I am not really sure where to post this. I have a parent that lives in another country (tax treaty signed with Canada), and is considering the move back to Canada (they retired and moved to the other country, but now circumstances changed as their spouse died).
They have a pension amount of ~600EUR per month, plus they are receiving a bit from OAS (~$100) and CPP (~$500). They have a bit in a RIF account as well, but when all is added up, the...
Our details below with questions. Thanks in advance for the help.
Emergency funds: We have One years worth of expenses in a savings account (not included as a part of the portfolio)
Debt: None (paid for house, no mortgage)
Marital Status: Married
Provincial Residence: AB
Age - Him 50, her less than 50, no kids
Annual Expenses - Approx $50k
Size of portfolio - ~1.2 Million (Excluding house and emergency funds)
My accounts are at RBC DI
LIF account has existed for 2 years, unused/no holdings
LIRA account (Ontario jurisdiction) is transferred 100% in-kind to a LIF account right now (e.g. send the transfer request forms today)
I have 60 days from the date of transfer into the LIF (i.e. from now) to request 50% of the LIF be transferred to my RRSP
I am 55 and not retired, perhaps in 5 more year or who knows....
I have a modest federal LIRA, which cannot be fully withdrawn using unlock 50% at age 55 or older and then w/d the remainder which has to be under 50% of YMPE.
Moving 50% from LIRA to LIF now won't get me anything, except smaller balance.
Would it make sense to do it later, when I am ready to start LIF w/d?
I am thinking, when I retire, I will
1. Fund my retirement by...
I am currently a resident of the United Kingdom and I have just started looking at OAS.
It is clear from the Government websites that I am eligible for OAS, with the amount depending on the number of years I lived and worked in Canada. Normally OAS is clawed back at 15c on the dollar for any amount of income over a threshold. Non residents have to report their world wide income on an OASRI form, T1136. However, the Government guide for this...
I will be eligible for a small pension based on having worked in England for a few years before emigrating. Can anyone on FWF point me to a site that provides information on buying back-credits for a British Government pension?
Thanks,
Moe
After reading through Ontario pensions plans sitting on unclaimed $3 billion owed to people | Financial Post I am left with one thought. Interesting article but am I missing where it tells people what action they might take?
Tens of thousands of people in Ontario who are entitled to more than $3 billion in combined pension benefits aren’t collecting them because pension plan administrators can’t locate them.
Given the discussion in which devolved somewhat into the effect of OAS clawback on marginal tax rates in retirement, I'd like to encourage a discussion of how big an RRSP has to be before it's too big?
Once you get to age 71, income tax rules will force out at least 7.38% of a RRIF every year. If you have a million dollars in a registered plan, that's $74k per year. Add in CPP and OAS and you're well into the third tax bracket and OAS clawback....
Canadians now expect to need $1.7 million to retire: BMO survey
The eye-watering figure is the largest sum since BMO first started surveying Canadians about their retirement expectations 13 years ago. It’s also a drastic increase from the $1.4 million in savings Canadians expected to need for their nest eggs just two years ago.
I'm 55, thinking about working less. A number of people in my social circle have been spreading rumours that drawing down the RRSP is a good idea now, to avoid high marginal tax at death and/or OAS clawback in 10 to 15 years. I'm thinking, at a minimum, I should make sure the spouse and I are each at the boundary of the lowest marginal tax bracket. That is, we should be at least reporting income of $53,359, below which the marginal tax is 25% in...
For someone starting out in saving for retirement (tfsa or rrsp), what are the pros and cons of choosing a Robo advisor versus financial advisor? Thanks :)
Hope this is the right place to ask this rather odd question. I am now officially retired (53 years old) and living solely off the proceeds of my investments. So, if I apply for a credit card or perhaps try to get a new cell phone provider, what would happen? Meaning, since I have no employer and no traditional paycheque, am I at risk of not being able to get items such as these? Thanks in advance!!
I paid into a corporate-matching RRSP plan for the past 20 years. Now that I'm newly retired I may want to have the option to sell some of the stocks and bonds as required to help fund my retirement. I'm using a bucket strategy approach to fund my annual cash needs. Question is, how do you know if a stock or bond is up or down if you've been buying them in monthly increments over 20 years? The whole bucket strategy is to not sell stocks when...
I will retire on August 31, 2021.
At that time, my age will be 65 years + x months.
I plan on starting OAS immediately after (or shortly after) retiring.
Plan A:
I start OAS on September 1, 2021.
Plan B:
I start OAS on January 1, 2022.
The following reasoning tells me that I should choose Plan B.
The reasoning:
With Plan A, I would get y dollars of OAS for the last 4 months of 2021. But my salary for...
For someone without bequest motives , here's how to spend 8.8% more at 65 by delaying OAS to 70.
The same calculation could be done with CPP, but I chose to do it using OAS because most people get full OAS, so they all get the same amount, whereas few people get full CPP, so they all get different amounts.
Let's say that I was 65 in 2015 and just retired with a $1,000,000 portfolio. Let's also assume that I would get to spend, on average,...
How do FWF members living in a couple plan retirement while taking into account future CPP and OAS payments?
