Retirement Planning

Currency risk management for Canadian retirement accounts

Canadians are in the full swing of retirement savings plan (RSP) season, and to build on Jeremy and Matt’s January 31, 2017 blog entry related to cross border taxation of RSPs, which you can view here, I will highlight a couple of issues related to foreign exchange risks faced by retirement accounts within a cross border context. Registered retirement savings plans (RRSPs/RSPs) and registered retirement income funds (RRIFs/RIFs) are tax-deferred savings and income vehicles respectively, available to Canadian residents for the purposes of accumulating funds or providing income for retirement. Contributions to an RSP, as well as investment growth on […]

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Planning Opportunities from Cross-Border Taxation of RRSPs

Making the decision to move to the U.S. always invokes planning questions for many Canadians. Taxes, ties with Canada, legal aspects or even investments are important matters when crossing the border, and Registered Retirement Savings Plans (RRSP) are no exception to this rule. In this blog, we will describe some of the main advantages of the tax treatment of an RRSP for Canadians who have moved to the U.S. First, let’s review the importance of contributing to an RRSP. As Canadians, there are two main advantages of contributing. Investors will achieve immediate tax benefits in the year of contribution. The […]

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CPP REFORM FROM A CROSS BORDER PERSPECTIVE

“The future belongs to those who prepare for it today.” – Malcolm X The new Liberal government was clearly inspired by Malcolm X, even if his motivations had nothing to do with increasing the Canada Pension Plan (“CPP”) program; one of Justin Trudeau’s first acts as Prime Minister was to increase CPP as a means to help battle the retirement shortfall of Canadian middle-income earners. Trudeau is hoping to assuage a relatively new problem. After World War II, Canadians were able to rely on their defined pension plans as a source of stable retirement income when they stopped working. Over […]

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Should You Elect to Take Canada Pension Plan Benefits Early?

Canada Pension Plan: To Elect or Not to Elect, That is the Question Whether or not to take Canada Pension Plan (“CPP”) benefits early, before the normal retirement age of 65 years old, has always been a pressing question for Canadians. (Americans face the same pressing question with respect to Social Security pension benefits, which I’ll discuss later in this blog). The youngest age at which a Canadian can elect to take CPP benefits is age 60. However, Canadians who elect to begin receiving CPP benefits early will receive their benefits at a reduced rate for the remainder of their […]

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