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If your spouse passed away now you are classified as single Therefore it’s puts you into a higher tax braced. Widowed person should have a different tax bracket, they didn’t chose to be in that position. Especially after all the hard saving for there retirement years..

The calculation and clumsy and stringy, and benefit is trivial if any. Not worth it.

Woah... the information you presented was a bit difficult to understand. The scenario you presented is more realistic if Jack didn't attend post-secondary at all (he should not have so much CESG if any EAP withdrawal was made). The unused RESP balance should have been reduced in the first place if Jack has been in post-secondary school. If you're going to talk about Education Assistance Payment (EAP), it would be more logical earlier in the video.

A 4% real return when the 30 year tips is 2% is a 2% equity risk premium. This seems extremely low. 7 nominal, 5 real seems more common sensical

What about the annual income, investment breakdown, confidence of financial situation and enjoyment for singles? Are only the couples living well?

Hi Mark, I have a video suggestion for you (and it's something I am very curious about): I know that dividends and capital gains are taxed differently than income or interest, but I wonder if you could go over some examples of different scenarios. Like for example, if a person had mainly RRSP income, or if someone had majority of their money in a non-registered account (maybe due to an inheritance) and smaller RRSP/TFSA. Also maybe you could show how someone making $100k from a job would be taxed compared to someone who is retired and has an annual income of $100k via a mixture of capital gains, dividends, interest. How much less would the retiree pay in taxes versus the working person.

When will the tarif's code list be explained ? Code 34115 does not mean anything to me. Are implants covered?

Thanks for the shout out Mark! 😎

The strategy is excellent as always. But here's the implementation of the first year of a high income earner! Client 67 in 2023 retiring Jan 1 2024. Application made indicating the income expected for 2024. OAS doesn't start in Jan, but double payment in Feb 2024. Feb 2024, CRA sends a letter based on "2022" income subject to clawback. Client submits T1213OAS, clawback removed but not fast enough to avoid Clawback for March. Client files 2023 income tax, new letter from CRA based on 2023 tax return will be subject to Clawback as of July 2024. Client calls CRA. T1213OAS submitted was against the 2022 assessment, therefore must submit the T1213OAS AGAIN to eliminate clawback for 2024. However, cheeky CRA just indicates that the withheld serves as pre paid tax! Applied for the 1 year previous unpaid OAS, Service Canada takes 120 - 180 days. So if a client is somewhat relying on the predicted cashflow for this 1st year of retirement, they need to be ready for a lot of hoop dancing.

Pension Income tax Credit ($2,000) Question.... - If I am 65 and drawing from a RIF Account and 2 LIF Accounts’s, do I get the $2000 Pension Income tax Credit from each account ? If not, can you elaborate on how it would work ?

Wow Mark, totally impressed with this video. I am working full time in my otherwise retirement, defined benefit etc. I’m keeping a watch here; maybe will reach out.

One thing to consider is that if an RRSP contribution is made today, you can choose when to recognize the deduction. For example, if a young professional is just starting out in their career and earning less than future years. It can still make sense to contribute to an RRSP and then recognize the deduction in a future year when income is higher.

I worked in healthcare for the last 18 years in your lower income so this video very little value to me !

What if Jill had 3 children, is it 1/3 for each kid on Capital Gains?

I take calls for Sun Life CDCP and this is a great video 😇

This was SUCH a helpful video to watch before our next call with our investment advisor. All the moving parts or making the annuity decision are coming into focus during your video. Super helpful!

OAS clawback is a future tax on current success .

