A Registered Retirement Income Fund (RRIF) is an extension of the RRSP. On December 31st of the year you reach age 71, you’re required to do one (or all) of three things with the funds in your RRSP:Withdraw all funds in your RRSP as cash. With this option, the entire amount withdrawn is immediately taxable by Canada Revenue Agency. Use the funds to buy an annuity. You will receive an … [Read more...]
Investing Series
Get the inside scoop on RRSPs, RESPs, TFSAs, Indexing, ETFs and more. All about DIY Investing and increasing your Net Worth.
CPP vs. OAS: How Do They Compare?
As older Canadians near retirement, an understanding of pension and other retirement benefits become very important.Questions that are often asked include:What is the difference between Old Age Security and Canada Pension Plan? How much can I expect in pension or retirement benefits? Should I elect to take CPP early, or should I delay it by a few years? What can affect my … [Read more...]
RRSP Transfers Explained
There are several scenarios where you may need to move your RRSP assets around. For example, this could be because you want to move your RRSP to another financial institution and a new RRSP account or it could be that you have just turned 71 and your RRSP account has matured and needs to be converted to an annuity or RRIF.Alternatively, changes to your RRSP may be as a result of adding assets … [Read more...]
CPP and OAS Benefits for Surviving Spouse and Children
What retirement benefits are available to survivors after the death of a spouse, common-law partner, or parent?If the deceased contributed to the Canada Pension Plan (CPP), survivors may qualify for benefits including the CPP Death benefit, Survivor’s pension, and Children’s benefits. A surviving spouse may also qualify for Old Age Security (OAS) payments in the form of a benefit referred to … [Read more...]
The Rule of 72, Doubling Your Money, and Investment Returns
The Rule of 72 has been around forever and is a very simple way to determine how many years it will take to double the funds invested in your investment accounts.Want a shortcut approach to estimating how compound interest will affect your investment holdings over time?The Rule of 72 is simple enough for the most math-hating individual to utilize. Literarily anyone can crunch the numbers … [Read more...]
Lifelong Learning Plan: Paying For Your Own Education
Much has been said about how you can save for your child's education using the Registered Education Savings Plan (RESP) and associated government grants (CESG, CLB, Provincial education grants).So, how about if you need to go back to school? What are the options you have for funding your dreams of further education?Some reasons why as an adult you may decide to go back to school … [Read more...]
Book Review: One Up on Wall Street by Peter Lynch
I added One Up On Wall Street to my library in 2015, but didn’t get around to reading it until this Spring. At the end of 2016, I had added it to my financial education reading list for 2017.The book written by Peter Lynch, first published in 1988 and followed by a second edition in 2000, is an excellent read and offers timeless advice to the average investor. A theme that comes up again and … [Read more...]
Bank of Canada’s Interest Rate Hike and What It Means To You
Post Updated:It's been nearly 7 years since the Bank of Canada (BoC) last raised its key interest rate. Following the financial crises and it's after-effects re: sluggish world economy, interest rates have generally been on the decline. However, on July 12, 2017, the BoC hiked its overnight rate from 0.5% to 0.75%.On September 6, 2017, following stronger than expected economic growth, … [Read more...]
