Jan
When Should People Start Building Their Retirement Savings?
As soon as you start earning paychecks, which should be in your teens and 20s, you should ideally start saving for your retirement. Savings are often considered a journey, not a sprint; so the earlier you can start contributing to your future savings, the more time your money has to grow, and the better off you’ll be in the long run. Unfortunately things are not so straightforward! Young people in their 20s often have to deal with many financial costs, including paying off student debt and credit card debt, and when they manage to save, it is for travel, a car, or a down payment on their first piece of property; so saving for retirement is usually nowhere near the top of their list of…
Jan
Notable Changes In CPP And OAS
Employment and Social Development Canada announced that Old Age Security (OAS) and Canada Pension Plan (CPP) would enjoy additional benefits starting 1st January 2016. Here are the key points regarding this announcement: Those already receiving CPP benefits will get a 1.2 percent boost. The maximum CPP retirement benefit, for the year 2016, for new recipients aged 65 will be $1,092.50 per month, which is a $330 increment compared to the 2015 maximum amount. OAS benefits, which comprise the Guaranteed Income Supplement (GIS), the basic OAS pension, and the Allowances, will be increased by 0.1 percent for the first quarter of 2016. So, starting January 1, 2016, the basic OAS pension will be $570.62 per month, compared to the previous $569.95. The Minister of Families, Children,…
Jan
Recent Changes To SIP&Ps
Starting January 1, 2016, plan administrators of Ontario registered pension plans have had to submit the statement of investment policies and procedures (SIP&P) electronically via the Financial Services Commission of Ontario (FSCO)’s Pension Services Portal. Other changes to SIP&P that became effective this year include: The requirement for administrators to include specific information in their plan member annual statements, as well as in biennial retired and former member statements with regard to the SIP&P, including how members can access it. The guidance issued by the FSCO on the content of the SIP&P regarding the DC components of plans or member-directed DC pension plans. The requirement that plan administrators ensure their SIP&P reflects the FSCO’s expectations in both the DC components of plans and environmental, social,…
Jan
What Are The Hidden Risks Associated With Low-Volatility Stocks?
The arena of exchange-traded funds has seen rapid growth of low-volatility ETFs owing to the ability of investors to participate in the stock market upside while limiting the down risk simultaneously. However, low-volatility equity portfolios based on stable companies have been disappointing due to their hidden risks. Some of these risks that contribute to the poor performance of low-volatility stocks include: The Heavy Sector Concentration A recent report released by Unigestion, a leader in the provision of tailor-made investment solutions for families and institutions, revealed that a large percentage of low-volatility stocks belongs to non-cyclical industries such as telecom and utilities. Rising Interest Rates Low-volume stocks are characterized by short interest rates, which means that they tend to get risky if interest rates go up.…
Dec
How To Plan Your Retirement
Retirement planning is now more important than ever. Public purses are coming under increased strain and as a result, governments have raised the age of retirement.Twenty years ago retirement was expected at the age of 60, now this has risen to 65. In Canada, this is expected to increase further, so what can you do to ensure you can comfortably retire at the age you want? This depends on a variety of factors, but some of the most significant factors are the type of lifestyle you expect to have, the amount of money you want to save and the specific financial plans you have to get there. Desired Lifestyle Take stock of yourself and your life. Ask yourself what kind of lifestyle you wish to…
