Introduction Linda and David, both recently turned 65, are lifelong residents of Cambridge, Ontario. They’re now settling into retirement with a mix of anticipation and uncertainty. They bought their home 39 years ago, just a year after getting married. It’s where they raised their two children and...
Read More
Let’s imagine a married couple, James and Sandra, both age 65, recently retired, and living in Winnipeg. They own a mortgage-free home worth about $500,000. Their financial assets are currently worth about $1.7 million with 25% in RRSPs, 15% in TFSAs, and 60% in a jointly...
Read More
An Unexpected Discovery David and Susan have done everything right. Born in 1960 and now turning 65, they've worked steady careers, raised a family, and saved carefully. Their London, Ontario home is mortgage-free, their debts are paid off, and between their RRSPs, TFSAs, DC pension plans, and...
Read More
The Unexpected Problem The RRSP (Registered Retirement Savings Plan) has long been considered a cornerstone of Canadian retirement savings. It offers tax deductions now, tax-deferred growth, and (presumably) lower taxes in retirement. It's often described as a “no-brainer” for Canadians who want to retire comfortably. On the...
Read More
The Problem of No Pension Benefits Hannah’s Exciting Start At 24, Hannah has just graduated with a master’s degree, specializing in Information Systems and Design. She’s landed a job in the tech sector in Toronto, earning a solid salary of $85,000 per year. The Missing Piece While the job...
Read More
The Problem Emerges Margaret's Situation At 75, and recently widowed, Margaret has decided to sell her detached home in British Columbia. She's in good health but wants to eliminate the responsibilities of homeownership. The Dilemma With anticipated net sale proceeds of $800,000, Margaret is faced with a decision about...
Read More
The Problem: Sequence Risk Meets Longevity Risk David and Marie are a 65-year-old married couple preparing for retirement. With $1 million spread across Defined Contribution (DC) pensions, RRSPs, TFSAs, and non-registered accounts, they feel a quiet contentment about reaching this financial milestone. However, recent events have...
Read More
The Income and Wealth Gap The Context An unattached Canadian is a person not in an “economic family,” that is, a person living either alone or with others to whom he or she is unrelated, such as roommates or a lodger. Unattached Canadians are a growing demographic...
Read More
The Canada Pension Plan (CPP) is often debated, with some Canadians feeling that it unfairly penalizes those who die before they can fully collect its benefits. Critics of CPP argue that mandatory contributions, when considering the possibility of early death, result in a system where...
Read More
Meet Ashley and Ryan There are many high-income earning households across Canada. Some of them may have stepped into high-paying roles early on, while others have had careers that had the potential for high incomes that were not realized until 15 or 20 years or more...
Read More