Or realistically, the couple would likely need around 7000 bucks a month. As well, the rate of return on a conservative investment is not above 5%. In fact it’s more likely that you’re going to count on 4%. I know financial planning at banks have around 3.51% as their target for growth and investments with inflation running around 2.5%. This means you’re gonna have to need a whole lot more money than what you’re saying in this video. That was said by someone else earlier there’s no way a couple can live on 250 bucks a week on groceries unless they’re just eating all the food that’s in the inside part of the grocery store which is the bad carbs and canned stuff, as opposed to the food that’s on the outside edge of the grocery store, which is, all the healthy food which cost a whole lot more. Anyway, retirement planning is a bit of a crapshoot when it comes to stock market payout inflation numbers. I would recommend if someone has a plan that gives him 7000 bucks a month that they would likely need to aim for 8000 bucks a month just to be safe. There is that factor of the go go slow, go and no go phase of retirement as well. You could probably start the plan out at 8000 bucks a month from 65 to 75 7000 bucks a month from 75 to 85, and if you’re very lucky 6000 bucks a month from 85 till the end; which could be 95 if you’re one of the few people in Canada that lives that long. The recommendation is make sure you have lots of kids that way even if you run out of money you can live in the basement. Thank you an excellent video and I do understand that the Royal Bank also uses the same offer you’re using now, but for you to not take money out of the bank, so their retirement planning is probably a little bit skewed

Trudeau's team of Liberals and Poilievre's team of Conservatives should be the key speakers at each summit of Chambers of Commerce, Boards of Trade, Professional associations and Small business councils so each team can have their chances to directly answer the questions from the people who are impacted directly from the Capital Gains taxes increases.

Excellent guest and video, thanks!

Legalese overload

you didn't mention moving the cottage to a trust

Can you please talk about ALDAs? I see that only Desjardins is selling them. Female in my early 50s, husband in early 60s has recently retired. I’m looking at scaling back to part time work. Have longevity on both sides of my parents. Have a moderate nest egg. Wondering if investing 10% of my savings (from LiRA/RRSP) in an ALDA starting at 70(?) along with deferring CPP and OAS to 70 would provide some peace of mind that would allow me to make the leap into semi or early retirement with what I’ve got in savings with less anxiety. Thank you

$6 to 8K per annum on $100k annuity seems pretty high given todays rates. Are you sure these numbers are accurate?

What would happen if Jill passed away and in her Will she leaves the cottage to her son, would there be any taxes payable under this senerio?

Why not have your family member give you the capitol gains money and then gift it to them.

Please comment on Whole Insurance as a retirement/tax vehicle

CRA loves to be a beneficiary of any gains that had them not risking anything.

My wife and I are buying our daughter’s house for the remaining balance on the mortgage, which is about $80,000 less than its current worth. We want both our daughter and her ex-husband to have an equity stake in the property, which will equal the fair market value of the property. The title for the home will be in our name, though. I am wondering how capital gains work in this situation. If we need to sell the home at market value in the future, will the capital gain only be on the amount over and above the agreed-upon selling price? Also, how do you suggest we find the current market value of the home? Could we use the current tax assessment?

What if John doesn’t own any property and the gifting of the cottage would become his primary residence? And what if he’s been living in the cottage and been paying all the bills and maintenance on it for 10 years now? I know the land transfer tax would be reduced by $4000 in Ontario ($365,000 of the $400k fmv)

Then first question you take OAS a few months before your 70th birthday and make sure you see that first payment then you split the country for good and get full OAS grossed up by almost 36 percent. Check the list of countries that have treaties with Canada and go to one on the list to avoid a full OAS clawback if you retired in Canada. Mexico has double digit interest rates and a very strong currency. So if you have a spare couple of millions to throw into interest bearing certificates retire in Mexico. Portugal is on the list if you're poor but will still lose all your OAS in Canada in a clawback. This is how to avoid all your OAS getting clawed back and in Mexico your yearly income doubles in interest bearing certificates while watching the Peso crush the Canadian dollar.

All insurance is for suckers. Unless insurance is mandatory never take out insurance. In the long-run the house always wins and you lose. I drove all my sports cars with no insurance until it became mandatory. Pay cash for home to avoid mortgage insurance and if you can cover millions of dollars worth of losses never take out home insurance.

Since Canada is one of the very few countries in the world with no gift tax the idea is to give most of your money to your heirs before you die. That's what my father did and his father did and my great grandfather did. Capital gains were tax free when my grandfather and great grandfather died.

