Good afternoon! Some of the costliest money decisions don’t feel risky at the time because they feel like the responsible thing to do. Today is about the pause before you commit, which is often the cheapest protection your retirement will ever get.
On The Money Today:
Why moving your TFSA money a few weeks too early could hand the CRA a penalty
What one Brampton senior allegedly needed to check before signing a $425K refinance
How helping an aging parent can drain your retirement before you’ve done the math
Let's dive in.
MANAGING MONEY
Your TFSA limit is likely rising to $7,500, and an early deposit could cost you. How to plan for Jan. 1
After three years stuck at $7,000, your TFSA room looks set to grow in January. That extra space sounds like a simple win, especially if you’re drawing down a RRIF and need somewhere tax-free to park what you don’t spend. But the timing of your next deposit or withdrawal could decide whether the bump helps you or hands the CRA a penalty.
Why it matters:
Once you hit 72, RRIF minimum withdrawals are mandatory and fully taxable whether you need the cash or not, which makes every dollar of TFSA room a place to keep that money growing tax-free. Getting your room right before Jan. 1 is the difference between sheltering that money and paying for the mistake.
IN PARTNERSHIP WITH Homewise
How to put your home equity to work before or during retirement
For many Canadians approaching retirement, the home is the largest asset on the balance sheet and one of the most underused. Whether you’re refinancing to lower monthly payments and free up cash flow, or exploring a reverse mortgage to access home equity without selling, the rate you lock in makes a significant difference to your long-term financial picture.
Homewise compares offers from over 30 lenders to find your best rate in minutes, with no credit check required to get started. From application to close, a dedicated Homewise Advisor supports you every step of the way, for free, with transparent advice that can potentially save you thousands in interest.
MORTGAGES
An Ontario senior allegedly paid $47,000 in refinance fees and still lost their home
When the bank says no, a private refinance can look like the only way to keep the home you spent decades paying off. One Brampton senior allegedly went that route and ended up with $47,000 in fees, a steep jump in interest and, eventually, a forced sale. The broker held a valid licence, which is exactly why the steps you take before signing matter so much.
Why it matters:
Ontario mortgage delinquencies have jumped 52%, and more homeowners are under pressure to refinance on whatever terms they can get. If your home holds most of your net worth, one rushed signature can undo what years of payments built.
MUST READ
Caring for an aging parent could cost your retirement far more than the monthly bills. How to protect your retirement
Driving a parent to appointments and covering a few of their bills can feel like the least you can do. But caregivers are spending thousands a year out of pocket, and nearly half have cut back or stopped saving for their own future. Before you dip into your RRSP to close the gap, there are a few things worth checking that could keep more of your retirement intact.
Why it matters:
Canadians aged 85 and older are among the fastest-growing age groups in the country, so the odds of supporting a parent while you’re planning your own retirement keep climbing. Every dollar pulled from your savings now gives up years of compounding you can’t make back once you stop working.
MONEY IQ
By the end of the year you turn what age must you convert your RRSP into a RRIF or annuity?
ALSO MAKING THE ROUNDS TODAY
If your paycheque runs out before the month does, a new C.D. Howe study finds 60% of Canadian households are spending more than they earn and some are draining savings to cover the gap
A B.C. landlord was ordered to pay $41,380 over a family-use eviction that didn’t hold up, and Ontario’s new 60-day rule could put more landlords on the hook
Several provinces are skipping the Nov. 1 clock change this year, so the time differences you’ve counted on for decades may not hold for your next call, flight or TSX trade
Rogers says the Leafs, Raptors and Blue Jays are worth $25 billion, but what that price tag means for Rogers shareholders depends on what outside investors will actually pay
MONEY IQ: HOW'D YOU DO?
Answer: D. RRSPs must be converted by Dec. 31 of the year you turn 71, with minimum RRIF withdrawals starting the following year.
That's a wrap for today! Before you go, we'd love to know what you thought of today's newsletter. Hit REPLY if you have more to share — we read every reply.
