“Where do we pay income tax if we retire abroad?” Apr 27th

Retirement planning getting you down? There are always smart ways to plan the financial aspects of your retirement.
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 canada pension plan

Skipping the starter home for the next size up? Be financially savvy about it May 4th

Taking on too big a debt load can leave first-time buyers house poor, unprepared for retirement and stressed by ordinary purchases for things like car repairs and vacations, Lesley-Anne Scorgie writes..... More »

Is the Longevity Pension Fund a cure for retirement income worries? Jun 15th

Many retirees and near-retirees are enthused about the June 1 release of Purpose Investments Inc.’s Longevity Pension Fund. (For the sake of space, we’ll refer to it as LPF henceforth.)  Taking on the challenge of providing retirement income for the vast army of people who don’t have classica.... More »
 retirement savings plan

A guide to spousal RRSPs for married and common-law partners + MORE Jun 22nd

Couples can open and contribute to a personal Registered Retirement Savings Plan (RRSP) or a spousal RRSP—or both. A spousal RRSP generally makes the most financial sense for couples whose incomes are quite different. If one partner earns little or no income, so that contributing to their own RRSP.... More »

How much real estate should you have in a balanced portfolio? May 11th

When investors talk about income-producing assets, the first that come to mind are dividends and interest, with capital gains a close third. But what about investment real estate? If you hold an asset allocation ETF, it will be chock full of stocks and bonds but offer little real estate exposure apa.... More »
Q. We’re thinking about moving to Mexico full-time when we retire. Where would we pay income tax on our monthly Canadian pensions?
A. Many Canadians dream of a retirement that includes travel abroad. Some even move abroad part of the year, most of the year, or give up their Canadian residency entirely. 
In the case of Mexico, Marianna, a taxpayer is considered a resident of Mexico if they have a permanent home available to them in Mexico. If they have homes in both Mexico and Canada, the location of their centre of vital interests—their personal and economic ties—must be considered. 
The courts typically refer to the residence article of the OECD Model Tax Convention when defining centre of vital interests:
“If the individual has a permanent home in both Contracting States, it is necessary to look at the facts in order to ascertain with which of the two States his personal and economic relations are closer. Thus, regard will be had to his family and social relations, his occupations, his political, cultural, or other activities, his place of business, the place from which he administers his property, etc…

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