Posted on: April 9, 2013
In the aftermath of the US housing market bust and the ensuing financial meltdown that led to global stock market declines of 2008, people are getting back to the basics as far as their retirement planning goes. Although the stock market has recovered, many pre-retirees have lost a lot of ground in their retirement accounts and are facing a new reality. Retirement may not be what they had originally envisioned; but with some retirement income 101 basics, most people should be able to get back on track.
Start with Realistic Assumptions
Posted on: November 13, 2012
Roger and Linda, like many Canadians, have saved for years for their retirement. They took advantage of RRSPs and now have a substantial amount of savings. As Roger will turn age 71 this year, they need to decide on the best strategy for using their RRSPs for their retirement income needs.
Until now, Roger and Linda have been relying on their non-RRSP investments and government benefits so their RRSPs could continue to grow tax-postponed. Roger has to choose from the following by the end of the year or all his RRSP funds will be fully taxed:
Posted on: July 10, 2012
Tax Free Savings Accounts (TFSAs) were introduced in 2009 and they seem to be struggling to catch on. Registered Retirement Savings Plans (RRSPs), however, have been around for over fifty years and attract billions of dollars of deposits each year. If you are serious about saving for your future, it is important to know the differences between the two.
While RRSPs and TFSAs seem to be very similar on the surface, they are really apples and kumquats apart. The only similarity is that, within limitations, earnings inside either plan are allowed to grow without current taxation.
Posted on: February 14, 2012
Recent surveys* reveal that a large majority of so-called Baby Boomers are uncertain about their preparation for retirement. Arguably, the have it my way? generation did not all follow in their parents' footsteps when it came to saving for the future. As well, some major bumps along the way (a housing crisis, a stock market crash and a global financial crisis) have reduced many retirement 'nest eggs.'
Posted on: January 10, 2012
In a 2010 report to the Minister of Finance, it was found that approximately 160,000 Canadian seniors were not aware of the full range of benefits they were entitled to in their retirement years. In fact, nearly $1 billion in retirement benefits from the Canada Pension Plan (CPP), Old Age Security (OAS) and the Guaranteed Income Supplement (GIS) have not been paid out to eligible recipients.
According to the Service Canada website, seniors may qualify for a number of income supplement programs that would help them make ends meet, including:
Posted on: December 12, 2011
A bleak picture is painted by the findings of the second annual survey about 'growing into retirement,' commissioned by the Royal Bank of Canada (RBC). Most retirees' outlook has worsened in just one year, and the so-called 'golden years' are beginning to look tarnished. Just one year ago, 39 per cent of Canadians expected to still have debt in retirement; more than half of those questioned now (54 per cent) think that they will not have paid off everything.
Posted on: July 1, 2011
Bob and Lisa are wondering just how their retirement will turn out. After all that's happened over the past few of years, their RRSP accounts aren't what they used to be. Even in the best of times, the accounts weren't as large as they could have been, at least for all their post-retirement desires.
Posted on: May 9, 2011
With the turbulent times we have been experiencing in the markets, more people are considering annuities to ensure a certain income in their retirement years. It might not suit everybody to put their funds into annuities, and
there is always the question of what percentage do you want to invest in them, and how much will you leave in the markets? There is no clear-cut answer, and you'll need to weigh your personal circumstances to see how annuities can fit into your retirement plans.
Posted on: February 14, 2011
Millions of Canadian make RRSP contributions each year for the sole purpose of getting a big tax refund cheque each spring. If this is your only reason for investing in RRSPs, there may be situations where making RRSP contribution isn't your best option.
With the arrival of the Tax-Free Savings Account (TFSA) in January 2009, Canadians now have a viable alternative to RRSPs when saving for their retirement. Simply put, the TFSA is the mirror-image to an RRSP - you don't get an upfront refund, but all your future withdrawals are 100% tax free.
Posted on: July 8, 2010
One of the top retirement goals for many is travel. As many as 1.5 million so called 'snowbirds' travel to the Southern United States during the winter. With summer just around the corner, thoughts turn to travel within our borders, too. The Canada Safety Council states that a few simple precautions can help ensure a safe, healthy and enjoyable trip any time of the year.