You’re 60 and you and your spouse have saved up $1 Million for retirement. How much are you going to be able to spend monthly in retirement? This is the exact question we got asked last week. Today we are going to go over an example very similar to theirs and show how much they…
Is there a wrong way to use your TFSA? We see it all the time. The result, missed growth and potential tax consequences. What’s the fix? Lets dig into it.
Pulling income from the wrong retirement at the wrong time can lead to hefty tax bills. So what account should you pull from first? Let’s dig into it!
Many Canadians enter retirement without a serious plan to withdraw their RRSP’s tax efficiently, causing them to pay more tax than they need to. Here are a couple of examples of RRSP Withdrawals Done Wrong!
Don’t miss out on this RRSP conversation opportunity. See how Crystal missed out on 3 years of tax-free RRSP withdrawals.
Once again, we find ourselves witnessing drama due to the debt ceiling in Washington. This political theater tends to unfold when Congress and the White House are controlled by different parties. The party in Congress tries to exploit the issue to gain leverage and political concessions. The frustrating aspect of this situation is that the…
Most Canadians are leaving money on the table when it comes to maximizing their government benefits. In the video above, we review a strategy that individuals and financial advisors often miss. Meet Mike Mike is 65 years old, and his goal in retirement was to be able to spend $50,000 per year, increasing with…
In our third video in this series, can you retire on $1 million, we look at Richard & Sharon Smith’s financial situation. Let’s see what their financial picture looks like. Let’s start with Sharon. She is currently 60 years old and has the following, RRIF: $400,000 TFSA: $100,000 Richard is 60 years old…
RRSPs are a popular retirement savings account, but it may be advisable to draw them down aggressively once retired. Here are 3 reasons to aggressively drawdown your RRSPs. RRSP Tax Bomb There are many people out there who hate RRSPs. I often hear stories like, “My parents had money in RRSPs, and when they…
Many investors and financial advisors are fond of dividends and base their entire investment strategy on companies that pay dividends. However, it’s time to take a closer look at the reality of dividends and their impact on investment performance. The truth is, and I might be upsetting the dividend-loving crowd, but dividends do not add…
Do you need life insurance once you are retired? Life insurance is an important consideration for many people, but as you reach retirement age, the question of whether or not to continue coverage becomes even more complex. Let’s discuss the pros and cons of having life insurance in retirement and whether it makes sense for…
Retirement is a time to kick back, relax, and enjoy the fruits of your labor, but it’s also important to be careful with your finances. One mistake we often see is the lack of planning for major purchases, such as buying a new car. Now, we know what you’re thinking – “But Marc, I’ve been…
When the stock market goes through a bad year, it becomes increasingly difficult to make withdrawals from your portfolio. So, what’s the best way to make retirement withdrawals during a bad market? We’re all familiar with the investing adage to buy low and sell high, but without proper planning, you might find yourself in a…
In our second video in this series, can you retire on $750,000, we look at Mr. & Mrs. Wilson’s financial situation. Let’s see what their financial picture looks like. Financial Picture Let’s start with Mrs. Wilson. She is currently 68 years old and has the following, RRIF: $350,000 TFSA: $100,000 Mr. Wilson is 67…
As we approach the end of the year, there are a few tax planning strategies that you should consider before the year is out. Let’s look at if it makes sense to make an extra RRSP withdrawal before the end of the year. Tax Planning Strategy #1: RRSP/RRIF Withdrawal One of the major drawbacks…
What happens to your CPP when you pass away? Let’s assume that both you and your spouse are receiving CPP; what would happen if one of you were to pass away? How CPP is calculated Before we can get into that, we must first understand how your CPP pension is calculated. The amount you…
Today we looking at deferring your Old Age Security Pension, whether or not it makes sense, and a major red flag you need to consider if you are going to defer. Eligibility For many people, the Old Age Security (OAS) pension will make up a portion of their retirement income. To be eligible for…
Can you retire on $500,000? This is the first video in a new series where we will look at whether you can retire on X amount of dollars. Check out our next video, Can you retire on $750,000? Today we’re going to be using Mr. and Mrs. Baker as our example. Let’s see what their…
Here is a real-life example of how two tweaks to a couple’s retirement plan, saved them over $900,000. For this video, we start by going over Donna and Steve’s (names have changed for confidentiality reasons) background and going over a few assumptions that need to be made. Follow along as we find out what their…
According to a recent survey[1] from CARP (Canadian Association of Retired Persons), nearly 95% of seniors want to stay in their homes as they age. This isn’t overly surprising considering the negative connotation associated with care homes. We all have that relative who we’ve heard say I’d rather ….. than end up in one of…
Video Transcript: 4 Conflicts Faced by Financial Advisors If you are working with a financial advisor, you need to be aware of a few conflicts of interest that can affect your bottom line. Conflicts of interest will arise when your financial goals or interest are not in line with your advisors. Most of these conflicts…
Different Advisors Investment Advisor versus Mutual Fund Representative versus Portfolio Manager, why does it have to be so confusing? In the world of financial advising, it’s the wild west when it comes to job titles. You’ll see things like President, Wealth Manager, Financial Advisor, Life Coach, and so many more. Hopefully, this will change one…
Book Value vs Market Value If you look at your investment statements, you will see a book value and a market value. Here is a quick explanation of the difference between the two and why it is not the best metric to determine the performance of your overall investment portfolio.
