Tag Archives: TFSA

Mar 23: Best from the blogosphere

 

By Sheryl Smolkin

Spring is definitely in the air and every day the piles of snow and patches of ice in my neighbourhood get smaller. This week we report on a potpourri of interesting blogs and articles from some of our favourite bloggers.

We usually catch Robb Engen on Boomer and Echo, but he also regularly writes for his blog  RewardsCanada. This week he posted an interesting article about why it is so hard to cancel a credit card. Credit card companies advertise great bonuses on points when you sign up with them but they are counting on inertia to retain you as a client once the deal is in the bag. If you are smart enough to want out, they make you jump through hoops before you can cancel.

On StupidCents, Tom Drake’s mission is to help you “turn wasted sense into common cents.” Recently guest blogger Michelle offered some ideas on how to save money on your wedding. She suggests you can barter many services in exchange for free wedding products. It can also help to chose something other than a diamond and buy a pre-owned wedding dress. In a previous blog she suggested that you get married off season and not on a weekend.

If you think you have to keep your income low in your 64th year because the OAS clawback is based on your income in the previous year, take a look at Understanding the OAS Clawback by Doug Runchey on RetireHappy. He says there is a provision in the Income Tax Act that allows the clawback to be based on your income for the current calendar year, if your income in the current calendar year will be substantially lower than it was in the previous calendar year.

In Thanks for the $2000 CRA on the Canadian Personal Finance blog, Alan Whitton aka the Big Cajun Man concludes that he and his wife are not eligible for income-splitting because his wife earns too much, but in any event he says this would not be enough to buy his vote because “As usual, the program is half-baked (much like the TFSA and other ideas), and I am not a one issue voter.

And finally, on get smarter about money, Globe and Mail columnist Rob Carrick writes about the gift of a debt-free education he and his wife are giving their two sons. There is no family fortune so they will not be living on Easy Street, but they will be able to graduate debt free from a four-year undergraduate program of their choice. He says if you can’t help your kids graduate debt-free, the next best thing is to help limit their debt. In today’s challenging world for young adults, that’s a great early inheritance.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Mar 16: Best from the blogosphere

 

By Sheryl Smolkin

After two weeks away in the sun at a resort with flakey WIFI, I have lots of catching up to do! However, I managed to download the replica edition of several newspapers every day, so I wasn’t completely out of touch.

I was particularly interested in a series of editorials in the Globe and Mail articulating the newspaper’s vision as to how the retirement savings system should be reformed. The editorial team views higher TFSA contributions as an unwarranted future drain on the economy and advocates increasing RRSP contribution limits instead.

They also support ramping up CPP and eliminating RRIF withdrawal rules. You can read the whole series by clicking on the links below.

Reforming Retirement (1): How the TFSA turned into Godzilla
Reforming Retirement (2): Getting Ottawa’s mitts off your RRIF
Reforming Retirement (3): More RRSP, not more TFSA, please
Reforming Retirement (4): Canada needs to ramp up CPP, ASAP

Cait Flanders who writes Blonde on a Budget is in the 8th month of a year-long shopping ban. She says she has never been happier and shares 3 truths she discovered about her minimalist lifestyle plus information about her next minimalist challenge for 2015.

On Money We Have, Barry Choi writes about 10 Signs You’re Living Beyond Your Means. Several of my favourites are: when you have zero savings; low monthly payments are your only option; and, you buy only name brands.

Banking on Your Mobile Phone by Tom Drake on Balance Junkie reminds us that there are smart phone apps for business finance, budgeting, bank accounts and mobile payments. Paypal and Google Wallet are probably the most popular mobile payment apps. Most banks also allow to you pay by mobile with their own apps as well.

And finally, on Canadian Dream: Free at 45 Tim Stobbs writes about how a job in customer service that he was overqualified for in 2002 was a valuable experience because he had great co-workers, the company promoted from within and it had a defined benefit pension plan.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Feb 26: Best from the blogosphere

By Sheryl Smolkin

Well, one more week and RRSP season will be over for another year. But that doesn’t mean you should forget about contributing to your retirement savings plans including SPP for another 12 months.

