How to go about securing the best Retirement Plan in Canada.
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Caisse and DP World partner up for shipping port investments + MORE Dec 2nd
Investment platform starts with Quebec pension fund buying into Vancouver and Prince Rupert facilities owned by the Dubai-based marine terminal giant
.... More »
A portfolio built to minimize taxes + MORE Oct 7th
Marie Lewis, 58, Toronto (Photo by Micah Bond)
The Problem
The 58-year-old business analyst from Toronto plans to retire in a couple of years, but needs to invest two recent windfalls. Last month, she transferred the six-figure commuted value of her company pension to a Locked-in Retirement Account .... More »
What investments can I put in my TFSA? + MORE Sep 14th
The less tax you pay, the more money you keep for yourself. How can you apply this to investing? By using registered investment accounts like the tax-free savings account (TFSA) and the registered retirement savings plan (RRSP). The TFSA is often the first investment account a new or young investor .... More »
What the right ETFs can do for you Nov 30th
Jonathan Chevreau will be presenting: The MoneySense ETF All-Stars and Their Role in Establishing Financial Independence and Generating Retirement Income on Thursday, December 2, 2021 at 12:25 p.m. to 12:55 p.m. EST. Now in its ninth year, the ETF All-Stars helps Canadian investors narrow down the f.... More »
How to plan for retirement for Canadians: A review of Four Steps to a Worry-Free Retirement course + MORE Oct 26th
With November incoming and being Financial Literacy Month in Canada, it seems appropriate to devote this edition of the Retired Money column to a new Canadian DIY retirement course created by MoneySense’s “Making sense of the markets” columnist Kyle Prevost.
Entitled 4 Steps to a .... More »
Chicago Pension Nightmare
– online.wsj.com
A court nixes reform. Maybe the mayor should try bankruptcy.Corporate class investment funds to lose key advantage
– moneysense.ca
OTTAWA – A key tax advantage for corporate class investment funds is coming to an end later this year under a change announced in the federal budget.
Ottawa is ending the ability for investors to switch between funds in corporate class investments without paying tax on capital gains.
However, the new rules give corporate class fund investors a chance to make any changes under the old rules until the end of September.
“For investors, the encouragement is a call to action and a call to action prior to September of 2016 to review your portfolio to make sure you make use of your corporate class investments prior to the changes kicking in,” said Tony Salgado, manager on tax and estate planning at Investors Group.
“This is going to apply to a lot of senior investors and people that wanted to make use of the corporate class structure.”
3 ways the federal budget will affect investors »
Corporate class funds had been used by investors who had already maxed out their RRSP and TFSA contribution limits as a tax efficient way to invest…
Ottawa is ending the ability for investors to switch between funds in corporate class investments without paying tax on capital gains.
However, the new rules give corporate class fund investors a chance to make any changes under the old rules until the end of September.
“For investors, the encouragement is a call to action and a call to action prior to September of 2016 to review your portfolio to make sure you make use of your corporate class investments prior to the changes kicking in,” said Tony Salgado, manager on tax and estate planning at Investors Group.
“This is going to apply to a lot of senior investors and people that wanted to make use of the corporate class structure.”
3 ways the federal budget will affect investors »
Corporate class funds had been used by investors who had already maxed out their RRSP and TFSA contribution limits as a tax efficient way to invest…
Budget winners and losers: Watch out for clawbacks
– moneysense.ca
It’s reasonably common knowledge that higher wealth accumulators in Canada will want to do some extra planning to avoid the 33% high income tax rate in the terminal return of the last surviving spouse. This is generally accomplished by averaging in their taxable pension amounts throughout retirement, if possible.
However, a sharp eye on marginal tax rates is important in this activity, because clawbacks of the Age Amount and Old Age Security can make income averaging opportunities challenging.
In fact, when you ask the question, who pays the highest marginal tax rates in Canada, you might be surprised to know it’s not always those whose income exceeds $200,000. The answer depends on the type of income sources and also depends on whether the taxpayer is subject to a clawback of social benefits and credits.
Let’s see how clawbacks affect seniors and investors in 2016 under various scenarios.
In the first, seniors are subject to clawbacks of the age amount, the GST/HST Credit and the Old Age Security at various income levels…
