The pros and cons of having a retired dog, why Ottawa should consider abolishing mandatory RRIF withdrawals, and tips for a successful money-related family reunion

Maureen Lloyd, 82, chills in the garden with her Cockapoo Lucy at her new home, Chartwell Waterford Retirement Residence in Oakville, Ontario. on Saturday, September 11, 2021. Before Maureen left her apartment, she made sure that her new home was pet-friendly. Lucy is, it turns out, the only pooch in the residence that makes both she and Maureen popular with the seniors.

Glenn Lowson Photo / The Globe and Mail

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When Maureen Lloyd decided it was time to move from her condo to a retirement home this year, she really only had one condition: the location had to allow her to move in with her Cockapoo Lucy and cat Gulliver.

The 82-year-old looked at three or four possible travel destinations before settling at Chartwell Waterford Retirement Residence in Oakville, Ontario for its pet-friendly policy.

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As Paul Brent writes, there are some compelling reasons to consider a retired dog. (And sorry cat lovers, our cat friends don’t offer the same benefits.)

Many of the positives are obvious: they get you up in good and bad weather, they act as a social lubricant that gets strangers chatting, they improve your mood and ease loneliness, and create an integrated routine of feeding and walking. Some studies have even shown dogs to lower the blood pressure of their owners. Read more about the pros and cons of keeping a dog in retirement here.

Why the elimination of mandatory RRIF withdrawals should be an election topic

The federal government should stop dictating how seniors manage their retirement savings, writes Rob Carrick in a recent Globe article.

Mr. Carrick says mandatory minimum annual withdrawals from registered annuity funds “must go. You no longer have any contact with today’s increasing lifespan and volatility on the stock markets. “

Read more of the argument in this recent article from Globe’s personal finance columnist.

The pros and cons of investing your child or grandchildren in stocks

Recently, a reader asked Globe’s Rob Carrick if he could get his 13-year-old grandson to invest. “How can we set up an account that I would manage and that we agreed upon together?” Asked this grandfather.

Mr Carrick argues that parents and grandparents are doing something good to introduce young people to the stock market. “Young adults entering the workforce now and in the future will have to rely more on stocks to meet their financial goals than previous generations,” he writes. The increase in gig work, declining pension coverage for permanent positions and low interest rates are some of the reasons for this. “

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But is now the best time? Find out what Mr. Carrick has to say in this recent article.

Can this couple change their travel and lifestyle plans to manage their retirement savings?

Linda and Lamont are in their early 60s and are about to retire for a second financial facelift. You have many options, but your goals have changed. When their first facelift appeared in 2016, they wanted to keep their home in Toronto and buy a property in Europe. Now they want to stay in town but keep traveling and know how best to siphon off their hard-earned savings. Your goal for retirement is $ 100,000 after tax.

Amit Goel, Head of Private Client Investment Services and Portfolio Manager at Hillsdale Investment Management Inc., reviewed her situation in Globe’s latest Financial Facelift article.

In case you missed it

Should you give your children a living inheritance?

An old saying goes that it is better to give with a warm hand than with a cold one. In other words: for many parents it has advantages to give money to the next generation during their lifetime or to give a so-called “living inheritance”.

There is an emotional reward in giving adult children money to buy a home, start a business, or simply support their families, experts say, as well as financial rewards in diminishing the value of your future property. The trick is not to give too much away so that it spoils the kids or, worse, restricts your retirement lifestyle.

“Assuming the parents are in a strong financial position to do this, and if there are funds beyond their retirement income, a gift should often be considered,” said Kelly Ho, Partner and Certified Financial Planner at DLD Financial Group Ltd . in Vancouver, says Joel Schlesinger in this article.

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More seniors hit the books in retirement

Lily Eng has lost track of how many courses she has taken since she left teaching two decades ago: 20 or 30. Probably more. She has studied Art History, Women’s Art, Cantonese, Chinese History, Comparative Religious Studies, Critical Thinking, and the list goes on.

