Search found 1547 matches

by Quebec
26 Mar 2024 07:41
Forum: Retirement, Pensions and Peace of Mind
Topic: A-rated companies that offer long term care insurance?
Replies: 13
Views: 1317

Re: A-rated companies that offer long term care insurance?

OnlyMyOpinion wrote: 25 Mar 2024 21:04 ...Once you are in a long term care facility, the care is provided and you are only responsible for a co-pay ...
The public facilities in Quebec, called CHSLD, have often been in the news for the wrong reasons (before, during and after the pandemic). My impression -- based on reading the news, not personal experience -- is that things are not improving. There are staffing issues, building maintenance issues, etc. Plus there is a waiting list of up to two years (assuming one wants to go there). I'd like to have some options other than a CHSLD if I can afford it.
by Quebec
25 Mar 2024 19:43
Forum: Retirement, Pensions and Peace of Mind
Topic: A-rated companies that offer long term care insurance?
Replies: 13
Views: 1317

Re: A-rated companies that offer long term care insurance?

I'm doing some contingency planning, for my retirement plan. Long term care seems to me like the main risk in terms of potential cost from an "unexpected" (or at least difficult to predict) event. I've looked at reverse mortages as a potential last resort source of liquidy, but the maximum loan at age 70 is less than 50% of home equity; in our case this might not be enough to pay for an extended stay in an private LTC facility. So its either self-insure through a contingency fund (dedicated financial assets, not necessarily all cash) or buy LTC insurance, or a combination. From what I've read in order to update finiki's LTC article , there is only one serious insurer left that offers a stand-alone product that covers stays in a LT...
by Quebec
18 Mar 2024 08:24
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: T+1 Settlement is Coming! On May 28, 2024
Replies: 58
Views: 2695

Re: T+1 Settlement is Coming! On May 28, 2024

Will T+1 soon apply to all mutual funds (other than money market which are already there)?

The Canadian Capital Markets Association wrote in February that "The Canadian Securities Administrators (CSA), while expecting most mutual funds to voluntarily transition to next-day (T+1) settlement as of May 27, 2024 with debt, equity, and other securities, did not mandate all funds to move to the shorter cycle."

It would be pretty messy/confusing if some funds stayed at T+2 while others transitioned to T+1...

__________________
EDIT: clarified that MMFs are already at T+1
by Quebec
17 Mar 2024 16:36
Forum: Financial Planning and Building Portfolios
Topic: Advice please for current retirement portfolio
Replies: 17
Views: 862

Re: Advice please for current retirement portfolio

3. Do I have enough to see me through the next (hopefully) 25 years? A bit of reading might help you figure this out. How much will you be spending every year? * Retirement budget models * Single versus dual budget models (essential and discretionary expenses) * The yearly spending can change over time How much income do you need from the portfolio? * Portfolio withdrawal = total spending needs MINUS pension, CPP/QPP, OAS * Here the "portfolio" is all your investment accounts combined (TFSA, RRIF, non-reg), the cash & GICs, your total financial wealth How much portfolio do you need now to generate this income: * Conventional retirement planning , steps 1-4, for a rough estimate *If the portfolio size estimate is much more (sa...
by Quebec
17 Mar 2024 15:00
Forum: Retirement, Pensions and Peace of Mind
Topic: Single premium immediate annuity (SPIA)
Replies: 95
Views: 3899

Re: Single premium immediate annuity (SPIA)

Perhaps with respect to the right of rescission of life annuities this right becomes a company specific option as opposed to regulatory. In Quebec, the 10 days right of rescission is part of the law for "insurance contracts", in general (see link above). I found the relevant article of law mentioned in a Desjardins Annuity contract brochure (Google "right of rescission annuity desjardins", it's the first link, and see appendix 1). There is no escaping it. There are even specific regulated ways that the insurers must use to present that language in the contract; I suspect that the regulation is established by AMF but I couldn't find the details. Anyway, it should look like Appendix 1 in that Desjardins document. Maybe th...
by Quebec
17 Mar 2024 10:17
Forum: Retirement, Pensions and Peace of Mind
Topic: Single premium immediate annuity (SPIA)
Replies: 95
Views: 3899

Re: Single premium immediate annuity (SPIA)

OptsyEagle wrote: 16 Mar 2024 10:46 10 day Right of Rescission
I have found the relevant article for the Province of Quebec (Article 440 from the "Act respecting the distribution of financial products and services (chapter D-9.2)".

