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For once they agreed. Federal and provincial finance ministers agreed on creating a system that would encourage self employed and employees of small firms to save for retirement. The minister had different views on how to ensure Canadian have enough saved for retirement but they did agree that they want to make sure that employers are not put under a burden by the new plan. The Pooled Registered Pension Plan, called PRPP’s for short will be used to increase retirement savings for individuals with out a corporate pension fund. Employer contribution will be determined by the provincial registration. PRPP will enlist insurance companies and financial institutions to administer then new saving plan network which will make it easier and cheaper for small companies to offer employee sponsored pension plans to their workers on a voluntary basis. Self employed would be able to contribute to the pooled pension plan under the government proposal. The terms for PRPP’s will be worked out next June, where they will also be working on trying to a consensus on changes to the Canada Pension Plan. So far, there have been no estimates of how many people would join the plan and how much it would cost them per year and the expected savings that the plan would generate.
Self Employed Pension Plan
21-Dec-2010 | kate | Budgeting Canadian Investing Economy Estate Planning Government New Announcements
This blog has been prepared by the Retire First Team. The blog expresses the opinions of the writers and not necessarily those of Retire First Ltd. Statistic and factual data are from sources Retire First believes to be reliable but their accuracy can not be guaranteed. This blog is furnished on the basis and understanding that Retire First is under no liability whatsoever in respect thereof. It is for informational purposes only and is not be construed as an offer or solicitation for the sale or purchase of securities. Retire First Ltd. And its officers, directors, employees and their family may from time to time invest in the securities discussed in this blog. This blog is intended for individuals where Retire First Ltd is registered as a dealer in securities.
Retire First is a member of the Canadian Investors Protection Fund.
Commission, trailing commissions, management fees and expense all may be associated with mutual funds. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. A recommendation of any of the mentioned investments would only be made after a personal review of individual portfolio. Third Party research has been used in formulating the writer's opinions.
Rates Expected to Increase Tomorrow Morning
19-Jul-2010 | kate | Banks Bonds Budgeting Currency Economics Economy Government Market Outlook Market Strategies
The Bank of Canada is expected to raise interest rates by a quarter of a percentage point tomorrow morning, bringing the overnight rate to .75%. Increases in the overnight lending rate usually leads to an increase in the line of credit rate, variable mortgages and demand loans.
Things are looking good for Canada, as the labor market has recovered most of the jobs lost during the down turn and demand is starting to return. Most economists are suggesting that the private sector will lead economic growth after federal and provincial stimulus begins to run out.
Tuesday’s announcement will also include highlights from Thursday Comprehensive economic forecast, which is expected to state a slower economic recovery than previously thought, due to dwindling demand from China and economic troubles in Europe, as well as a cooling housing market and a near par loonie.
As stated in his April 22 address, Carney has been carefully weighing the domestic and global economic developments before making his decision, and has warned that well the Canadian financial system is “function well, it is more vulnerable than six months ago, because of potential fallouts from Europe and severe tensions in global markets.”
Even after the expected rate hike tomorrow, economist predicts that we will see several more in the future. Canadian inflation is closing the gap towards the group of seven 2% inflation target and is predicted to round out the year with rates around 1.25%.
This blog has been prepared by the Retire First Team. The blog expresses the opinions of the writers and not necessarily those of Retire First Ltd. Statistic and factual data are from sources Retire First believes to be reliable but their accuracy can not be guaranteed. This blog is furnished on the basis and understanding that Retire First is under no liability whatsoever in respect thereof. It is for informational purposes only and is not be construed as an offer or solicitation for the sale or purchase of securities. Retire First Ltd. And its officers, directors, employees and their family may from time to time invest in the securities discussed in this blog. This blog is intended for individuals where Retire First Ltd is registered as a dealer in securities.
Retire First is a member of the Canadian Investors Protection Fund.
Commission, trailing commissions, management fees and expense all may be associated with mutual funds. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. A recommendation of any of the mentioned investments would only be made after a personal review of individual portfolio. Third Party research has been used in formulating the writer's opinions.
Trouble Ahead
08-Feb-2010 | kate | Commodities International Investing Market Outlook Market Strategies Market Theories Stocks
In 1996 copper was being hoarder which led to a price collapse, and predicts that we are going to see this on a much larger scale once again. President of Resolved Inc, a metal trader, believes that a catastrophe is on the way and that copper prices are set to dissolve on rising stockpiles and the unwinding of positions by speculators.
So why does David Threlkeld believe copper prices are going to fall? David says that part of the problem is because of tricky word usage by analyst, so let’s start here. Demand simply means buying a product while consumption means that the demanded product is being used and is no longer available for use. So instead of looking at market demand, which can meet stockpiling of metal we should be looking at world usage.
In two thirds of the world consumption of copper went down by 20%, but consumption in 1/3 of the world which is China went up 10% as well as copper production in China also went up 10% There is also a theory that so the theory that China is reliant outside copper is incorrect. The country produces 4 million tonnes of copper and uses roughly 5 million tonnes, meaning that they import roughly 1 million tonnes a year.
Anything in excess of that is unsold inventory which remains available to the market and creates a stockpile of inventory which will eventually lead to the market is going to collapsing since the demand will slow down. Unsold inventory is usually around 5 million tonnes, this year it is going to be a couple extra tonnes a year, meaning that supply is outpacing consumption. We will find that we need consumption to start outpacing supply so that we can remove the excess capacity on the market in order to stop a collapse in the price of copper, something that Threlkeld sees as unlike and rather is preparing for a slowdown in copper price for the next few years.
