Tax—Deferred Growth:You don’t pay tax on investment gains until withdrawal. Lower Taxable Income:Contributions reduce your taxable income, lowering your tax bill today. Ideal for Retirement:Withdraw funds in retirement when you may be in a lower tax bracket. First Home & Education Perks:Withdra...
A spousal investment loan strategy is where a higher-income spouse loans money to the lower-income spouse for the purposes of investing and staying onside with CRA. You would think that one spouse could simply give money to another spouse to invest in a taxable (non-registered) investing acco...
Top Retirement Income FAQs When should I take my CPP/QPP and OAS? What are the main sources of income in retirement? Will TFSA or RRIF withdrawals impact my government benefits? What questions should I ask my employer about my pension plan? See More FAQs ...
RRSP withdrawals are subject to withholding taxes and are considered taxable income. For some people, money in a TFSA might be too easy to access. The future is uncertain The younger you are, the harder it is to determine which account to put your retirement money. When in doubt – ...
And the whole discussion was quickly picked up in the personal finance and FIRE community: On Ben Carlson’s blog a few days ago:“What If The 4% Rule For Retirement Withdrawals is Now the 5% Rule?” On the “My Own Advisor” blog:“Weekend Reading – Biggest stocks and ETFs, OAS, ...
The investor would prefer the municipal bond because the taxable-equivalent yield is greater than the yield on the corporate bond: 6.4%>6.375%. Assume a city issues a $ 5 million bond to build a new arena. The bond pays 8 percent semiannual interest and will mature in 10 years. Current ...
The Old Age Security (OAS) pension is a taxable monthly benefit available to most Canadians 65 years or over who meet the eligibility requirements. Much like the Canada Pension Plan (CPP), it’s designed to help bolster senior Canadians’ retirement income. However, you don’t have to pay ...