“When I was teaching, I always wanted time to sit down and learn different things,” says Ms. Eng, 80, from Vancouver. “I had to wait until I retired.” Canadians are living longer, healthier and, in many cases, retiring earlier than any previous generation.

Some, like Ms. Eng, also prefer to go back to school rather than doing more traditional retirement activities like gardening. And as Dene Moore reports, there is growing evidence that novel learning is one of the most important measures people can take to maintain brain health as they age.

What else we read

Six mistakes that could ruin your future retirement plans

Most people know that the amount you will need in retirement depends on your current income, the type of lifestyle you want in retirement, and how much you have saved.

As a rule of thumb, you can usually expect to spend between 55 and 80 percent of your annual income each year in retirement. The problem is, too many people aren’t saving enough.

This article from looks at the six previous life choices that people make that can affect their future retirement plans.

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How to have a successful family reunion over money

Regardless of how wealthy a family is, educating the next generation about money is considered essential to general financial literacy, preparing for the future, and obtaining a good steward of an inheritance.

For parents who haven’t had early conversations, it’s not too late, according to this Kiplinger article. It offers advice for an effective family reunion that is both productive and perhaps even enjoyable.

Ask sixty-five

Question: I am retired and will be 66 in a few weeks. I took out CPP (Canada Pension Plan) early and deferred my OAS. I am married and my spouse is younger than me. I’ve been paying in installments for a number of years. My husband did not receive an installment. I received my September and December installment notice from the Canada Revenue Agency (CRA). The payments are almost five times the normal amount due to the unusually high capital gains I made in 2020.

In early 2020, before COVID-19 hit, we sold various ETFs to fund the purchase of a retirement home in British Columbia’s Lower Mainland. This is a one-time event. As a result, the CRA set my rates for September and December at $ 14,258 instead of the previous rates of $ 2,880. I checked my total tax payable for 2017, 2018, and 2019 and it was between $ 14,593 and $ 15,316. I assume that my tax liability will fall into this range in 2021. I have already made the September payment to show that I am acting in good faith. Is there a way to appeal to the rating agency to cut rates for December and probably March 2021?

We asked Jamie Golombek, Managing Director, Tax and Estate Planning at CIBC Private Wealth Management, to answer this question:

Great news – you don’t have to follow the CRA’s rate suggestions if, as you say, this was a one-off event and your 2021 tax bill will be much lower. But let me explain:

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In our tax system, there are three options for how much you have to pay per quarter: the option without calculation, the option for the previous year and the option for the current year. You can choose the option that results in the lowest payments.

With the “No charge” option, the CRA calculated your installments for September 2021 and December 2021 on the basis of the installment notification you received on the basis of 25 percent of the net tax owed on your last assessed tax return, which you your return for 2020, which included the sale of various ETFs that triggered capital gains tax. It sounds like you’re better off using the current year method, where you simply base your installments for 2021 on the estimated tax amount for that year and pay a quarter of the estimated amount on each installment date. This option works well for taxpayers whose income in 2021 is well below 2020. Since you’ve already made this high September installment, if you have also paid installments for March 2021 and June 2021 based on your history, you may not need to make an installment in December 2021.

If you make the required installments and these are transferred on time, no interest or penalties will be charged. Be careful when calculating the installments using the current annual method, because if you pay too little, you may incur interest. The installment interest is compounded daily at the prescribed interest rate, which is currently five percent for overdue taxes. The installment clock starts counting from the date your installment is due until payment (or, if not paid, until April 30, 2022). An installment penalty may also apply if the installment interest is more than $ 1,000.

Interested in more stories about retirement? Sixty Five aims to inspire Canadians to live their best lives confidently and safely.

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Do you have a question about money or lifestyle issues for seniors, or do you want to suggest a story idea for the Sixty Five series? Please email us [email protected] and we find experts and answer your questions in future newsletters.

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