Ask the Money Lady, My husband and I just signed our legal separation papers, but I still live in our matrimonial home that is now up for sale. I have two questions: I want to move out, so should I buy another home by myself? Even though I haven’t actually received it yet, does child support count as income? I do work part-time but think I need the [...]
Most advisors and pre-retirees believe that planning for retirement should be entirely focused on the financial aspects of saving money and eliminating debt. While that is certainly true, there is so much more. How do you envision spending your time for the rest of your life? Retirement planning considerations should include finding a meaning to your new life and creating opportunities to create value, fulfilling the goals that [...]
Ask the Money Lady, Dear Friends! Today we are going a little off protocol and rather than answering a question I wanted to share a strategy from my book that you can apply to your own lives to determine your own financial plan. I want you to consider determining your future affordability the same way the banks do. It is called TDS and stands for Total Debt Servicing [...]
Should you collect CPP/QPP when you turn 60 or delay to age 65 or 70 to get a higher monthly amount? There are two ways of thinking when deciding to take your CPP/QPP benefit. Most advisors will tell their clients to defer both CPP/QPP and OAS until they are 70 to get the maximum benefit from the Canadian government. This, however, could be a calculated risk, since your [...]
Ask the Money Lady, I have seen my stock portfolio lose so much money in the last few days, I am beside myself with panic. I am not sure what to do. I don’t have much invested but I was thinking of selling everything so I don’t lose anymore. What do you think? Margret (Marg) Dear Market Uncertain Margret! Marg, I would suggest to just hang on [...]
Ask the Money Lady, My employer is closing our office because of the Coronavirus and suggesting we all work from home. I am now starting to really panic about everything and I am worried about not making my payments on my mortgage if my employer decides to lay us off. Is there anything I can do? Bill Dear Bothered Bill! It is not hard to get swept [...]
Ask the Money Lady, I have always got mortgage insurance with my bank but lately I wondered if it would be better to take out separate insurance. Do you think I should have both or is one better than the other? Thanks, Curtis Dear Curtis – Great that you are protecting your family! Mortgage insurance is a great way to ensure you protect your family should you [...]
Most retirees believe to reasonably reduce the taxation to their retirement income they should choose to take the minimum amount from their RRIF. That being said, if you pass away before withdrawing all the funds from your RRIF, you ultimately forfeit most of your investment savings to taxation, which for most Canadians will be at the highest marginal tax rate of 53.5%. Unless you can transfer your registered [...]
Ask the Money Lady, My wife and I have always wanted to build our dream home, but we don’t know how to get started. I have been to my bank and they said I would have to get a draw mortgage. Is this my only option? Thanks, Keith Dear Keith – Building a Dream! Many people want to build their dream home, especially those that are nearing [...]
Is CPP and OAS all there is? There are a few benefits that you should be aware of if you are soon thinking of retiring. First is the Pension Tax Credit. If you are 65 or older you are entitled to a $2,000 tax credit on the first pension income you receive. Make sure to income split with your spouse if necessary, to ensure you both get this [...]