“Welcome to the PlanEasy blog! We make personal finance easy.

Thanks for visiting.”

– Owen

The New TFSA Contribution Limit! How Big Could Your TFSA Get If You Contribute The Max Each Year?

The New TFSA Contribution Limit! How Big Could Your TFSA Get If You Contribute The Max Each Year?

The TFSA is an amazing account and it just got a little bit better. The contribution limit for 2020 is an additional $6,000. This means that as of January 1st 2020, anyone over the age of 18 in 2009 will have $69,500 of TFSA contribution room if they’ve never contributed before!

What makes the TFSA so amazing is the tax free compounding and when this compounding starts to take hold the results are incredible (just take a look at some of the projections below).

It’s reasonable to expect that many of us with TFSAs will see them reach $1,000,000+ at some point in the future. It’s just a matter of time. We’ll share some projections below but its pretty reasonable to expect that TFSAs could reach $5M, $7M or even $10M+ (in future dollars).

In fact, having TFSAs that reach $1,000,000+ is pretty common in many retirement projections that we do at PlanEasy.

Often, from an income tax and estate planning perspective, we want to draw down TFSAs last in retirement (or sometimes they’re also draw down strategically to avoid higher marginal tax brackets). We’re also strategically shifting assets from RRSPs/RRIFs into TFSAs over time. This leads to some very large TFSA balances and very little tax on the estate (depending on future investment returns of course).

read more
Investing After Retirement… What Should Change?

Investing After Retirement… What Should Change?

Should anything change when investing after retirement? Are there specific investment options for after retirement? Should you change your asset allocation after you’ve retired?

For the average retiree their investment portfolio will make up a significant portion of their retirement income. Most of us will receive some government pension from CPP and OAS. Some of us may also receive retirement income from a defined benefit pension as well. But even in those situations we’re probably still creating some retirement income from an investment portfolio each year and this income is critical to help us reach our spending goals.

Given investment income is such an important part of most retirement plans, should anything change when investing after retirement?

For some people the answer might be yes. But for most of us the answer is probably no.

There are a few important factors to consider when investing after retirement and the three big ones are asset allocation, investment fees, and complexity.

These three factors are important to consider when investing after retirement. Depending on how your investment portfolio currently stands against these three factors it may warrant making some changes before entering retirement.

read more
Types Of Pension Plans And Their Pros And Cons

Types Of Pension Plans And Their Pros And Cons

There are three main pension arrangements in Canada and most people, if they have a pension plan, have one of these three main types. There are defined benefit pensions, defined contribution pensions, and group-RRSPs. Each of these have their pros and cons. (There are also some unique pension plans but these are typically intended for high income executives or business owners.)

Having an employer pension plan can be a huge benefit for retirement. An employer pension makes saving for retirement easier by taking deductions directly off your income, plus it also typically comes with employer matching. This employer matching can be worth anywhere from a few percent of your salary all the way up to 18% of your salary (depending on the plan and the retirement benefits provided).

The automatic nature of pension contributions make them a great way to save for retirement. This “forced savings” is a huge benefit in itself, regardless of the employer matching.

Depending on the type of pension you have, this money gets paid out in different ways at retirement. Some plans cannot start before a certain age while others can be accessed earlier. Depending on your retirement goals this flexibility (or lack of flexibility) is an important consideration in your financial plan.

Some pensions, specifically defined benefit pensions, may also come with health benefits, travel benefits, or life insurance benefits after retirement. This can be another important benefit of a defined benefit pension plan, one that shouldn’t be ignored (especially when deciding between a defined benefit pension and a commuted value option).

It pretty much always makes sense to participate in an employer pension plan, but the different plans do have their pros and cons. Let’s explore the three main types of plans in Canada and their pros and cons.

read more
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Owen Winkelmolen

Fee-for-service financial planner and founder of PlanEasy.ca

“Welcome to the PlanEasy blog! We make personal finance easy.

Thanks for visiting.”

– Owen

New blog posts weekly!

