Tag Archives: RRSP

Estimating How Much You Need In Retirement

Estimating How Much You Need In RetirementChart3How much do you really need to retire? Are you one of the majority that either have a large number in mind or do not know? It may not be as bad as you think. What you need is an estimate of your expenses when you retire based on what you spend today, have an understanding of where your retirement income will come from and how you will use your savings. A spreadsheet is provided that will help you and it only takes a few minutes to fill in. You can try different values for capital, interest rates, inflation rate and withdrawal amounts. More

Estimating Capital Totals at Retirement

Estimating Capital Totals at RetirementChart4If you have been putting money into an RRSP, TFSA or other investments over the years, have you ever projected how much you will have when you retire? If you are just starting, what will you have if you save some money each year? This is important because it will determine what is available for a yearly income when you retire. The spreadsheet provided lets you try out different options. The results may surprise you as even a small amount of savings each year combined with compounding can really add up. More

The Minimum RRSP You Should Have

If you will not have a low income when retired and if you will not have other pension income, you should have at least $40,000 in RRSPs when you reach age 71. This ensures that the first $2,000 of payouts makes use of the $2,000 Federal Pension Income Amount non-refundable tax credit. More

Setting TFSA and RRIF Withdrawals

Setting TFSA and RRIF Withdrawals 3When you retire, or if you are already retired, and you have TFSA and RRSP/RRIF, you will want to set your withdrawals to match your income needs. You should also manage how your capital is being depleted. The spreadsheet provided offers options for doing both. More

Calculating TFSA and RRSP Totals at Retirement

Calculating TFSA and RRSP Totals at Retirement 3If you have been putting money into an RRSP and/or TFSA over the years, have you ever projected how much you will have when you retire? If you are just starting, what will you have if you save some money each year? This is important because it will determine what is available for a yearly income when you retire. The spreadsheet provided lets you try out different options. The results may surprise you as even a small amount of savings each year combined with compounding can really add up. More

TFSA and RRSP – Providing a Fixed Retirement Income Using 2015 Rates

TFSA and RRSP - Providing a Fixed Retirement Income2015 1This post describes a spreadsheet that you can download that shows how you can use RRSPs and TFSAs to generate a fixed retirement income each year. You will probably have a number of both RRSPs and TFSAs due to the restrictive amount of money you can invest in the TFSA. Knowing what they can provide as income before the capital is exhausted is critical to retirement planning.  More

TFSA or RRSP – Impact of Reinvesting the Tax Refund Using 2015 Rates

TFSA or RRSP - Impact of Reinvesting the Tax Refund 2As shown in this post the RRSP tax refund must be fully reinvesting each year if the RRSP is to provide the same income and close to the same capital during retirement compared to a TFSA. Even then, the TFSA is a better retirement option. The spreadsheet used for this analysis can be downloaded so you can try out different conditions such as your own province, marginal tax rate and reinvestment strategy. A major difference between a TFSA and a RRSP is that the RRSP is tax deductible while the TFSA is not and that the RRSP generates a tax refund which depends on your marginal tax rate. More

TFSA and RRSP – Providing a Fixed Retirement Income

TFSA and RRSP - Providing a Fixed Retirement Income1This post describes a spreadsheet that you can download that shows how you can use RRSPs and TFSAs to generate a fixed retirement income each year. You will probably have a number of both RRSPs and TFSAs due to the restrictive amount of money you can invest in the TFSA. Knowing what they can provide as income before the capital is exhausted is critical to retirement planning.  More

Comments From Developing Lifetime Finances and FinanceBase

While developing Lifetime Finances and FinanceBase, I also developed a viewpoint on number of items that may be of interest. In particular, there is a lack of good, non-product retirement planning, finances in Canada and the USA are surprisingly similar, compounding has good and bad effects, “rule of thumb” is not a good way to plan for retirement and software should be easy to use, but also permit access to special features. More

TFSA or RRSP – Impact of Reinvesting the Tax Refund

TFSA or RRSP - Impact of Reinvesting the Tax Refund 2As shown in this post, the RRSP tax refund must be fully reinvesting each year if the RRSP is to provide the same income and close to the same capital during retirement compared to a TFSA. Even then, the TFSA is a better retirement option. The spreadsheet used for this analysis can be downloaded so you can try out different conditions such as your own province, marginal tax rate and reinvestment strategy. A major difference between a TFSA and a RRSP is that the RRSP is tax deductible while the TFSA is not and that the RRSP generates a tax refund which depends on your marginal tax rate. More