This blog has been prepared by the Retire First Team. The blog expresses the opinions of the writers and not necessarily those of Retire First Ltd. Statistic and factual data are from sources Retire First believes to be reliable but their accuracy can not be guaranteed. This blog is furnished on the basis and understanding that Retire First is under no liability whatsoever in respect thereof. It is for informational purposes only and is not be construed as an offer or solicitation for the sale or purchase of securities. Retire First Ltd. And its officers, directors, employees and their family may from time to time invest in the securities discussed in this blog. This blog is intended for individuals where Retire First Ltd is registered as a dealer in securities.
Retire First is a member of the Canadian Investors Protection Fund.
Commission, trailing commissions, management fees and expense all may be associated with mutual funds. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. A recommendation of any of the mentioned investments would only be made after a personal review of individual portfolio. Third Party research has been used in formulating the writer's opinions.
RRSP Season has Arrived!
04-Feb-2010 | kate | Canadian Investing Retirement Planning The Wise Investor
RRSP season has arrived and the contribution deadline of March 1st, is heading our way. And as usual, the deadline is a reminder to Canadians of the pressing need to start saving for their retirement years.
Right now is the perfect time for investors to start reviewing their retirement plans to ensure that their investments are on the right track for today’s market conditions. A recent survey of Canadian investors found that 91% have retirement fears, with 30% of respondents fearing that they haven’t saved enough.
So here are some retirement theories that should be considered:
1.) My Canada Pension Plan/Quebec Pension Plan and old age security payments from the government will be enough.
Government pensions are a good start but will not necessarily be enough to live on, depending on the kind of retirement lifestyle you want. It is also important to remember that government pensions are fully taxable and that for those accustomed to living with higher incomes, the payouts will replace only a small portion of what people were earning while working.
2) Company Pension.
Having a company plan will also not guarantee that you will have enough income for your retirement, you may need to save additional money on your own.
3) $1-million rule
The $1-million figure is based on the assumption that you should have saved 20 to 25 times the annual income you will need once you are retired. So as you can see, this rule would vary from life style to life style. As well this number would change with inflation and tax rates. So you may need to save less or even more depending on your personal situation.
4) 70% Rule
Instead of fixating on your pre-retirement income, focus on what your expenses will be when you retire.
5) “I will be fine if I only withdraw 4 or 5 per cent a year from my savings once I retire.”
In some cases you have no choice in how much you withdraw. For instance, if you have a Registered Retirement Income Fund (RRIF), your withdrawals are based on your age. Many individuals may find that they spend even more money in the first few years due to traveling etc. Later in life you might find that certain expenses will go up, like health care.
This blog has been prepared by the Retire First Team. The blog expresses the opinions of the writers and not necessarily those of Retire First Ltd. Statistic and factual data are from sources Retire First believes to be reliable but their accuracy can not be guaranteed. This blog is furnished on the basis and understanding that Retire First is under no liability whatsoever in respect thereof. It is for informational purposes only and is not be construed as an offer or solicitation for the sale or purchase of securities. Retire First Ltd. And its officers, directors, employees and their family may from time to time invest in the securities discussed in this blog. This blog is intended for individuals where Retire First Ltd is registered as a dealer in securities.
Retire First is a member of the Canadian Investors Protection Fund.
Commission, trailing commissions, management fees and expense all may be associated with mutual funds. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. A recommendation of any of the mentioned investments would only be made after a personal review of individual portfolio. Third Party research has been used in formulating the writer's opinions.
Stormy Sea’s Ahead
01-Feb-2010 | kate | Canadian Investing Economy Market Outlook The Wise Investor
Technical Analysis shows that for the next few months the market might be headed for a downward trend, meaning it’s time to get your account ready for a slow couple months. The news is following a strong US dollar rally in the past week, which resulted in the US Dollar breaking through the long term average confirming a market sea change is ahead.
The current market conditions are being characterized by mutual funds, pensions and even hedge funds to swing into selling mode, quickly neutralizing all the buying that occurred in the end of last week.
While no one can say for sure why we are experiencing this we do know that sovereign risk is raising; Greece has defaulted and Spain is quickly following and Japan is even on the verge of a downgrade. We are also facing the bottoming of the US economy and while we have seen some solid corporate profits, investors are now seeing the possibility of rising interest rates in the near future. This alone can help explain why copper and oil having been performing well, while gold appears to be breaking down.
So while today appeared to be another good day on the market, we closed up 218 points, that doesn’t break a trend. The key to coming out of this trend is the US dollar upward trend being reversed and if not, we are in for a rocky market.
This blog has been prepared by the Retire First Team. The blog expresses the opinions of the writers and not necessarily those of Retire First Ltd. Statistic and factual data are from sources Retire First believes to be reliable but their accuracy can not be guaranteed. This blog is furnished on the basis and understanding that Retire First is under no liability whatsoever in respect thereof. It is for informational purposes only and is not be construed as an offer or solicitation for the sale or purchase of securities. Retire First Ltd. And its officers, directors, employees and their family may from time to time invest in the securities discussed in this blog. This blog is intended for individuals where Retire First Ltd is registered as a dealer in securities.
Retire First is a member of the Canadian Investors Protection Fund.
Commission, trailing commissions, management fees and expense all may be associated with mutual funds. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. A recommendation of any of the mentioned investments would only be made after a personal review of individual portfolio. Third Party research has been used in formulating the writer's opinions.
