Recent content by ez$$$

Yes, the mutual fund industry served as an entry point for clients who were not comfortable buying stocks directly. MER's hve come down significantly with the introduction of ETF's but I personally would rather hold just an index ETF rather than seek out active mutual funds. I do not see the...

Agree with you and I am not necessarily recommending Portfolio Management but just laying out the cost structure and advantages/disadvantages. It is okay for certain clients who feel the customized attention is worthwhile but others are comfortable doing it themselves and saving on fees and/or...

In Canada, most securities portfolio managers charge .75% to 1.5% of assets under management. I think anything above 1.5% is excessive but it depends on the service and performance you are receiving. In exchange for this fee, you are getting discretionary investment management, access to...

Good for you for establishing an investment strategy at a young age. Good advice here and the adage of time in market beats timing the market rings true. Beyond investment strategy, I would just say be disciplined about saving/expenses so you do not have to withdraw from your investments...

If full GIS, OAS and some CPP is enough to retire on, it is a sensible strategy as the tax burden will not be too onerous and you will qualify for other government benefits. It all depends on if it works for you and could be sufficient income, especially if housing is paid up. As like most...

Yeah, i think for the vast majority of folks that are firmly in the middle class of income earners, it is pretty safe to assume that they will be in a lower tax bracket when they retire vs working years but for folks on the lower and upper ends, that may not be the case.

Thanks for this. Did not factor in the provincial side of DTC. I do not personally report a lot of non-reg dividends but there are scenarios where certain types of income may be more favourable.

To my understanding, if you were to receive $50, 000 RRSP/RRIF income along with $30, 000 of eligible dividends (assuming these are only sources of income), your taxes payable would look like:- $50, 000 RRSP Income plus $30, 000 of eligible dividend income grossed up at 38% which is $41, 400...

RRSPs are a good savings vehicle but one has to be a little strategic about how they plan to use it. Got to give consideration to a withdrawal strategy and expected tax rates during your withdrawal years vs working years.

Generally agree with you, especially considering that someone at that level employment income would probably also have an employer pension plan which makes saving easier. However, given the cost of living in some of the major cities, I could see how a sole income earner with dependent children...

Yeah, having a large RRSP/RRIF balance without a spousal beneficiary/dependent children beneficiary can be a concern. Having an insurance policy to cover the taxes on death can be a solution but the premium on the policy (assuming one qualifies) can be quite steep. CRA ultimately gets their...

I think most Canadians have pretty modest RRSP/RRIF balances that supplement their CPP, OAS and company pensions that they rely on for retirement. Most folks do not have to worry about large RRSP balances that could potentially put them in OAS clawback territory but it could be a concern for...

Fair enough. However, in this case, income is only RRSP, CPP and OAS so no dividend tax credit would apply as all those sources are considered income to the best of my knowledge. Yes, if one were to be receiving dividends from non-reg accounts, dividend gross up and dividend tax credit would...

At that level of taxable income, you are looking at 14% federally and then the first tier of the provincial rate. Generally, your marginal tax rate should be anywhere from 18% to 25% depending on province but your average tax rate will be lower due to basic exemptions. I have enclosed a...