Terminology
What is CPP
Canadian Pension Plan
Can you apply for CPP if you have never worked in Canada?
No
As little as 1 contribution will make you eligible although the amount you receive will be pro-rated.
TFSA
Tax Free Savings Account
When should a person start saving for retirement?
The earlier the better, so you can take advantage of compound interest.
What is the difference between term and permanent insurance?
Term insurance is temporary. Permanent lasts your lifetime
What is OAS
Old age security
Can I work and collect CPP?
Yes
* Cavite
Segregated Funds
Large pool of money belonging to many people, invested in stocks, bonds etc. with the goal of increasing the value of the entire pool.
How much money do you need to retire?
Everyone is different with respect to this response. You will need to ensure you can maintain your lifestyle once you retire, using your assets and pension plans.
At what age should a person have life insurance?
It's not a case of age. If you have a dependent child or spouse who relies upon you for their basic living needs, you should have life insurance.
What is marginal rate of tax
The marginal tax rate is the tax rate paid on the next dollar of income.
Can I work and collect OAS.
Yes
RRSP
A tax deferred investment account that is not taxed until the funds are withdrawn.
When are you able to collect CPP benefits?
You are able to collect CPP benefits at age 60. Although it will be at a discounted rate.
Should you purchase mortgage insurance?
Mortgage insurance is not often the best option when purchasing a new home. We would recommend buying life insurance for yourself, which will give you better protection.
Using the Service Canada account, what secure online services are available through the portal
Employment Insurance (EI) Canada Pension Plan (CPP), Canada Pension Plan Disability (CPP-D) Old Age Security (OAS)
What is risk tolerance?
Risk tolerance is the level of risk an investor is willing to take. But being able to accurately gauge your appetite for risk can be tricky. It is advisable to complete a risk tolerance questionnaire
RESP
A tax sheltered investment vehicle sponsored by the government of Canada that is available to caregivers for saving for their children's post-secondary education
Should I invest in a TFSA or RRSP?
This often depends on what the funds are being saved for. If you need the funds for retirement, and you are earning sufficient funds, then an RRSP would make sense.
What rate of return should I expect to earn?
In today's environment earning 5 or 6% could be considered conservative. Earning 8 or 10% would be a good return. Trying to earn more than 10% over the long term, can be difficult and risky.
What is an income stream.
An income stream is a regular series of payments made directly from accumulated superannuation contributions or purchased with a lump sum.
Should I borrow to purchase an RRSP
Borrowing to purchase an RRSP is not for everyone. You should be quite certain that you can afford to pay back the loan in a short period of time.
Non Registered Funds
Any taxable investment accounts that are not registered with the Canadian federal government. These accounts are flexible, may offer tax advantages, and have no contribution limits.
Is my retirement income Taxed?
Yes it is. But there many tax planning strategies you can use to reduce your taxes.
Do all investments make money?
No. Not at all. However if you invest conservatively and with well known companies, your chances of making money are greatly improved