Search found 5165 matches

by brucecohen
18 Feb 2018 13:49
Forum: Retirement, Pensions and Peace of Mind
Topic: Annuities
Replies: 35
Views: 832

Re: Annuities

Her and her husband, both retired high school teachers, are now 70 and he still works part-time, so their financial situation is far from ideal one would surmise and this is with a couple that once were members of one of the most enviable pension plans in this country. If he was a career teacher he...
by brucecohen
18 Feb 2018 13:38
Forum: Retirement, Pensions and Peace of Mind
Topic: Copycat Annuity
Replies: 7
Views: 491

Re: Copycat Annuity

Given the significant amount of money involved, can't a tax payer ask the CRA for some kind of advance ruling? If yes, are there costs involved in that? Yes, you can seek an advanced tax ruling but there are criteria and it would cost at least several hundred dollars as CRA charges for the time inv...
by brucecohen
17 Feb 2018 00:27
Forum: Retirement, Pensions and Peace of Mind
Topic: Annuities
Replies: 35
Views: 832

Re: Annuities

In my plan the commuted value or annuity option is available when you retire. I've confirmed this with hr. I doubt that very much and suggest you ask the pension plan's administrator or, better yet, check the member materials published by the pension plan. DB plans are able to guarantee benefits fo...
by brucecohen
16 Feb 2018 16:55
Forum: Taxing Situations
Topic: Budget 2018
Replies: 56
Views: 1409

Re: Budget 2018

I believe in the theory that income should only be taxed once, which means that lottery wins are not taxed because the winning ticket was purchased with AT income, and similarly capital assets were purchased with AT income. Sounds good but you don't have to think it out that far. I'm not a gambler ...
by brucecohen
16 Feb 2018 09:23
Forum: Retirement, Pensions and Peace of Mind
Topic: Annuities
Replies: 35
Views: 832

Re: Annuities

I haven't seen this topic covered much. The reason I'm interested is my pension is underfunded The funded status of your pension plan matters less than the financial health of your employer. If the company is in reasonably good health it should be able to make the contributions required to properly...
by brucecohen
15 Feb 2018 21:56
Forum: Taxing Situations
Topic: Budget 2018
Replies: 56
Views: 1409

Re: Budget 2018

I thought we already have a form of estate tax. It's called "deemed disposition on death". Aside from PR, all property is already taxed. To impose another level of estate tax on top of that would be pure theft. Deemed disposition only hits unrealized capital gains. As I noted above, there was no ca...
by brucecohen
15 Feb 2018 21:47
Forum: Taxing Situations
Topic: Budget 2018
Replies: 56
Views: 1409

Re: Budget 2018

Bruce: Who builds and maintains the roads and bridges that private businesses rely on? Who educates their workers?.. 1. Government right now but ought to be done by private business - for the most part. As critics of Trump's new infrastructure plan have pointed out, business will only fund infrastr...
by brucecohen
15 Feb 2018 18:55
Forum: Taxing Situations
Topic: Budget 2018
Replies: 56
Views: 1409

Re: Budget 2018

Don't believe there is a law which would prevent Buffet, Gates and Soros from transferring their estates to the government. Yes, they could do that. Instead Buffett and Gates are giving their wealth to charity through the internationally respected Bill and Melinda Gates Foundation while Soros is fu...
by brucecohen
15 Feb 2018 14:20
Forum: Taxing Situations
Topic: Budget 2018
Replies: 56
Views: 1409

Re: Budget 2018

Inheritance taxes are unfair and bad for the economy, which is why they will probably be implemented. Inheritance taxes undermine small private businesses, including farming. Of course really wealthy individuals always find a way around them. It depends on the level at which the tax kicks in. Warre...
by brucecohen
15 Feb 2018 09:46
Forum: Taxing Situations
Topic: Budget 2018
Replies: 56
Views: 1409

Re: Budget 2018

[They just need to make the PR exemption to be the average for the metro area. So $1 million in Vancouver and $150k in Regina. Then when someone buys a $10 million property on the waterfront in West Vancouver and resells it for $30 million, $19 million will be taxed as regular income (not Cap Gains...
by brucecohen
08 Feb 2018 21:50
Forum: Taxing Situations
Topic: Tracking USD/CAD Capital Gains and ACB
Replies: 2
Views: 131

Re: Tracking USD/CAD Capital Gains and ACB

As you may know, on your Canadian income tax return, any income received in a foreign currency needs to be converted to Canadian dollars. Some brokers show the converted amount on their end reporting T5 slips in CAD, but others report in USD and leave the conversion up to you. And every time you pu...
by brucecohen
31 Jan 2018 22:59
Forum: Taxing Situations
Topic: Helping friends switch from mutual funds to ETFs
Replies: 24
Views: 627

Re: Helping friends switch from mutual funds to ETFs

Cap gains tax due only on non-registered funds. No tax due on movements within RRSP.

