Search found 1719 matches

by twa2w
02 Nov 2023 23:31
Forum: Financial Planning and Building Portfolios
Topic: Funding mortgage from your own RRSP
Replies: 16
Views: 3073

Re: Funding mortgage from your own RRSP

Olympia Trust will do arm's length mortgages in a self-directed account. They will not do non-arms-length mortgages.

CWT also does arm's length RSP mortgages, but I have heard they may be stepping back from this.
.
There are a couple of other small trust companies that will do this as well.
by twa2w
29 Sep 2023 04:33
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Mitigating risks when gifting FHSA contributions to children
Replies: 4
Views: 1097

Re: Mitigating risks when gifting FHSA contributions to children

Why not simply lend them the money, with a proper promissory note for the money used for the FHSA, with the proviso if they buy a house, they provide you with a mortgage on the home in exchange for the promissory note being cancelled? You can set the rate low. If the house is ever sold, you can either get paid off or transfer the mortgage to another home if the situation is still a concern. The mortgage can be forgivable on your death if you wish. Most banks will accept this as a portion of the down payment if you confirm in writing there is no principal repayment except in the case of a sale or transfer in title.

Every province has slightly different rules so consult with a lawyer
by twa2w
30 Apr 2023 19:34
Forum: Retirement, Pensions and Peace of Mind
Topic: Getting old!
Replies: 93
Views: 8335

Re: Getting old!

sorry, poor wording on my part.
the fact remains that if the parents are in a low tax bracket, and the kids are in the highest tax bracket, it can make a significant difference. Also the province the kids and parents reside in can impact the difference even further.
I ran into that when my mother died - she had made significant charitable contributions her last few years which she could not fully use. If she had made them in my brother's or my name, it would have provided us with a significant reduction in taxes.
the accountant pointed this out to us on the final returns and gave us the calculations. I was in a different province than my mother so it was actually bigger for me than my mother.
by twa2w
29 Apr 2023 19:33
Forum: Retirement, Pensions and Peace of Mind
Topic: Getting old!
Replies: 93
Views: 8335

Re: Getting old!

Bylo Selhi wrote: 23 Apr 2023 13:12
frase wrote: 23 Apr 2023 11:54 Thoughts anyone?
If your kids are doing well financially then consider gifting to charities. That way you'll be able to see your donations put to good use while you're alive.

Depending on the size of the donations you could reduce the income tax you pay substantially, perhaps even to near zero. Of course this may reduce your kids' inheritances but that may not be a major issue. And if you intended to leave somethings to charities anyway, then now may be better for everyone than when you're gone.
you may also want to consider making some of those donations in your kid's names. Especially where donation are large enough to drop your income into the lower tax brackets, where the return is not so great.
by twa2w
22 Dec 2022 16:06
Forum: Retirement, Pensions and Peace of Mind
Topic: Inheritance Question
Replies: 25
Views: 1587

Re: Inheritance Question

Or your executor can use the donation against 100% of the decedent's net income in the year of death and the preceding year, or by the surviving spouse. https://www.taxtips.ca/filing/donations-in-year-of-death-and-in-the-will.htm By "If the amount of this part of your estate is large enough" I meant above and beyond what the estate would need to zero its taxes. Consider a surviving spouse in a city like Vancouver or Toronto who dies leaving a house plus the residue of their retirement funds. The retirement funds may be more than sufficient to pay off all income taxes on their account. The house may be worth $1M (likely more in Van or Tor.) If the proceeds from the house are donated to charity from the estate then there's no furth...
by twa2w
22 Dec 2022 15:08
Forum: Retirement, Pensions and Peace of Mind
Topic: Inheritance Question
Replies: 25
Views: 1587

Re: Inheritance Question

I belong to those who, if they can afford, give to the children at times when the help matters the most, be it the cost of education or housing. I told my child about the charity % in my will and the reason, and there is no objection. Something to consider if you trust your children: Instead of providing to charities in your will, leave that part of your estate to your children with the understanding that they donate it to your designated charities. Let the kids then benefit from the tax credits. This way everyone but CRA wins. If the amount of this part of your estate is large enough the kids could derive tax benefits for years to come. Whereas if you left the money to the charities at time of death, some or even most of the tax savings w...
by twa2w
22 Dec 2022 14:58
Forum: Retirement, Pensions and Peace of Mind
Topic: Inheritance Question
Replies: 25
Views: 1587

