Search found 285 matches

by gaspr
07 Feb 2024 18:29
Forum: Retirement, Pensions and Peace of Mind
Topic: Delaying CPP till 70 but working part time - mistake?
Replies: 5
Views: 684

Re: Delaying CPP till 70 but working part time - mistake?

Found this from an article in the Globe & Mail

If I am still working at age 65, should I opt out of paying further CPP contributions?

The answer depends on whether you’re currently collecting your CPP benefits. If you’re not, you don’t have a choice to opt out – you must continue contributing. The opt-out provision is only available for those already collecting their CPP benefits. If you’re already collecting the CPP, you can be eligible for a post-retirement benefit (PRB). The maximum one can receive as a PRB is 1/40th, or 2.5 per cent of the CPP maximum. So, potentially $3,867.50 of contributions for 2024, to get another $40.25 a month, or $483 a year, indexed at the same CPP rate of increase, for life.
by gaspr
26 Jan 2024 22:42
Forum: Taxing Situations
Topic: Wealthsimple Tax calculator
Replies: 8
Views: 1316

Re: Wealthsimple Tax calculator

The 2023 version is now up
by gaspr
12 Jan 2024 13:23
Forum: Retirement, Pensions and Peace of Mind
Topic: Variable Percentage Withdrawal (VPW) for Canadians
Replies: 791
Views: 109754

Re: Variable Percentage Withdrawal (VPW) for Canadians

Moshe Milevsky's thoughts on this...

Milevsky argues that this approach will actually do no better than, say, a 60/40 stock-bond portfolio and may actually do worse. The reason is that, by depleting the cash portion, you are actually increasing the risk (and volatility) of the total portfolio instead of maintaining the risk/volatility at a steady, moderate level. We all know that CAGR is negatively impacted by volatility, so this makes sense. In the unfortunate event that a poor stock market is experienced for several years, you could end up with a 100% stock portfolio - much too risky for most retirees.
by gaspr
30 Dec 2023 15:45
Forum: Retirement, Pensions and Peace of Mind
Topic: A Simple Retirement Using Variable Percentage Withdrawals (VPW Forward Test)
Replies: 608
Views: 130509

Re: A Simple Retirement Using Variable Percentage Withdrawals (VPW Forward Test)

I just love these inflation-adjusted reports and charts. The only proper way to compare values over time.

Thanks again for doing this longinvest!!
by gaspr
04 Apr 2023 18:06
Forum: Financial News, Policy and Economics
Topic: Clippings 2023
Replies: 343
Views: 32755

Re: Clippings 2023

I thought this article by Aaron Hector was well done. He's a good follow on twitter. "Are You Planning For You or Your Estate"

https://www.iafp.ca/planners/articles/2 ... ur-estate/
by gaspr
28 Feb 2023 05:42
Forum: Retirement, Pensions and Peace of Mind
Topic: Life insurance to offset estate taxes
Replies: 45
Views: 2208

Re: Life insurance to offset estate taxes

How would a joint life policy payable to a child be treated in the case of a separation or divorce of the beneficiary? Would it's value be part of the "division of assets", or could it be excluded?
by gaspr
18 Jan 2023 23:44
Forum: Taxing Situations
Topic: Wealthsimple Tax calculator
Replies: 8
Views: 1316

Re: Wealthsimple Tax calculator

Just noticed that the 2022 version of Wealthsimple Tax is now up and running.
by gaspr
05 Jan 2023 21:40
Forum: Taxing Situations
Topic: Estimated [and now Final] Re-invested Capital Gain Distributions 2022
Replies: 15
Views: 1353

Re: Estimated [and now Final] Re-invested Capital Gain Distributions 2022

optionable68 wrote: 05 Jan 2023 18:10
AltaRed wrote: 05 Jan 2023 16:36 Is that possibly a cash distribution as compared to a re-invested capital distribution?

These specific threads have been contaminated in the past mixing normal cash distributions with the phantom capital re-invested distributions.
Yes, that is likely.