Tax planning, benefit optimization, budgeting, family planning, retirement planning and more...

The New TFSA Contribution Limit! How Big Could Your TFSA Get If You Contribute The Max Each Year?

The New TFSA Contribution Limit! How Big Could Your TFSA Get If You Contribute The Max Each Year?

The TFSA is an amazing account and it just got a little bit better. The contribution limit for 2020 is an additional $6,000. This means that as of January 1st 2020, anyone over the age of 18 in 2009 will have $69,500 of TFSA contribution room if they’ve never contributed before!

What makes the TFSA so amazing is the tax free compounding and when this compounding starts to take hold the results are incredible (just take a look at some of the projections below).

It’s reasonable to expect that many of us with TFSAs will see them reach $1,000,000+ at some point in the future. It’s just a matter of time. We’ll share some projections below but its pretty reasonable to expect that TFSAs could reach $5M, $7M or even $10M+ (in future dollars).

In fact, having TFSAs that reach $1,000,000+ is pretty common in many retirement projections that we do at PlanEasy.

Often, from an income tax and estate planning perspective, we want to draw down TFSAs last in retirement (or sometimes they’re also draw down strategically to avoid higher marginal tax brackets). We’re also strategically shifting assets from RRSPs/RRIFs into TFSAs over time. This leads to some very large TFSA balances and very little tax on the estate (depending on future investment returns of course).

read more
Investing After Retirement… What Should Change?

Investing After Retirement… What Should Change?

Should anything change when investing after retirement? Are there specific investment options for after retirement? Should you change your asset allocation after you’ve retired?

For the average retiree their investment portfolio will make up a significant portion of their retirement income. Most of us will receive some government pension from CPP and OAS. Some of us may also receive retirement income from a defined benefit pension as well. But even in those situations we’re probably still creating some retirement income from an investment portfolio each year and this income is critical to help us reach our spending goals.

Given investment income is such an important part of most retirement plans, should anything change when investing after retirement?

For some people the answer might be yes. But for most of us the answer is probably no.

There are a few important factors to consider when investing after retirement and the three big ones are asset allocation, investment fees, and complexity.

These three factors are important to consider when investing after retirement. Depending on how your investment portfolio currently stands against these three factors it may warrant making some changes before entering retirement.

read more
Types Of Pension Plans And Their Pros And Cons

Types Of Pension Plans And Their Pros And Cons

There are three main pension arrangements in Canada and most people, if they have a pension plan, have one of these three main types. There are defined benefit pensions, defined contribution pensions, and group-RRSPs. Each of these have their pros and cons. (There are also some unique pension plans but these are typically intended for high income executives or business owners.)

Having an employer pension plan can be a huge benefit for retirement. An employer pension makes saving for retirement easier by taking deductions directly off your income, plus it also typically comes with employer matching. This employer matching can be worth anywhere from a few percent of your salary all the way up to 18% of your salary (depending on the plan and the retirement benefits provided).

The automatic nature of pension contributions make them a great way to save for retirement. This “forced savings” is a huge benefit in itself, regardless of the employer matching.

Depending on the type of pension you have, this money gets paid out in different ways at retirement. Some plans cannot start before a certain age while others can be accessed earlier. Depending on your retirement goals this flexibility (or lack of flexibility) is an important consideration in your financial plan.

Some pensions, specifically defined benefit pensions, may also come with health benefits, travel benefits, or life insurance benefits after retirement. This can be another important benefit of a defined benefit pension plan, one that shouldn’t be ignored (especially when deciding between a defined benefit pension and a commuted value option).

It pretty much always makes sense to participate in an employer pension plan, but the different plans do have their pros and cons. Let’s explore the three main types of plans in Canada and their pros and cons.

read more
Page 1 of 4812345...

New blog posts weekly!

Tax planning, benefit optimization, budgeting, family planning, retirement planning and more...

New blog posts weekly!

Tax planning, benefit optimization, budgeting, family planning, retirement planning and more...

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