That's a wealth of information right there, thanks for the detailed response. I think your advice to escalate support questions is spot on. It is also my experience that the rules don't seem super clear, even for the institution managing the plan itself. I don't want to make a bad decision based on wrong interpretation of the rules
Being able to transfer income only would be great, but like you said it seems like a fluke. Otherwise one could start by transferring 100% of the income in order to prioritize drawing down the grants first. This to avoid having to reimburse the grants to the government later in some cases.
I will definetly report back here my experience once I go through the process.
Search found 199 matches
- 18 Dec 2020 14:39
- Forum: Financial Planning and Building Portfolios
- Topic: RESP transfer between siblings : too good to be true?
- Replies: 9
- Views: 2284
- 17 Dec 2020 21:41
- Forum: Financial Planning and Building Portfolios
- Topic: RESP transfer between siblings : too good to be true?
- Replies: 9
- Views: 2284
Re: RESP transfer between siblings : too good to be true?
So if I understand you correctly, let's say my oldest son consumes 20% of his RESP in the next 3-4 years, I could then transfer the other 80% to my youngest's. In this case that would "eat up" 80% of his lifetime CESG allocation (0.8 x 7200$ = 5760$). Thus I should make sure I don't otherwise contribute too much to the youngest RESP early on, in order to never cross the 7200$ grant limit when I make the transfer down the road. Am I correct in my assumption?
- 17 Dec 2020 15:56
- Forum: Financial Planning and Building Portfolios
- Topic: RESP transfer between siblings : too good to be true?
- Replies: 9
- Views: 2284
Re: RESP transfer between siblings : too good to be true?
I understand I can withdraw 100% after the first 13 weeks of enrollment. But I'd rather keep the money inside the plan for as long as possible, enjoying tax-free compounding, at least for the portion that is not immediately needed. Hence my interest in carrying it forward to my youngest's RESP.
- 17 Dec 2020 12:00
- Forum: Financial Planning and Building Portfolios
- Topic: RESP transfer between siblings : too good to be true?
- Replies: 9
- Views: 2284
RESP transfer between siblings : too good to be true?
My oldest son (16 yo) is about to start post-secondary education, and it is pretty clear at this point that his RESP (which I manage) compounded well over what his actual needs will be. For the sake of discussion, let's say I've contributed the maximum amount and received the maximum grants over the years into his RESP, and the whole thing is in solid 6-digit territory. It happens I also have a younger 2 yo child who has his own RESP with 2 years worth accumulated of contributions, grants, and investment returns. My question : I want to know if I can transfer a big amount of money (well over the 50k lifetime contribution limit) from my oldest to my youngest son's RESP. If so, is there any limits, tax implications, penalties, or grants I nee...
- 08 Jan 2020 10:37
- Forum: Retirement, Pensions and Peace of Mind
- Topic: CPP and QPP Calculator
- Replies: 143
- Views: 26462
Re: CPP and QPP Calculator
I live and worked in QC for most of my career, but I have a few years of CPP contribution mixed in there. Can I still use the spreadsheet to get a reliable number?
- 07 Jan 2020 12:15
- Forum: Financial Planning and Building Portfolios
- Topic: Querying RESP lifetime CESG grant from the horse's mouth?
- Replies: 18
- Views: 1186
Re: Querying RESP lifetime CESG grant from the horse's mouth?
You are correct, I'm from QC and the provincial grants are a separate beast. I meant extended CESG which to my surprise I was eligible for as a home maker with low taxable income.
- 06 Jan 2020 12:14
- Forum: Financial Planning and Building Portfolios
- Topic: Querying RESP lifetime CESG grant from the horse's mouth?
- Replies: 18
- Views: 1186
Re: Querying RESP lifetime CESG grant from the horse's mouth?
Thanks for the pointer. I called and it turns out even my latest records were not correct, because I have received additional grants that were not properly labeled so by my provider (Questrade). Therefore I recommend anyone with that provider to confirm the amounts with the government! Additional grants that top off the regular 20% grant do count towards the 7200$ lifetime limit.
- 06 Jan 2020 11:41
- Forum: Financial Planning and Building Portfolios
- Topic: Querying RESP lifetime CESG grant from the horse's mouth?
