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

Thanks for visiting.”

 

– Owen

You Don’t Need An RRSP To Retire

You Don’t Need An RRSP To Retire

When it comes to retirement there is a lot of focus put on the RRSP. The Registered Retirement Savings Plan seems like an obvious choice for retirement (it even has retirement in the name after all!). But for many of us an RRSP isn’t necessary, and it might even be counterproductive!

There’s a new retirement account on the block and it’s called the TFSA. Not even 10 years old, the TFSA is relatively new to the retirement savings game. Starting in 2009, it changed the way we look at retirement savings.

If you’re new to RRSP vs TFSA debate it’s important to know that there are pros and cons for each account. RRSP’s do have the advantage in a few different areas, especially if you have high income or have a family and receive child benefits (either the Canada Child Benefit or a provincial child benefit). TFSA’s also have their share of benefits too. For low and middle income households, the TFSA has a few big advantages.

When deciding which is the right one for you need to look at multiple factors. Factors like income taxes, government benefits, creditor protection, and even human behaviour.

When deciding between the TFSA or the RRSP the key thing to remember is that you don’t actually NEED an RRSP to retire. Someone can easily retire with only a TFSA.

There are four things you need to know if you’re going to avoid the RRSP and only use the TFSA for retirement…

read more
6 Ways To Tell If You’re A Financial Hoarder

6 Ways To Tell If You’re A Financial Hoarder

I have a confession to make, I’m a financial hoarder, or close to it.

What is a financial hoarder? And why does it matter? A financial hoarder is someone who keeps extra bank accounts, investment accounts, budget categories, credit cards etc. The more financial “stuff” you have, the more you likely it is that you’re a financial hoarder.

Understanding this is important because it can affect how you manage your finances.

Just like how physical clutter in your home can affect your ability to move and think, your financial clutter can also have an impact on how you manage your finances. The more financial “stuff” you have the more mental energy you’re going to devote to it. This can lead to financial fatigue where you just give up entirely, and that’s not good.

The simpler your financial life, the easier it is to manage, and the more likely it is that you’ll have success with your finances.

When I do the quiz below I’m close to being a financial hoarder. Let’s do a quick tally…

read more
Debt Snowball Or Debt Avalanche Or Both?

Debt Snowball Or Debt Avalanche Or Both?

When it comes to debt payoff there are two popular strategies. These strategies are known as the “debt snowball” and the “debt avalanche”. These two popular strategies to pay off debt take advantage of human psychology or mathematics to help you pay off your debt faster.

Which debt payoff strategy you choose depends on your situation. Choosing one method vs the other may mean you pay your debt off faster OR it could mean you take longer to pay off your debt and end up making more interest payments.

The problem is that everyone in different and there isn’t a one-size-fits-all strategy. We have different amounts of debt. Our debt is spread over different accounts. And those accounts carry different interest rates (And to make it even more complicated, some kinds of debt let you reduce payments in difficult times, like some student loans, which can be a very valuable benefit!).

On top of this we all value things differently. Some of us prefer that immediate feedback (even if it means paying a bit more in the long run). Whereas some of us prefer to delay gratification a little bit, as long as it’s worthwhile in the end.

Choosing the right debt pay down strategy will depend on your personal situation and who you are as a person. In this post, we’ll summarize the two different methods and propose a third method that combines the best of both worlds.

We’ll also show you a cool little debt calculator that will help you decide which debt to pay off first.

read more
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Owen Winkelmolen

Financial planner, personal finance geek and founder of PlanEasy.

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

Thanks for visiting.”

 

– Owen

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You Don’t Need An RRSP To Retire

You Don’t Need An RRSP To Retire

When it comes to retirement there is a lot of focus put on the RRSP. The Registered Retirement Savings Plan seems like an obvious choice for retirement (it even has retirement in the name after all!). But for many of us an RRSP isn’t necessary, and it might even be counterproductive!

There’s a new retirement account on the block and it’s called the TFSA. Not even 10 years old, the TFSA is relatively new to the retirement savings game. Starting in 2009, it changed the way we look at retirement savings.

If you’re new to RRSP vs TFSA debate it’s important to know that there are pros and cons for each account. RRSP’s do have the advantage in a few different areas, especially if you have high income or have a family and receive child benefits (either the Canada Child Benefit or a provincial child benefit). TFSA’s also have their share of benefits too. For low and middle income households, the TFSA has a few big advantages.

When deciding which is the right one for you need to look at multiple factors. Factors like income taxes, government benefits, creditor protection, and even human behaviour.

When deciding between the TFSA or the RRSP the key thing to remember is that you don’t actually NEED an RRSP to retire. Someone can easily retire with only a TFSA.

There are four things you need to know if you’re going to avoid the RRSP and only use the TFSA for retirement…

read more
6 Ways To Tell If You’re A Financial Hoarder

6 Ways To Tell If You’re A Financial Hoarder

I have a confession to make, I’m a financial hoarder, or close to it.

What is a financial hoarder? And why does it matter? A financial hoarder is someone who keeps extra bank accounts, investment accounts, budget categories, credit cards etc. The more financial “stuff” you have, the more you likely it is that you’re a financial hoarder.

Understanding this is important because it can affect how you manage your finances.

Just like how physical clutter in your home can affect your ability to move and think, your financial clutter can also have an impact on how you manage your finances. The more financial “stuff” you have the more mental energy you’re going to devote to it. This can lead to financial fatigue where you just give up entirely, and that’s not good.

The simpler your financial life, the easier it is to manage, and the more likely it is that you’ll have success with your finances.

When I do the quiz below I’m close to being a financial hoarder. Let’s do a quick tally…

read more
Debt Snowball Or Debt Avalanche Or Both?

Debt Snowball Or Debt Avalanche Or Both?

When it comes to debt payoff there are two popular strategies. These strategies are known as the “debt snowball” and the “debt avalanche”. These two popular strategies to pay off debt take advantage of human psychology or mathematics to help you pay off your debt faster.

Which debt payoff strategy you choose depends on your situation. Choosing one method vs the other may mean you pay your debt off faster OR it could mean you take longer to pay off your debt and end up making more interest payments.

The problem is that everyone in different and there isn’t a one-size-fits-all strategy. We have different amounts of debt. Our debt is spread over different accounts. And those accounts carry different interest rates (And to make it even more complicated, some kinds of debt let you reduce payments in difficult times, like some student loans, which can be a very valuable benefit!).

On top of this we all value things differently. Some of us prefer that immediate feedback (even if it means paying a bit more in the long run). Whereas some of us prefer to delay gratification a little bit, as long as it’s worthwhile in the end.

Choosing the right debt pay down strategy will depend on your personal situation and who you are as a person. In this post, we’ll summarize the two different methods and propose a third method that combines the best of both worlds.

We’ll also show you a cool little debt calculator that will help you decide which debt to pay off first.

read more
Page 1 of 2812345...

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