Canadians take it _ a picture which experts say has long been distorted by suspect data and aggressive investment marketing…
Of 14 million households, 65.2 per cent made a contribution in 2015 _ the most recent year for which data was available _ to one or more of the three major savings vehicles, an apparent counterpoint to the prevailing narrative that too many Canadians take a cavalier approach to retirement.
Different generations took different approaches: Major income earners aged 35 to 54 were prone to make use of registered pension plans and RRSPs, while those younger than 35 and those older than 54 were more likely to contribute to a TFSA.
Or, in Statistics Canada’s words: “Participation in savings plans followed strong life-cycle patterns.”
It’s the first time the census has probed the question, taking advantage of tax data to paint a more accurate picture of just how seriously Canadians take it _ a picture which experts say has long been distorted by suspect data and aggressive investment marketing…
Almost two-thirds of Canadian households are saving for retirement, census data show, despite a national household savings rate that fell to 4.6 per cent in the second quarter of this year.
Should I convert my RRSP to a RRIF early?
– moneysense.ca
Q: I’m 67 and my husband turned 71 in May. He has to turn his RRSP into a RRIF. Can I turn my RRSP into a RIFF also? The only income we have is Old Age Security and CPP and it just isn’t enough to pay bills and food. The person from our bank said that I was too young to turn the RRSP into a RRIF. Is she right? Any information would be great.
—Mina
A: Registered Retirement Income Fund (RRIF) is exactly the same as a Registered Retirement Savings Plan (RRSP) with only two exceptions. Age 71 is the latest age that an RRSP can be converted to an RRIF. The earliest age is 55.
A RRIF has a mandatory minimum withdrawal requirement. This minimum is a % amount based on your age. (See table this table.)
A RRIF withdrawal is considered pensionable income after the year you turn age 65.
I see that Mina wishes to solve a perceived income problem by converting to a RRIF. It simply isn’t necessary as Mina can withdraw funds from her RRSP as-is. Mina can decide what amount she needs for a regular income over the coming months/years and withdraw that amount…