On Sep 18th RBC advised its advisors that it is closing the following Mutual/Seg Funds:
They do have “continuation” funds that have similar MERs that the closing funds investments will be moved into.
For most people, it is only once we hit retirement that we start thinking about estate planning. But what if something happens to you before you have had a chance to get everything planned out? Does your spouse know how to contact your employer to let them know you will no longer be coming in?
The first step is to document and organize your life. As a starting point, I’ve created a spreadsheet based upon a template provided by one of the insurance companies I deal with. In this spreadsheet, you record details of your life that your loved ones or Executor would need to deal with. Examples are bank accounts, credit cards, monthly bills, etc.
Second step is to put a reminder in your calendar to update the document on a regular basis. For most people an annual review would suffice.
Third step is to share the document with your loved ones or executor. As there are passwords stored in there, I would only share with those that have a high need to know and can be trusted.
I hope you find this spreadsheet useful in starting to organize.
Most Millennials worry about stock market crashes. Some stress about never earning enough to retire. But few think about how interest rates and inflation quietly affect their future wealth—and that’s a mistake.
In today’s economy, the biggest financial risk isn’t a sudden market downturn—it’s the slow erosion of your future buying power. If you’re not actively growing your money, you’re falling behind.
Many young professionals assume they’ll start saving for retirement later—when they earn more, have fewer expenses, or finally feel “ready.” Others believe keeping cash in a savings account is enough.
But here’s the harsh truth:
Once people start investing, many chase returns—looking for stocks, crypto, or “passive income” opportunities that promise fast gains. The problem? High returns often mean high risks. If a market downturn wipes out your investments, it could take years to recover.
Instead of chasing risky assets, focus on consistent, long-term wealth-building strategies that balance growth and security.
Think inflation only affects retirees? Think again. Every year, basic costs—like rent, groceries, and healthcare—inch higher. When you wait to invest, your money loses buying power before you even get the chance to grow it.
If you haven’t started saving for retirement yet, don’t panic—but don’t wait either. Small steps today can make a huge difference later:
Retirement might feel decades away, but waiting too long to start investing makes it harder to reach financial independence. Interest rates, inflation, and market conditions will shape your future—the best way to stay ahead is to take action now.
While many retirees worry about stock market downturns, fewer recognize the significant danger posed by persistently low interest rates and rising inflation. In Canada, this issue is particularly critical as traditional “safe” investments—such as cash, GICs, and government bonds—often fail to keep up with the rising cost of living.
For decades, the conventional wisdom was to shift toward fixed-income investments in retirement. But today’s economic reality in Canada means that relying solely on conservative assets could result in negative real returns when factoring in inflation and taxes.
Many retirees tempted by higher-yield investments—like REITs, structured notes, and dividend-heavy stocks—may unknowingly take on increased risk. While these assets promise strong payouts, they can be volatile and may not provide stable income when it’s needed most.
Inflation in Canada doesn’t arrive with a bang—it sneaks in through rising grocery bills, property tax hikes, and increased healthcare costs. Unlike stock market corrections, inflation tends to be permanent, slowly eroding purchasing power and retirement security.
Canadian retirees today face a difficult reality: interest rates are not keeping pace with inflation. Historically, central banks would raise rates to counter inflation, but economic pressures have prevented meaningful increases. As a result, many fixed-income investments offer returns that lag behind rising costs
Remaining too conservative with investments can be just as risky as chasing returns. A retirement portfolio must account for both inflation and low rates to ensure financial security over the next two to three decades.
Interest rates might seem like a minor factor, but they play a central role in determining financial stability in retirement. Canadian retirees need strategies that account not just for market fluctuations but also for the slow, compounding effects of inflation and low yields.
OK, before you take a “Well, duh!” moment, consider the deeper meaning.
No one likes to lose money. So this isn’t meant to be the obvious.
The trick is to purchase, as Warren Buffet says, “Great Assets (he says companies) at a Good Price, Not Good Assets at a Great Price”.
The other meaning in the Don’t Lose Money is
This also requires risk management. Have entry and exit points defined. Know how much you are willing to spend. How much the asset can decrease (stock price fall, real estate price fall, etc). At the same time, you should have an upside exit planned as well.
You shouldn’t invest in something without doing some research.
Have you heard about ChatGPT? It is a chatbot that is powered by an Artificial Intelligence. It has a reasonable knowledge base behind it, but remember to take things with a grain of salt (at least for the next few years).
Disclaimer: This is a very generalized article. The basis of it probably applies to your situation, but the details may not. And while I am a financial advisor, I am not YOUR advisor (unless, of course, we do have the advisor-client relationship). You should talk to your (an) advisor before taking action because of this article!
Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs) are two of the most popular savings options in Canada. Both of these savings plans offer benefits and drawbacks, and the right choice for you depends on your financial goals and circumstances.
RRSPs are savings plans designed specifically to help Canadians save for retirement. Contributions to an RRSP are tax-deductible, and any income earned within the RRSP is not taxed until it is withdrawn. This tax-deferred growth can help boost your retirement savings over time. Additionally, RRSP contributions may lower your taxable income in the year you make the contribution, which can reduce the amount of taxes you owe.
TFSAs, on the other hand, are savings accounts that allow you to earn investment income tax-free. Unlike RRSPs, contributions to a TFSA are not tax-deductible. However, any income earned within a TFSA, including investment earnings, capital gains, and dividends, is not taxed when withdrawn. TFSAs are a good option for individuals who want to save for short-term goals, such as a down payment on a house or a vacation.
When it comes to contribution limits, RRSPs have a annual contribution limit that is based on your income, while TFSAs have a set annual contribution limit that increases over time. Currently, the annual contribution limit for TFSAs is $6,000. Withdrawals from an RRSP are taxed as income in the year they are made, while withdrawals from a TFSA are tax-free.
Another key difference between RRSPs and TFSAs is that RRSPs have a deadline for making contributions for the current tax year, which is typically in the first 60 days of the following year. TFSAs, on the other hand, have no deadline for contributions, and unused contribution room can be carried over from year to year.
In conclusion, both RRSPs and TFSAs offer benefits, and the right choice for you depends on your financial goals and circumstances. If you are primarily focused on saving for retirement, an RRSP may be the better option, as contributions are tax-deductible and investment growth is tax-deferred. However, if you are saving for short-term goals, a TFSA may be the better choice, as contributions are not tax-deductible, but withdrawals are tax-free. Before making a decision, it is important to consider your financial situation and consult with a financial advisor to determine which option is best for you.
For the rest of the month, you will be bombarded with ads for RRSP investments. But is the RRSP the right vehicle for you to invest in?
Disclaimer: This is a very generalized article. The basis of it probably applies to your situation, but the details may not. And while I am a financial advisor, I am not YOUR advisor (unless, of course, we do have the advisor-client relationship). You should talk to your (an) advisor before taking action because of this article!
Let’s review the RRSP. It is a tax deferral. You take after tax dollars, invest into an RRSP, claim the amount invested as a deduction against your taxable income, and receive a reduced amount of taxes owing due to this. If your taxes owing goes negative, you get a refund. This in effect converts your contribution to a pre-tax investment.
When you withdraw the money from your RRSP years down the road (i,e, retirement) , it is now taxable income. So you pay taxes on the withdrawal.
If you contribute when you are in the first tax bracket (income less than $50,197 in 2022), you save the 1st tax rate (about 15%). But if when you withdraw the money, your pension, CPP, OAS, GIS puts you into the second tax bracket, your RRSP withdrawal now is taxed at the second rate (20%). So by deferring the taxes, you are actually paying more taxes than had you invested in a non RRSP account.
Contrast to a TFSA account. Once again, you take after tax money and contribute. The options to invest in are usually the same (or very similar) as what’s available in the RRSP, so lets pretend you bought identical investment funds within the accounts. For this comparison we will assume identical returns within the RRSP vs TFSA. When you take money out of the TFSA, you do NOT pay taxes on the withdrawal. You will have an extra 15% or 20% (or more) at withdrawal time.
At the end of the day (assuming same contribution date and withdrawal date), you keep more money coming out of the TFSA than out of the RRSP, UNLESS you also invest the tax refund. The power of compounding will make the RRSP worth more if you do in fact also invest the refund into your RRSP.
Now, if you are in a higher tax bracket at contribution time, the calculations change. This is why it is important to speak with an advisor!
It’s not too late (yet) to contribute to your RRSP and be able to deduct it from last year’s taxes.
And you don’t have to contribute to an existing account. You are allowed to have accounts at multiple institutes. It is the dollar amount that matters!
Questions? Don’t hesitate to contact me!
A few days ago (July 2021) the Canada Mortgage and Housing Corporation announced that it was rolling back its minimum credit score from 660 to 600. They had raised their score a while ago from 600 to 660 thinking that making it harder for people to get a CMHC insured mortgage would help cool the housing market. Unfortunately for them, the other insurers didn’t follow suit so all it did was cost them market share.
Does this mean NOW is the ideal time to purchase that house you were eyeing up?
If you would like to discuss your financial goals and plans, give me a shout!
Manulife Investments has advised today that there is an unknown individual (or indiviuals) impersonating Manulife employees contacting investors to purchase a Fixed Rate Bond Plan. Manulife advises that they do not offer any fixed rate bond plans.
