When it comes to retirement planning, government pensions are something you will want put into your plans. In retirement your income comes from many sources and it becomes a little bit of a balancing act. With the help of a skilled financial advisor these can be juggled each year so that you do not pay excess taxes!
Financial tip...Is Cash Safe?
Parking a portion of your investment portfolio in cash or money market instruments for extended periods of time may mean you are sacrificing returns and potentially exposing yourself to another risk – the eroding effects of inflation. Interest rates are at historical lows and they have not kept pace with the cost of living! If your money is invested in anything under that cost, your money is losing its purchasing power. You are guaranteeing yourself a negative rate of return on your investments that are invested like this. So you tell me, are these investments safe then?
Have your portfolio analyzed; make sure it is invested correctly for you and your goals.Take care of your wealth as you would your health, and I am your wealth doctor.Call today to book your no-obligation introductory meeting.You’ll be glad you did.
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Great tip on contributing to your RRSPs without even thinking about it:
Do you contribute to your RRSP once a year, on or around March 1, and continue on the same course until the following spring? If so, you could be missing out on the potential for substantial, long-term compound growth by investing sooner within your Fidelity RRSP.
Pre-authorized chequing lets you contribute early and often (and effortlessly) throughout the year rather than at the last minute. It can provide you up to 12 more months of compounding and tax-deferred growth.
As an Investment Professional, I continually work with my clients to assess their goals and design and carry out investment programs that work for them. This includes diversifying their investments, using a long-term perspective to maximize returns while reducing risk. It’s never too late, or too early, to begin planning for your retirement. I can help you assess your goals and will work with you to establish an investment program that’s specially designed for you.
I would be pleased to discuss your financial future and ways in which I can assist you in your long-term investment planning.
Trusted Saskatoon financial expert.
When it comes to retirement planning, government pensions are something you will want put into your plans. In retirement your income comes from many sources and it becomes a little bit of a balancing act. With the help of a skilled financial advisor these can be juggled each year so that you do not pay excess taxes!
Tip on Saving on Taxes:
Taxes are certain. The Amount doesn’t have to be!
Do you feel like you are paying too much income tax? Have you ever had your personal financial situation evaluated to see where you may be able to save some taxes? By visiting someone like myself, I may be able to help you save more towards your goals – all by just arranging your financial situation effectively! Linking your wealth to your life priorities.
Trusted Saskatoon financial expert.
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When it comes to retirement planning, government pensions are something you will want put into your plans. In retirement your income comes from many sources and it becomes a little bit of a balancing act. With the help of a skilled financial advisor these can be juggled each year so that you do not pay excess taxes!
Tip on Planning for Retirement:
What is your Retirement Plan?
- The Government will support me
- Living off the Kids
- Winning the lottery
- Inheritance
Perhaps your first answer should be - I planned for it!
It is never too late and never too early to start planning. My goal is to help you reach yours!With extensive training and a full range of products, services and specialists we are here to care of your plan. That way you won’t have to worry about what the Government is doing; your kids will still like you; you can play the lottery for fun; and can be sure that those in your life with a possible inheritance are living their lives to the fullest too.
Call today to book your no-obligation, no-cost TRUSTED consultation.
Trusted Saskatoon financial expert.
When it comes to retirement planning, government pensions are something you will want put into your plans. In retirement your income comes from many sources and it becomes a little bit of a balancing act. With the help of a skilled financial advisor these can be juggled each year so that you do not pay excess taxes!
Should clients defer OAS?
The 2012 Federal Budget introduced provisions that allow for deferral of Old Age Security (OAS). To recap:
- as of July 1, 2013, the OAS pension need not be taken immediately upon reaching the current qualification age of 65 (moving to age 67 in 2023);
- deferral of OAS payments beyond the qualification date (currently the 65th birthday month) is allowed for up to five years;
- for each month deferred, a premium of 0.6% will be added to the pension, which works out to as much as 36% if deferral is for the full five years.
Ideal age to begin?
The key step is determining the crossover point. This is done by comparing two program start ages (year and month) to find the point where someone could be indifferent in choosing either.
Assume someone takes her full OAS at 65, versus the 136% at age 70. At what age would she have received exactly the same total nominal dollars? If she lives past that age, she would maximize her receipts if she’d chosen the deferred start date, and vice versa.
This, admittedly, is a simplistic calculation. A true measure of the economic trade-off would require looking at:
- an inflation factor to estimate time value of money or, alternatively, an assumed rate (and type) of return on amounts received between the first and second start dates;
- household circumstances, including spouse’s RRSP/RRIF and other savings/income sources, OAS entitlement, current age and life expectancy;
- marginal tax rate, including the effect further income may have on provincial and federal tax credits, and potential clawback of OAS itself.
These calculations can be misleading, but for the sake of argument here is the arithmetic.
Common comparison ages
For simplicity, let’s assume monthly rather than quarterly indexing. This allows calculating ages without having to use current or later actual OAS payment amounts. The table shows full calendar years, but comparisons were calculated for all 61 possible start months.
Comparing age 65 to 70 (see “Crossover points,”), total receipts would be the same at age 84 (rounded up by about a month). Predictably, as the start age moves up a year, the indifference point moves forward by one year. Not shown in the table is the comparison of a mere one-month deferral for someone turning 65 (the attained age would be age 79).
A year to think on it?
What about retroactive OAS payments after a late application? Service Canada says these applicants can receive 11 months’ worth of payments. They can choose a lump sum and have ongoing payments based on the earlier qualification month, or start monthly payments based on the indexed figure. Applicants should apply six months before intended commencement date to allow for processing.
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