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RRSP Rules

Posted on December 25, 2015April 13, 2016 by Jordan Rumanek

RRSP Rules

1. You can contribute to your RRSPs until the end of the year you turn 71 as long as you have earned income. After 71 you have 3 options:

Take the cash and pay taxes
Buy a life annuity (Money goes to life insurance)
Move RRSP to Registered Retired Income Fund (RRIF) but you have a minimum annual withdraw and this money is taxable

Best to choose: Tax Free Savings Account (TFSA)

Yet, negative for older Canadian taxpayers

2. You can contribute up to 18% of previous year’s earned income

3. Pay attention to your carry-forward

4. You may deduct the full amount of your RRSP from your income

5. You can invest your RRSP money

Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.

The Boomers

Posted on December 18, 2015April 13, 2016 by Jordan Rumanek

The Boomers

Our population is getting older. The need for health care services is increasing. Canadians need to be realistic about how they plan to spend their retirement and the cost. Think about retirement age and your desired lifestyle in the future. Take action to improve your finances now. The harsh reality is pension plans are failing and more and more people are deciding to work, either by choice or the alternative would be to not have enough money, until long after 65 because people are not saving enough.

Do Not Take Debt Into Retirement

Posted on March 22, 2015April 14, 2016 by Jordan Rumanek

Do Not Take Debt Into Retirement

If you research retirement and debt topics, almost all articles, advice and financial help and planning books say something similar to these three points:

1. Carrying debt on a fixed income is very stressful

2. Carrying debt and spending a fixed income drains cash flow

3. Retirees with outstanding loans are less happy

It is difficult sometimes to think about retirement when you are just figuring out your mortgage or paying into your children’s tuition account every month. However, retirement is around the corner and you not only deserve to be stress free and happy now but you also deserve to feel secure and happy in the future. This may sound easier than it seems but small steps in this direction every year may reap financial benefits in the future and towards retirement. Start by selling items you no longer need or decide to do something you love to make a little bit of extra money every month to decrease your debt. Downsizing your living environment may feel scary but can be most invigorating and beneficial. You just need to do what makes you feel most comfortable but most importantly, do not carry debt into retirement.

Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form, to learn more please visit our YouTube. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.

Line Of Credit: Not a Second Income

Posted on March 22, 2015April 14, 2016 by Jordan Rumanek

Line Of Credit: Not a Second Income

Yes, sometimes a line of credit is useful if you need money immediately and realize that using your credit card is not the best financial decision. Most often, it is never the best decision to use your credit card for big purchases unless you actually have the money in the bank and you are going to pay it off immediately. There are situations when people want to earn points or miles on their credit card and make this decision. However, most other times it is not in anyone’s best interest to carry a balance on a credit card.

First, if you decide to research line of credit options, which you should always do, make sure you shop around to get informed and compare interest rates. Secondly, you will notice that many financial advisors will advise you to cap your line of credit and then make sure you pay off that line of credit before you get a new line of credit. For example, if you need $5,000, do not take the $20,000 the bank may offer you. First of all this is not a bonus for you and it becomes more and more difficult to pay back the line of credit when you start thinking that it would be so great to not only get a new bedroom set for the kids but also a new washer and dryer.

In short, do not take more of a line of credit than you need and make certain you pay back everything before you spend again. This will also help you build financial confidence because you will be paying off your goal quickly.

Tag: Retirement

RRSP Rules

RRSP Rules

The Boomers

The Boomers

Do Not Take Debt Into Retirement

Do Not Take Debt Into Retirement

Line Of Credit: Not a Second Income

Line Of Credit: Not a Second Income

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<img decoding="async" class="alignright size-thumbnail wp-image-6463" src="https://b2015488.smushcdn.com/2015488/wp-content/uploads/2015/12/Tax-Tip-RRSP-Contribution-150x100.jpg?lossy=1&strip=1&webp=1" alt="Tax-Tip-RRSP-Contribution" width="150" height="100" />RRSP Rules

<img loading="lazy" decoding="async" class="alignright size-full wp-image-1353" src="https://b2015488.smushcdn.com/2015488/wp-content/uploads/2012/02/images.jpeg?lossy=1&strip=1&webp=1" alt="Debt" width="111" height="150" />Do Not Take Debt Into Retirement

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RRSP Rules

Do Not Take Debt Into Retirement