- Replies: 18
- Views: 1186
Querying RESP lifetime CESG grant from the horse's mouth?
Hello,
My older son is approaching the age limit for receiving grants in his RESP. The RESP account was transferred from another broker a long time ago, and I lost the paperwork of the previous account, so I'm at a lost calculating the amount of CESG he received so far. I should have done better book keeping at the time, but now it's too late.
I know the CESG limit is 7200$ and I want to maximize that, yet not overcontribute. Is there a way to get the information directly from the government by calling them? I'm pretty sure the government has this on record somewhere, I'm just unsure if the info is made available to the layman?
Any personal experience or thoughts appreciated.
My older son is approaching the age limit for receiving grants in his RESP. The RESP account was transferred from another broker a long time ago, and I lost the paperwork of the previous account, so I'm at a lost calculating the amount of CESG he received so far. I should have done better book keeping at the time, but now it's too late.
I know the CESG limit is 7200$ and I want to maximize that, yet not overcontribute. Is there a way to get the information directly from the government by calling them? I'm pretty sure the government has this on record somewhere, I'm just unsure if the info is made available to the layman?
Any personal experience or thoughts appreciated.
- 06 Jul 2018 12:49
- Forum: Retirement, Pensions and Peace of Mind
- Topic: How did you determine when to retire?
- Replies: 127
- Views: 18153
Re: How did you determine when to retire?
For me, it was a combination of factors. My job was ok, but I never felt it gave me much purpose. I was attracted by the promise of a stress-free life and increased family time that early retirement could afford me. Financially, the numbers made sense and I was growing tired of paying so much marginal income taxes on revenues that might prove unnecessary in the end because of my frugal lifestyle. For me, retirement felt like a sensible arbitrage trading less stress vs more money. I'd rather take the dive now that I'm full of energy and can still make a difference in my kid's lives, than getting burnt working too late and full of regrets. Oh, and my spouse is pregnant (3rd on the way) so being at home helps a lot with that.
- 02 Sep 2017 14:30
- Forum: Retirement, Pensions and Peace of Mind
- Topic: Income taxes pushing me towards retirement
- Replies: 102
- Views: 7589
Re: Income taxes pushing me towards retirement
Although I don't feel particularly ready to retire, the weight of income taxes in my budget makes me wonder whether I should consider doing so. I wonder if others have felt the same way in the past and how they have reacted to it. I came to the exact same conclusion as you did early 2017. I happen to have a decent non-registered nest egg, on top of maxed out TFSA and RRSP. The non-reg portfolio started attracting a lot of taxes, which put me year after year in increasingly uncomfortable tax brackets, once topped up with my salary. Also, this coincided with the Liberals cutting TFSA room, UCCB and income splitting for families and the general eat-the-rich sentiment in recent politics. Moreover, my alimony payments are based on a sizable tax...
- 01 Jan 2017 17:24
- Forum: Financial Planning and Building Portfolios
- Topic: Portfolio Returns 2016, along with 5, 10 year CAGR Performance
- Replies: 101
- Views: 7761
Re: Portfolio Returns 2016, along with 5, 10 year CAGR Performance
Pardon my sloppiness, I simply copied "CAGR" from the thread's title without looking up the definitionStuBee wrote:It is evident from what you have written that you are not cherry picking what yields you are sharing with FWF. I presume that you are not including new capital as a part of your yield. For example, the addition of 25K$ of new capital to a 50K$ portfolio, without any internal growth would give a 1 year "CAGR" (and not IRR) of 50%.
I have always been using XIRR function in Excel to compute my returns since 2006. So there is no skewing from capital inflows/outflows like you describe.
- 01 Jan 2017 14:34
- Forum: Financial Planning and Building Portfolios
- Topic: Portfolio Returns 2016, along with 5, 10 year CAGR Performance
- Replies: 101
- Views: 7761
Re: Portfolio Returns 2016, along with 5, 10 year CAGR Performance
My overall result this year is 16.9%
Holdings are 100% equities, mostly US-denominated. S&P 500 return was 8.21% this year in CAD, so I am satisfied with my result.