I never had to work so I never worked. Even my grandfather retired with more than a million dollars in the 1930's. Things don't look good for future retirees. At some point in time the U.S. stock market will implode reminiscent of the '29 crash back down to fair market value. Ponzi's with zero fundamentals don't last forever. Gold and long term bonds as of today June 7th 2024 after the jobs reports both in Canada and in America look like the best thing to hold and stocks the worse thing to hold.

I did that survey. I do not think it was particularly well written. I also think that the 3 years or so of total disruption due to the pandemic made a hash of the results. One obvious one was about travel. If you are concerned about leaving your home international travel falls off the list, another is caring for relatives, a huge change in the probability of that happening over the short or long term. Another is in the investing areas. There is a very high usage of mutual funds. I would expect that a large percentage of those people also checked off 6 or so other boxes for investment types and they understand diversification. The mutual funds only group is likely a third or less of that segment. The dissatisfied in retirement group is almost the same percentage as the "I couldn't do the job any more" and the "I was packaged out" groups together. I don't think that is a coincidence.There doesn't seem to be a "I am retired because where I worked cratered and no one will hire me for enough to cover the costs of working" category. Ipsos needs to do this again after some improvements in the interview and add a section on the real impacts of inflation and interest rates returning to close to normal. BTW I think it needs to be said that if inflation is running 2% as targeted then 4% rate of return is the minimum required to make any after tax return on an investment and you have to escalate that for risk.

This happened to me for the 2023 tax year, one time gain. I’m filling out a T1213OAS form right now. What year do I put on top of the form?

GIS Clawback Question. Hi Mark, I live in Ontario, my wife is 58, and in May 2024 I will turn 65 and our combined income in 2022 was below the 51,800 GIS threshold. In Jan 2024 I applied for my OAS & GIS and have been approved for OAS and a very small amount of GIS and CRA has confirmed I will receive my first OAS/GIS payment in June 2024. I have since completed my 2023 Tax return where our combined income was 55,000 (i.e. over the 51,800 GIS threshold) such that I do not believe I would continue to qualify for GIS. When CRA does their quarterly review and discover I no longer qualify for GIA, will they start a clawback process or will they simple stop the GIS supplement payment ? Any feedback is appreciated.

Mark you do an excellent job explaining important retirement topics. I really appreciate your content. You are one of the very best personal investment TH-cam channels. 👍

I'm presently 61 when is the next age group covered for the government dental benefits. Will it be next year in 2025?

Would the dental include dentures?

ii am under the 90,000 amount the 4 dentists here i phoned 2 of them so far i would still have to pay to get dentures. is what the nurse said..not the whole amount.. but i will have to pay a certain amount.. so it's not free for everyone under 90.000 or 70,000

Really great video! Thanks for sharing this process.

Hello Mark: Great video, I have laid out my retirement financila plan in excel spreadsheet, current investment, future value, Future income - future expenses, One of these days I wil make an appt and go over to see if in fact I need financial planner or what I have is done is good enough

Fifteen years ago I would have really benefited from engaging a financial advisor (not a bank mutual fund sales person). It wouldn’t surprise me if I’ve spent 10,000 hours learning everything I know today and building complex and comprehensive spreadsheets. If you’re just starting out, I recommend you talk to someone whose job is financial planning.

This is excellent video! A family member and I are working through getting our POA and will updated/ created for myself. We are also looking at working with corporate trustee but first call with them was ovewhelming. this helped break down our options. Thank you!

I like your content. Subscribed.

(paid off house + car, credit cards = 0) + (5500 - SS$)*20.

Thank you. This was 👍.

Our FP works at IA and he ASKED us if we thonk it is a good idea to take CPP at 60 for my spouse. He never asked these questions and put it on us to figure out. His mgmt fees are .85% and we have over 1.5. We are now reconsidering changing to another FB possibly at RBC.

I'm sorry, you're not going to evoke sympathy from me for those wealthy enough to have investments that garner capital gains of over $250,000.