Video Transcript: Are you on track to retire? Today, we’re going over how we determine whether clients are on track to retire. Let’s jump into an example. First Thing to Determine Debbie is 57 and looking to retire in five years. The first thing that she needs to determine is how much her lifestyle…
Video Transcript: First Home Savings Account Today we’re going over the brand new Tax-Free First Home Savings Account (FHSA), which was recently introduced in the 2022 Canadian Budget. One of the major initiatives of this year’s budget was to make housing more affordable. To do this, they are doubling the first-time home buyers’ credit and…
Video Transcript Today I want to talk about 3 reasons retirement plans fail. First Reason The first reason your retirement plan can fail is oversimplification. I was speaking with a gentleman a few weeks ago, who was wondering whether he was on track to retire. In his eyes there was no problem, he had…
Disaster at Mongo’s For those who’ve never been to Mongo’s, it’s a stir fry restaurant where you get to choose your ingredients buffet style. You’re given a bowl, and you can fill it up as much as possible. Since there are no rules, it inevitably becomes a competition of who can fill their bowl to…
Don’t throw $440k out the window Has a credit card statement ever made you yell out, Holy Moly!!!!! (or insert expletive)? That’s what happened to me last week, and I quickly found myself on a call with my credit card provider. To my surprise, I was apparently treating someone out in Orlando to a slew…
Avoiding the RRSP Tax Bomb I recently met up with some old friends from high school, and we reminisced about some of the good times we had back in the day. We got to talking about the time I absolutely bombed during a class presentation. It was a total disaster. We were allowed to present…
While working, most people don’t pay much attention to the cost of their health benefits plan as it’s something they are required to pay into. However, a health benefits plan becomes optional once retired, so make sure you have the proper coverage that fits your needs. You may be eligible to continue your benefits…
In this video, I go over what Old Age Security is when the clawback starts, and a scenario where you sell your farm and the clawback will likely occur.
As I’ve outlined in the past (Die with Zero), I’m an advocate for spending more in retirement and enjoying life while you’re healthy enough to do so. I also believe in aggressively drawing down taxable accounts such as RRSPs and RRIFs (RRSP Tax Bomb) to potentially avoid a significant tax bill upon death. Today, I’m…
I just paid $100 for a chocolate bar! Some of you may remember when inflation hit double digits in the ’80s. Back then, paying 15% on your mortgage was reasonable, and Canada savings bonds were doubling your money every five years. When the cost of goods goes up, it has many effects. Only time will…
The finish line is just around the corner; what should you be doing as you approach retirement? Here are 5 steps to an easy retirement plan 1. Determine how you want to spend your time? In my experience, there are two reasons people choose to retire. I want to do X, Y, and Z…
In this week’s video we review at what income levels it makes sense to make RRSP contributions if you’re incorporated. CLICK HERE for my previous RRSP video: Farmers & RRSPs
Our video this week is an interview with “Canada’s Farm Whisperer” Elaine Froese. Get in touch with Elaine by visiting these links: https://elainefroese.com/ https://elainefroese.com/virtual-kitchen-table/ Background Image by Anna Workman, Life in Bloom Photography.
In this week’s video, we go over how to properly use RRSPs as a farmer.
One of the biggest issues with an RRSP is the tax bomb it can create. We first go over the Canadian tax system to understand why this tax bomb can happen and then a strategy on how to avoid it! How can you avoid the tax bomb? Click here for to see how you can…
If you’re not a farmer, but you own farmland that qualifies for the capital gain exemption, make sure you don’t pass away before using the exemption!