So are there similar laws in other canadian provinces?

I note that CLHIA Guideline G10 has an exception for annuities, which I find surprising.
by Quebec
13 Mar 2024 20:21
Forum: Retirement, Pensions and Peace of Mind
Topic: Charitable gift annuity
Replies: 5
Views: 286

Re: Charitable gift annuity

I did find a bit more information and I have updated the article. The "self-managed" version, where you have to trust the charity to manage your money to provide your retirement income, is quite scary, IMO. The secretary of the Canadian Charitable Annuity Association board writes that "some charities with strong investment policies ... can almost match the returns of the CPP investment board". This implies that the charity takes your money and buys risky assets, not just bonds, in order to support fixed payments for life to the "annuitant". Fingers crossed, it all works out! (Lifecos would never be allowed to do that, but charities can, apparently!)
by Quebec
13 Mar 2024 14:48
Forum: Retirement, Pensions and Peace of Mind
Topic: Charitable gift annuity
Replies: 5
Views: 286

Re: Charitable gift annuity

(...) combining the tax benefits of prescribed annuities with immediate charitable tax receipts offered by the irrevocable gift. (...) IIRC there are two types. One where they separate out the gift (20% minimum) and take the remainder and buy an annuity through an insurance company. Usually a prescribed annuity (...) OK, let's take that first case. You give $50k to a charity, they keep 20% to spend on their programs (the "immediate gift"), and they buy a prescribed SPIA with the rest on your behalf, from a "top-rated" lifeco (hopefully they shop around). This is what the Arthritis Society Canada and The Red Cross, for example, promote. They mention that the tax receipt will correspond to the immediate gift, the 20%. In ...
by Quebec
13 Mar 2024 09:15
Forum: Retirement, Pensions and Peace of Mind
Topic: Charitable gift annuity
Replies: 5
Views: 286

Charitable gift annuity

Hello, the finiki article on annuities mentions " Charitable gift annuities : Charitable gift annuities involve giving a donation (which can be "in kind"; such as a stock) to a registered charity which then purchases an annuity for the donor with a part of the proceeds. Several charities advertize this option, for example: - Arthitis Society - Red Cross Having spent half an hour reading such promotional materials, and the very sparse information from the Canadian Charitable Annuity Association , I still have no clear idea how this idea works in practice. Let's say the charity keeps 25% of the gift for immediate use. You get a tax reciept for that amount. Then the charity buys a life annuity from a life insurance company with ...
by Quebec
12 Mar 2024 16:49
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Rebalancing my portfolio, problem with international exposure
Replies: 37
Views: 1298

Re: Rebalancing my portfolio, problem with international exposure

1) Currency hedging: on foreign equities you probably don't want it over the long term

2) about a 10 year record, it does not matter with index ETFs from reputable providers (think Vanguard, Ishares). See How to choose ETFs for index investors.

3) about returns over 7% over a certain period, the asset classes that had good returns in the recent past may not do so in the future, and vice versa. This is how diversification works.

4) for suggestions that don't fit your criteria, but fit mine, see Mutual funds and exchange-traded funds

5) Some home country bias can be justified, but indeed 40% Canadian equities is on the high side considering the size of our stock market (about 3% of the world), the sector concentration, and so on.
by Quebec
11 Mar 2024 18:52
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: purchase issue with IBKR
Replies: 12
Views: 424

Re: purchase issue with IBKR

jaime wrote: 11 Mar 2024 18:46 whats margin again? im not sure i understand
finiki: Non-registered account types (cash account versus margin account)
by Quebec
10 Mar 2024 16:49
Forum: Financial News, Policy and Economics
Topic: Recommended financial podcasts
Replies: 60
Views: 33916

Re: Recommended financial podcasts

In the personal finance category, aimed at Canadian professionals: The Money Scope Podcast, from Ben Felix (from Rational Reminder) and Mark Soth ( the "Loonie Doctor").

They spend a lot of time preparing for this, and it shows. There is a dedicated website for the podcast. Each episode has a written transcript with footnotes including numerous references (e.g. articles in scientific journals from the fields of psychology, finance, ...).