My concern is primarily about the drop in payments on the death of one spouse. How do people plan financially for the surviving spouse?
If a couple was to delay CPP and OAS as late as possible (70 and 72), the couple could probably get near $30K to $40K in benefit; this would be a nice inflation-adjusted income floor to use as longevity...
I’m curious what everybody’s daily routine looks like in retirement.
If your routine is random, what are some of the random things you enjoy doing?
My days are very similar:
8am get kid ready for school
8:50am drop kid to school
9:15am coffee with dad or errands (grocery, bank, doctor)
11am gym
12pm social media
2pm lunch
3pm walk dog
4pm pick up kid from school
5pm kid extra curricular activity
7pm Netflix/Prime
9pm help kid with...
First and foremost... thank you! I've been lurking these forums for the past years but this is my first post. I live in the USA, but love this north of the border forum a lot more than others I've found south of the border. :D
Post is long as I owe it to this forum to provide details.
I finally did it. Wife and I retired officially on Dec 31, 2022. I will be turning 40 next month.
I know this is young to retire by most standards. Both my...
I can retire in 2 years with a healthy pension. No mortgage, spouse has own pension, no kids.
Does anyone see why I wouldn't park my pension for 1.5 years now (at age 54 ) and buy back my pension with RRSPs and WD them while on an unpaid leave?
(officially retire at 56, but stop working at 54)
This is probably worth a separate thread considering that most discussion on FWF is about retiring at the opposite end of the income spectrum.
How to plan for retirement on a low income John Stapleton spent a 28-year career in social assistance policy with the Ontario government. He’s now a consultant who helps people plan for retirement if they expect to live mainly on government old-age pensions.
As part of the estate planning process, I have an informal document which I wrote for my spouse (and executor) called What to do if I die . I update it every few years. This is printed out and placed in the same folder as my will. Another name for this document would be letter of final instructions . I have showed the document and its location to my spouse. There are both financial and non-financial considerations in there.
Is there any reason not to write Questrade a cheque (well, I guess a check !) from my US bank account to fund my RRSP, where I invest on the US dollar side anyway?
Questrade is fine with it. Just asking if there's a gotcha that I'm not thinking of. Thanks.
friend still has a mortgage on the house
spouse and friend both own their own corporations and can adjust their salaries
they plan to max out RRSP so salary themselves 171K this year
they plan to max out 2023 TFSA but have large TFSA room
spouse wants to pay down mortgage at 1.9%
I argue that this money is better off going to TFSA room remaining
if uncomfortable with all of the extra savings, then split 50/50...
Since I wasn't automatically enrolled and deferred payment until 70 I applied using a paper application last April. I would have otherwise used the My Service Canada Account online application form but it was unavailable for ages. Hence the snail mail processing route (registered and they got it) with a request for the first quarterly payment in March, 2023. By July I was curious and phoned (waited 90 minutes), then phoned...
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 am 42. TFSA and RRSP maxed out. I have no debt/mortgage and I own my own primary residence (a small/simple condo). I have been an avid saver my whole life and, as a result, I have accumulated a portfolio of about...
An 89 year old relative is worried that she is running out of money. She only has her small gov pensions, and investments with IG Wealth Management with a RIF worth about $30,000 now. She has been with IG for a long time, but I am concerned that they are taking too much money from her with very high fees and little return and wonder if she could do better with alternatives. She is resistant to change as she has put her trust...
The recent excellent and informative post by OptsyEagle Actual Timeline for Executing an Estate has inspired me to post my question.
I'm in the process of redoing my will; the draft is ready and signing is scheduled for next week.
I am single, retired and have a relatively uncomplicated estate. My eldest daughter is named primary executor; she and her sister are co-beneficiaries 50:50.
Is is likely that she will revoke her executorship for...
The subject of what percentage of pre-retirement income a retiree needs to maintain lifestyle has come up a number of times in a number of threads. Per Longinvest's suggestion I've opened this to provide one home for periodic chats and info.
I was prompted by this piece from today's Globe .
Actuary Fred Vettese examined pre-retirement spending for a two-earner middle-income couple with two children over the period 1990 to 2019 and concluded...
Looking for a book recommendation on Will and Estate Planning. Ideally canadian and fairly basic/simple to understand.
Me and my wife want to start putting together a will as well my mother has made me the executor of her will, so I would like to have a better understanding of the process.
I have some questions pertaining to the below situation, any insights or thoughts would be appreciated:
- Parents have been married for 25 years
- How do married spouses usually structure their wills? if one spouse passes, does the surviving spouse inherit everything? What about their children?
- Or, is it often the case, that if one spouse dies, the will is set up such that their estate will be...
I'm trying to transfer Cash from my RRSP to RRIF via TD Direct investing, but it won't allow due to no drop-down option for RRIF. Do I have to call in to DI or visit a TD branch, or is this option available online via DI?
FYI- in my attempts to reduce our MTR as each of us passes, I have learned the following from our MB CU:
As I have POA over my DW,s affairs, at her death I will not inherit her RRIF as per my expectation, as the CU will force the account to go to her estate, then to probate and the executor can then transfer the RRIF over to me. Apparently the same applies to my spousal RRIF. It will be treated the same way. Any thoughts appreciated, Dejavu.