Odd that I can receive a cash distribution while Blackrock hasn't yet published the cash distribution amounts.
The distributions are on the website. For XSP cash distribution .32553/share. No re-invested or phantom distribution,
by gaspr
04 Jan 2023 14:32
Forum: Taxing Situations
Topic: Estimated [and now Final] Re-invested Capital Gain Distributions 2022
Replies: 15
Views: 1353

Re: Estimated [and now Final] Re-invested Capital Gain Distributions 2022

For the Vanguard and IShares etfs that I follow, the estimates were really quite close to actual amounts.
by gaspr
06 Dec 2022 16:31
Forum: Taxing Situations
Topic: Estimated [and now Final] Re-invested Capital Gain Distributions 2022
Replies: 15
Views: 1353

Re: Estimated [and now Final] Re-invested Capital Gain Distributions 2022

AltaRed wrote: 06 Dec 2022 16:04 My experience is 'final' can vary quite a bit from current 'estimated' so while there might be some value to the estimated values, e.g. an opportunity to unload before a large distribution hits, it is by no means a guarantee.
Agreed. Still, for a few, there will be some nasty tax bills to go along with negative returns...
by gaspr
06 Dec 2022 14:17
Forum: Taxing Situations
Topic: Estimated [and now Final] Re-invested Capital Gain Distributions 2022
Replies: 15
Views: 1353

Estimated [and now Final] Re-invested Capital Gain Distributions 2022

For those of you looking for links to the year's guesstimate of cap gains distribution, here are links to Vanguard https://www.newswire.ca/news-releases/vanguard-investments-canada-announces-estimated-2022-annual-capital-gains-distributions-for-the-vanguard-etfs-r--819422863.html and I-shares https://www.blackrock.com/ca/investors/en/literature/press-release/pr-2022-11-23-en.pdf and here is BMO https://newsroom.bmo.com/2022-11-18-BMO-Global-Asset-Management-Announces-Estimated-Annual-Reinvested-Distributions-for-BMO-Exchange-Traded-Funds-and-ETF-Series here is RBC https://www.rbcgam.com/en/ca/about-us/news-release/rbc-global-asset-management-inc-announces-estimated-annual-reinvested-capital-gains-distributions-for-rbc-etfs-2022 Feel free to...
by gaspr
04 Dec 2022 17:36
Forum: Retirement, Pensions and Peace of Mind
Topic: Pension splitting
Replies: 7
Views: 839

Re: Pension splitting

Threebagsfull wrote: 03 Dec 2022 09:01 Happy Day everyone
I turn 65 this month and have opted to take CPP and OAS. My Wife, in January, at 63, will start CPP.
I have read a little and have a notion of what pension splitting is and does, but am still confused, about when and if it is a good idea.
Neither of us has a pension.
Our goal is to stay in the lowest tax bracket in Ontario
My wife will convert RRSP to riff and withdraw minimum in 2023
Looking for a layman's explanation of when and if to use the pension splitting
Thanks in advance
It should be noted that CPP and OAS are not eligible for pension income splitting. RRIF income is eligible if the transferring spouse is age 65 or older by Dec 31, 2022.
by gaspr
30 Nov 2022 19:53
Forum: Retirement, Pensions and Peace of Mind
Topic: RRSP withdrawals before OAS - tax bracket boundaries
Replies: 91
Views: 6027

Re: RRSP withdrawals before OAS - tax bracket boundaries

If you are 65 by the 31st of Dec 2022, you can claim the pension credit and also the age amount credit.
by gaspr
30 Nov 2022 17:37
Forum: Retirement, Pensions and Peace of Mind
Topic: Early Retirement - Optimal time to start RSP/LIF/RRIF withdrawals
Replies: 66
Views: 9219

Re: Early Retirement - Optimal time to start RSP/LIF/RRIF withdrawals

I normally do the same as you, line #43500 Total payable divided by line 26000 Taxable income to get my ETR.

I see that taxtips.ca makes adjustments to income by adding non taxable cap gains but they don't gross up the dividend amount. That kind of makes sense as the dividend tax credit accounts for the gross up. Result is a lower ETR using their method.
by gaspr
30 Nov 2022 12:32
Forum: Retirement, Pensions and Peace of Mind
Topic: Early Retirement - Optimal time to start RSP/LIF/RRIF withdrawals
Replies: 66
Views: 9219

Re: Early Retirement - Optimal time to start RSP/LIF/RRIF withdrawals

When calculating your effective tax rate (ETR), do you use the whole amount of capital gains or the taxable amount? This choice can of course make quite a difference in ETR in some cases.
by gaspr
04 Oct 2022 18:13
Forum: Taxing Situations
Topic: CRA MyAccount
Replies: 137
Views: 16443