The target audience might have a higher annual income than I do, but worthwhile nonetheless so far (8 episodes available so far plus a few supplements).
by Quebec
05 Mar 2024 08:20
Forum: Under the Mattress: Protecting Your Money
Topic: 5-year laddered GICs
Replies: 29
Views: 1395

Re: 5-year laddered GICs

ghariton wrote: 04 Mar 2024 23:13 C'est qui Pierre-Yves McSween?
A local personal finance celebrity who has written some financial advice books, is active in the media, etc. Wikipedia page.
by Quebec
05 Mar 2024 08:14
Forum: Retirement, Pensions and Peace of Mind
Topic: Single premium immediate annuity (SPIA)
Replies: 95
Views: 3899

Re: Single premium immediate annuity (SPIA)

As long as monthly payments from the same issuer are no more than $5,000 ($60,000 per year), I see no reason to worry the insurer's rating. I'd pick the highest payout. Hum, if the "A+" rated insurer is paying more than the "A++" insurer, sure, go ahead. But would you buy a life annuity, expected to pay for several decades, from a company rated "D" by A.M. Best, which means that the company has a "poor ability to meet their ongoing insurance obligations", and is "extremely vulnerable to adverse changes in underwriting and economic conditions"? This is just one step before backruptcy/liquidation. Why ask for trouble with the portion of your assets supposed to pay for basic necessities? So I ...
by Quebec
04 Mar 2024 19:11
Forum: Under the Mattress: Protecting Your Money
Topic: 5-year laddered GICs
Replies: 29
Views: 1395

Re: 5-year laddered GICs

Saintor wrote: 04 Mar 2024 18:28 (...) 1 yr or less GIC offer better return, if I read correctly.
That inverted yield curve (1 yr pays more than 5 years) is a rare and temporary situation (Google says that happens less than 13% of the time). The normal yield curve means that longer GICs pays more, hence the idea of the 5 year rolling ladder.
by Quebec
04 Mar 2024 15:40
Forum: Retirement, Pensions and Peace of Mind
Topic: Single premium immediate annuity (SPIA)
Replies: 95
Views: 3899

Re: Single premium immediate annuity (SPIA)

Jase wrote: 04 Mar 2024 14:59 I will use a couple of providers. May seem cumbersome but it will help eliminate pretty much any risk of default.
I would rather deal with one "AA+" or "A+" rated provider than two or three "C" or "D" rated ones. (See the newly added Insurer ratings)
by Quebec
04 Mar 2024 14:53
Forum: Retirement, Pensions and Peace of Mind
Topic: Single premium immediate annuity (SPIA)
Replies: 95
Views: 3899

Re: Single premium immediate annuity (SPIA)

"Most of the financial advisors I've discussed this issue with agree that you have to be careful with illustrations that seem too good to be true. For a single life, fixed, non-indexed SPIA, you don't really need a year by year illustration, you just need a quote: monthly payout for a specific premium. If you take no options, then that is really it, there is nothing else the life insurance company needs to tell you. Any fees are included. There is no way the quote or illustration can be misleading ("too good to be true"): either you will sign at this price or you won't. If you sign, the payout is guaranteed, for life. It is still nice to see this constant nominal amount in year-by-year table form, example . Here is another e...
by Quebec
03 Mar 2024 14:20
Forum: Under the Mattress: Protecting Your Money
Topic: 5-year laddered GICs
Replies: 29
Views: 1395

Re: 5-year laddered GICs

robgizz wrote: 02 Mar 2024 21:17 The last couple of years though, my bank has not been very generous. I am now only able to get 0.05% extra, ie 4.55%.
As you noted, 4.55% on the 5 year GIC is currently better than what you could get at Questrade. So what's wrong with that?

One hypothesis to consider (and I'm speculating here) is that maybe Laurentian's posted rates are currently competitive because they really want to attract deposits (you've probably read about their troubles in the news). Since their posted rates are already high, there is not much room for negotiation.

