Good morning.<\/b> And happy first week of fall. This week, we are getting into a hot topic for many retirees: RRIF withdrawals. Let\u2019s tuck in. <\/p>\n
RRIF season <\/p>\n
This year has been a roller coaster for older Canadians\u2019 retirement portfolios. A stock market battered in early April, largely because of the trade war, kicked things off. It was so rough that the Liberals promised to step in to help. <\/p>\n
Back in April, the government unveiled plans for a one-year, 25-per-cent cut in mandatory registered retirement income fund withdrawals and a 5-per-cent bump to Guaranteed Income Supplement (GIS) payments. The idea, the Liberals said during the campaign, was to give Canadians some \u201cflexibility to avoid liquidating their retirement savings in a down market.\u201d<\/p>\n
Markets have since bounced back, but questions remain: Will the government actually follow through? And even if they do, do we still need these measures?<\/p>\n
I spoke with Stephanie McLean, secretary of state for seniors, last month. She said the government still plans to move forward<\/a> on the policies, though it\u2019s unclear exactly when.<\/p>\n \u201cWe want to make sure that these promises that were made, that they come at the right time,\u201d Ms. McLean said. \u201cMarkets have been stabilizing, but we\u2019ve seen very recently that stabilization can be thrown away very quickly.\u201d<\/p>\n Financial planners suggest that seniors who haven\u2019t yet made an RRIF withdrawal, and don\u2019t need the money right away, might want to hold off until the government confirms when these changes take effect.<\/p>\n We want to hear from you. How have the government\u2019s plans for RRIF withdrawals affected your retirement and financial planning? Drop me a line at mraman@globeandmail.com<\/a> and let me know.<\/p>\n Subscribe to the Retire Rich newsletter<\/p>\n Are you reading this newsletter on the web or did someone forward the e-mail version to you? If so, you can sign up for Retire Rich here<\/a>.The Calculator <\/p>\n Toronto-area housing is under pressure.<\/b><\/a> <\/b>Distressed sales are rising, and non-performing mortgages in the GTA have jumped sevenfold in a few years, hitting 0.42 per cent.<\/p>\n The Retirement Receipt <\/p>\n Can Warren, 62, retire in two years while helping his youngest through university?<\/b><\/a><\/p>\n The numbers: <\/b>Warren earns about $210,000 a year as an executive and contributes to a defined-contribution pension plan. His wife, Sheena, 59, retired from the health care sector. They own a mortgage-free home in Quebec and about $1.4-million in registered investments. Their after-tax income is about $11,600 a month. They also cover about $12,000 a year in university costs for their youngest child.<\/p>\n The situation: <\/b>Warren hopes to retire in June, 2027, so they can travel while supporting their child through school until 2028, without risking their lifestyle.<\/p>\n Key steps, from a financial planner: <\/b>They\u2019re on track to retire as planned with a projected estate of $1.8-million in today\u2019s dollars. Warren should first use his $53,000 in unused RRSP room, then the couple should top up their TFSAs. Warren can boost guaranteed income by deferring Quebec Pension Plan benefits to age 70. Keeping three years of cash needs in readily accessible funds will help manage market swings.<\/p>\n Best of the Rest <\/p>\n \ud83d\udcbc Young job seekers, The Globe wants to hear from you.<\/b><\/a> <\/b>Canada\u2019s youth job market is the roughest it\u2019s been in years, squeezed by AI, a shaky economy and U.S. trade tensions. If you\u2019re 15 to 24 or a new grad struggling to get hired, share your story with The Globe\u2019s personal finance team for a chance to get tailored career advice from experts.<\/p>\n \ud83d\udcb8 <\/b>Family gifts are reshaping Canada\u2019s housing market.<\/b><\/a> Nearly a third of first-time buyers now get an average of $115,000 from relatives to help with a down payment. That is speeding up homeownership for some, while leaving others \u2014 who rely on things such as extra jobs and RRSP withdrawals \u2014 struggling to keep pace and take on bigger mortgages.<\/p>\n \ud83d\udcdd Add a Letter of Wishes to your will<\/b>.<\/a> A will handles the legal details of your estate, but a Letter of Wishes lets your voice, and reasoning, shine through. This informal document can guide executors, trustees and loved ones on everything from funeral plans to who gets sentimental items, explain unequal inheritances, and offer private messages.<\/p>\n