What is a reverse mortgage Where were you when you first heard the term reverse mortgage? If you’re like me, it was through a cheezy commercial on day time TV. Because of this, I was always skeptical of these products, and I wasn’t the only one. Whenever I would bring it up with someone, I…
The Easiest Way to Reduce Your Tax Bill Click above to view video! Thank you for watching our video.
Are All Financial Advisors the Same? The 3 Types When choosing a financial advisor, it can be challenging to differentiate between all available options. They all say: “I’ve been doing this for X years, and my returns have been stellar.” But what else should you be considering beyond returns? While all advisors have something to…
Gifting the Farmland In this week’s video we review the different ways you can gift farmland to your children along with the pros and cons of both methods.
Investment Strategies for NHL Players You’re playing in the NHL, so naturally you’re making a lot of money at a relatively young age. The average person will work for 25-30 years, and slowly increase their income as they get older. In contrast, an NHL career averages only 5 years, and is highly lucrative in that…
Should I Be Buying RRSPs? The answer to that question is going to depend on a few different factors. This latest video can help you understand whether or not investing in RRSPs is the right decision for you.
How do pro athletes go broke? “If you’re playing in the NHL, you’ve got a pretty good life” These were the words spoken by Paul Maurice after an NHL player poll slated Winnipeg as “the most dreaded road trip.” As a proud Winnipegger, hearing how our “great” city is actually the worst place to travel…
Beware of AMT Here is a quick video on what alternative minimum tax is and how it works. Enjoy!
Too much cash in your corp See my latest video going over a case study where one farmer thought his farm corporation qualified for the lifetime capital gains exemption but didn’t due to having too much cash.
Wanda has been investing for a long time and is quite familiar with buying when prices are low and selling when prices are high. Past non-registered account purchase In 2010, she had purchased $100,000 of ABC Corp, and today, it’s worth $250,000. Wanda is now ready to sell her investment as she believes the stock…
Guest Post by Property Pillar Management. They provide residential and commercial property management in Winnipeg, Manitoba and surrounding areas. From small single family homes to apartment blocks to commercial spaces. Buying an investment property in Canada is one of the best ways to diversify your assets. In addition to the promise of earning passive…
Let’s Multiply Your Capital Gains Exemption As a farmer, you have a lifetime exemption of one million dollar on the sale of farmland. If you exceed that amount, you could be looking at a large tax bill. Here is an option to increase your capital gains exemption. In this video, we will show two things. First, when no plan is in place and the ensuing tax bill. Second, how your tax bill may be substantially decreased with the aid of using this approach.…
Much like the summer months, December seems to come and go in the blink of an eye. We’re all so busy with work events and family gatherings that year end tax planning often gets neglected. With COVID forcing most of us to stay home this year, we can all use this opportunity to make sure…
Managing Your Portfolio in Retirement The financial industry tends to make things more complex than they need to be. As a result, topics like this usually go in one ear and out the other. My aim with this webinar is to simplify this topic by providing an explanations (in simple English). This webinar will cover topics to be aware of as you approach or are…
Farmland has been one of the best investments in Canada for the past 25 years.This is clearly shown by an annual growth rate averaging over 5% (as per FCC). If looked at as potential rental income, farmland generates around 7% in annual returns without the wild ride of investing in alternative asset classes. To make…
The US election is weeks away and there is no shortage of predictions on how the winner will impact the markets and economy as a whole. Although our natural reaction is to guess how the outcome of the election will impact your wealth, it becomes a futile exercise when we realize how much there is…
You’ve worked hard for decades, and now that you are approaching or entering retirement, you could find yourself exposed to significant taxes without the proper strategies in place. Keep more of what you’ve built and enjoy the retirement you deserve. This complimentary video will cover the following topics: Am I on track…
As an Investment Advisor and Certified Financial Planner, I’m relied upon to reduce my client’s tax bill as much as possible. Today, I wanted to share with you a strategy that, if implemented correctly, can see your family receive nearly $140,000 tax-free from the government. That’s a lot of money in your pocket for merely…
The S&P 500 rises to a record close, fully wiping out its coronavirus losses With the US market hitting a new all-time high yesterday, I wanted to review one of my favorite sayings when it comes to investing: “The Market Has Never Taken a Dollar from Anyone” Whenever I mention this to new investors (and…
Wouldn’t it be great to have the benefits of commuting your pension as well as the benefits of a monthly pension? In this brief video, I go over how you can have the best of both worlds. As always, if you’d like to discuss your personal situation and explore your financial options, feel free to…