In the three+ years savewithspp.com has been up and running, we have posted many blogs about the importance of paying yourself first and the mechanics of retirement saving in Saskatchewan Pension Plan, RRSPs or TFSAs.

Here are some of my favourites you can take a look at again to refresh your memory.

Pay yourself first
Save early, save often
FAQ: Employer-sponsored Sask Pension Plan
Can my spouse join SPP?
Why transfer RRSP funds to SPP?
What if I move away from Saskatchewan?
How do I know my SPP money is in good hands?
Pension Plan vs. RRSP?
SPP or TFSA?
Retirement savings alphabet soup
Understanding SPP annuities
Book Review: RRSPS THE ULTIMATE WEALTH BUILDER
How much can I contribute to my RRSP?
How to save for retirement, Parts 1, 2 and 3

You may also want to review some of these posts written by some of our favourite bloggers:

Retire Happy: RRSP Quick Facts 2015
Boomer & Echo: A Sensible RRSP vs TFSA Comparison
Canadian Personal Finance Blog: Pensions and Spousal RRSPs
Brighter Life: Six things you may not know you can do with your RRSP
Forward Thinking: Bruce Sellery on how to get excited about your RRSPs

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Feb 16: Best from the blogosphere

By Sheryl Smolkin

The days are getting a little longer, Valentine’s Day was this past Saturday and in Alberta, Ontario and Saskatchewan it’s a long weekend. So there is lots to be happy about in spite of the never-ending winter.

But politicians who commit serious crimes won’t be happy because the Bill to revoke politicians’ pensions passed in the House of Commons would apply to future occasions when an MP or senator is convicted of crimes such as bribery or fraud. But politicians convicted of murder or distributing child pornography would not be affected. What am I missing here?

J. Money from Budgets are Sexy lists some of the guilty pleasures that he spends money on and those he items he rarely wastes money on like vending machine snacks, Uni-Ball EYE Rollerball Pens and yard sale splurges. A “no-spend month” and having kids helped him realize what’s really important in life.

Mr. Frugal Toque on Mortgage Freedom is a guest blog on Mr. Money Moustache. A year after the author paid off his mortgage he is happy he has stuck to his plan.  RRSPs topped up. Check. TFSAs maxed out. Check. And the family’s overall consumer spending has not increased.

On Personal Dividends, Miranda Marquit asks the age-old question Can Money Buy Happiness? She acknowledges y that you don’t need to live an extravagant lifestyle to be happy. However, she says that doesn’t mean that money has nothing to do with happiness. Financial security can have a lot to do with how great you feel.

And finally, if you are apprehensive about retirement or you had to take early retirement sooner than you expected, a year from now you may be happier than you could ever imagine. Why? Retirement could be your gateway to a new job says Susan Yellin on Brighter Life.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Living to 100: The four keys to longevity

By Sheryl Smolkin

SHUTTERSTOCK
SHUTTERSTOCK

Living to 100: The four keys to longevity” is a fascinating report issued in July 2014 by the BMO Wealth Institute. According to the study, by 2061 it is estimated that there will be more than 78,000 centenarians living in Canada, up from about 6,000 reported in the 2011 census.

If you are a baby boomer on a quest to improve your odds of living longer than previous generations, the research suggests their are four keys to unlock the door to longevity: body, mind, social and financial.

Key 1: The body

Good health is one of the basic elements to achieve long life. A program of healthy eating, exercise and stress reduction can not only reverse the aging process, it may slow down the aging process at the genetic level.

According to the BMO report, other aspects of good health should include:

  • Adequate sleep (7 to 8 hours per night, and naps as needed).
  • Regular stretching and deep breathing to keep your joints flexible and your body oxygenated.
  • Physical activity that includes both high- and low-impact exercise at least 3 times a week.
  • Drink at least 8 glasses of water daily.
  • Generous amounts of dark leafy vegetables, fresh fruits and whole grains in your daily diet.
  • Eliminating or reducing the amount of unhealthy fats, processed sugars and preservatives in your diet.
  • Consuming a moderate amount of alcohol (e.g., just a glass of red wine with dinner).

