Or, as American retirement guru Wade Pfau recently put it: “A retirement income plan should be based on planning to live, rather than planning to die.” The Michael James blogging recently highlighted that quote. Retirement is usually about planning for an unexpectedly long life, often exacerbated by inflation. After all, a 65-year-old Canadian woman can […]
That said, this tax credit isn’t a big deal for most people, and in some cases it’s better not to convert an RRSP or LIRA to a RRIF or LIF to qualify for the credit. In 2025, the maximum federal tax savings will be $290 (for my calculations, read on). You can save a little […]
When the time comes, RRSP or Registered Retirement Savings accounts will be converted to RRIF or Registered Retirement Income Fund accounts, a change that must be made by the end of the year you turn 71. Shifting your portfolio for RRIF withdrawals You can hold the same investments in a RRIF as you would in […]
Let’s dig deeper into this by first understanding what will happen if your dad keeps doing what he’s doing and he doesn’t add money to his TFSA. If he lives to be 90, earns 5% on his investments, your house increases in value by 3%, and we assume an overall inflation rate of 2%, he […]