Financial planning across generations

Financial Planning Across Generations: Wants vs. Needs

In many cases Baby boomers not only have to plan for their own financial future, but also that of their parents. Not all Baby boomers are going to inherit money from their parents; many will have to assist their parents both financially and personally. There is a distinct gap between the level of financial assistance that parents of adult children think they want, and what they really need.
Toronto-based, Bayshore Home Health conducted a survey in February 2018 that revealed […]

Old Age Security Clawback

Old Age Security Clawback

Many people are surprised that when they turn 65 they are not guaranteed to get all of their Old Age Security (OAS). They do not realize that OAS is income tested and if you make over a certain income in a year it will be “clawed back,” officially known as the OAS Recovery Tax.
How does the clawback work?
If you make $77,580 (2019) or higher, you get a reduction in OAS benefits by 15 cents for every dollar over that […]

RRSP withdrawal

Don’t Make this Costly Mistake! Be Sure to Declare RRSP Withdrawals as Taxable Income

RRSP withdrawals must be part of your tax planning strategy. It is extremely important to understand the implications of Registered Retirement Savings Plan (RRSP) withdrawals on your taxable income in the year you make the withdrawal.
Below is a well written article that highlights the implications of RRSP withdrawals, and provides a good understanding of the tax system. Remember, seeking professional tax advice is always a prudent strategy.

Running afoul of the CRA on RRSP withdrawals can be a costly mistake
By […]


Navigating the Passive Income Rules: IPPs for Retirement

With changes to passive income rules now in effect for small business, owners may be looking for ways to invest income earned in their corporation. Contributing funds to an Individual Pension Plan (IPP) may help to increase retirement savings on a tax-deferred basis outside of the corporation.
What is an IPP?
An IPP is a defined-benefit pension plan that is registered with the Canada Revenue Agency (CRA). While the IPP has been around since 1991, there has been renewed interest in […]


Have you been Diagnosed with Underliving?

Underliving is a common condition mostly found among retired Canadians, and it is caused by the individual’s inability to give permission to spend their own money. This inability is due to lack of planning—not knowing what you have—and what you can spend.
This lack of planning pushes people toward the default behaviour of hoarding money, as they are unsure of how long it will last. It is natural to hoard cash when you have no plan, and one should not […]


It can be Taxing to be a Snowbird

With the days growing longer and nights warmer, it may be easy to forget the polar vortex that froze many parts of Canada this winter. For some, the cold prompted an escape to warmer climates down south. If you are a “snowbird” — spending considerable amounts of time in the U.S. — you need to be aware of U.S. income tax implications.
Even if you have no U.S. tax to pay, you may be subject to various U.S. tax filing […]


Want your Money? Come and Get it! 

Do you have a pesky Locked-In Retirement Account (LIRA) or Life Income Fund (LIF) that you want access to without a huge tax burden?  
If you’re currently withdrawing the minimum annual payment from your LIF, or if you have a LIRA and want to explore if you can unlock some or all this money — we can help.  
There are different rules for different pension legislations, provincial and/or federal, but there is one rule that is uniform across almost all jurisdictions – If you’re only taking the […]


Fact or Fantasy: What’s Your Retirement Plan?

Last fall, the U.S. Mega Millions lottery made history when it became the largest jackpot of all time at a whopping US$1.6 billion. Reportedly, at one point before the draw, lottery tickets were selling at a rate of 550 tickets per second!
The odds are that you won’t win the lottery, yet surprisingly surveys continue to show that some Canadians plan on funding their retirement with a lottery jackpot.1 Yet, the average Canadian has a much better chance of being […]


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 […]


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 […]