Six rules for RRSP success

Key investment principles

This year, the RRSP contribution deadline for getting a 2018 tax deduction is March 1. You still have four weeks to make a contribution, and that’s plenty of time to discuss the best strategy with your financial advisor. To make sure you get the most benefit from your RRSP, there are six key rules that apply all the time, and that I advise my clients follow. READ MORE

Is $1 million enough to retire on?

Let’s say you’ve accumulated a nest egg of $1 million at age 65, through pension plans, perhaps a significant RRSP, TFSA contributions, some inheritances, and possibly some money left over from downsizing your home. You’re ready to retire, and you have to decide what to do with it to make it last through retirement. Here’s what you need to know. READ MORE

How to retire with $1 million

Reach that magic number even if you start at 40

It’s sometimes said that you need at least a $1 million retirement fund to maintain the kind of lifestyle you want after age 65. But starting at, say, age 40, can that even be done? The good news is that it is possible to build a million-dollar retirement fund. But there five important principles you have to follow. READ MORE

Businesses increasingly use DPSPs and Group RRSP combo benefits

Employer contributions and tax savings can really add up

Employers often use group benefits as a way to attract and retain their best employees. The most popular group benefits typically offer the most flexibility for employees and the lowest costs for employers. That’s why employers are increasingly turning to the flexibility and low costs characterized by Deferred Profit Sharing Plans (DPSPs) and Group Registered Retirement Savings Plans (RRSPs). READ MORE

How to take advantage of the Home Buyer’s Plan

A source of funds for first-time home buyers

Looking for a source of funds as a down payment on your first home? If you have a good chunk of money sitting in your Registered Retirement Savings Plan (RRSP), you may be eligible to use some of it towards the purchase of a home under a federal government plan called the Home Buyer’s Plan (HPB). Naturally, there’s a long list of rules and regulations, but if you’re a young couple, it could mean as much as an extra $50,000 to tack on to a down payment. READ MORE

RRSP contribution rules

Still the most effective retirement savings plan there is

The Registered Retirement Savings Plan (RRSP) is still the most effective retirement saving and tax deferral vehicle available to Canadians. Because it’s such a powerful savings tool, it makes sense for everyone to open a plan a contribute to it regularly. This year, the deadline for RRSP contributions that will be eligible for a 2017 tax deduction is March 1, 2018. READ MORE

Now’s the time for RRSP planning

Don’t wait until the last day of February!

Typically, you’ll get the RRSP contribution song and dance starting somewhere in January and lasting until the end of February. It’s really just a marketing push by financial institutions to scare you into giving them money in the first 60 days of each year. But that’s no way to do any serious RRSP planning. The better way is to start thinking about your RRSP contribution right now. You have lots of time to weigh the pros and cons, consult with your financial planner, and come up with some cash to contribute. Here’s what to do. READ MORE

Annuities as an RRSP maturity option

annuities-rrsp-maturity-option-large-pic

Is an annuity right for you?

As a growing number of Baby Boomers retire, the question of what to do with maturing Registered Retirement Savings Plans is becoming more pressing. RRSPs must be shut down by the end of the year in which you turn 69, and the proceeds either taken into income in a lump sum, rolled over into Registered Retirement Income Fund (RRIF), or used to purchase an annuity. Often, retirees will opt for some combination of these. While RRIFs are reasonably well understood, annuities are still a bit of a mystery for many. READ MORE

Does an RRSP withdrawal make sense for first-time homebuyers?

 

When to take advantage of the Home Buyer’s Plan

First-time homebuyers who have RRSPs often look to supplement their down payment by taking advantage of the RRSP Home Buyer’s Plan. But frequently, they have only a sketchy idea of how it works and whether it’s even a good idea to take money out of what is really their retirement savings. READ MORE

Stocks and bonds and RRSPs, oh my!

Proper asset diversification is key to long-term investment success

With recent stock market uncertainty and fluctuating bond yields, many investors are wondering whether the tried-and-true principles for stock and bond allocations in an RRSP portfolio still hold. For example, bond funds, like the iShares Universe Bond Index ETF (TSX: XBB), are believed to have lower volatility ratings than stock funds, yet bond prices have recently fallen as yields have risen. And the solid returns from equity funds like the iShares Core S&P/TSX Capped Composite Index ETF (TSX: XIC) over the past couple of years have recently begun to flag. What’s an RRSP investor to do? READ MORE

older