Re: Inheritance Question

My surviving grandmother was named as executor of her husbands estate in bc. She has childA as her durable poa as she is incapacitated. But childB is named as the second executor after my grandmother in the will. Does childA step in as the executor of the estate or does it fall upon childB? If your grandfather dies, or is deceased, your grandmother would step up as executor. If she is unable, or unwilling, normally a will should have an alternate executor named in the will. That would be Child B in your scenario. If there was no alternate executor named, then your grandmother's POA could step up to assist your grandmother in dealing with the estate. However, if your grandmother then passes away, that POA ceases. In that case, whomever your...
by twa2w
29 Jul 2022 01:58
Forum: Retirement, Pensions and Peace of Mind
Topic: Legal Action to Remove Executor
Replies: 19
Views: 1803

Re: Legal Action to Remove Executor

I am no longer up to date on Ontario estate rules but my experience tells me that you may have a difficult time replacing your sister with a "professional" estate executor. 1) From what you have said, the only thing of significance is your sister has delayed the processing of the estate and she may not yet have applied for probate. Unless you have clear evidence of some mishandling of the estate indicating incompetence, other than delay, you may not get anywhere. And if you did, the judge would likely simply turn the estate over to your brother as that was your mother's wish. You would be unlikely to be able to prove incompetence in your brothers case as many people with no experience handle estates just fine with the assistance o...
by twa2w
18 May 2022 19:44
Forum: Under the Mattress: Protecting Your Money
Topic: Is it just TD, or are all brokerages as cumbersome?
Replies: 87
Views: 5934

Re: Is it just TD, or are all brokerages as cumbersome?

newin96 wrote: 13 May 2022 11:02
AltaRed wrote: 12 May 2022 19:57 That is how I understand it from Scotia and RBC as well.
Confirming that I had to do this at RBCDI.
There are legal reasons for doing so.
With simple Bank Accounts, the Royal used make the current holder write a cheque for the balance in the account, then add the new joint holder, then redeposit the funds back into the account. This ensures the initial account holder has no claim that the funds prior to the account being joint, were not joint funds.
With an investment account, you can't simply transfer out the investments, then redeposit them. Although I believe the process is now simplified.
by twa2w
13 May 2022 22:18
Forum: Retirement, Pensions and Peace of Mind
Topic: RRIF – GIC redeemable ?
Replies: 10
Views: 3849

Re: RRIF – GIC redeemable ?

When was the GIC purchased.? Was it purchased while the account was an RSP and then the plan got converted to a RIF and the existing investments were transferred form the RSP to the RIF ?
by twa2w
29 Apr 2022 14:11
Forum: Retirement, Pensions and Peace of Mind
Topic: Executor questions (Ontario)
Replies: 28
Views: 3512

Re: Executor questions (Ontario)

The other issue is - what happens if the markets continue to fall after death. Your executor is responsible for the proper care and handling of your estate. If he was to hold the securities for distribution in kind, he should have an agreement in writing from the beneficiaries to do this. Even if the will is clear that he can do this (most wills properly written either give executors some leeway or state the assets should be converted to cash), there have been lawsuits and executors have been held liable for losses. The best advice I would give would be to convert all to cash as soon as possible after the date of death and probate, this includes the sale of the house - ensuring it is insured, utilities up to date and regular visits. Ensure ...
by twa2w
15 Mar 2022 00:58
Forum: Retirement, Pensions and Peace of Mind
Topic: CPP Deferral debate - Fred Vettese article discussion
Replies: 743
Views: 82480

Re: CPP Deferral debate - Fred Vettese article discussion

"I will take my money as soon as eligible so I know I at least get some of the pile." "After watching 3 or 4 slightly older friends not make it to 70, I decided "show me the money" For people with ill health, short expected lifespans or a combination of the two I don't necessarily find these two comments particularly outrageous. We're not all destined to be filthy rich nonagenarians... :) As to the person who thinks they can out-invest CPP on an after tax basis over decades... perhaps they should open up an investment company... :wink: They don't have to invest at a higher rate than the CPP board. Your pension amount is fixed regardless of how well CPP invests your money. CPP payments are also taxable and waiting t...
by twa2w
26 Feb 2022 23:35
Forum: Community Centre
Topic: Thoughts on the used vehicle market
Replies: 12
Views: 1740

Re: Thoughts on the used vehicle market

I suspect the chip shortage will get worse with the war in Ukraine. Thus it will continue to be a sellers market for some time.