Re: CRA MyAccount

pwm2 wrote: 04 Oct 2022 17:30 I think only about 75% of them are at work at any given time. The rest are on mat leave, long term disability, sick day, vacation, stress leave etc. Combine that with the fact that they are mostly all diversity hires, and this is what you get. The link between CRA and Service Canada has been broken for years. They can't seem to fix it.
The Service Canada link was working for me a few minutes ago...first time in a long time.
by gaspr
30 Apr 2022 13:38
Forum: Retirement, Pensions and Peace of Mind
Topic: CPP Deferral debate - Fred Vettese article discussion
Replies: 743
Views: 82484

Re: CPP Deferral debate - Fred Vettese article discussion

I can't find the source of the quote either but I remember writing it down at the time, many years ago. I think he was referring to those who took Social Security at the earliest possible age, spend down all their savings, and then find themselves living past their "expected" or "breakeven" lifespan with only the smaller SS to live on. My guess is that this scenario describes a large segment of today's retirees...
by gaspr
30 Apr 2022 10:50
Forum: Retirement, Pensions and Peace of Mind
Topic: CPP Deferral debate - Fred Vettese article discussion
Replies: 743
Views: 82484

Re: CPP Deferral debate - Fred Vettese article discussion

I have always liked Jonathon Clements' retort to these kind of breakeven arguments... He asks, "But what if you fail to die in a timely manner?"
by gaspr
17 Nov 2021 11:08
Forum: Financial Planning and Building Portfolios
Topic: Reboot Your Portfolio by Dan Bortolotti
Replies: 45
Views: 21832

Re: Reboot Your Portfolio by Dan Bortolotti

ockham wrote: 17 Nov 2021 10:41

From my POV, I was mildly surprised (but pleased) at the text's preference for simplicity over frugality. It quite emphatically endorses all-in-one ETF solutions over 3-4 fund solutions because simpler even though likely more costly; it quite emphatically endorses Canadian domiciled ETFs over US domiciled, again because simpler even though likely more costly. I found this emphasis welcome.
All-in-one ETFs eliminate the small but real temptation to "time the market" when rebalancing. Perhaps that is why Dan "emphatically endorses" them.
by gaspr
14 Nov 2021 10:57
Forum: Financial News, Policy and Economics
Topic: Financial books for an intelligent reader
Replies: 59
Views: 47583

Re: Financial books for an intelligent reader

I think I will order Dan's book as well. I feel like I owe him at least the cost of a book and probably much more. The podcast with Preet was great. He is an outstanding communicator.
by gaspr
06 Nov 2021 09:08
Forum: Retirement, Pensions and Peace of Mind
Topic: CPP Deferral debate - Fred Vettese article discussion
Replies: 743
Views: 82484

Re: CPP Deferral debate - Fred Vettese article discussion

Mordko wrote: 06 Nov 2021 07:07
BRIAN5000 wrote: 06 Nov 2021 00:09 https://www.financialcalculators.net/st ... ake-early/
Should I take it early or wait CCP calculator.
The “better off” age is very misleading in Steadyhand’s calculator. The whole point is that one is “better off” regardless of longevity by delaying because it allows to spend more safely.
Yes!! "Better off" or "breakeven" age is not only misleading, it is practically meaningless. "Safely spend more now" is the most misunderstood and underappreciated concept in this whole debate.
by gaspr
18 Sep 2021 14:52
Forum: Retirement, Pensions and Peace of Mind
Topic: CPP Deferral debate - Fred Vettese article discussion
Replies: 743
Views: 82484

Re: CPP Deferral debate - Fred Vettese article discussion

For those of us who hope to maximize our annual burn rate in retirement, deferral definitely seems to be the way to go. Being able to "safely spend more now" is a concept that took me a while to fully appreciate. Combined with VPW, it really appears to reduce all of the big three retirement risks.
by gaspr
08 May 2021 15:54
Forum: Retirement, Pensions and Peace of Mind
Topic: Variable Payout Life Annuity (VPLA)
Replies: 7
Views: 1555

Re: Variable Payout Life Annuity (VPLA)

Moshe Milevsky has pointed out that VPLA's are a type of tontine, a subject that he knows intimately.

https://www.moneysense.ca/save/retireme ... ng-enough/
by gaspr
14 Apr 2021 18:52
Forum: Taxing Situations
Topic: Pension Income Tax Credit
Replies: 14
Views: 1075

Re: Pension Income Tax Credit

I just ran this scenario through SimpleTax and it seems you guys are correct. As long as the pension income appears in Box 16 on a T4A, it does indeed allow the pension credit for both.