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If people are interested in opening a line of credit, money expert Jessica Moorhouse emphasizes the importance of gaining a full understanding of what you are signing on to before having it set upFinancial planning in your 70s
– moneysense.ca
When most people think about financial planning, they think about saving and investing for retirement. That is certainly a part of it, but financial planning is much more holistic.
Here are a few financial planning strategies for those approaching or into their 70s. If you are not there yet, bookmark this for future you, or share it with older family members for whom it may apply.
RRSPs
An account holder can only have a registered retirement savings plan (RRSP) until December 31 of the year they turn 71. By that time, they must either convert their RRSP to a registered retirement income fund (RRIF) or purchase an annuity from an insurance company that provides a regular payment for life.
The conversion age used to be 69, but was increased to the current age 71 in 2007. I find in the course of my work as a Certified Financial Planner that some people still think it is 69. It often makes sense to take RRSP withdrawals prior to age 72, and even convert your RRSP to a RRIF as early as age 65…
Here are a few financial planning strategies for those approaching or into their 70s. If you are not there yet, bookmark this for future you, or share it with older family members for whom it may apply.
RRSPs
An account holder can only have a registered retirement savings plan (RRSP) until December 31 of the year they turn 71. By that time, they must either convert their RRSP to a registered retirement income fund (RRIF) or purchase an annuity from an insurance company that provides a regular payment for life.
The conversion age used to be 69, but was increased to the current age 71 in 2007. I find in the course of my work as a Certified Financial Planner that some people still think it is 69. It often makes sense to take RRSP withdrawals prior to age 72, and even convert your RRSP to a RRIF as early as age 65…
If people are interested in opening a line of credit, money expert Jessica Moorhouse emphasizes the importance of gaining a full understanding of what you are signing on to before having it set upCould a line of credit impact my mortgage application?
– moneysense.ca
Prospective house hunters and those looking to refinance an existing mortgage should consider the impact of their lines of credit on their mortgage application. That’s because lenders take non-mortgage debt, including line of credit payments, into account when determining how much you can afford to borrow.
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How a line of credit affects a mortgage application
Lenders consider factors like a borrower’s creditworthiness, income and existing debt before lending them money.
When it comes to mortgages, they want to know what percentage of your income will be spent on housing costs, to ensure you can afford your future mortgage payments. This is called the gross debt service ratio (GDS), and it is based on your mortgage principal and interest, taxes, heating costs and condo fees (if applicable) divided by your income…
