By Robb Engen Special to the Star Tues., Feb. 5, 2019 So you’ve made your RRSP contribution. Now what? You scrambled to make your contribution before the March 1 deadline and gave yourself a giant pat on the back. But wait a minute. You’re not done yet. Not if your RRSP contribution is just sitting idly in cash. You need to put that money to work. Remember, you don’t actually “buy” RRSPs. Your RRSP is simply a container in which you can hold a wide variety of investments such as GICs, bonds, stocks, mutual funds, and exchange traded funds (ETFs). It’s those investments that offer returns to hopefully beat inflation over time — and provide you with a nest egg to draw from in retirement. Article Continued Below The RRSP container keeps those investment gains sheltered from the tax man until it’s time to withdraw the funds — the idea being that you’ll be in a lower tax bracket than you are when … [Read more...] about Think of your RRSP as a three-step process
Home buyer plan withdrawal
By Gordon Pape Special to the Star Fri., Feb. 1, 2019 In case you’ve missed all the advertising, it’s RRSP time again. Banks, credit unions, insurance companies, brokerage firms and wealth management companies are all competing for a share of your retirement savings. Which should you choose? I’ll get to that in a moment. First, let’s look at a few numbers. The Bank of Montreal released a report this week that showed that, on average, we are holding more money in RRSPs than ever before. The study, conducted on-line by Pollara Strategic Insights, found that the average amount held in RRSPs nationally is $101,155. That’s a 21 per cent increase from 2016. The Ontario figure was even higher, at $120,024. The study also found that withdrawals from these plans are declining, so fewer people are dipping into their retirement savings for other purposes. Most withdrawals are for the purchase of a house, under the government’s Home … [Read more...] about It’s RRSP season. Don’t forget rule No.1!
By Jennifer Wells Business Columnist Fri., Jan. 25, 2019 In the countdown to budget 2019 Finance Minister Bill Morneau has tipped his hand toward housing affordability as a top-of-mind concern, noting especially “the big middle part,” by which he means housing for millennials, a.k.a. voters the Liberals would really like to have on their side as they head toward the fall election. Millennials in the GTA, for whom home ownership may seem depressingly out of reach, will not be surprised. This same voting cohort will recall the watchwords of Morneau’s first budget, in 2016. Mobility. Optimism. Restoring hope. Rewarding hard work. Growing the middle class. What has become statistically clear in the interim is that the aspiration of home ownership has become detached from the middle class dream, with millennials increasingly believing that home ownership is only for the rich. In a housing report released this week, economist Will Dunning, who … [Read more...] about How Ottawa can help make the dream of home ownership a reality
Chatchai said the bank began carrying out its own work on setting up the digital technology system last year. In a sign of the progress made, the bank will introduce its mobile application, GHB All, in the third quarter of this year. The app will provide all the functions required by customers, such as the ability to make monthly payments, apply for mortgages, and make deposits and withdrawals, Chatchai said recently. The bank has also created its QR Non Cash Payment service to meet the needs of the cashless society and plans to make the service available this month. The new services are part of the company’s shift in its business model to the provision of digital services for its customers, Chatchai said. GHB expects its customers will use the GHB All application for up to 50 per cent of the total transactions carried out each month. Currently, the bank logs an average of 700,000 transactions a month, with mortgage payments amounting to a large share of this. … [Read more...] about GHB makes strides in shift to digital services
The scene at Riverfront Residences late on Thursday (July 5) night. Homebuyers thronged the Park Colonial show suites on Thursday (July 5) night to put down deposits for units as the developer hastily launched sales ahead of a planned July 14 launch date. The scenario was similar at the sales offices of Riverfront Residences, the launch date for which was to have been this weekend, and also Stirling Residences, originally slated to be launched on July 14. This drama played out barely an hour after the government announced fresh adjustments to the Additional Buyer’s Stamp Duty (ABSD) rates and Loan-to-Value (LTV) limits on residential property purchases. The changes kick in on July 6. Aaron Wan, division director at Propnex Realty, described the situation as “chaotic” at Riverfront Residences. At least 1,000 buyers and agents were there at 11pm; most of the buyers being upgraders and investors, he reckoned. The measures by the government, aimed at cooling the … [Read more...] about Fresh property cooling measures spark last-minute buying frenzy