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February 08, 2012

Amazon to open real-world store this year: report

Amazon doesn’t need any PR bumps, but let’s give it one anyway, shall we?

A_com_logo_RGBMy favourite Amazon story goes like this: one weeknight in 2010, I caught a late-night showing of The Social Network. Certainly, it was the year’s best movie, and so inspired was I that I came home and said, Hey, I oughtta read the book that was made from.

So sometime after midnight, well into the a.m., I placed an order for Ben Mezrich’s “The Accidental Billionaires.” Before the end of the next work day, it was at my door.

I’m not a paid Amazon advocate, just a fan of its convenience. So why, then, would a service as punctual as the web retailer actually open its own bricks-and-mortar store?

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Posted at 12:36 PM in Consumer news, Current affairs, Shopping | | Comments (0) | TrackBack (0)

September 28, 2011

Psst: Want to earn a sure 50% on your money?

While "Earn 50% On Your Money!" may be a tag line you'd expect to see in the back pages of magazines your mother told you not to read, it actually has a ring of truth.

Ad At least it does for those who take part in pension or RRSP contribution matching programs set up by their employers.

Many employers offer a subsidized RRSP program, meaning they will match employee contributions up to a certain dollar or percentage limit, ranging anywhere from 25% to 100%, depending on how long you've worked there.

Talk about free money. Not signing up is akin to simply leaving some of your salary on the table every month. Nonetheless, industry figures suggest that roughly 40% of eligible employees simply never get around to participating.

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Posted at 01:38 PM in Pensions, Retirement, RRSP, Workplace | | Comments (8) | TrackBack (0)

March 08, 2011

Canadian retirement age pushed back to 68: study

Canadians know they have a ways to go when it comes to retirement planning.

Istockphoto_10040870-elderly-couple-discussing-budget After all, the just-passed RRSP deadline also doubles as a brutal reminder of our savings inadequacies. Only 39 per cent had even planned to contribute this year, meaning, unfortunately, Canucks aren’t exactly Warren Buffett on ice.

But while we’re not planning for retirement on time, we still plan on retiring  on time, right? Right?

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Posted at 03:18 PM in Consumer news, Current affairs, Retirement, RRSP | | Comments (48) | TrackBack (0)

February 21, 2011

You can have too much money in your RRSP

A few weeks ago, we published a lengthy article on why many Canadians should probably steer clear of RRSPS.

Rrsp If you've got a stack of high-interest credit card or auto debt, for instance, you're going to be much better off paying it down and deferring potential RRSP contributions until you work those loans off.

Even consumer loans at lower rates of interest can be troublesome and may be better eliminated before boosting your RRSP pool.

On the other hand, says Morningstar columnist Gail Bebee, if you’ve been contributing to RRSPs for a while, it may be time to slowdown or stop altogether.

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Posted at 01:03 AM in Money management, Personal finance, Retirement, RRSP | | Comments (2) | TrackBack (0)

February 16, 2011

Review RRSP beneficiaries regularly to avoid estate problems

With the RRSP deadline just around the corner, inattentive investors can easily lose sight of a critical tax detail: designating a beneficiary for their money in case of death.

Estate If you're married or living in a common-law relationship, you're probably better off to name your spouse or partner as the beneficiary, allowing the funds to be rolled over to them, tax free.

This way, your RRSP assets can be rolled over to his or her plan at your death, allowing you to avoid paying tax until the surviving spouse is faced with his or her own final tax return.

You can also name your estate as the beneficiary and then leave your estate to your spouse, a dependent child or a grandchild in your will, though probate fees will apply.

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Posted at 12:15 PM in Advisors, Estate planning, RRSP | | Comments (2) | TrackBack (0)

February 10, 2011

Blend RRSPs and TFSAs, advisor suggests

Getting some money into RRSPs early, particularly if you’re in a higher tax bracket, is a great way to establish a solid financial foundation.