CAGR for various time frames :
1 year: 16.9%
3 years: 20.8%
5 years: 31.8%
All Time (11 years): 20.1%
Holdings are 100% equities, mostly US-denominated. S&P 500 return was 8.21% this year in CAD, so I am satisfied with my result.
CAGR for various time frames :
1 year: 16.9%
3 years: 20.8%
5 years: 31.8%
All Time (11 years): 20.1%
- 01 Jan 2016 10:00
- Forum: Financial Planning and Building Portfolios
- Topic: How did you do in 2015?
- Replies: 85
- Views: 5632
Re: How did you do in 2015?
My portfolio is almost 100% unhedged US equities.
XIRR accross all accounts I manage myself was 23.9% for the year.
I beat the S&P 500 by a slight margin. AFAIK it performed to the tune of 21.65% when expressed in CAD$, including dividends.
The exchange rate did most of the work, as equities themselves were almost flat for the year.
XIRR accross all accounts I manage myself was 23.9% for the year.
I beat the S&P 500 by a slight margin. AFAIK it performed to the tune of 21.65% when expressed in CAD$, including dividends.
The exchange rate did most of the work, as equities themselves were almost flat for the year.
- 29 Dec 2015 09:29
- Forum: Retirement, Pensions and Peace of Mind
- Topic: How Much is Enough 2015
- Replies: 168
- Views: 21297
Re: How Much is Enough 2015
I believe this is incorrect. Unless they have contributed equally to the account, they would have to report the income proportionally to their individual contribution. I wonder if CRA ever will ever audit these things, after all the fuss around income splitting being "such a bad thing". Can people really get away with that kind of unreported income splitting scheme?Because it is a joint account, all of this $210,000 in investment income can be split equally between Tom and Mary.
- 25 Feb 2015 21:40
- Forum: Taxing Situations
- Topic: RRSP rollover to spouse upon death
- Replies: 5
- Views: 418
RRSP rollover to spouse upon death
I read it was possible for a surviving spouse to rollover the RRSP of the deceased into its own, thereby delaying taxation upon the death of the surviving spouse.
In practice, is there anything that prevents the rollover to be repeated ad infinitum if the surviving spouse finds a new (ideally younger) life partner afterwards?
In practice, is there anything that prevents the rollover to be repeated ad infinitum if the surviving spouse finds a new (ideally younger) life partner afterwards?
- 10 Jan 2015 13:37
- Forum: Taxing Situations
- Topic: Online orders vs provincial sales tax ?
- Replies: 3
- Views: 528
Online orders vs provincial sales tax ?
I am about to make a big ticket purchase online. The seller is in the USA. The product is to be delivered by mail. However I am pondering the idea of specifying a billing address in Alberta although the shipping address would be in Quebec to avoid the provincial sales tax that applies to my province of residence.
Simple question : is this legal or is there a way to make it so ?
Simple question : is this legal or is there a way to make it so ?
- 06 Apr 2014 10:20
- Forum: Financial Planning and Building Portfolios
- Topic: RESP Transfer : Who keeps track of what ?
- Replies: 6
- Views: 1572
Re: RESP Transfer : Who keeps track of what ?
Thanks for the link, somehow it didn't came up in my research. Lots in good stuff there.
- 05 Apr 2014 16:06
- Forum: Financial Planning and Building Portfolios
- Topic: RESP Transfer : Who keeps track of what ?
- Replies: 6
- Views: 1572
Re: RESP Transfer : Who keeps track of what ?
No answers ?
I guess not many people have tried transferring RESPs. Or they simply don't know/care what will happen when they start withdrawing from the account a few years from now.
Either way, I will attempt the experience and will report anything I've learned in the process to this thread.
I guess not many people have tried transferring RESPs. Or they simply don't know/care what will happen when they start withdrawing from the account a few years from now.
Either way, I will attempt the experience and will report anything I've learned in the process to this thread.
- 30 Mar 2014 16:25
- Forum: Financial Planning and Building Portfolios
- Topic: RESP Transfer : Who keeps track of what ?
- Replies: 6
- Views: 1572
RESP Transfer : Who keeps track of what ?