Deciding between commuting your pension or opting for the monthly income stream is a big retirement decision that contains several complexities. In this brief 3-minute video I provide clarity on the benefits of taking the commuted value compared to the monthly income stream. If you’d like to discuss your personal situation and explore your financial…
*It was expected that Bill 43 would receive Royal Assent (Approval) when the Legislature reconvened in the fall. However, since the Throne Speech was moved up to October 7th, the bills that were being discussed during the spring session have been put on pause. Because of this, the status and timing of Bill 43 is…
Over the past few weeks, I’ve been having this discussion with clients. Why does the market continue to rise while unemployment in the US is sitting at 40 million (the size of Canada’s population), and most businesses aren’t even close to running at 100% capacity? Everyone has their opinions and theories as to what is…
*Bill 43 received Royal Assent (Approval) when the Legislature reconvened in October 2020. If you have a CSSB pension, there could be significant changes coming that will affect how the commuted value of your pension is calculated. As I’ve mentioned in the past (Pension or Lump Sum, How to Decide), you will have a…
I’ve had the pleasure of working with several clients who work or have retired from Manitoba Hydro. While each person’s financial situation is different, some commonalities exist amongst those sharing and employer. This guide identifies those shared characteristics and provides advice regarding their financial planning implications. What makes your financial situation unique? As an employee…
As I write this on April 29th, 2020, US markets have bounced back 31.38% over five weeks from their March 23rd lows. For those of you who invested when markets were down 30%, well done. You have made a rapid 30%. If you hesitated or you still have some cash sitting on the sidelines, I…
What once seemed so far away is now within reach. You’ve been working most of your adult life, and you can finally see the light at the end of the tunnel. Retirement! The question now becomes, are you ready? Here’s a list of 5 things you need to look at as you approach retirement …
My wife always makes sure to remind me to wear sunscreen whenever I go out golfing. I have to tell her not to worry because I spend most of my round in the shade as I tend to hit a lot of trees. This past summer, I found myself deep in the bush searching for…
In this new era of “fake news” it’s becoming more and more difficult to distinguish between what is true and what is false. Politicians use this to their advantage and often repeat false statements so often that we begin to believe they are true. You may have noticed this particular strategy used by a certain…
Are you tired of turning on the nightly news and worrying about how the day’s events are affecting your retirement portfolio? Are you worried about the day-to-day fluctuations of the stock market? This week we take a look at how to properly manage your retirement portfolio with the Bucketing Strategy so that you can…
Companies will often offer employees early retirement packages to encourage them to retire. This is usually done when the company is looking to cut costs and reduce staff. Before making a decision, there are many questions to be addressed. All of which are specific to individual preferences and circumstances. Here are eight such considerations to…
Rate of return vs timing of return Many people believe that the rate of return they earn in their investment portfolio is the number one factor in determining the success of their retirement plan. Although essential, today I want to review why it’s even more important not to lose money, especially as you are entering…
Over the last couple of months, we’ve taken a look at some of the reasons you should withdraw the commuted value from your defined benefit pension plan. (See: Five reasons you should take your pension as a lump sum payout and What happens when you withdraw your pension?) The best strategy always depends on personal circumstances,…
Today we’ll be going over what happens when choosing the lump sum payout option from your defined benefit pension plan. As you’re likely aware, a defined benefit pension plan will pay you a monthly income for life, so why choose the lump sum payout option instead? A few common reasons include: Pension Sustainability:…
Are you thinking about purchasing life insurance as a succession planning tool, but having trouble wrapping your head around the annual costs? You might be thinking, “I could be using this cash to buy more land, pay off debt, increase my salary, upgrade my equipment, etc.” I get it, insurance isn’t a very exciting topic,…
Life insurance is one tool farmers use to help equalize their estate. Below is a comparison of the different costs of buying your life insurance today rather than waiting until you’re older. The scenario You have two children. One would like to farm; the other one isn’t interested. You want to make things fair,…
If you’re planning to leave your employer due to your retirement or a change in career paths, then you may be faced with the decision to either take your pension as a lump sum or as a monthly income. What is a defined benefit plan? A defined benefit plan promises to pay a pre-determined amount…
