During more difficult market times, we often suggest the importance of reducing withdrawals to put less stress on investment portfolios. This can be especially challenging for retirees who do not have the comfort of employment income. Many are also faced with mandatory withdrawals from the Registered Retirement Income Fund (RRIF). We do know that markets are cyclical and expect them to resume their upward climb.
While there has been little reason to embrace the high inflation of today, there may be a silver lining for certain government benefits. Higher inflation means higher Canada Pension Plan (CPP) benefits and the outcome can be especially significant the longer you wait to begin. The standard age to start CPP is 65, but you can begin as early as age 60. In fact, most people start early.1 However, if you have yet to apply for CPP, it may be an opportune time to revisit the timing decision.
Even Albert Einstein, a man with a brain capable of solving the most complex physics equations, stumbled when it came to taxes. “The hardest thing in the world to understand,” he said, “is the income tax.” These days, tax advice is everywhere. TV ‘experts’, newspaper columnists and social media influencers will dispense tips on how to keep more of your money, but these brush strokes, at best, aren’t suitable for everyone and, at worst, perpetrate damaging misconceptions about certain benefits and how to use them.
Reminder that the deadline to contribute to your RRSP for the 2022 tax year is March 1st, 2023!
With the volatile market performance in 2022, some who hold a Registered Education Savings Plan (RESP) have asked: Should I delay RESP withdrawals? Having patience is never a bad thing when it comes to investing through the inevitable cycles and for those with sufficient funds to cover short-term education needs this may be an option. However, there may be reasons not to delay withdrawing RESP funds.
Quintessence Wealth (Q Wealth) is a partnership that is registered as a portfolio manager, exempt market dealer and investment fund manager. The portfolio manager registration allows Q Wealth to provide investment advice to its clients. The exempt market dealer registration allows Q Wealth to engage in trading activity. These services are provided by Q Wealth through registered advising representatives and dealing representatives, respectively.
Q Wealth is a partnership that is owned by its partners, including Precision Wealth Management. As a client of Q Wealth, you may receive services from both Q Wealth and Precision Wealth Management. Note that individuals from Precision Wealth Management will only provide investment advice and trading advice if they are registered as advising representatives and dealing representatives of Q Wealth, and in providing such services, they will be doing so on behalf of Q Wealth only. Precision Wealth Management may however provide wealth management services such as financial planning, estate and retirement planning, insurance, group benefits and others.
Q Wealth Partners is a registered trade name of Quintessence Wealth, a registered Portfolio Manager in Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, Quebec, and Saskatchewan, an Investment Fund Manager in Newfoundland and Labrador, Ontario, and Quebec, and an Exempt Market Dealer in Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Quebec, and Saskatchewan. The Ontario Securities Commission (OSC) is the principal regulator for Quintessence Wealth. Please visit www.qwealth.com for more information.
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