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...
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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...
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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...
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Saving for Retirement is Easy; Spending in Retirement – Not So Much You have been saving for retirement all your life. If you are a resident of Canada, you have been building up credits toward receiving Old Age Security (OAS). If you have been employed, you...
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“Would it surprise you to know the number is $1.7 million?” You may be familiar with the commercial from Qtrade, the Vancouver-based online investment platform that partners with most of the credit unions in Canada. An interviewer asks a series of people on the streets what...
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A couple we’ll call David and Marie are on the verge of age 65. They managed to pay off their mortgage back in 2008, but they haven’t saved much of anything since. Neither had employers who provided pensions or group Registered Retirement Savings Plans (RRSPs)....
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The Dilemma: What Should She Do with Her Money? Marie, 67 years old, was widowed three years ago after forty years of marriage. Together, she and her husband Robert had raised their family of three children and created thousands of memories together in the house that...
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Take CPP at 60; Take OAS at 65 Deciding when to begin Canada Pension Plan (CPP) or Old Age Security (OAS) may not be a problem for many Canadians. The default choice is to take it as early as possible. Low-Income Earners Indeed, for some taking CPP at...
Read More“Industry organizations are calling on the federal government to raise the age at which RRSPs must be converted to RRIFs and to reduce the annual RRIF minimum withdrawal rates.” “Industry groups call for changes to RRIF rules,” by Rudy Mezzetta, Advisor’s Edge, March 13, 2023 What is...
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Occasionally I read about people who regard themselves as fairly sophisticated investors entering into a strategy of beginning to receive the Canada Pension Plan (CPP) at age 60 while continuing to be employed. There may be multiple reasons for making this choice. The most ill-informed reason...
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