CPPIB good news update

The Canada Pension Plan Investment Board (CPPIB) manages $392 billion as of 2019/Mar/31 for Canadians. Its mandate is to optimize return on investment for the Canada Pension Plan (CPP), for many generations and with a low risk profile.
It released its latest annual report. The results are impressive.

  • the plan produced a solid 8.9% return this past financial year;
  • the plan’s net assets increased by almost $36 billion;
  • the plan produced an average of 9.2% return for the last 10 years.

Facts on CPP. Did you know that –

  • it was designed to provide just 25% of an average income (not 100%)?
  • CPP contributions are kept entirely separate from government general accounts, and at arms length from possible federal government’s meddling and political interference?
  • the plan’s chief actuary is responsible to review and make projections to ensure there will be no shortfall, for at least over the next 75 years?

If you’ve ever contributed to the Canada Pension Plan, you can view your estimated monthly CPP benefits on retirement. You need to obtain an account with MyService Canada and request a record of your personal CPP contributions over your working live.
MyService Canadahere’s the link

The bottom line on our collective CPP government pension – we need not worry our CPP will run of money any time soon!

CPPIBhere’s its link

TFSA accumulated savings, RRSP and tax tips – 2019 update

Here’s another update of my previous posts on TFSA (Tax Free Savings Account) accumulation.
Since 2009, one can contribute to a TFSA and any investment income earned is tax free.

I’ve dropped the assumed annual return from 4%  to a conservative 3% due to recent decline and uncertainty in the markets.  Even with this reduced drop over the plan’s life-to-date, and assuming the maximum is contributed each year at the beginning of each year, one can still expect to have over $75,000 by the end of 2019! The magic of compounding and accumulation.

Here’s the link – 2019Jan-TFSA savings accumulation

Chartered Professional Accountants of BC (CPABC) is committed to providing resources to assist individuals and businesses prepare their income tax returns, invest in RRSPs, and plan their finances.   As a service to the public, here’s the link to its latest RRSP and other useful tax tips.