I'm sure this topic has previously been discussed ad naseam but a topic search came up nil. According to this video, the 4% rule has been upgraded by the person who invented it to about 5% - 7%. :shock: Personally 4% seems quite adequate for me but it would be comfortable to know that this is on the low side rather than a potential concern as I realize some here believe a better solution would be around 3%. I like his advice regarding having...
Greetings everyone!
I have to decide if I want to receive my US Social Security benefits in USD or in CAD.
The two options are available. In both cases the monthly payments would be deposited in my bank account at National Bank of Canada (USD account or CAD account, as per my choice).
My question is the following:
If I were to choose to be paid in CAD, what kind of exchange rate would I get?
Does anyone know?
Can someone recommend a book or a website which covers the basics of estate planning in Quebec? My situation is quite simple:
- Canadian citizen
- married to Canadian citizen (who ditched her USA citizenship a few years ago)
- kids either self-sufficient or on their way to become self-sufficient
- notarized will
- paid house
- no debts
- DB pension with 60% reversal to spouse and 10 (or 15?) year guarantied
- 401(k) in the USA
- RRSP, TFSA...
Happy Day everyone
I turn 65 this month and have opted to take CPP and OAS. My Wife, in January, at 63, will start CPP.
I have read a little and have a notion of what pension splitting is and does, but am still confused, about when and if it is a good idea.
Neither of us has a pension.
Our goal is to stay in the lowest tax bracket in Ontario
My wife will convert RRSP to riff and withdraw minimum in 2023
Looking for a layman's explanation of when...
For seniors in Canada, there are three different ways of withdrawls from a US $ RIFF account.
a. Cash transfer to a Canadian $ account. This can be done online. The conversion rate is US $ selling rate. This is straight forward.
b. Cash transfer to a US $ account. The value assigned to withdrawl amount is based on daily US $ nominal exchange rate. This is also straight forward.
c. Transfer securities to US $ non registered account. Typically,...
The dates for the next few payments of OAS are as follows :
November 28, 2022
December 21, 2022
January 27, 2023
February 24, 2023
Question #1.
This may sound like a stupid question to some of you, yet its answer may provide some insight for understanding and answering questions #2 and #3.
Is the November 28 payment considered to be the payment for the month of November or the payment for the month of December?
I am in the process of reviewing and condensing all my financial accounts. I have multiple accounts with cash not earning much in interest or no interest at all. My questions are regarding necessary Emergency Funds in retirement. I have been retired since 2019 and have done limited contract work since then - mostly due to COVID - so essentially no significant future earned income.
Income: Defined benefit pension
US social security in US funds...
Going to start a small DB pension soon and am looking at the Joint Survivor Pension Options which are 60%, 66%, 75%, 100%.
While the 60% option provides the largest monthly pension, the monthly payments for 66%, 75% and 100% options are not that much lower, but the payments for the spouse are significantly higher in case of the death of the pensioner. Yet I hear that the most popular choice is 60%. I guess actuaries have crunched the numbers and...
I had contributed to RRSP (Registered Retirement Savings Plan) with my old employer for around last 3 years where they matched 100% with my 3% salary contribution .
Now I have changed my employer and the new employer does not match with RRSP contribution at all but they will match 100% contribution with 6% salary contribution for DCPP (Defined Contribution Pension Plan). Both new and old employers use Manulife for contribution purpose. I have...
I am currently age 54 and have 30 years of service in the Canadian Blood Services DB pension plan.
The earliest retirement age with an unreduced pension in this plan is age 65. I have recently found out there are other DB pension plans (HOOPP, OMERS, etc.) that allow you retire at age 55 with an unreduced pension (+bridge benefit until you're 65) if you have 30 years of service.
I would love to be able to retire at 55 without having a...
I've searched the internet and found a few answers, but none seem very clear to me so I am hoping someone here will help!
The accumulated TFSA contribution limit up to and including 2020 totals $69,500.
I opened a TFSA in the summer of 2020 using a HISA promotion with Tangerine and contributed the full $69,500. I wanted to park the money until I could learn a little more about investing in ETF's.
If I have to withdraw say $ 20,000 from my RIFF next year ..can I arrange to take 50% in cash and have 50% in securities transferred to a TSFA (room available of course).
If the answer is yes how do I arrange this and when .Has anyone done this?
Hi All
My wife and I will turn 65 in 2023 and we will drastically reduce our working income. We need some thoughts on how to fund our retirement years.
We have been lucky and I think we have saved enough to last us until we die. I recently sold my small business so our saving comprise:
RRSPs: 1.4M fixed income
Non-Reg: 0.7M fixed 1M equity
Company savings: 2.5M fixed 1.6M equity
wife's pension: 1k/month
My wife who is retired at 63 was advised to convert RRSP of which she has $260K to RRIF and draw around $25K starting next year. Realizing that she will be taxed at source of course at 30%, but will get much back with total retirement income in household under $80K, would she be better to cash TFSA's out, of which she has $125K?
So cash out same amount of TFSA as she would on a RRIF drawdown?
What am I missing in this important decision?
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