FAQ

How much money will you need so you don’t outlive your retirement savings?

Some financial planners suggest you will need about 75% of your preretirement income every year, since expenses tend to go down during retirement (although there can be an initial spike in the first few years of retirement as you check off items on your “bucket list”). Others suggest a nice, round $1 million. In reality, most Canadian retirees get by on less by adjusting their lifestyle and relying on government benefits to augment their savings. Ultimately, there’s really only one way to find out how much is enough for you: do a financial plan. A financial plan will include projections showing how much you need to save to achieve a certain retirement income that is sufficient to meet your expected expenses for as long as you need. Depending on your lifestyle goals, your life expectancy, and other variables, you may or may not need to save a cool million.

Pension plan options when you leave your employer

If you’ve been a member of a pension plan for many years, the benefits you’ve earned in the plan may be the largest source of income you’ll receive in retirement. When you leave your employer, your pension plan administrator will send you a written summary outlining your company pension plan options. You will be required to select one of the options by a specific deadline. Sometimes you may not have very much time to make your decision. Generally if you don’t act before the deadline, the pension plan administrator will assume you’ve selected the default option, which may or may not be the best option for you. When analyzing which pension option is best for you, often the goal is to find the option that will provide you with the best cash flow throughout your retirement at a risk level that’s acceptable to you.

For a free complimentary LIRA vs Pension analysis, send me an email at treshana.walker@rbc.com or complete the form on the right. A member of our team will get in touch with you. You will receive a 13 page report showing the best option that fits your unique scenario. 

For more information on the options, download a copy of the below article. 

What are my pension plan options when I leave a company?

What is the TFSA contribution room for 2024?

As of January 1, 2024, you can contribute an additional $7,000 to your TFSA to benefit from tax-free growth. With the contribution room from 2009 through 2024, you will be able to contribute up to $95,000 to grow tax free. Contribution room accumulates every year starting at age 18, and can be carried forward indefinitely. You can contribute to your TFSA irrespective of your income and can continue contributing even when you’re retired – it’s a lifelong plan.

What is a fee-only advisor? 

The all-inclusive Advisor Program is a convenient way to access the investment and wealth management services you need, with complete transparency about the fees you are paying. The Advisor Program is different from traditional investment accounts, which charge commissions on each trade you make. Instead, with the Advisor Program, you pay a fixed fee based on a percentage of the assets in your portfolio. You receive a wide range of services, including the ability to make a certain number of trades per account.
This gives you the flexibility to make investment changes without considering the cost of individual transactions.

What’s more, with the fee-based approach, you gain the confidence of knowing that potential commissions never factor into the investment recommendations you receive.

Moving to Canada from the U.S.

Are you a U.S. citizen or green-card holder who is a newcomer to Canada or have you returned to Canada after an extended absence? As a U.S citizen or green-card holder living in Canada, you are subject to both the Canadian and the U.S. tax system, which makes tax planning for you much more complex. There is often a disparity between the U.S. and Canadian income tax laws which may affect the effectiveness of certain tax planning strategies. Therefore, it is important that each country’s tax laws be considered when determining whether a particular tax planning strategy is appropriate for you.

Download the below article that provides an overview of the Canadian tax system and tax planning considerations for U.S. citizens and U.S. green-card holders who have moved to Canada and have established Canadian residency for income tax purposes.

Article on an overview of the Canadian tax system and tax planning

You may also want to discuss tax planning for U.S. citizens living in Canada. You are welcome to reach me directly at treshana.walker@rbc.com for a complimentary meeting.