Rhonda's Financial Blog

By Rhonda Sherwood

Posted Under: Retirement Planning
Post Tags: RRSP

RRSP season is now in full swing. If you have yet to make your 2012 contribution, not to worry you still have time. The deadline is set for March 1, 2013. Here are some key things you should know about your RRSPs.

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By Rhonda Sherwood

Posted Under: Tax Planning
Post Tags: RRSP, taxes

The RRSP deadline for the 2012 tax year is approaching quickly. If you have not made your contribution for the year or you want to catch up on your unused contribution room, you may want to consider taking out an RRSP loan. This strategy can help to maximize your contribution and give the funds in your plan more time to grow on a tax-free basis. So does it make sense for you? It may be the right choice if: Read more

By Rhonda Sherwood

Posted Under: Financial Planning
Post Tags: emergency fund, financial planning, power of attorney

The beginning of a new year is the time to make resolutions to get organized. We have all read and heard about the damage Hurricane Sandy has caused. No one knows when the next natural disaster may strike. While you hope it will never happen in your neighborhood, you should see the news reports as a wake-up call to make sure you are well prepared in case a similar event occurs near you. Here are some steps you can take now to keep your home and possessions secure.

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By Rhonda Sherwood

Posted Under: Estate Planning, Financial Planning, Insurance and protection
Post Tags: emergency fund, financial planning, insurance, power of attorney, will

Happy New Year! January 1 is a fresh start and for many of us, that means making some resolutions to take charge of our finances. Have you decided that this will be the year you will get your financial house in order? If so, you will want to address four key components to get your money matters on a firm foundation this year:

• Is your will up to date?
• Do you have a power of attorney?
• Have you set up an emergency fund? Are you contributing to it regularly?
• Have you reviewed your insurance lately?

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By Rhonda Sherwood

Posted Under: Financial Planning
Post Tags: financial planning, RESP, RRSP, TFSA

As the last days of 2012 wind down and we look forward to spending time with friends and family over the holidays, our thoughts may not necessarily be focused on financial planning. The truth is that we should always be vigilant about our money matters, and the end of the year is a good time to take stock of our current financial situation and make a plan to budget for our 2013 contributions to our savings plans: Tax-free Savings Account (TFSA), Registered Retirement Savings Plan (RRSP), and Registered Education Savings Plan (RESP).

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By Rhonda Sherwood

Posted Under: Retirement Planning
Post Tags: Canada Pension Plan, CPP, OAS, Old Age Security, pension, retirement, retirement planning, RRSP

Are you about to make the leap from work mode to retirement living and so going from a guaranteed salary to drawing down your savings and living off of pension income? If so, be prepared, as this tends to be a jarring time for most retirees. No longer are you focused on accumulating your wealth but instead, you will be depleting it. Now is the time when the advice of your financial advisor becomes invaluable, especially during the five years prior to retirement and the first five years of retirement. Small mistakes can have big financial consequences.

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By Rhonda Sherwood

Posted Under: Investing, Tax Planning
Post Tags: retirement planning, retirement savings, RRSP, TFSA

As of January 1, 2013 Canadians will be able to sock away an additional $500.00 per year in their Tax-free Savings Accounts (TFSAs), making the savings vehicle a bit more effective in reducing a family’s overall tax bill and keeping more hard-earned cash in its pocket.

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By Rhonda Sherwood

Posted Under: Estate Planning
Post Tags: estate planning, insurance

No one wants to think about their own demise, much less losing their spouse, but it is a fact of life. We don’t always have time on our side to put our affairs in order in advance.
Sudden death is an awkward topic, to be sure, but one that we should take the time to talk about with our spouse, partner and adult children. Don’t wait to have this important conversation; this is not a case where time is on your side.

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By Rhonda Sherwood

Posted Under: Retirement Planning
Post Tags: Canada Pension Plan, Guaranteed Income Supplement, Old Age Security, retirement savings

Longer lifespans, financial restrictions, CPP pensions are some reasons why more Canadians need to embrace the concept of phased retirement. Learn how you can prepare for it. [read full article]

By Rhonda Sherwood

Posted Under: Retirement Planning
Post Tags: financial planning, health care, inflation, pension, RRSP

Discover the factors you need to consider when deciding whether to leave your money in a defined benefit pension plan or to take a lump sum payment. [read full article]

By Rhonda Sherwood

Posted Under: Retirement Planning
Post Tags: emergency fund, financial planning, insurance, investing, retirement

When it comes to a comfortable retirement, planning is key. Not only do you need a plan, but your plan needs to have different levels of preparedness. It’s not something you can put together in an afternoon and then put on autopilot. It your goal is to live well in retirement, you are going to have to keep a close eye on your finances. Staying on top of things is a way to stay on track and keep worries about money at bay.

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By Rhonda Sherwood

Posted Under: Financial Planning
Post Tags: family, inflation, interest rate, RESP

It seems as though modern families are stretched to the limit. They can no longer rely on company pension plans to fund retirement, and so it becomes even more imperative to make smart choice about money when they are raising their families. Saving for their children’s education and retirement at the same time may be more challenging in the years to come.

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By Rhonda Sherwood

Posted Under: Retirement Planning
Post Tags: CPP, investing, pension, retirement, RRSP

If you have been reading the news lately, you may have heard that seniors are in for a rough time in retirement. According to the media, employer-sponsored pension plans are crumbling and older Canadians won’t be able to count on receiving much, if anything, from the underfunded Canada Pension Plan (even though they have been making mandatory contributions during their working life). Similar stories point out that Canadians have failed to adequately save for retirement, and the majority of older people will be faced with living in poverty in what should be their Golden Years. Don’t believe everything you hear and read; senior couples are currently the wealthiest family category in the nation and that isn’t likely to change soon.

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By Rhonda Sherwood

Posted Under: Retirement Planning
Post Tags: CPP, health care, pension, retirement

Under the federal government’s new rules, you can decide to start collecting CPP benefits as early as age 60. One of the factors to consider as you get closer to the age when you can receive your pension is your overall health. You may have to leave the paid workforce earlier than you would have preferred if your health makes it impossible for you to hold down a job. Before making any decisions about taking CPP early, you need to consider your options carefully.

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By Rhonda Sherwood

Posted Under: Adult kids and your money, Estate Planning
Post Tags: estate planning, family, financial planning, RESP, retirement, savings

Traditionally, an inheritance was a gift transferred to a child or grandchild after a person died. You don’t have to wait until you have passed to share some of your estate with your loved ones, though, and even if you ultimately decide not to give this type of gift during your lifetime, you shouldn’t keep the contents of your will a secret until after you pass on.

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