Search found 5117 matches

by brucecohen
22 Jun 2017 00:12
Forum: Retirement, Pensions and Peace of Mind
Topic: CPP Deferral debate - Fred Vettese article discussion
Replies: 219
Views: 4330

Re: CPP Rules - Fred Vettese article

I can't speak for Bruce, but that was certainly my impression, and the impression of the people I was working with at the time (I was at Sun Life). The plan was deliberately designed to alleviate poverty among seniors, and so was front-end-loaded. That means that early beneficiaries, i.e. those rea...
by brucecohen
22 Jun 2017 00:07
Forum: Retirement, Pensions and Peace of Mind
Topic: CPP Deferral debate - Fred Vettese article discussion
Replies: 219
Views: 4330

Re: CPP Rules - Fred Vettese article

I can't speak for Bruce, but that was certainly my impression, and the impression of the people I was working with at the time (I was at Sun Life). The plan was deliberately designed to alleviate poverty among seniors, and so was front-end-loaded. That means that early beneficiaries, i.e. those rea...
by brucecohen
21 Jun 2017 09:46
Forum: Under the Mattress: Protecting Your Money
Topic: extended warrenties for new cars
Replies: 8
Views: 324

Re: extended warrenties for new cars

If you have the room, take the money that would have been paid for the extended warranty and instead put it in your TFSA as a self-insurance fund. Or earmark an appropriate amount already in the TFSA. If you want to be anal, invest this money in a separate holding so its purpose and availability is ...
by brucecohen
15 Jun 2017 12:36
Forum: Retirement, Pensions and Peace of Mind
Topic: DB to DB Transfer (HOOPP/OMERS)
Replies: 40
Views: 812

Re: DB to DB Transfer (HOOPP/OMERS)

The imaginary surplus simply is not real money but a difference in actuarial assumptions. CV is the approximate lump sum needed now to fund the pension you've been promised by HOOPP. The key factor in that calculation is how much the money is expected to earn between now and retirement. The lower th...
by brucecohen
15 Jun 2017 10:07
Forum: Retirement, Pensions and Peace of Mind
Topic: DB to DB Transfer (HOOPP/OMERS)
Replies: 40
Views: 812

Re: DB to DB Transfer (HOOPP/OMERS)

Hrmm. Ok now I have a valuation: 5 years of service in OMERS will cost me $75,000 to buy in today. The current commutable value I have in HOOPP: $110,000 $35,000 surplus I'm being told I will lose if I go forward with this reciprocal pension transfer. I'm not sure I understand what you mean by "sur...
by brucecohen
13 Jun 2017 09:27
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Mortgage Professional (to check my statements)?
Replies: 10
Views: 285

Re: Mortgage Professional (to check my statements)?

Mike, this is a Canadian forum and Canadian mortgages are structured much differently than those in the US. You can probably get help by posting on our sister US forum, Bogleheads.
by brucecohen
13 Jun 2017 09:21
Forum: Financial Planning and Building Portfolios
Topic: Taxable Account Planning - US Expat
Replies: 24
Views: 893

Re: Taxable Account Planning - US Expat

I'm under the impression---please correct if mistaken---that RBC Direct Investing will produce 1099 tax forms for US citizens, as well as Canadian T3 or T5 forms. So case A seems like it will be straightforward for DIY tax preparers. For case B, will there be difficulties when it is time to report ...
by brucecohen
06 Jun 2017 18:12
Forum: Under the Mattress: Protecting Your Money
Topic: Historical 5 Yr GICs
Replies: 35
Views: 862

Re: Historical 5 Yr GICs

It would have been interesting to have seen that analysis. If your local library has The Toronto Star on microfilm look at the Nov 12, 2002 issue. What strikes me about doing this for an RRSP is how to include the various factors. It is not just that every year, 20% of your portfolio is due for rei...
by brucecohen
06 Jun 2017 17:40
Forum: Retirement, Pensions and Peace of Mind
Topic: RRIF Withdrawal
Replies: 14
Views: 553

