Got a refund? Think RRSP If you anticipate receiving a tax refund, you may already be dreaming about how to spend it – maybe a trip or a new IPad. Here’s a better idea: use your refund to top up your RRSP (Registered Retirement Savings Plan) and enjoy a bigger nest egg when you need it. If you contribute now for the current year, you will be putting your money to work almost a year earlier than those who wait until the the last minute. You will maximize the tax savings and tax-deferred growth that make RRSPs so attractive in the first place. Let’s say your reinvest your tax refund of $2,000 in your RRSP. You will then have a $2,000 tax deduction for 2010 representing a $700 tax savings (assuming a 35% marginal tax rate). Not bad for reinvesting the government’s money! If you invested this $2,000 tax refund for 30 ...
Of course it is! Often quoted pension actuary, Malcolm Hamilton, finds in the Nov 27, 2009 Retirement Savings Research Program that for a 65 year old opposite-sex couple: at least one will live to approximately age 90; approximately 10% of couples will have one partner that lives 8 years beyond the normal life expectancy; approximately 1% of couples will have one survivor who lives 14 years beyond the normal life expectancy. That's impressive! What does this mean to you? Couples entering retirement at age 65 can expect to have at least one partner still receiving income at age 90. That's 25 years of income that needs to be provided by all sources. This could be from the Canada Pension Plan, Old Age Security, RRSP/RRIF income, private pensions and other investment assets. In partnership with Investor ...
Based on the traffic reports on the 400 every week, there are a great number of families preparing for trips up to the family cottage. Over the past few months, we have been getting into conversations about cottages, and they have now expanded to include much more than what was on the barbecue this past weekend (which was delicious). Whether you own a cottage, or will eventually inherit one, an open dialogue is important. There’s no argument here – the following problems are all nice to have! There are many things to consider in any plan that involves family and different generations, but perhaps the most difficult is just starting the conversation. This is a very awkward subject for some families, where Children may feel especially uneasy opening up this subject with their parents, but it’s in everyone’s best interest to deal with any issues early on. In fact, many parents find ...
