Can you picture yourself living the retired life?

my retired book of planning

DREAMING OF YOUR FUTURE   I’m not sure everyone can picture themselves retired because we base it on what we think we know and what we want to believe will happen during the supposed best years of our lives. Planning for retirement almost seems as if you are writing a guide about a future time and what your life will potentially be like. Don’t be envious of others’ success create your own but that starts with a plan of action and a will to want something that suits your own needs and not those of others. For some people their book is so big they struggle to get hold of it without the help of others, some don’t care and others take minimal interest in life after working for a living. I don’t know how much I agree with it being the best years but I’m certainly not one to judge because I’m not retired. In fact, I’m quite a few years away from retirement. Although I may be able to retire early I still struggle with what I will do when I no longer have to get up to wanting to throw my old cell phone from the UK […]

Reader Question:Do I Have To Share My RRSP With My Spouse When I Get Divorced?

Another reader of the Canadian Budget Binder blog asked the question, “Do I have to Share my RRSP with my Spouse When I get Divorced”? In Ontario there is the Family Law Act. In simple terms all property acquired after the date of marriage, up until the time of marriage breakdown is deemed to be the property of both parties. The ownership of the property is not a factor. So in short each person is entitled to 50% of the total family property. There are certain exceptions like the family home that was brought into the relationship or received as a gift or inheritance. However to keep things simple we will ignore this. RRSP’s, Stocks, Bonds, Pensions, are all subject to being included under Family Law. So if one spouse had a significant RRSP and the other nothing then the spouse with nothing would be entitled to 50% of the spouse’s RRSP. Note: the courts adjust the value of the RRSP down, by the amount of withholding tax that would be payable if the RRSP were cashed in. So the figure used is less than fair market value of the RRSP. To understand this fully the courts ask each person […]

Reader Question: RRSP’s-The Need To Know Basics

RRSP’s-The Need to Know Basics Reader Question: I want to save for retirement. Where is the best place to save for this? I have been told NOT to use RRSP. Can you help? Saving for retirement is a good thing and RRSP’s (Registered Retirement Savings Plans) are a popular tool for doing so. I don’t know the client’s age or his/her income so this answer is predicated on the fact that the client has several months of income in an emergency fund.  An emergency fund is a base component of proper planning and should be done before making any RRSP contributions. Also, it assumes the client is making more than $40,000 in income per year, as incomes under $40,000 don’t benefit much from tax savings on RRSP contributions. Below I will try to define some of the Basics of RRSP’s and also illustrate some of the long-term advantages. When Did RRSP’s Begin? RRSP’s first came into existence in 1957 as a government supported effort to help Canadians save for their retirement. Types of RRSP’s There are broadly speaking three main types of RRSP’s Individual RRSP-where the contribution is made in your name and held in your name. Spousal RRSP- The […]