Don Jacobs is three years away from retirement and is looking for a way to supercharge his RRSP. With the 2018 RRSP deadline just around the corner, we help Don maximize his contributions so he can achieve his retirement goal in the next three years. Now that Don’s contribution has been…
When should you be applying for your CPP? This week we take a look at the long-term financial impacts of your decision and what variables you should take into consideration. Looking for more advice? Take a look at our 2 part CPP series which includes An argument for taking CPP later and An argument for taking CPP…
When I first started working in the financial industry over 3,000,000 minutes ago, one of the common rules of thumb was that you needed to save 20% of your income for your retirement. I immediately began to question this advice as it seemed too simple to implement, not to mention an extreme generalization. Imagine if…
Don’t wait until you have all the answers before you start working on a succession plan. As farm advisors, we often get questions like “How much does insurance cost for someone like me? What would the tax consequences be if I transferred land to my children? If I sell my land and invest the proceeds,…
Have you ever been to a Jets game and heard the person next to you yell that they could do a better job than the coach? How difficult could it be when you have great players on your team like Wheeler and Schiefele? Like most things, it’s probably a lot tougher than it looks, but…
Is your portfolio properly structured to minimize tax? Can I keep more money in my pocket without increasing the risk in my portfolio? Find out why your RRSP should grow as little as possible in this week’s video. Enjoy videos? Check out the Video Category for more great strategies.
More and more Canadians are retiring with debt, but does that make it a viable solution for your retirement plan? We would all like to be debt free once we retire but it isn’t always possible. Ask yourself this The big question you need to ask yourself is “How was the debt accumulated?” If you…
Am I on track to retire? This is a very common question I receive, so today I wanted to give you a simple way that you can get an answer to this question without pulling your hair out. Bob is 55 years old and approaching retirement. He plans on spending his winters in Phoenix and…
Sometimes withdrawing more is the best strategy. Introducing Daniel Daniel worked hard all his life, so by the time he retired he had accumulated a healthy amount of savings in his RRSP. It’s not because Daniel had an overabundant cashflow. There were years where he had to choose between replacing his TV or contributing to…
Entering retirement with farmland that you can use to generate rental income is a great way to create a steady income. However, there are a few points to consider to make sure you’re generating enough income and being as tax efficient as possible. Have a plan Unfortunately, land isn’t like a savings account. If you’re…
You’ve been targeting the unreduced pension date that you’ve seen on your yearly pension statement for the last twenty years. It’s finally within arm’s reach and you are set on retiring on that exact date. You’ve put in the time and you’re tired of hearing Carl’s nonsense about the Jets around the water cooler. As…
I’ve previously written about my hatred for buying depreciating assets (The Joys of Purchasing a Vehicle), so I don’t get overly excited when it comes time to buy a new car. I can appreciate all the features that come with a new vehicle, but I don’t like losing 10% of the car’s value as soon…
For those of you lucky enough to have a defined benefit pension plan, you may have to decide whether to take your pension as a monthly income or as a lump sum payout upon retiring. There isn’t a universally accepted answer when deciding between these two options, as it mostly depends on your personal circumstances.…
As you know, our government has been hard at work these past few years trying to extract additional tax revenue from our small Canadian businesses. These changes will have a profound impact on how you do your tax planning moving forward. So, what strategies are the savvy and sophisticated business owners now using to shelter…
That depends. Contrary to popular belief, you have a lot of options when it comes to investing inside of a Tax-Free Savings Account (TFSA). Many people believe a TFSA is simply a savings account that you get at the bank where your interest grows tax-free. Although technically correct, a TFSA can be a much more…
Last month I wrote and article arguing why it makes sense to take CPP later. This month we will review the argument for taking it early. As I mentioned last time, everyone seems to have an opinion on the matter but few people realize that this isn’t a “one size fits all” problem. If you…
In this 2-part series, we will explore both sides of the age-old question “should I take CPP (Canada Pension Plan) earlier or later?” We’ve all met purported CPP experts at some point in our lives. It may have been a member of your family, your plumber, or your dentist. The fact is that everybody has…
Most people we speak with get excited when they receive a tax refund, but it may be because they’ve paid too much income tax throughout the year. Paying too much tax just to get some back is equivalent to providing the government with an interest free loan. Wouldn’t you rather have this money month-to-month and…