Whereas in the past, they would post lousy rates to catch uninformed customers, but then were open to negotiation with their good clients.
by Quebec
03 Mar 2024 12:53
Forum: Retirement, Pensions and Peace of Mind
Topic: Retirement Countdown: Start of 2025
Replies: 74
Views: 4455

Re: Retirement Countdown: Start of 2025

Shante wrote: 03 Mar 2024 11:57 I am wondering if a term certain annuity to bridge to your CPP/OAS years might be another option to generate those payments.
A declining GIC (or bond) ladder can generate equal payments every year to bridge an income gap, just like a term certain annuity. In a registered account, you just buy compounding GICs (or strip bonds) and use one GIC (or strip bond) per payment. A bit more complication in a non-reg account, but still totally doable. There is a finiki article on declining GIC ladders coming soon.
by Quebec
29 Feb 2024 21:03
Forum: Retirement, Pensions and Peace of Mind
Topic: Single premium immediate annuity (SPIA)
Replies: 95
Views: 3899

Re: Single premium immediate annuity (SPIA)

OptsyEagle wrote: 29 Feb 2024 13:32 3.0% on 1st $100,000
(...)
1.0% on the balance.
Good information, thanks. Added to the main annuity article, with the implication for payouts on larger purchases.

I've also added the refund option to the SPIA article, along with a clearer message that younger annuitants should check payouts for guaranteed life annuities just in case.
by Quebec
29 Feb 2024 07:23
Forum: Retirement, Pensions and Peace of Mind
Topic: Single premium immediate annuity (SPIA)
Replies: 95
Views: 3899

Re: Single premium immediate annuity (SPIA)

What an excellent writeup. Thanks Jase. It took me a while to really understand SPIAs (life annuities). When I presented the concept to my wife, her reaction was: why would you give your money to an insurance company? My initial explanation was obviously not fully convincing, as I probably explained the interest and return of capital, but did not explain the mortality credits well. But those are key, since they provide the longevity protection and are the key reason somebody would buy a SPIA, in my opinion. Without mortality credits, you could just build a fixed income ladder. Or invest in a diversified portfolio. But what if you live long and the ladder or diversified portfolio runs out? Another important aspect is the "licence to sp...
by Quebec
27 Feb 2024 15:25
Forum: Financial Planning and Building Portfolios
Topic: Moving from Asset Allocation ETFs to Individual ETFs and Recommendations for Bond ETFs
Replies: 11
Views: 1289

Re: Moving from Asset Allocation ETFs to Individual ETFs and Recommendations for Bond ETFs

1. I feel confident about picking the ETFs for the equity portions of the accounts but less so for the bond (fixed income) portions. I don't want to pick individual bonds but would prefer some type of bond ETF(s). Is it reasonable to pick a single one bond ETF (e.g. ZAG, XBB, VAB) that is Canadian based? Or should we also have US and international bond exposure (e.g. by way of VBU, VBG). finiki articles: * Canadian bonds: ETFs * Foreign bonds In our case, we still overcomplicate things and have some VAB (broad market Canadian nominal bonds), VSB (short term Canadian nominal bonds), a GIC ladder, and some real return bonds (in ETF format). We own no foreign bonds (beyond what is in VBAL). I was very happy with the VSB and the GICs (together...
by Quebec
26 Feb 2024 07:43
Forum: Now Hear This!
Topic: Serving Canadian investors for 18 years and counting ...
Replies: 44
Views: 6664

Re: Serving Canadian investors for 18 years and counting ...

Peculiar_Investor wrote: 25 Feb 2024 10:09 Special credit over the past few years to FWF member Quebec for their tireless effort to expand finiki with many new articles. 👍👍
Thanks! The latest effort is called Single premium immediate annuity. Pensions for people who don't have a company pension.
by Quebec
18 Feb 2024 15:22
Forum: Retirement, Pensions and Peace of Mind
Topic: Decumulation? Really?
Replies: 94
Views: 5662

Re: Decumulation? Really?

StuBee wrote: 18 Feb 2024 15:14 My question is whether or not there will be any impact on her RREGOP when she initiates her RRQ?
Her RREGOP pension will decrease suddently at age 65, regardless of when she takes QPP. If she takes QPP at age 65, the system is designed so that the sum of RREGOP + QPP at age 65 is similar to RREGOP alone at age 64. This is called "harmonization" or something like that. If she takes QPP at any other age, there will be a sudden step. Try the simulations at SimulRetraite.

ADDED LATER:

re-reading your post, I see your wife is already 65. So no impact on her RREGOP pension when QPP starts, it's already factored in.
by Quebec
18 Feb 2024 15:09
Forum: Financial Planning and Building Portfolios
Topic: Retirement Income Style Awareness (RISA)
Replies: 28
Views: 2076

Re: Retirement Income Style Awareness (RISA)

BRIAN5000 wrote: 18 Feb 2024 15:06 Isn’t it the last chart
No, that's withdrawal rates versus stocks, rather than probability of failure versus stocks.