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

Short and sweet for the year-end

It’s really amazing that another year-end is upon us.    Living just keeps happening and time flies.

Before you know it, we might be at a stage where we’ll need a little financial cushion to help us along.   Hopefully over the years, you’ve been socking away a little savings regularly and that it has grown nicely and steadily for you.

Here again is a reminder to help you along in maximizing your savings and minimizing your taxes along the way.

  • Tax free savings account (TFSA) – building a tax free nest egg  without worrying about future tax liability on the income.
  • Registered Retirement Savings Plan (RRSP) – building a tax deferred retirement nest egg, saving you taxes today and hopefully to pay tax in the future when you income is taxed at a lower rate.
  • Regular withdrawal to invest – getting into the habit of forced savings by withdrawing a set amount each payday.   Investing those savings into tax efficient investments will help maximize your savings.  The compounding effect of regular savings can also have a pleasant surprise over time.
  • Spend less.   Think twice before buying will often result in a bigger nest egg.  Remember, this is often from after tax money so your saving has even more bang for the buck.

It’s often said that having family and friends is the most important things to have during the holidays.   This is so true, and you don’t need to spend a huge sum to have a memorable and wonderful time.

Merry Christmas and Happy New Year!