Retirement Planning

One of the lesser known (though still considerably valuable) retirement savings plans is the deferred profit-sharing plan (DPSP). This kind of plan is only provided by companies, for the benefit of their employees. The investments they contain are managed by a trustee. Given that the DPSP in Canada is not as well-known as other registered plans (such as RRSPs or TFSAs), this guide is designed to tell you everything you need to know about it. We’ll look at what is a deferred profit-sharing plan, the DPSP meaning, DPSP contribution limits, DPSP withdrawals and how to transfer a DPSP to an RRSP.

Old age pension plans (often called government or public pensions) are one of the major pillars of retirement income available to Canadian retirees. Public pension plans are designed to provide Canadian families with some income certainty in retirement. Understanding where your pension income will be coming from and how much you are entitled to receive can help you confidently plan ahead for retirement. There are three main types of old age pension available in Canada: The Canada Pension Plan (CPP), Old Age Security (OAS), and the Guaranteed Income Supplement (GIS).

Home ownership is a dream shared by Canadians, with almost two-thirds of us owning homes. But sometimes life can toss a curveball our way and throw our finances out of whack. For instance, an unexpected job loss, a disability, a divorce, or even a global pandemic can derail our financial plans, affect our credit scores, … Continued

Two of the most common ways for Canadians to save for retirement are the Registered Retirement Savings Plan (RRSP) and Tax-Free Savings Account (TFSA). Although there are key differences between RRSP and TFSA, both offer opportunities for tax-free savings growth. Should you save for retirement in an RRSP, a TFSA, or both? There are some important differences between an RRSP and TFSA – especially when it comes to taxation.

Retirement Savings Plans (RSP) and Registered Retirement Savings Plans (RRSP) are sometimes used interchangeably, but there are important differences between RSP and RRSP. An RSP is a broad category that includes many different types of retirement savings accounts, of which an RRSP is one. What distinguishes an RRSP is that it is registered with the federal government and is designed to incentivize Canadians to save for their retirement by making RRSP contributions tax-deductible and allowing the investments in the plan to grow tax-free

Old Age Security (OAS) can be a really valuable source of retirement income for Canadians. It’s a type of government pension that comes in the form of a monthly payment, which you can draw from the age of 65 (though you can delay receiving it until your 70th birthday). However, OAS comes with a recovery tax, or commonly known as Old Age Security Clawback. When retirement planning, it’s really important to know about the OAS clawback and how it can affect your retirement income.

Low-interest rates and low yields for traditionally “safe” investments often prompt investors to look for alternative options that can deliver more attractive returns. One alternative option is mortgage investments which can bring returns close to 10% or even higher. There are several types of mortgage investments, but in general, they involve pooling money from a large group of investors. That pooled money is then lent to people or organizations that can’t secure a mortgage from a bank or other conventional mortgage lender.

Taking care of your finances involves more than choosing the right investments. Often, it’s the small steps you take that will make a big difference to your financial health – cash flow management, keeping your expenses in check, sticking to a budget, having an emergency fund, and eliminating high-interest debt. With increased costs for everything from groceries to electricity bills, more than 55% of Canadians say they can’t keep pace with inflation. That’s why financial preparedness and establishing healthy financial habits are so important.

A popular choice among homeowners is to refinance a mortgage, which can often be a better option than a personal loan or line of credit. But what does it mean to refinance a mortgage? And is it the right choice for you? To help you decide, we take a look at the refinance mortgage meaning, the credit score needed to refinance a mortgage and lender refinance rates.