Retirement Planning Wisdom
Drawing Retirement Income is a Science
I was recently interviewed by the Globe and Mail about my research on how much you can safely withdraw from your investments after you retire. I analyzed 150 years or actual data on stock & bond markets and inflation to find out the exact success rates of different withdrawal amounts and methods. I found that…
Read MoreTFSA or RRSP? – The Right Answer for You
TFSA vs. RRSP is one of the most common questions I am asked. If you want to know for sure which is better for you, then you need a financial plan. Many articles have been written on this topic that list pros and cons with general opinions. The truth is that: When you include the…
Read MoreRRSP Gross-up Strategy – Easily Contribute 40-70% More to Your RRSP
Wouldn’t it be great if you could save a lot more for your future without affecting your day-to-day cash flow? One of the main things people learn when they first have a retirement plan done is that you need to invest more than you thought to have the future that you want. But with all…
Read MoreShould I Delay CPP & OAS Until Age 70? – Complete Answer with Real-Life Examples
Most seniors start their CPP and OAS when they retire or at age 65, without evaluating the options. The truth is that many seniors would benefit from delaying CPP until age 70. Here is how you can figure out what is best for you. The government pensions, CPP and OAS, are full of cool opportunities…
Read MoreProfound retirement plan idea – Victory Lap Retirement
I just read Jonathan Chevreau’s new book, “Victory Lap Retirement”. It is a profound concept to make your life fulfilling. Semi-retire to do what you love. Many Canadians will have to semi-retire, because they have no financial plan, are not saving nearly enough and not investing to a plan. It is brilliant to include a…
Read MoreThe Lowest Taxed Type of Investment Income – 6 Ways to Invest for Deferred Capital Gains
Of all types of investment income, you pay the lowest tax on deferred capital gains. Paying tax 20 years from now on a capital gain is much better than paying tax on a dividend or capital gain this year. How do you invest for deferred capital gains? In recent years, many investors have been…
Read MoreFinancial planning is not about your money. It’s about your life.
Why won’t Canadians pay for investment advice?
Great article in Globe & Mail by Rob Carrick. The media has been heavily anti-advice for years. The focus has been mainly on low fees, rarely mentioning that the fees pay for advice or attempting to evaluate the cost/benefit of advice. Evidence shows this has been a disaster for Canadians. The comprehensive study by…
Read More“Your Home is the Best Investment” – True or False?
Many people believe that growth of the value of their home has been phenomenal over the last few decades. The common belief is that growth is similar to the stock market and much less risky. Is this actually true? This is important, because believing a home is the best investment leads you to: Feel you…
Read MoreCase Study: Figuring Out Your Optimal RRSP/TFSA Contribution
In the last article, Ed Rempel discussed the steps to creating your optimal RRSP/TFSA contribution. Here is a case study to help put the steps into practice. Case Study: Optimal RRSP/TFSA Contributions for John and Mary Smith To understand the interplay between these six factors, lets look at an example. John Mary Income $100,000 $60,000 Marginal…
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