Arbetov.ca RRSP and Pensions

Often, when an employee leaves their employment with a company, they are entitled to receive a severance package (payment for unused vacation, a payment in lieu of a required notice period, retirement benefits and assistance in searching for new work, such as access to employment services or help in producing a résumé, etc.) Usually, the [...]

Having assets seized due to bankruptcy proceedings is a real concern for many investors, particularly small business owners who might see a significant part of their savings seized.

According to a CROP survey carried out within the framework of the 2007 AXA Retirement Scope, more than 10% of active Canadians (those who hold a job), consider working after retirement a good way to remain healthy.

Married or common-law couples who are both at least 60 years of age, and who receive Canada Pension Plan (CPP) retirement pensions can share their pension benefits on the portion of the benefit earned during their life as a family. This may result in tax savings. If only one contributes to CPP, they share that one pension. The amount of overall benefits doesn’t depend on pension sharing.

Certified General Accountants Association has published an article about growing deficit of corporate Canadian pensions. Retirement planning is an important aspect in the life of every family. Underfunded pension plans are a major financial issue for business executives, legislators and Canadian men and women, dependent on pension income.

Have you thought about whether you will have enough money during your retirement to do the things you want to do? Or have you seriously considered what you want to do when you do retire? Sometimes the most difficult part is getting started – defining your lifestyle goals before trying to figure out what viable financial decisions you have to make to get there.

Are you one of the thousands of Canadians who has accumulated significant unused RRSP contribution room, either by not contributing your full eligible amount, or by missing your RRSP contribution altogether?

Lowering your tax bill should be a primary goal in any financial plan, allowing you to free up money for the more important things in life such as retirement savings or funding a child’s education. If you are married, one of the most effective ways to reduce your tax bill is to use an income splitting strategy to move income from the spouse in a high tax bracket to the spouse in a lower tax bracket. Contributing to a Spousal RRSP is one such strategy.

RRSP season is once again upon us, and again investors are facing critical decisions about where to invest their money. Investors have up until the first 60 days of 2005 to make eligible contributions to a Registered Retirement Savings Plan (RRSP) that are deductible in the 2004 taxation year.

Maximum Government pays for Canada Pension Plan and Old Age Security Benefits.

Are you one of the thousands of Canadians who has accumulated significant unused RRSP contribution room, either by not contributing your full eligible amount, or by missing your RRSP contribution altogether? Are you one of the many investors who have remained on the sidelines through the volatile market conditions over the last few years? It doesn’t take long to build up a significant amount of contribution room, and this unused room represents a great tax-savings opportunity.

As we rapidly approach another RRSP season, it’s again time to take stock of the year that was and see what effect it had on your portfolio. It’s been an interesting year. Canadian Equities and Income trusts again did well, while the soaring loonie (or plummeting greenback, depending on how you view it) once more put the brakes on the performance of U.S. investments held in Canadian dollars.

In today’s global economy, exciting investment opportunities are everywhere – and participating in a wide range of them is the key to maximizing returns and reducing risk. Now Canadians can take full advantage of this expanding world of opportunities through their RRSPs. The solution: RSP-eligible mutual funds that actually enable investors to increase their RRSP’s international exposure beyond the 30% foreign content limit.

Imagine a scenario in which (depending on your tax bracket) the Canadian government pays you almost half (depending on your tax bracket) of the money you require to make an investment in a mutual fund of your choice. Then when you’ve made money off the mutual fund, either through interest earned in a fixed-income fund, or capital gains generated by your equity fund, the government tells you that you don’t have to pay tax on it.