Russia and Ukraine account for a significant portion of some materials in the supply chain for semiconductors. It would take some time to work around that.
by twa2w
01 Feb 2022 20:15
Forum: Retirement, Pensions and Peace of Mind
Topic: Designated beneficiary of TFSA, RRSP
Replies: 85
Views: 11366

Re: Designated beneficiary of TFSA, RRSP

This is an interesting one and is one of the most common areas of estate litigation. Case law goes both ways on this and can swing based on several factors, any of which may or not play a factor depending on the particulars of the case. Is the TFSA sufficiently large enough to make the cost of fighting worthwhile? Is it worth it if you end up losing? (and paying some of the other parties costs). In a few cases the judge has split the proceeds. What is the wording in the separation/divorce agreement when it comes to division of assets. What is the wording in the will. What was the intention of the deceased person - and ability to prove or show that intention. The wording of the beneficiary designation (usually only an issue for life insuranc...
by twa2w
11 Aug 2021 02:40
Forum: Taxing Situations
Topic: CPP Death Benefit
Replies: 6
Views: 3843

Re: CPP Death Benefit

While you do not have to file a T3 if the only income is the death benefit, is there anything stopping you from doing so?
by twa2w
23 Apr 2021 02:14
Forum: Taxing Situations
Topic: Luxury Tax
Replies: 182
Views: 13992

Re: Luxury Tax

FWIW I just looked up whether Australia, whose 21-year-old LCT is a lot more onerous than the proposed one here, has any Ferrari dealers. I was surprised. Turns out it has nine of them, according to the Ferrari website. Canada has seven but one is listed only as a bodyshop. Maserati lists seven dealers in Australia and 13 in Canada. Porsche has 20 dealers in Australia and 18 in Canada. Interesting. I would guess that in most of Australia, you can drive these cars year-round. Not the case in Canada for the more performance-oriented cars. In Canada, you might need to spend additional money on a 'winter' vehicle which I suppose could affect your purchasing power. I do realize Porsche and Maserati do make SUVs. On second thought, I suppose mos...
by twa2w
23 Apr 2021 01:59
Forum: Retirement, Pensions and Peace of Mind
Topic: Inheriting a RRIF
Replies: 4
Views: 1326

Re: Inheriting a RRIF

My questions are: 1. If the spouse inheriting the RRIF is considerably younger than the deceased annuitant, can they roll the inherited amount into their own RRIF with a lower schedule of minimum withdrawals based upon their age when the original RRIF was based on the deceased age. 2. In the case of a rollover rather than a continuation of the original RRIF contract, is the spouse named as a Successor Annuitant or Beneficiary on the original RRIF contract. Re survivor annuitant. In the year of death, any payments made from the RIF up to the date of death are taxable in the hands of the deceased. After the date of death, the RIF is changed to the survivor annuitant's name, and any payments made after that date are attributable to the surviv...
by twa2w
23 Apr 2021 01:36
Forum: Financial Planning and Building Portfolios
Topic: Spousal RRSP Mechanics
Replies: 14
Views: 26893

Re: Spousal RRSP Mechanics

Every institution has different processes on this. For most, the contributor initiates the opening process and clearly indicates they are the contributor and their spouse or CL spouse is the annuitant. This part needs to be checked and double-checked to ensure it is correct. The institution will require information from both parties. IE names/addresses/SIN/DOB etc. Again, ensure the correct SIN numbers align with the names. The spousal plan will belong to the annuitant, and they will have control over all aspects. The contributor only has access to making contributions and should have no access to investments, balances or any other information unless they have the trading authority or POA. Some plans are blended spousal accounts(I can't rec...
by twa2w
18 Apr 2021 18:24
Forum: Taxing Situations
Topic: How to unwind a commingled non-registered account?
Replies: 20
Views: 1766

Re: How to unwind a commingled non-registered account?

1. "Consume" the account, i.e. sell the assets and pay for household expenses, repairs, a new car, etc. This seems to be the safest and most favoured way, but it involves liquidating all the assets, triggering capital gains, and for USD-denominated funds and securities, foreign exchange losses. I vote for this one. Use your current income to invest in properly separated accounts. Take all your expenses from this joint account. Consider the taxes and fees as payment for poor planning decisions. and Altared said That is true but I am suggesting that if the account and contributions are generally new and the amounts are not large, do an approximate slicing of the contents, move them out and document your methodology and start over w...
by twa2w
18 Apr 2021 17:53
Forum: Taxing Situations
Topic: Tracking ownership of investments in a spouse's non-registered account
Replies: 27
Views: 1489