Re: RRIF Withdrawal

I'm nearly five years from my first required withdrawal. I've begun migrating half my RRSP to MAW104. Without any careful consideration, I've been thinking about this: 1. A few months before the first withdrawal move the MAW104 holding to an in-house RRSP/RRIF at Mawer 2. Mawer offers an automatic w...
by brucecohen
05 Jun 2017 11:42
Forum: Under the Mattress: Protecting Your Money
Topic: Historical 5 Yr GICs
Replies: 35
Views: 862

Re: Historical 5 Yr GICs

This goes back to 1985 and a footnote cites a StatCan table as source. Bank of Canada used to publish GIC rates in a hard copy publication. I think it was called The Bank of Canada Weekly though it might have been their monthly publication whose name I forget. In 2002 I helped Jim Daw, then persona...
by brucecohen
03 Jun 2017 21:33
Forum: Retirement, Pensions and Peace of Mind
Topic: RRSP contributions
Replies: 2
Views: 158

Re: RRSP contributions

twa2w wrote:
03 Jun 2017 18:52
Yes but if you have little income it may make sense to use it in another year or spread it out over a couple of years.
Or make the contribution this year and on Schedule 7 delay claiming the deduction for use in a future year or years.
by brucecohen
18 May 2017 16:29
Forum: Retirement, Pensions and Peace of Mind
Topic: DB to DB Transfer (HOOPP/OMERS)
Replies: 40
Views: 812

Re: DB to DB Transfer (HOOPP/OMERS)

By my estimates, I won't get any PAR - assuming I understand the logic of PA/CV correctly. I have been with the company since 2004; the combined maximum RRSP room for 2004-2016 comes to about $270K. The CV is >2 times that and over 60% of CV is in LIRA. Its just that I am not 100% certain in my est...
by brucecohen
18 May 2017 13:08
Forum: Retirement, Pensions and Peace of Mind
Topic: DB to DB Transfer (HOOPP/OMERS)
Replies: 40
Views: 812

Re: DB to DB Transfer (HOOPP/OMERS)

Bruce, would you mind casting an eye over the following response I received from the company: If a PAR is required, that will be determined only after you have received the full payment due to you, i.e. after you have received all the instalment payments. A PAR is only necessary if the commuted val...
by brucecohen
17 May 2017 09:11
Forum: Financial Planning and Building Portfolios
Topic: Electric Vehicles (EV's) and their impact on Canadian energy companies?
Replies: 14
Views: 402

Re: Electric Vehicles (EV's) and their impact on Canadian energy companies?

I dream of buying a self-drive electric, but the 8-year timeline is nonsense. For starters, EV market development depends heavily on tax credits in the US and, as reported here , Republican administrations at both the federal and state level are in process of reducing or ending them. Second, trucks ...
by brucecohen
08 May 2017 08:46
Forum: Retirement, Pensions and Peace of Mind
Topic: DB to DB Transfer (HOOPP/OMERS)
Replies: 40
Views: 812

Re: DB to DB Transfer (HOOPP/OMERS)

Mordko wrote:
07 May 2017 19:54
I was given the Commuted Value, but not the PAR. Sounds like I was mislead on the timing of informing me what the PAR is going to be, so I will follow up - thanks.
Here is CRA's PAR guide for employers. Section 7 covers reporting deadlines.
by brucecohen
07 May 2017 19:15
Forum: Retirement, Pensions and Peace of Mind
Topic: DB to DB Transfer (HOOPP/OMERS)
Replies: 40
Views: 812

Re: DB to DB Transfer (HOOPP/OMERS)

Yes it is a Defined Benefit Plan. A very generous one with lots of benefits. And a private company. And open to new young hires. I left in 2017 and was told that PAR will be calculated once the commuted value is transferred (that will take 5 years), however should expect "no PAR" because there has ...
by brucecohen
07 May 2017 11:50
Forum: Retirement, Pensions and Peace of Mind
Topic: DB to DB Transfer (HOOPP/OMERS)
Replies: 40
Views: 812

Re: DB to DB Transfer (HOOPP/OMERS)

