Limits contributions to a certain percentage of income “Locks in” contributed funds until retirement Gives the employer the option to cancel the plan at any time What to consider when shopping around for a GRSP Employers have many GRSP options to choose from, so it’s a good idea to go i...
An RRSP can be converted to a Registered Retirement Income Fund (RRIF). The purpose of an RRIF is to provide retirement income. Under RRIF regulations, a percentage of your RRIF must be withdrawn each year. You may potentially be in a lower tax bracket at the time of these withdrawals tha...
What is the minimum amount required for a down payment? Your down payment will always be a certain percentage of your home purchase price, typically between 5% and 20%. However, there is no maximum down payment amount — it can be as large as you want it to be. ...
Retirement Income Fund (RRIF) is a product that is intended to pay you a specific percentage a year for the duration of the funds in the account, or your death, whichever comes first. Remember all those dollars you’ve been tucking away in a Registered Retirement Savings Plan (RRSP)?
Annual percentage yield The annual percentage yield (APY) is the interest income on your savings over a year. It’ is also known as earned annual interest (EAR). Simple interest Simple interest is calculated using only the principal amount. The interest rate is usually included in the agreement...
Financial institutions typically offer rates in terms of the prime rate plus or minus a certain percentage. And the rate you’re offered depends on conditions in the lending markets and on factors, like your credit, the amount you’re borrowing and whether the loan is secured. How often does...
Get family and friends to invest: If you're able, have loved ones contribute to your RESP in lieu of gifts. It'll pay off down the line! Watch out for fees: Some promoters will charge a flat, annual administration fee, while others will charge a percentage fee (usually around 0.2% t...
You don't pay these fees directly; they get paid by the fund itself and are expressed as a percentage of the total value of the fund (it can be a range of less than 1% to more than 3%). The management expense ratio (MER), is often lower for an ETF because many ETFs are not "...
pro-rata with other partners and owners. For tax purposes, an owner or investor includes a percentage of the business’ gains or losses when calculating his or her owntaxable income. Partners are then required to report this income or loss, regardless of actual distributions from the partnership...
America's Medicare is eligible only to those 65 or older and it covers a lower percentage of medical costs. A major benefit for Canadians is the publicly funded universal health care system which provides them with essential medical services throughout their lives, as well as in retirement. It...