All posts by Jonathan Chevreau

Weekly Wrap: Work may not end after Findependence, as Encore Careers beckon

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Graphic courtesy Challenge Factory Inc. and Retirement Redux

By Jonathan Chevreau

Financial Independence Hub

On Wednesday, the Financial Post ran an online column of mine it titled Life After Retirement: Your Working Career Probably Isn’t Over Yet — Welcome to the Encore Act.

Regular Hub readers will know that if I had my druthers, the headline would read more like “Why Work won’t end after your Findependence Day.” (that is, the day you achieve Financial Independence).

I don’t view the terms Retirement and Financial Independence as interchangeable. By definition, Retirement (or at any rate, traditional full-stop Retirement funded with a generous Defined Benefit pension) means no longer working for money. Financial Independence (aka Findependence), on the other hand, can occur years and even decades before traditional Retirement and so seldom means the end of productive work.

This very web site — which just passed six months in existence — is dedicated to clarifying this distinction. And of course the site also constitutes a big element of my own personal Encore Act: next Tuesday will be the one-year anniversary of my own Findependence Day. In my case, I define that as no longer working as an employee of a giant corporation or government entity, and having the financial resources to work if I choose to, and not if I don’t.

How to find your Encore Career

Continue Reading…

Do you have an unclaimed bank account?

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MarieEngen
Marie Engen, Boomer & Echo

By Marie Engen, Boomer & Echo

Special to the Financial Independence Hub

Have you ever moved and forgotten about an old bank account? The Bank of Canada holds about $532 million dollars of unclaimed money dating back to 1900.

Where does the money come from?

Bank of Canada unclaimed balances are Canadian dollar deposits or negotiable instruments that were held at a bank or trust company. They include chequing and savings accounts and GICs, as well as uncashed bank drafts, certified cheques and travellers’ cheques.

Related: 350 reasons to switch your banking

Not included are non-Canadian currency accounts, RRSPs, credit union accounts and safety deposit box contents. Continue Reading…

Gail Bebee releases third edition of No Hype book

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NoHypeCoverToday’s Hub review is a bit unusual in that we’ve allowed an author to review her own book. I originally reviewed No Hype: The Straight Goods on Investing Your Money when it came out almost a decade ago and found it a useful addition to the genre, seeing as so many financial books these days are written by financial professionals.

It was refreshing to see a book written by a pure financial consumer like Gail, who like the rest of us has to sort the financial wheat from the chaff and has no real axe to grind. As she says on her web site, she’s an independent voice.

Hopefully we’ll review it in the more traditional manner over the coming weeks or months but in the meantime, it’s nice to know the book is still out there and has been revised.

Incidentally, and as noted in Saturday’s weekly wrap, Gail and I are among six speakers at The Financial Show in Mississauga later this month. Joining us will be Gordon Pape,  Pat Bolland, Jim Ruta and Scot Blythe. — Jonathan Chevreau

By Gail Bebee,

Special to the Financial Independence Hub

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Gail Bebee

When I set out in 2006 to write the original No Hype – The Straight Goods on Investing Your Money, my goal was to create a readable book that set down all the investing basics for Canadians, without a financial industry bias. It was born from my frustration at not finding such a book when I decided to take control of investing my money.

Thousands of books and two sold-out editions later, the students taking my Investment Planning night school course at Toronto District School Board still need a good reference, and retail investors are still looking for an objective, understandable book on all the investing basics written expressly for Canadians. Continue Reading…

Budget’s lower RRIF withdrawal rates didn’t go far enough

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By Tim Paziuk

Special to the Financial Independence Hub 

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Tim Paziuk

In the recent Federal Budget, the government listened to seniors and advisors and reduced the minimum withdrawal amounts for RRIFs (Registered Retirement Income Funds). But did they go far enough?

If you’re not familiar with minimum withdrawal amounts, here’s a quick overview:

Up until the time you’re age 71 (or if your spouse is younger, their age 71) and you’re earning an income, you can contribute money on a tax deductible basis to a personal or spousal RRSP (Registered Retirement Savings Plan).

When you reach age 71 you have a decision to make. The decision is, do you convert your RRSP to a RRIF, an annuity, or do you cash it out (or a combination of the three). If you choose to convert it to a RRIF, the income payments cannot be deferred any longer than the following year (age 72). Continue Reading…

Post-budget primer on RRIF withdrawal strategies 2015 and beyond

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Adrian
Adrian Mastracci, KCM Wealth

By Adrian Mastracci, KCM Wealth Management

Special to the Financial Independence Hub

“Be very mindful of your RRIF. Understand its purpose. Then review it periodically to make sure it’s on track to deliver.”

It’s time to start paying special attention to RRIFs.
Even if you don’t yet need one.

RRIFs (Registered Retirement Income Funds) are income withdrawal plans, while RRSPs are savings plans.

No deposits are allowed to be made into a RRIF after the RRSP conversion.

The venerable RRIF remains firmly entrenched as a prominent retirement planning vehicle.
It has become an essential foundation of many a retirement nest egg.

Starting a RRIF at age 71 implies long-term planning, say to age 90 and beyond, especially if there is a younger spouse.

That’s one very good reason to be aware of the details.

Two major changes were proposed in the recent Federal Budget, starting in 2015:

  • Minimum RRIF draws are reduced for ages 71 to 94 (See highlighted figures in table below).
  • Re-deposit of the difference in draws is allowed by Feb 2016.

Continue Reading…