Hmm... I received no PAR, having quit at 47. Apparently there are never any PARs with the pension scheme which I quit - at least thats what I was told by HR. You use the term "pension scheme." Was it really a DB plan. If you left a DB RPP before 1997 there was no PAR. If you left after 1996 the onl...
by brucecohen
06 May 2017 14:44
Forum: Retirement, Pensions and Peace of Mind
Topic: DB to DB Transfer (HOOPP/OMERS)
Replies: 40
Views: 812

Re: DB to DB Transfer (HOOPP/OMERS)

Not sure a person in his 30s is particularly "lucky" to have a DB pension. Someone in his 50s - very much so. If both accrue the same service and have the same earnings base their pension will be equal. The difference is that DB funding for a person in his 30s is much lower because there's so much ...
by brucecohen
06 May 2017 14:22
Forum: Retirement, Pensions and Peace of Mind
Topic: DB to DB Transfer (HOOPP/OMERS)
Replies: 40
Views: 812

Re: DB to DB Transfer (HOOPP/OMERS)

There is no "surplus", it's a different set of actuarial guesses. HOOPP actuaries are less optimistic overall than the OMERS actuaries, and they think it will cost them more to keep the promise of paying you $x in retirement. It's not as if the contributions from you and your previous employer have...
by brucecohen
04 May 2017 16:03
Forum: Financial News, Policy and Economics
Topic: Which Broker Do you Use?
Replies: 113
Views: 3832

Re: Which Broker Do you Use?

Does BMOIL carry Mawer Balanced Fund (MAW104) . If so, what fee(s) does BMOIL charge on this?
by brucecohen
18 Apr 2017 13:20
Forum: Retirement, Pensions and Peace of Mind
Topic: strategy to withdraw RRSP after leaving the country
Replies: 13
Views: 7779

Re: strategy to withdraw RRSP after leaving the country

Depending on your age, it may make more sense to convert your RSP to a RIF and take payments. These are classified as periodic payments and normally taxed at 15% by Canada for non- residents. Check the rules if you do this as there are, or at least there were, maximums you could set the periodic pa...
by brucecohen
13 Apr 2017 09:17
Forum: Retirement, Pensions and Peace of Mind
Topic: Should I take commuted value or deferred pension
Replies: 28
Views: 979

Re: Should I take commuted value or deferred pension

How come? It seems like the chances of a broad index of equities failing to keep up with inflation over a long period of time would have to be fairly small. For that not to be the case, wouldn't we have to see earnings failing to keep up with inflation as well? Just wondering what I am missing. Fro...
by brucecohen
12 Apr 2017 15:30
Forum: Retirement, Pensions and Peace of Mind
Topic: Should I take commuted value or deferred pension
Replies: 28
Views: 979

Re: Should I take commuted value or deferred pension

(c) Equities are volatile, and there is a positive chance of losing money, even over a thirty-year horizon. The chance is vanishingly small, but it is non-zero. Some fixate on that chance anyway. The chance of equities losing money after inflation , over a thirty year horizon, is not vanishingly sm...
by brucecohen
10 Apr 2017 22:06
Forum: Retirement, Pensions and Peace of Mind
Topic: Should I take commuted value or deferred pension
Replies: 28
Views: 979

Re: Should I take commuted value or deferred pension

1. CPP has no access to a person's RPP records and thus no knowledge of how much he/she gets or will get. 2. The RPP has no access to a person's CPP records and thus no knowledge of how much he/she gets or will get. 3. Integration is an arbitrary calculation adopted by the RPP sponsor as a rough jus...
by brucecohen
07 Apr 2017 10:05
Forum: Retirement, Pensions and Peace of Mind
Topic: Should I take commuted value or deferred pension
Replies: 28
Views: 979

Re: Should I take commuted value or deferred pension

HOOPP and OMERS are both excellent plans. Though not automatically indexed, HOOPP has a very good record of keeping its benefits in line with inflation. I think OMERS is automatically inflation-indexed. If OMERS will grant full credit, transferring your HOOPP accrual would most likely be a good idea...