Were any of the mut funds bought on a deferred sales charge (DSC) basis? If so, report back and we can offer tips on how to reduce that hit.
by brucecohen
31 Jan 2018 17:32
Forum: Taxing Situations
Topic: CG tax on rural home
Replies: 2
Views: 139

CG tax on rural home

A developer has offered to buy a friend's home on 19 acres and I'm trying to figure out her tax position. CRA automatically treats 1.2 acres as tax-free principal residence. The home is close to the road so land needed for driveway and parking might bring that to 2 acres. All 19 acres will be tax-fr...
by brucecohen
23 Jan 2018 21:01
Forum: Financial News, Policy and Economics
Topic: NAFTA is dead. So now what?
Replies: 58
Views: 3240

Re: NAFTA is dead. So now what?

From Axios article titled Asia has moved on after U.S. withdrawal from TPP : Just today, the 11 remaining TPP countries announced that they have reached a deal, which could be signed as early as March, without the U.S. A number of other regional and bilateral trade negotiations were concluded in 201...
by brucecohen
23 Jan 2018 13:10
Forum: Taxing Situations
Topic: Cost of US citizenship?
Replies: 6
Views: 326

Re: Cost of US citizenship?

If you want to play it safe with the IRS being a US citizen living in Canada means: No TFSA No RESP No RDSP No Canadian-domiciled unitized investments (ETFs, mutual funds, most REITs) outside of your RRSP/RRIF* Cost + extreme aggravation of filling annual US tax return(s). Your LLC means you'll like...
by brucecohen
23 Jan 2018 13:04
Forum: Taxing Situations
Topic: Cost of US citizenship?
Replies: 6
Views: 326

Re: Cost of US citizenship?

If you want to play it safe with the IRS being a US citizen living in Canada means: No TFSA No RESP No RDSP No Canadian-domiciled unitized investments (ETFs, mutual funds, most REITs) outside of your RRSP/RRIF* Cost + extreme aggravation of filling annual US tax return(s). Your LLC means you'll like...
by brucecohen
20 Jan 2018 19:15
Forum: Financial Planning and Building Portfolios
Topic: Financial Planning Standards Council, FPSC
Replies: 1
Views: 118

Re: Financial Planning Standards Council, FPSC

The guidelines are published in very late spring or mid-summer. Your link for 2017 shows a July 31 release date. FWIW, IQPF started the practice of producing and publishing assumption guidelines. AFAIK, FPSC tags along though they might pay a fee to IQPF.
by brucecohen
19 Jan 2018 09:33
Forum: Retirement, Pensions and Peace of Mind
Topic: Copycat Annuity
Replies: 7
Views: 491

Re: Copycat Annuity

A friend sent me that article a few days ago and it was new to me too. I wish Alexandra (an FWF member) had included numbers from a real case so we could see how much of a haircut the plan member took. In addition to covering the market and longevity risk it assumes, the insurer has to cover the cos...
by brucecohen
16 Jan 2018 09:10
Forum: Under the Mattress: Protecting Your Money
Topic: Important change to the Amazon.ca Rewards Visa Card program
Replies: 76
Views: 2569

Re: Important change to the Amazon.ca Rewards Visa Card program

gaspr wrote:
15 Jan 2018 21:31
Have not got my letter yet but expect to shortly.
Have not got mine yet, but did get a new card to replace the one that expires 2/18. New card expires 2/22. :roll:
by brucecohen
15 Jan 2018 09:43
Forum: Financial News, Policy and Economics
Topic: NAFTA is dead. So now what?
Replies: 58
Views: 3240

Re: NAFTA is dead. So now what?

From Axios, a political news service in Washington: The White House will never admit this publicly, but the president is developing a softer attitude towards the North American Free Trade Agreement (NAFTA). Five sources who've spoken privately with Trump about NAFTA say he's taking more seriously th...
by brucecohen
10 Jan 2018 13:31
Forum: Retirement, Pensions and Peace of Mind
Topic: Pension holdback amount that company won't release to me
Replies: 3
Views: 200

Re: Pension holdback amount that company won't release to me

Defined benefit pension plans in financial stress are allowed to delay commutation payments to departing members. The situation you describe seems especially dire and I'll guess that you were in a multi-employer pension plan. Such plans are common in industries like construction where union tradesme...
by brucecohen
30 Dec 2017 09:28
Forum: Retirement, Pensions and Peace of Mind
Topic: New Hampshire Move - 401K to Roth Conversion
Replies: 10
Views: 312

Re: New Hampshire Move - 401K to Roth Conversion

I am guessing the OP has little to no 'value' built up in Canada having left in 1983. Thirty-four years of absence pretty much means a lifetime. Likely means no OAS, no CPP, etc. I wouldn't dismiss CPP. I left the US more than 40 years ago with only 8 years of Social Security contributions -- 2 yea...
by brucecohen
29 Dec 2017 20:18
Forum: Retirement, Pensions and Peace of Mind
Topic: New Hampshire Move - 401K to Roth Conversion
Replies: 10
Views: 312

Re: New Hampshire Move - 401K to Roth Conversion

I can't comment on your plan but here is an on-point article. Well before returning to Canada confirm that the organization holding your retirement plan will let you trade in it once you become a full-time Canadian resident. If you made any contributions to CPP or QPP before moving to the US make su...
by brucecohen
28 Dec 2017 09:50
Forum: Financial News, Policy and Economics
Topic: Clippings 2017
Replies: 345
Views: 20668

Re: Clippings 2017

NYT has an interesting article on how Sweden is embracing, not just coping with, the introduction of industrial robots. That includes unions as well as management.