Most of us who invest, or have retirement money in something like an RRSP (registered retired savings plan) or TFSA (tax-free savings account) have much of our savings in mutual funds. It’s a word we toss around all the time when we visit our bank or financial advisor. But how many of us truly know what they are?
The numbers for Canadians are scary. Only, 1 in 3 have retirement savings, the median value of an RRSP in Canada for those over 55, is only $60,000. On top of this, a mere 1/3 can depend on a work pension after retirement. The Federal Government’s solution to this widening retirement gap is a new scheme called the Pooled Retirement Pension Plan or PRPP.
Tax-free? Is there such a thing? Apparently, there is. A Tax-Free Savings Account (TFSA) is a registered general-purpose savings vehicle with one goal in mind – to help you meet your long-term savings goals. The accounts are flexible, and allow you to earn tax-free investment income. Not only that, but they complement other savings plans, such as RRSPs and RESPs.
Up until a year ago I was just as financially illiterate as the next guy. My monthly bills were too high; I had bad credit card debt and virtually no savings. A year later, my savings have grown substantially, I have freed myself of nasty credit card debt and I have cut back on unnecessary monthly bills. And guess what? You can do it too. This week is Financial Literacy Week. Help yourself get financially ahead and take the pledge. I dare you!
It’s Friday. You’ve worked hard all week and you’ve just been paid, so you’re ready to hit the town. Over the weekend, you go out for a meal with friends, see a movie, buy yourself a couple treats and go to a hockey game. Life’s too short to not have fun on the weekends, right? But come Wednesday, you wonder if the gas in your tank will make it ‘til Friday. Where did all your money go?
Thinking about getting a financial advisor? Choosing the right one is important. When you sit down with a few potential advisors, here are some questions you will want to ask.
Reviewing this summer’s top financial reads. Money rules our lives – we work hard for it, we’re unhappy without it, and we never think we have enough of it. Who wouldn’t want to learn how to manage it better?
There was an interesting article in the Globe and Mail earlier in the week as Rob Carrick spoke with CIBC’s Chief Economist Benjamin Tal about the recent focus on Canadian debt levels and how the major indicator, the debt to income ratio, may not be the best tool of measurement. Mr. Tal was quoted as …