DPSPs are often combined with pension plans or a Group RRSP to provide employees with retirement income later in life. When an individual leaves an employer, they can transfer their DPSP money to another registered plan or use it to purchase anannuity, while maintaining its tax-deferred status...
In the world of early retirees, we have a concept that goes by names like “The 4% rule”, or “The 4% Safe Withdrawal Rate”, or simply “The SWR.” As with all things financial, it’s the subject of plenty of controversy, and we’ll get to that (and th
One way to avoid or minimize capital gains tax is to hold investments in registered accounts, such as aregistered retirement savings plan (RRSP)ortax-free savings account (TFSA), rather than in a non-registered account. In a registered account, your investments — as well as any gains,intere...
The prime rate in Canada, as of Dec. 11, 2024, is 5.45%. When you’re considering a new line of credit or a mortgage with a variable rate, you also will need to keep a close eye on the prime rate. This will ultimately determine how much interest you’ll pay over time, in addi...
Afterall, it doesn’t really matter what the average expenses in a Canadian retirement are, or how much the average Canadian has in their RRSP the day they retire – it’s really about your personal plan and your unique circumstances!
Come retirement, Mustachians will find themselves in the $30k income range, where taxes are much lower. We’ll still have basic exemptions of (inflation adjusted) $10k or so, which will protect half to a third of your necessary withdrawals from your RRSP (twice that if you’re making su...
With five years before retirement, the Adamson’s had time to continue savings to ensure their goal of $3.3 million was reached. They had accumulated $900,000 in savings between RRSP, TFSA, and corporate investments. The cash flow within the practice would allow additional savings of $140,000...
How much money can I put intoan FHSA? Eligible Canadians can contribute, or transfer from their registered retirement savings plan(RRSP),up to$8,000per year into their FHSA, up to a lifetime maximum of$40,000.If you contribute less than the$8,000annual contribution limit, the unused cont...
If you’re unsure about how this works, it’s worth speaking to a financial advisor to discuss further. Transfer the RESP to an RRSP You can transfer the earnings in the RESP to a registered retirement savings plan (RRSP). To do so, the RESP need to have been open for at least 10...
How much larger will the value of an RRSP be at the end of20years if the contributor makes month-end contributions of $500,instead of year-end contributions of $6,000?In both cases the RRSP earns7.5%compounded semiannual...