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Home Financial Health Blog Archive for category "Gearing up for retirement" (Page 4)

Gearing up for retirement

You’re in your peak earning years. You have five, ten, or fifteen years to go. Make the most of them by taking advantage of effective tools to maximize your nest egg, slash debt and ensure the retirement income you need.

What’s your probability of disability or critical illness before age 65?

Statistics show that workers between the ages of 35 and 65 are many times more likely to become disabled for an extended period than they are to die. For example, for a 45-year-old female the probability of becoming disabled before age 65 is 31%, her probability of being stricken with a critical illness is 17%Read More…

 

Life-Long Learner: Use your RRSP to pay for your education…

The Canada Revenue Agency encourages continuing your education via the Lifelong Learning Plan, or LLP.  Under this program you may make a tax-free withdrawal from your RRSP when you are entering an educational program as a full¬time student for at least three consecutive months in a given year. The Lifelong Learning Plan allows you toRead More…

 

Can getting sick trigger a financial crisis?

Despite all we know and love about Canada’s health care system, the answer is yes. The 2013 Sun Life Canadian Health IndexTM explains. Among Canadians who have received a serious health diagnosis, or who have had a bad accident, 40% said the experience caused them some degree of “financial hardship.” According to the 2013 SunRead More…

 

How to make a financial plan work for you

What exactly is in a financial plan? Many people think they have a financial plan if they are receiving investment advice.  Nothing could be further from the truth.  A financial plan may include investment advice, but it goes well beyond that. Typically, a written financial plan fulfills these two important purposes: • It lists yourRead More…

 

Should you take early CPP retirement benefits?

Before talking about the financial implications of taking your Canada Pension Plan benefits early, you should know that if you pass away before you elect to take your CPP benefit, your spouse will not be entitled to the survivor’s benefit.  And if you have a pressing financial need to take CPP early, then you mayRead More…

 

Divide and conquer: An income splitting strategy that could save you thousands

CRA sets prescribed loan rate at 1% The current low interest rate environment has created a simple income-splitting opportunity that could save you thousands of tax dollars – and provide a better way for you to fund your family’s aspirations. Like education, travel, business investment etc. Here’s how it works: A high income earning individual,Read More…

 

Why do you need a will?

Hearing that you ought to update your will is a little bit like being told to take up jogging. Everybody knows it’s the right thing to do, but that doesn’t make it any easier to get started. Douglas Gray has made it his mission to do exactly that. The former lawyer left his practice atRead More…

 

Dollar cost averaging or investing a lump sum all at once: which performs better?

What is dollar-cost averaging? Dollar-cost averaging (DCA) — buying a set dollar amount of a security at regular intervals — can help promote disciplined investing. It is a form of paying yourself first. While you’re building your wealth, the rate of saving is generally more important than the rate of return. By committing yourself toRead More…

 

How much can you expect in CPP and OAS?

Fewer Canadians will contribute to their Registered Retirement Savings Plans this year (or plan or save for retirement at all). A Scotiabank survey finds that just 31 per cent of Canadians plan to contribute this year, compared with 39 per cent last year. Canadian households spend about $1.65 for every dollar earned, according to StatisticsRead More…

 

How to deduct expenses and save taxes – even if you’re an employee

Employees don’t seem to get any breaks. When it comes to tax, you’re very limited in the expenses you can deduct when calculating the tax you owe to the Canada Revenue Agency (CRA). Self-employed individuals have much more flexibility; they can basically deduct any reasonable expense incurred to earn income from their business. But ifRead More…