Key 2: The mind

Living your best life depends on a healthy brain. A recent article cited in the BMO report explores the best ways to improve your brain power for life.[1] This article reveals that functioning to our fullest capacity is directly linked to the health of our brains. The article suggests that you incorporate these four fundamental lifestyle changes to boost your brain power.

  • Cognitive training: Memory, reasoning, and speed-of processing exercises create a winning combination for cognition.
  • Aerobic exercise: People who exercise moderately to vigorously just once a week are 30 percent more likely to maintain their cognitive function than those who do not exercise at all.
  • Don’t smoke: Non-smokers are nearly twice as likely to stay sharp in old age as those who smoke.
  • Maintain social networks: People who work, volunteer and maintain close-knit human bonds are 24% more likely to preserve cognitive function in late life.

The study results revealed that loss of mental ability was the biggest concern that respondents had about living to 100 and beyond.

Key 3: Social

The popularity of personal bucket lists has ignited a passion in seniors to take up new hobbies, write their life stories, or develop new careers. Senior wanderlust knows no boundaries when it comes to fulfilling dreams after raising a family and retiring from a dedicated career.

Study results suggest there are a plethora of new activities respondents are interested in incorporating into their daily lives after retirement. Spending more time on hobbies and starting part-time jobs were both shown to be highly desirable new activities on the list for many survey respondents and this is widely seen as a positive outcome.

Researchers at the Institute of Economic Affairs in the U.K.[2] recently identified a range of substantially negative effects on health after retirement. Their study found retirement to be associated with a significant increase in clinical depression and a decline in self-assessed health. These effects were shown to grow as the number of years people spent in retirement increased.

If you’re looking to boost your level of social interaction, to supplement your income, or are seeking a productive way to fill your time, you may want to consider taking on a part-time job.

Canadians participating in the BMO survey gave the following reasons for working during retirement:

  • 52%: Keep mentally sharp.
  • 46%: To get out of the house
  • 42%: To socialize
  • 40%: To earn money to improve lifestyle
  • 35%: Need the money
  • 32%: To stay physically fit
  • 28%: To do something I like
  • 16%: To learn new skills

Key 4: Financial

Canadians clearly understand that an important component of successful longevity is having a sense of financial security. Although financial security was cited as a lower priority than maintaining a social network of family and friends for the majority of Canadians surveyed, financial security gains importance with age and as personal assets increase over a lifetime.

The BMO Survey results showed that those with the highest income levels expressed the greatest concern over their finances after retirement. The wealthiest plan to preserve their financial security by  enjoying personal pursuits, socializing, exercising and maintaining a healthy lifestyle.

Overall, the majority of survey respondents anticipate the financial impact of health-care expenses to be significant as they age, even with government provided health care. In fact, the Canadians surveyed expected to spend an average of $5,391 a year on out-of-pocket medical costs after the age of 65.

Surprisingly, even with provincial health care coverage – Canadians foresee medical and health costs to be the single largest expense for old age (74%). Other significant expenses include food, clothing and day-to-day essentials (57%) and housing (56%).

Putting aside money in Tax Free Savings Accounts and purchasing Long Term care insurance are suggested ways to defray future retiree medical costs.

A final thought

The compelling findings of the BMO study speak to the need for all of us to have a better overall plan when it comes to the four key components of longevity: body, mind, social and financial.

Many challenges that may arise in our later years can be both anticipated, and properly planned for, by making smart decisions focused on the ultimate goal of successful longevity.

[1] What Is the Best Way To Improve Your Brain Power For Life? Bergland, Christoper. Psychology Today. January 21, 2014. (accessed June 2014).

[2] Work longer, live healthier, Sahlgren GH. Institute of Economic Affairs, May 2013.