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

Thanks for visiting.”

– Owen

Taking CPP Early Or Late? How Long Until Breakeven?

Taking CPP Early Or Late? How Long Until Breakeven?

Should you take CPP early or late? Are you considering taking CPP early? Are you wondering if you should delay? Should you take it early at age 60? Should you wait until regular retirement age at 65? Should you delay until age 70, the last date possible?

When to start taking CPP is just one of the many difficult decisions soon-to-be retirees face as they approach their retirement date.

It’s a big decision, and like many financial decisions there are many aspects to consider when deciding when to take CPP.

When a soon-to-be retiree is deciding to take CPP early or late there are both financial considerations as well as non-financial considerations to weigh.

Taking CPP late can provide a financial benefit if you plan to live past a certain age. This is a number and it’s easier to evaluate but it’s based on longevity, which is a big unknown.

Taking CPP late also has non-financial considerations. There are “soft benefits” to delaying CPP. Depending on how much you value these soft benefits they can be worth quite a bit as well.

Even when two people have the exact same financial situation, they may choose different times to start CPP simply due to these longevity questions and soft benefits.

When deciding to take CPP or delay its first important to get basic understanding of how CPP works and how CPP payments change each year as you delay.

read more
Should You Consider Paying Off The Mortgage Early or Investing Instead?

Should You Consider Paying Off The Mortgage Early or Investing Instead?

Paying off the mortgage early can be a fantastic financial goal. In the last post, we looked at the different ways to pay off a mortgage early, how to make a mortgage payoff plan, and talked a little bit about the benefit of paying off the mortgage early.

In this post, we’re going to look at some considerations when deciding to pay off the mortgage early vs investing. This is a common dilemma for many people in Canada. Where should they put extra cash? Against the mortgage? Or in non-registered investments?

Generally, it’s better to invest inside an TFSA or RRSP before choosing to pay off the mortgage early. There is no annual tax impact when investing inside either of these two accounts. Investments can grow tax free. This can make it more attractive to invest inside an tax advantaged account before paying off the mortgage early. But not always…

RRSPs can be counterproductive at certain income levels and in certain situations. Investing inside an RRSP for someone expecting a very low income in retirement might not be the best use of those extra funds. They may experience large GIS claw backs on RRSP withdrawals in retirement. In those cases, it may make sense to pay off the mortgage early before maximizing RRSP contribution room.

As always, when making a financial decision, like paying off the mortgage early vs investing, it’s important to look at the whole financial picture and not just one aspect. If you’re struggling with this decision then it might be helpful to get a custom financial plan from an advice-only planner.

Deciding to pay off the mortgage or invest isn’t just about taxes and investment returns… there are also a bunch of soft benefits to consider. These aren’t pure financial benefits but they can still be “worth” a lot depending on how much you value them. Make sure you consider the financial benefit of paying off the mortgage early but also the soft benefits as well.

To decide between paying off the mortgage or investing we absolutely need to look at the after-tax rates of return. We’re going to assume that we’ve maximized our RRSP and TFSA contribution room already and are deciding between paying off the mortgage or investing in a non-registered investment account.

read more
How To Pay Off The Mortgage Early

How To Pay Off The Mortgage Early

One of the largest purchases we’ll ever make in our lifetime is when we buy a home. It’s an exciting time but also very stressful financially. Along with this massive purchase comes an equally massive mortgage. This debt typically takes between 25 and 30 years to pay off but many people choose to pay off their mortgage early.

Paying off the mortgage early is an important financial goal. It’s a goal that is typically (and hopefully) achievable before reaching retirement age.

Paying off the mortgage early is a great medium-term goal, something achievable within 10-20 years (or even earlier if you’re really aggressive). Because it’s a medium-term goal this makes it very interesting as a financial goal. It can be very motivating to see progress against your mortgage each year.

Getting rid of the mortgage is a great feeling! It’s incredibly freeing to see those mortgage payments disappear. It’s also nice to know that you have the security of owning your home outright.

Paying off the mortgage early also removes a huge burden from a family’s monthly cash flow. This creates a lot of flexibility to make lifestyle changes, switch careers, take more time off from work, or even retire early.

There are different ways to pay off a mortgage early. Which method you choose will depend on your personal and financial goals. The important thing is to make a plan.

Making a mortgage payoff plan can be exciting. It’s amazing to see how those future payments can quickly reduce your mortgage. Making a plan is easy and we’ll show you a couple of examples using our free debt payoff tool.