I am pondering switching to a different provider for my RESP account. After reading a bit, I am under the impression that my current provider should have kept track of things like total contributions I made, total grants the account received, and time since the account was opened. All this info will be relevant the day I decide to collapse the plan or withdraw from it. I am trying to figure out how this information is going to be carried to the new provider after I transfer the plan (and money) to them. Does government keep track of anything or does it trust the providers to do so ? Should I make sure the providers exchange the information properly between them ? And what if they don't ? What recourse do I have, and against who ? I couldn't...
- 01 Jan 2014 19:27
- Forum: Financial Planning and Building Portfolios
- Topic: 2013 Investment Portfolio Results
- Replies: 127
- Views: 6994
Re: 2013 Investment Portfolio Results
My biggest winners this year were AIZ and NDAQ but I've completely sold out in the second half of the year. My portfolio is quite concentrated and turnaroud is high as long as I find stocks to replace the ones I believe have reached their intrinsic value. I've been so far lucky that Mr Market recognizes value quite fast.ig17 wrote: Congratulations! That's a nice number.
Do you mind sharing your top 5-10 holdings and their portfolio weights?
I have only 4 positions in my portfolio right now : AIG, AIG-WT (warrant 2021 strike 45), BAC, VLKAY.
- 01 Jan 2014 15:42
- Forum: Financial Planning and Building Portfolios
- Topic: 2013 Investment Portfolio Results
- Replies: 127
- Views: 6994
Re: 2013 Investment Portfolio Results
My XIRR for 2013 is 55.1%, including dividends an fees, pre-tax.
Allocation is roughly 105% US equities.
Performance came mostly from financials and insurance companies, magnified by the USD/CAD differential.
Allocation is roughly 105% US equities.
Performance came mostly from financials and insurance companies, magnified by the USD/CAD differential.
- 01 Jun 2013 21:32
- Forum: Financial Planning and Building Portfolios
- Topic: Where are you in your investing life cycle?
- Replies: 64
- Views: 4451
Re: Where are you in your investing life cycle?
I don't own any real estate, but I plan to eventually when valuations come back to earth.StuBee wrote:I presume that you are not including personal real estate in your number. Would you mind telling me what sort of IRR (internal rate of return) it took to get you there??
I track my net worth since 2007. I've enjoyed an IRR of 24% despite a divorce that had pretty much the effect of halving it in 2010.
I also track my investment returns since 2006, which have yielded 21.4% annualized.
- 01 Jun 2013 18:24
- Forum: Financial Planning and Building Portfolios
- Topic: Where are you in your investing life cycle?
- Replies: 64
- Views: 4451
Re: Where are you in your investing life cycle?
Only stocks, with a bit of leverage when valuations are appealing (never more than 10% leverage)ig17 wrote:Can you describe your investment style?
I own 5 to 8 stocks at a time, I do lots of research. I am mostly a value investor. I buy when it's cheap and sell when it's fairly valued. So buy and hold is not for me.
- 01 Jun 2013 16:41
- Forum: Financial Planning and Building Portfolios
- Topic: Where are you in your investing life cycle?
- Replies: 64
- Views: 4451
Re: Where are you in your investing life cycle?
As a proud DIYer, my savings have recently crossed the million-dollar mark.
I think my achievement is remarkable in a couple of ways :
I think my achievement is remarkable in a couple of ways :
- I'm only 35 years old
- The money was accumulated solely through saving and investing (no inheritances)
- I am employed and work regular hours (no business income)
- A divorce has cut my net worth in half four years ago
- A desire to learn about financial stuff and taking care of my money
- Watch my spending closely in the early years
- Be good at what I do so I could earn more than the average Joe doing the same job
- Some luck (let's be honest)
- 01 Jan 2013 17:44
- Forum: Financial Planning and Building Portfolios
- Topic: So how did you do in 2012?
- Replies: 114
- Views: 5639
Re: So how did you do in 2012?
My XIRR for 2012 is 45.44%, including dividends an fees.
Allocation is roughly 105% equities (slightly using margin, portfolio was almost exclusiely in US equities over the year)
Allocation is roughly 105% equities (slightly using margin, portfolio was almost exclusiely in US equities over the year)