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
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
A (very) short post-graduate course in personal finance
Here’s a commencement speech you won’t hear at most graduation ceremonies: As a new grad, the most important lesson you’ll have to learn after leaving school is to live within your means and not spend more than you earn. You do not need to make a six-figure salary to be financially successful, but you do need to be smart about spending and to set out a diligent savings goal and investment plan. READ MORE
The Canada Revenue Agency (CRA) confirmed that the annual contribution limit for Tax-Free Savings Accounts (TFSA) will remain unchanged at $5,500 for 2018, bringing total contribution room available since the introduction of the plan in 2009 to $57,500 for someone who has never contributed to a TFSA. READ MORE
Sorting out “successor survivor” vs. “designated beneficiary”
When you open a Tax-Free Savings Account (TFSA), you’ll likely be asked whether you wish to specify something called a “successor holder” or whether you want to designate a beneficiary. If you’re not sure what all this means, welcome to the club. Legal jargon can be daunting. So here’s a look at what all this means, and the implications for your estate planning. READ MORE
Yes, you can beat the taxman! In fact, you have the legal right to arrange your financial affairs within the law to pay the least amount of taxes possible. Make sure you exercise that right. This is legitimate tax planning, and nothing to feel guilty about (unlike breaking that New Year’s resolution to diet and exercise). The result of proper tax planning is more money in your pocket and less to the Canada Revenue Agency (CRA). In fact, the government goes so far as to make it easy to slash your tax bill, if only you’d take the trouble to do it. One of the best ways is something called the Tax-Free Savings Account (TFSA). READ MORE
Many investors are torn between contributing to an RRSP and putting funds into a TFSA. Is one plan better than the other? In fact, both vehicles are excellent tax shelters, but each serves a different purpose. Here’s a look at the differences, and how to make them work for you. READ MORE
Still looking to contribute to a Tax-Free Savings Account before the end of the year? If you’re not sure how much contribution room you have available for this year, you’ll have to do some digging. Unlike RRSP contribution room, that information is not shown on your annual Notice of Assessment. But getting that and other information on registered accounts and on your tax status in general isn’t easy. Here’s a primer on contacting the Canada Revenue Agency (CRA). READ MORE
Should you max out the $10,000 contribution for 2015?
Tax-Free Savings Accounts (TFSAs) sound simple. But they’re not. There’s an array of rules and regulations involved. One of the most common questions I’m asked is whether you would lose this year’s contribution opportunity forever if you don’t contribute. And this year, the issue is complicated even further by an increase in the contribution limit to $10,000 that the previous Conservative government enacted for 2015, which the new Trudeau Liberal government has rolled back starting next year. READ MORE
Robyn Thompson is featured in the Globe and Mail, in an Investment article by Joel Schlesinger. In this article, Robyn recommends a strong strategy in order to effectively draw income from retirement savings.