Re: Tracking ownership of investments in a spouse's non-registered account

Let me preface this reply by saying it depends. It can be very simple or very complicated depending on how this took place. But don't overthink it. Let's say, after my contribution of 4k, there are 10k of cash in the account, 40% of which are attributed to me and 60% to my spouse. Next, my spouse purchases XYZ stock for 4k and ABC stock for another 4k. Later in the year she sells XYZ at a gain of 10% and ABC at a loss of 10%. Who gets to claim the capital gains and losses? Alternative A: Since both stocks were purchased from shared funds, I own 40% of the ACB of both stocks, so I claim 40% of the capital gains and losses of both stocks, and she claims 60%. In my example, the gains and losses cancel each other out. (This seems fair in the ey...
by twa2w
06 Feb 2021 01:57
Forum: Community Centre
Topic: The Constitutionality of the new travel restrictions [COVID-19]
Replies: 290
Views: 10969

Re: The Constitutionality of the new travel restrictions

I thought the land borders were closed. https://www.ctvnews.ca/health/coronavirus/canada-u-s-land-border-closure-extended-to-feb-21-1.5263467 Canada-U.S. land border closure extended to Feb. 21 Sort of. A non-citizen cannot enter Canada but the Canadian government cannot stop a Canadian from entering Canada. (or leaving Canada) Every citizen of Canada has the right to enter, remain in and leave Canada. So putting a full travel ban brings up the constitutionality argument again - Canadian citizens are allowed to leave or enter the country freely. You can't cross into the US because they can bar you but the Canadian Government can't stop you from leaving. Of course, getting back to the quarantine: Everyone has the right not to be arbitrarily...
by twa2w
14 Dec 2020 01:10
Forum: Financial Planning and Building Portfolios
Topic: Too Late to Enter Portfolio Management Field?
Replies: 2
Views: 965

Re: Too Late to Enter Portfolio Management Field?

Having worked closely with private banking, IM and trust folks in my career, there were lots of people I know who did not enter the Investment Management field until their 30s and 40s. Some firms like folks with some real-world experience in other professions.

Having said that, it is a very competitive field to get into at all levels. If you have challenges getting hired it will not likely be because of your age.
by twa2w
29 Nov 2020 20:51
Forum: Community Centre
Topic: [Will you take a COVID-19 vaccine? When do you expect it to happen?]
Replies: 1962
Views: 69141

Re: The anti-vaccine crowd

I have not yet decided. Many people I talk to do not want to take the vaccine in the initial offering or rollout. Many think it was too rushed and have concerns over long term safety and efficacy. These are not your normal antivaxxers either - most agreed they would consider it after some time. The other issue I hear about is the vaccine is only effective in 2 doses. Stats apparently show that of the people who sign up for a 2 dose vaccine, only a small % show up to get the second dose. I can`t find any links to confirm what those numbers are. Also vaccines of this type that target proteins like the Coronavirus spikes, usually require 3 doses to be long term effective. the first two a month apart then 6 months later. The new vaccines have n...
by twa2w
15 Oct 2020 03:18
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Why you didn't or won't use a mortgage broker?
Replies: 64
Views: 7497

Re: Why you didn't or won't use a mortgage broker?

I don't know the mechanics of the inter relationships, but bringing business into the bank is a factor in getting you a better deal. If it's all good products and rates, then why not, a customer should consider switching and bundling. I thought banks weren't allowed to bundle eg. I will give you a 50bp mortgage reduction if you bring us your RRSP to us is illegal? Tied selling is the illegal practice of a company providing a product or service on the condition that a customer purchases some other product or service. Nope, your example isn't illegal. A banker can offer a better rate if you bring more business. That is really no different than a store giving you a better price if you buy a DVR along with your new TV. What the bank cannot do ...
by twa2w
02 Oct 2020 18:30
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Mortgages for Newcomers?
Replies: 14
Views: 4346

Re: Mortgages for Newcomers?

Not sure how familiar the OP is with Canadian mortgages and their terms. You will hear mortgage companies offering 10+10 or 15+15 or 20+20 and some offer a double up feature to use the 10+10 as an example: The first 10 refers to the you being allowed to repay up to 10% extra on the principal per year. Each company has a different set of rules on this. With some, the 10% is of the original principal balance and with others it is 10% of the balance at the time of prepayment. After your first renewal, the 10% may still refer to the original principal, or the principal at the time of renewal or the current balance at time of prepayment. Then some companies only allow you to pay the lump sum on the anniversary date of the mortgage. Some say any ...