But that doesn’t necessarily mean that an immediate deposit to an RRSP is the only route to a more secure retirement, says Doug Carroll, vice-president, tax and estate planning, at Invesco Trimark.

If you can resist the allure of the RRSP’s early tax refund, you may be better off with TFSA initially, he maintains.

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Posted at 03:34 AM in Advisors, Personal finance, Retirement, RRSP | | Comments (13) | TrackBack (0)

October 27, 2010

Canada's pension system continues to rank high: report

Looking for a good place to retire? Try Holland.

For the second year in a row, the Netherlands obtained the top spot in a ranking of pension systems from around the world, earning a score of 78.3 out of 100.

Canada ranked fifth with a score of 69.9, ahead of the United States, United Kingdom and France, while China ranked worst with a score of 40.3.

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Posted at 03:34 AM in Pensions, Retirement, RRSP | | Comments (19) | TrackBack (0)

February 05, 2010

Who's going to get all those RRSP assets?

In the rush to first open that RRSP, you probably signed reams of documents. But, if your circumstances have changed at all, now might be a good time to review just what you signed -- particularly when it comes to your beneficiary.

If you're married or living in a common-law relationship, you're probably better off to name your spouse or partner as the beneficiary. This way, your RRSP assets can be rolled over to his or her plan at your death, allowing you to avoid paying tax until the surviving spouse is faced with his or her own final tax return.

Reassess this in the event of divorce or remarriage, however. There have been cases where an RRSP went to a former spouse after the ex’s death.

Not only would the former spouse inherit, but the estate might be liable for the taxes owed as the transaction would no longer qualify as a tax-free rollover. If no beneficiary is chosen at all, the RRSP typically becomes estate property, and taxes will take a big bite.

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Posted at 12:00 AM in Retirement, RRSP, Taxes | | Comments (9) | TrackBack (0)

February 03, 2010

RRSP contributions continue to plunge: Report

Having trouble coming up with an RRSP contribution this year? Well, you’re not alone. 

Citing economic conditions as the main reason, a recent Royal Bank survey suggests that just 35 per cent of Canadians have contributed to or plan to contribute to an RRSP this year – the lowest percentage of contributors since 1996.

And this isn’t likely to change anytime soon, according to a recent RBC Economics study which predicts that the amount of money going into RRSPs is likely to decline sharply over the next 10 years.  

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Posted at 05:08 AM in Consumer news, Retirement, RRSP | | Comments (37) | TrackBack (0)

April 16, 2009

Mortgage refinancing carries stiff penalties

By Gordon Powers, Sympatico / MSN Finance

Interest rates are down sharply – maybe even as low as they’re going to get – which means your existing mortgage rate is likely higher than prevailing rates. Is this then a good time to renegotiate?

Maybe.

With a five-year fixed rate now lower than 4% in some spots, the savings can be significant – particularly if you’re still far away from paying things off. But while the improved interest rate you might get is tempting, it's important to calculate how much you'd pay in penalties and how long it will take to recoup the cost of refinancing.

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Posted at 07:07 AM in RRSP | | Comments (16) | TrackBack (0)

February 23, 2009

Should you borrow to make RRSP deadline?

By Gordon Powers, Sympatico / MSN Finance

With interest rates low and likely headed lower, does it make sense to borrow for RRSP purposes? Maybe. It certainly gets more attractive as your tax bracket increases – here’s a simplified scenario.

Suppose, for example, that you’ve got about $62,000 in taxable income and you’re managing to put away $500 each month towards your RRSP. For the year, you can expect to get a RRSP receipt for that $6,000, which will trigger about a $2,000 tax refund, depending on the province you live in.  

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Posted at 05:26 AM in RRSP | | Comments (3) | TrackBack (0)

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AUTHORS
Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

Jason BucklandJason Buckland

The modern-day MC Hammer of money, Jason can often be seen spending cash that isn’t his with the efficiency of a Wilt Chamberlain first date. After cutting his teeth as a reporter for the Toronto Sun, he joined the MSN Money team with...

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