Tag Archives: TFSA

Mar 10: Best from the blogosphere

By Sheryl Smolkin

185936832 blog

This week we have a number of interesting blogs on a variety of topics relating to how you save and spend your money.

On Boomer & Echo Marie Engen asks How Safe Are Your Bank Deposits? Canada is widely considered to have one of the safest banking systems in the world.  But several large financial institutions have failed in the past, so it is  important to understand Canada Deposit Insurance Corporation limits for banks ($100,000/account) and provincial plans covering Credit Unions and Caisses Populaires.

Jim Yih discusses a hypothetical financial counselling session with Jack and Jill and how they decide to save their extra cash flow of $500/month. They choose to contribute $200 extra to their RRSPs for the long term as long as their incomes were higher than the 32% marginal tax rate.

Their tax saving will be used to pay down the mortgage unless they believe he markets will produce future returns of 7% or more. They will also allocate the remaining $300 per month to their TFSAs. This will give them flexibility to use savings in this account to pay a lump sum on their mortgage, top up their RRSPs or open RESPs in the future.

On Canadian Dream: Free at 45, Dave shares how he and his wife are living a (relatively) stress-free life. They live on one salary so if either of them loses his/her job they can still manage financially. The fact that they don’t have children or other dependants helps to make this a practical alternative.

If you have just opened a trading account with a new discount broker or you have accounts in different places and want to consolidate, you’ll need to transfer your holdings between brokers. The Canadian Capitalist has put together a detailed checklist on what you have to do to make this process as painless as possible.

And on Sustainable Personal Finance, Miranda questions whether there are times you should put your ideals ahead of your pocketbook. That could mean giving just a little bit extra to causes that are near and dear to your heart, or making a commitment to socially-responsible investing.

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 24: Best from the blogosphere

By Sheryl Smolkin

185936832 blog

RRSP season is almost over for another year so remember to make your Saskatchewan Pension Plan contribution by Monday, March 3, 2014 in order to get a tax deduction on your 2013 income tax return.  But the need to spend carefully and save regularly is an important part of everyday living.

On retirehappy.ca, Jim Yih reports that 7 Causes of Financial Stress including high debt levels, low savings rates and increasingly complex financial markets are keeping many people up at night.

In The Insanity of “RRSP Season” Young and Thrifty blogger Kyle says anyone with a basic handle on grade 9 math ought to know that making periodic contributions to a registered plan (either a TFSA or an RRSP) is a better choice than procrastinating until the last minute and then trying to scratch together the money to fit in under an arbitrary deadline.

Blogger Krystal Yee on givemebackmyfivebucks.com says she will have to dip into her emergency fund and suspend TFSA and RRSP payments for some time because she was recently laid off. But 44 comments from her fans leave no doubt that she will land another great gig before long.

The pros and cons of withdrawing RRSP contributions are explored once again by Tom Drake on the Canadian Finance Blog. While the lost opportunity cost of taking out money and losing RRSP room are important, he acknowledges that in some emergencies RRSP withdrawals may be unavoidable. The good news is that if you need money because you lost your job, you will pay taxes on the money at a lower rate.

Many of you may be aiming for early retirement as early as age 55. However Dave Dineen on Brighter Life reminds readers that some sources of retirement income don’t kick in for another five years or more so you need to have a plan to bridge the gap or early retirement could be a financial nightmare.

And on Boomer & Echo Robb Engen identifies 6 Fees Worth Paying and notes that trying to avoid fees can sometimes be false economy. For example, the return on investment if you buy a Costco card, use an annual fee credit card or join the CAA can easily exceed the initial amount you have to pay.

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.

October 28: Best from the blogosphere

By Sheryl Smolkin

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This week we have random posts from some of our favourite bloggers that consider how you can save for retirement, invest your savings and spend your money after retirement.

Robb Engen on Boomer & Echo thinks that many media money makeovers are unrealistic, and that we really need to prioritize our financial goals. He shares his portrait of the ideal saver.

When it comes to spending and saving money, for many of us monthly mortgage payments take the biggest chunk out of our earnings. From the archives of the Canadian Finance blog, Nelson Smith offers 6 ways to save thousands on your next mortgage.

Saving is not enough. You have to invest your money in a way that both minimizes risk and maximizes growth of your account. A Young and Thrift blogger explains how he finally overcame his inertia and invested the $100,000 cash he had in his accounts. Spoiler alert: He topped up his TFSA and RRSP and then invested in ETFs.

But the Canadian Capitalist says we can learn a thing or two on how to invest our own money from the manner in which the CPPIB invests our surplus Canada Pension Plan contributions.

And finally, however much you save and whatever your plans are, Kevin Press tells us how you choose to spend your retirement will be a compromise. That’s because recent Sun Life research revealed seven ways men and women disagree about retirement.

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.