Hi Hon
My initial decision to take the CPP at age 60 and not 65/70 yrs. was due to loss of my Mom, Dad in their 60's and Brother in his 50's ,,and quite a few Friends in their 50's ,,,,,,, they never lived long enough to received their CPP pensions.
I'd love to know how many (percentage) of Canadian actually live to get their pensions.
Each month I just bank roll the money from CPP into TFSA and then laddered the money every 6 months into TFSA GICS. I am not a big risk taker and GICs are safe for me. (Also no taxes here).
***I was able to pay off my mortgage early due to a gift from my brothers estate which cut down on my monthly
expenses. This played a major role in my ability to retire early.
My Bridge Pension is tied into when my OAS starts,,, by the way I hate the title OAS Old Age Security.
Maybe OAP Older Adults Pension....
I am not eligible for OAS yet......soon.
Hmmmmm .... I have a keen desire to help my sons (three of them) when needed $$$$ and learned this year to think things through before giving/lending money,,, retirement is not the time to be doing this often.
I was also BORED after years of work and ended up going back as a casual .
I love it!
Hugs Mel
How Laddering Works
- Your money is initially divided into different portions; each portion is invested in a different term at the corresponding interest rate.
- Once each portion matures, the funds can be used to buy a new GIC (or you can access the money if needed).
Here’s an example:
If you invest $1,000 in a 1-year GIC, earning an interest rate of 5%, all the interest you earn will be subject to tax. You’ll have to claim it as income on your annual tax return.
But if you invest that same $1,000 in a 1-year TFSA GIC, then you will still earn 5% interest and you won’t pay taxes on it.
This keeps a half decent size *slush fund* with no tax for withdrawing out if needed.