Good afternoon! A few numbers Canadians take for granted are getting a second look this week — the retirement withdrawal rate everyone assumes is safe, the savings target everyone guesses at, and the price tag on a political decision playing out at the liquor store. None of them add up quite the way you'd expect.
On The Money Today:
Why the 4% rule may not hold up the way it used to
How much you actually need saved before retirement feels safe
What Ottawa's move on US alcohol could mean for your bill
Let's dive in.
RETIREMENT
Does the 4% rule actually work for Canadian retirees, or is it built for Americans?
The 4% rule tells you how much to pull from savings each year without running out of money — but it was built on U.S. markets, tax rules and Social Security, not CPP, OAS and the way Canadians are taxed on withdrawals. Here's how the math changes once you run it through a Canadian retirement.
IN PARTNERSHIP WITH National Bank
Earn cash back on the shopping you already do
Gas, groceries and online orders aren't getting any cheaper — but the ECHO Cash Back Mastercard can help take some of the sting out. Earn up to 1.5% back* on that everyday spending, with no annual fee and no income minimum to qualify.
Think of it as a small discount on everyday life, month after month, without lifting a finger beyond swiping your card.
*See Terms and Conditions for full details. For conditions and restrictions that apply to cashback rewards and a full list of codes associated with eligible merchants, refer to the cashback accumulation table and the applicable rules.
RETIREMENT
How much do you really need saved before you can retire comfortably?
There's no single number that works for everyone, but advisors say most Canadians underestimate what it actually takes once CPP, OAS, healthcare costs and inflation are factored in against a retirement that could last 25 years or longer. Your income, lifestyle and where you plan to live all shift the target. Figure out your real number instead of guessing.
MUST READ
Carney asks provinces to lift the US alcohol ban — what it could cost you at checkout
Ottawa is offering to lift provincial bans on American alcohol as a concession in ongoing trade talks with Washington — a move meant to ease tensions and avoid steeper tariffs on other Canadian exports. But most Canadians say they've already switched to domestic brands over the past year and have no plans to go back, even if the ban lifts. This is what's actually on the table and what it means for you either way.
MONEY IQ
How many provinces pulled American alcohol from store shelves when the trade dispute started?
ALSO MAKING THE ROUNDS TODAY
NEWS: An Ottawa driver paid $3,900 cash for a parking spot that was never his. Find out how to spot a fake rental before paying
TAXES: Is your province owed the most? Here's where your $1,800 carbon rebate ranks, and how to check what you're still owed
INVESTING: Your RRSP could be loaded with AI stocks. This is the risk hiding in your portfolio
TAXES: John Tavares paid 15% tax on his $15.25M signing bonus. CRA says he owes more than 50%, now a judge decides
MONEY IQ: HOW'D YOU DO?
Answer: C) 10 — every province joined in pulling US alcohol from government-run liquor stores, one of the most unified provincial responses to the trade dispute so far.
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.
