Retirement: What’s Your Income Target?

There have always been varying opinions regarding the amount of income needed to ensure a comfortable retirement. The amount of income required for retirement will vary based on the individual and their particular circumstances. While some suggest an annual target of 70 percent of pre-retirement income, others advise 80 percent or more. Still others argue that these targets may be too high, pointing to the fact that sometimes pre-retirement spending can be lower than we perceive.
With payroll deductions, mortgage payments […]

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Spousal RRSPs: Split Income, Save Tax

Over the years, the government has eliminated many income-splitting opportunities available to investors. However, for those who have a spouse or common-law partner, a key investment opportunity is a spousal Registered Retirement Savings Plan (RRSP).
A spousal RRSP may be a good income-splitting opportunity for a situation in which you would earn a higher level of income in retirement, while your spouse will have little or no source of retirement income. A spousal RRSP is a plan that you contribute to […]

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What it Means to “Live Wealthy”

What do we really mean by Live Wealthy when we consider how to best manage our clients’ finances? At Precision Wealth, we believe this means something much deeper and more significant to the human experience than traditional definitions suggest.

First, let’s consider the definitions:

Definition of “wealth”  welTH – Noun

An abundance of valuable possessions or money; e.g., “He used his wealth to bribe officials.”
Affluence, prosperity, riches, means, substance, fortune:

the state of being rich; material prosperity; e.g., “Some people buy boats and cars to display their […]

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Dispelling Myths about RRSPs

Participation rates for the RRSP have been declining over recent years. In fact, some Canadians believe there is “no point” in investing in the RRSP because of the taxes due in retirement. But the RRSP can provide a substantial tax advantage. Let’s look at a couple of the myths:

Myth: There is no point in investing in an RRSP.  You pay all the savings back in taxes when you retire.

While you do pay tax on RRSP withdrawals, don’t forget […]

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