Posts by Jason Heath

The article “Turning Investment Income Into Mortgage Payments” was originally published on MoneySense on May 30, 2017. For conservative investors, paying down debt provides a great return Q: I have a mortgage of $120,000 with an interest rate of 2.25% variable. I have some monies which I move around depending on the interest I get with…

The article “Retirement Income Jitters” was originally published on MoneySense on May 23, 2017. Penny has a defined benefit pension, but no equities. Will she have enough income in her golden years? Q: I have a defined benefit pension, real estate (but not income-generating) and cash in GICs, but no equities. At 63, I would like…

The article “Can You Have RRSPs and RRIFs At The Same Time?” was originally published on MoneySense on May 16, 2017. And more importantly, should you? Q: I have various RRSP accounts and am considering converting some (all) to RRIFs. Must I convert all my RRSP accounts to RRIF at the same time for the total…

The article “How To Get The Most Out Of The Capital Gains Exemption” was originally published on MoneySense on May 9, 2017. Not everyone qualifies for the lifetime capital gains exemption, but there are other options Q: I would be interested in understanding the $500,000 lifetime capital gains exemption and what it can be used…

The article “Tax Traps For The Self-Employed” was originally published on MoneySense on May 2, 2017. Know your employment status to avoid a surprise tax bill Q: I worked for my Dad’s lawn care sole proprietorship business as a summer student. His accountant said because I’m a student and wouldn’t be paying any income tax and…

The article “How Business Owners Should Time CPP And OAS” was originally published on MoneySense on April 25th, 2017. Deferring has extra benefits when you own a business Q: I retired recently, having just turned 65 years of age. I have not applied for CPP or OAS as yet because I had sufficient income in 2016…

The article “Everything You Can Do With Your RRSP At 71” was originally published on MoneySense on April 19th, 2017. If you still have time, you should consider withdrawals before 71 Q: I’m about to turn 71 and have RRSPs that have to be dealt with. Should I turn them into RIFs, an annuity, put them…

The article “Maximize Income Splitting – Years Before You Retire” was originally published on MoneySense on April 12, 2017. Plan for your golden years in your 30s. Here are tips. Q: I am 38 years old with $98,000 in my RRSP and I will have a defined benefit pension when I retire from my current employment.…

The article “Maximize OAS With A Corporation” was originally published on MoneySense on April 4, 2017. Gillian is facing major clawbacks. Here are solutions for her predicament Q: My name is Gillian and I have an incorporated company located in the Province of Alberta. I am 67 years old and still working and have an annual…

The article “Paying Tax On Rental Income While Living Outside Canada” was originally published on MoneySense on March 28th, 2017. Ed lives abroad and wonders if he should contribute to an RRSP to lower tax on his Canadian rental income. Q: I am a Canadian citizen and non-resident of Canada. I bought a home last year…

Just because you paid loads into a program doesn’t mean you’ll get EI benefits when you retire. Q: I’m a 75-year old male, working part-time and contributing to EI every 2 weeks; and have been for 10 years. I do have CPP and OAS income. Do I qualify to collect EI benefits for a period of…

The article “Are U.S. Stocks Overvalued?” was originally published on MoneySense on March 22, 2017. Rod is concerned about valuations on the S&P 500. Is a U.S. stock market crash imminent? Q: It is my understanding that the P/E ratio of the S&P 500 is hovering around 28. In the last 135 years, it had only…