TechnologyHow Canadian Retirees Can Earn an Extra $5K in Passive Income

© Provided by The Motley Fool, Inc Senior Couple Walking With Pet Bulldog In Countryside

Canadian retirees are searching for ways to get more mileage out of their savings without having to hand over a portion of their earnings to the tax authorities.

Retirement income can arrive through a number of channels, including company pensions, CPP, OAS, RRSP withdrawals, RRIFs, and taxable investment accounts, as well as from TFSAs. Managing the amounts from the various sources is important, as the government takes the total net world income into account when determining potential OAS clawbacks.

The arrival of the TFSA has certainly helped. Since its inception, the contribution room has grown to $63,500 per person. That means a couple could place $127,000 into their TFSAs and collect tax-free interest, dividends, and capital gains on the funds. The income generated inside the TFSA is not counted toward the clawback calculation, which is helpful for retirees who might otherwise find themselves facing a pension recovery tax. For the 2019 tax year, the minimum income threshold is $77,580.

When cashing out your RRSP at 65 makes perfect sense

Many Canadians 'would be well advised to cash out any RRSPs around age 65,' according to one Ottawa-based statistician.

how much and for how long you contributed to the CPP your average earnings throughout your working life monthly CPP retirement pension payments by logging into your My Service Canada Account .

Find Passive Income in Canada | Visit Kijiji Classifieds to buy, sell, or trade almost anything! Are you wanting extra passive income . If you’re curious to know my personal Forex trading solution that has already helped over 90,000 people earn a passive income that takes up little of your time, please

One way to get decent tax-free income is to own quality dividend stocks inside a TFSA. Let’s take a look at three companies that might be interesting picks today.

TD Bank (TSX:TD)(NYSE:TD)

TD generated net profits of about $1 billion per month in fiscal 2018. That’s a pretty good business, and while some headwinds are facing the broader banking sector, TD should continue to deliver solid results.

The bank gets the majority of it revenue from steady retail banking operations in Canada and the United States. The American business provides more than 30% of the net income, so there is a hedge in place to help the bank ride out any potential trouble in Canada.

TD has raised the dividend by a compound annual rate of better than 11% over the past 20 years. The current payout provides a yield of 4%.

How to Make $500 of Passive Income a Month in Your TFSA

Jumpstart your tax-free passive income with Brookfield Infrastructure Partners L.P. (TSX:BIP.UN)(NYSE:BIP) and other quality stocks and watch it grow!

I share my monthly passive income after LESS than one year on YouTube. My 7 Passive Income Ideas and how you can do it too. ► My Stock Portfolio

The Government of Canada is taking immediate, significant and decisive action to help Canadians facing hardship as a result of the COVID-19 outbreak. On March 18, 2020, the Prime Minister announced a new set of economic measures to help stabilize the economy during this challenging

TC Energy (TSX:TRP)(NYSE:TRP)

TC Energy is the new name for TransCanada. The company decided to make the change to better reflect the nature of its business. TC Energy has a strong presence in Canada, but it also owns pipelines, storage, and power generation assets in the United States and Mexico.

The company’s $30 billion development portfolio should ensure solid cash flow growth in the coming years. As a result, management is targeting annual dividend hikes of 8-10% through 2021.

Investors who buy the stock today can pick up a yield of 4.6%.

Telus (TSX:T)(NYSE:TU)

Telus is a major player in the Canadian communications sector with wireless and wireline networks delivering mobile, TV, and internet services to customers across the country.

Telus also has a growing division in the health sector. Telus Health is a leading provider of digital solutions to doctors, hospitals, and insurance companies. The health industry is ripe for disruption and Telus is at the forefront of the changes. The Health division could potentially become a major contributor to the company’s revenue and cash flow.

How to Make $500 in Passive Income Every Month

Here’s how you can start making safe, passive income from Pembina Pipeline Corp. (TSX:PPL)(NYSE:PBA).

This is one of the easiest ways to create passive income . Also, I show you all the tools you need to be able I hope you enjoy my video on How To Make PASSIVE INCOME Online With No Money. This video is for educational purposes only. There is no guarantee that you will earn any money using the

In Canada , income tax is administered by the Canada Revenue Agency (CRA). You are responsible for determining your income tax status and paying the correct amount of tax. You can get help through the UBC Tax Assistance Clinic held in the UBC Life Building in late February and early March.

Telus raises its dividend every year, and that trend should continue. The existing payout provides a yield of 4.6%.

The bottom line

TD, TC Energy, and Telus are all reliable dividend-growth names to consider for your TFSA portfolio. An equal investment in each of the three stocks would generate an average yield of 4.4%.,

On a $127,000 portfolio, this would provide annual tax-free income of better than $5,500.

More reading

• TFSA Investors: How to Turn Your $6,000 Contribution Into $50,000 or More
• 3 Stocks to Own During Slow Summer Months
• Investor Alert: Here’s What to Watch for When Canadian Banks Report This Week
• Become a Millennial Millionaire With These 3 Stocks
• Ranking Canada’s Pipelines: Which 1 Should You Buy Today?

Fool contributor Andrew Walker has no position in any stock mentioned.