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...

Taking CPP Early Or Late? How Long Until Breakeven?

Taking CPP Early Or Late? How Long Until Breakeven?

Should you take CPP early or late? Are you considering taking CPP early? Are you wondering if you should delay? Should you take it early at age 60? Should you wait until regular retirement age at 65? Should you delay until age 70, the last date possible?

When to start taking CPP is just one of the many difficult decisions soon-to-be retirees face as they approach their retirement date.

It’s a big decision, and like many financial decisions there are many aspects to consider when deciding when to take CPP.

When a soon-to-be retiree is deciding to take CPP early or late there are both financial considerations as well as non-financial considerations to weigh.

Taking CPP late can provide a financial benefit if you plan to live past a certain age. This is a number and it’s easier to evaluate but it’s based on longevity, which is a big unknown.

Taking CPP late also has non-financial considerations. There are “soft benefits” to delaying CPP. Depending on how much you value these soft benefits they can be worth quite a bit as well.

Even when two people have the exact same financial situation, they may choose different times to start CPP simply due to these longevity questions and soft benefits.

When deciding to take CPP or delay its first important to get basic understanding of how CPP works and how CPP payments change each year as you delay.

read more
Should You Consider Paying Off The Mortgage Early or Investing Instead?

Should You Consider Paying Off The Mortgage Early or Investing Instead?

Paying off the mortgage early can be a fantastic financial goal. In the last post, we looked at the different ways to pay off a mortgage early, how to make a mortgage payoff plan, and talked a little bit about the benefit of paying off the mortgage early.

In this post, we’re going to look at some considerations when deciding to pay off the mortgage early vs investing. This is a common dilemma for many people in Canada. Where should they put extra cash? Against the mortgage? Or in non-registered investments?

Generally, it’s better to invest inside an TFSA or RRSP before choosing to pay off the mortgage early. There is no annual tax impact when investing inside either of these two accounts. Investments can grow tax free. This can make it more attractive to invest inside an tax advantaged account before paying off the mortgage early. But not always…

RRSPs can be counterproductive at certain income levels and in certain situations. Investing inside an RRSP for someone expecting a very low income in retirement might not be the best use of those extra funds. They may experience large GIS claw backs on RRSP withdrawals in retirement. In those cases, it may make sense to pay off the mortgage early before maximizing RRSP contribution room.

As always, when making a financial decision, like paying off the mortgage early vs investing, it’s important to look at the whole financial picture and not just one aspect. If you’re struggling with this decision then it might be helpful to get a custom financial plan from an advice-only planner.

Deciding to pay off the mortgage or invest isn’t just about taxes and investment returns… there are also a bunch of soft benefits to consider. These aren’t pure financial benefits but they can still be “worth” a lot depending on how much you value them. Make sure you consider the financial benefit of paying off the mortgage early but also the soft benefits as well.

To decide between paying off the mortgage or investing we absolutely need to look at the after-tax rates of return. We’re going to assume that we’ve maximized our RRSP and TFSA contribution room already and are deciding between paying off the mortgage or investing in a non-registered investment account.

read more
How To Pay Off The Mortgage Early

How To Pay Off The Mortgage Early

One of the largest purchases we’ll ever make in our lifetime is when we buy a home. It’s an exciting time but also very stressful financially. Along with this massive purchase comes an equally massive mortgage. This debt typically takes between 25 and 30 years to pay off but many people choose to pay off their mortgage early.

Paying off the mortgage early is an important financial goal. It’s a goal that is typically (and hopefully) achievable before reaching retirement age.

Paying off the mortgage early is a great medium-term goal, something achievable within 10-20 years (or even earlier if you’re really aggressive). Because it’s a medium-term goal this makes it very interesting as a financial goal. It can be very motivating to see progress against your mortgage each year.

Getting rid of the mortgage is a great feeling! It’s incredibly freeing to see those mortgage payments disappear. It’s also nice to know that you have the security of owning your home outright.

Paying off the mortgage early also removes a huge burden from a family’s monthly cash flow. This creates a lot of flexibility to make lifestyle changes, switch careers, take more time off from work, or even retire early.

There are different ways to pay off a mortgage early. Which method you choose will depend on your personal and financial goals. The important thing is to make a plan.

Making a mortgage payoff plan can be exciting. It’s amazing to see how those future payments can quickly reduce your mortgage. Making a plan is easy and we’ll show you a couple of examples using our free debt payoff tool.

read more
Page 1 of 3912345...

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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