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?
Employment insurance isn't relevant to the self employed , with one exception. KPMG's 2022 tax planning book points out that you can choose to voluntarily pay the employee's portion of EI premiums (up to $953 in 2022) to qualify for special EI benefits such as maternity, parental and adoptive, sickness and compassionate care benefits. You can't qualify for regular EI benefits.
Above is the link to the federal government webpage on it. You...
Not sure if it's the right forum or it's been discussed before but I'd like some ideas from the forum.
My parents want to give us, three married adult children, a significant amount of money ($300k +) while they are alive but they want to make sure that the money stays with us and not our spouses in case of a separation. Is it as simple as keeping that gift in a separate account? What happens if I use that money, principle or...
In short, I was surprised to see these as an option for Canadians now and yet so little chatter about them on the Internet. Canada is leading the charge compared to the rest of the world in resurrecting the tontine and I see it as an important option given our aging population and the amount of citizens entering retirement rapidly. As someone without a DB pension, I was rather excited to see them as an alternative to annuities for building an...
The op-ed article Four changes to Ontario’s estate planning laws advisors and their clients need to consider - The Globe and Mail is probably worth a quick read for many of us.
Advisors and their clients should be aware of these new rules and seek proper estate planning advice to ensure that testamentary documents are compliant with the reforms and deliver their intended effect when executed.
Here are the key changes that they suggest need...
I've just entered into retirement at the age of 59 and my wife at the age of 51. We have no debts but have a number of investments/income (Pension, TFSA, RRSP, Cash Accounts). We will be on fixed income in 2023.
As with all retirees, I'm wanting to find out what my best cash flow strategies to limit taxes.
My question is who's expertise I should be enlisting? A financial advisor or planner? I'm wanting to leverage their expertise on looking...
I would like some advise on when my spouse should withdraw money from her RRSP/RRIF. I had a look at my wife’s 2022 and future tax situation and I disagreed with an advisor that recommended that she should aggressively be withdrawing from her RRSP between the ages of 65 and 71.
I would appreciate Financial Forum members reviewing her situation.
My wife has an RRSP of over $1,000,000.
I used the Wealth Simple tax calculator for Alberta where...
I have some leftover cash that I can deploy now. Was wondering if it was better to do a contribution to my rrsp or just keep it outside the rrsp completely. I'm currently about 3 years away from retirement and the corporation pays me $100,000 a year and 100,000 to my wife.
I haven't contributed to either RSP in about 5 years but prior to that have maxed out every year.
For The last 5 years any excess money was left in my professional...
When HOOPP pensioners retire their pensions are adjusted annually for inflation based off of CPI, 100% of CPI up to a max of 10%. Is this increase to their entire payment? Or are individual years adjusted separately based on the CPI % increase for that given year? Whats confusing me is this statement from their website:
“Contributory service credited to years before 2006 receives a guaranteed annual COLA increase equal to 75% of the previous...
My mother will soon be alone, as my father will pass on quite soon. She is having significant cognitive difficulties and she will need in-home care (and later long term care, most likely) after my father passes away. I will probably end up needing to coordinate getting these things set up for her and also to organize protecting her from fraud, abuse, and low quality care after arrangements have been put in place.
I have been told by a Financial person that our $550K ($300K in Mine/$250 in spouse) in RRSP needs to move to an RRIF for a couple of reasons. I am turning 65 at end of the year, and want to start to draw down on RRIF income as we have no pensions.
So with CPP, OAS, and investment income, should we try to stay under $86,000 max as a household income for tax purposes?
Is the advice to start RRIF drawdown now good advice?
I believe I have an unusual situation here. I am 62 years old. I have received an inheritance of roughly 450,000 dollars. I have had
relatively no savings during my working years due to low paying jobs. I have paid off all debts, maxed out my TFSA. I only had about 45,000 dollars in an RRSP but put 160,000 in a new investment account. So, I have an unused contribution room of 204,000 dollars. Next year i could claim...
It's that time of year where I find myself taking a 2nd look at Roth conversions planned before the end of the tax year. I have seen articles in the past suggesting Canadians planning to return to Canada should maximize Roth conversions before returning to Canada. I have not seen anything recent to the contrary. Any recent information or experience?
I live in a high tax State and also fall into increased IRMAA premium territory. Those...
I have a friend who has asked my opinion on an inheritance situation.
The details:
- jurisdiction: Ontario
- her father passed away in July
- her father's long time (25+ years) common law partner passed away in September
- each had wills made 20 years ago:
- father left everything to partner but if she predeceased him then all goes to his daughter
- common law partner left everything to father but if he...
Hello, I am new here but have followed this site for a while. I searched the forum and wiki but I haven't found quite what I'm looking for so I hope someone here can help.
We are a newly retired couple in our mid-50s, living in Quebec. Our current holdings are $1M, which is 50% LIRA/RRSP(maxed) 20% TFSA (maxed) and 30% cash from the sale of our home. No debt. LCOL area. Add in a DB pension valued at $500k plus CPP and OAS for the full picture:...
Although a Real Estate lawyer could answer this question I thought I'd ask on here first.
Property is used as vacation property owned by XXXXX, with buildings, now Deceased, property is on file as, In the estate of XXXXX.
Property gets split in half, one with the house, one bare lot, both properties sold. So a new lot was created any GST owing on either and who is responsible for paying GST, the BUYER or the SELLER?
Just looking for some advice on various pension options and some upcoming decisions I need to make;
Have been receiving LTD from Sunlife for 1.5 years now. They are asking me to apply for CPP Disability Pension, which is fine.
They are also asking me to apply for a HOOOP disability pension, I don't really want to do that since I'm getting free accural until I'm 65, currently 59.
Do i have to apply for the HOOOP disability pension, I...
Hello from south of the border. I am 67 and planning to retire at 70.5. Quick question for which there is no easy, quick answer: WHAT DO I DO WITH ALL MY RETIREMENT ACCOUNTS?
Being a responsible diligent life-long saver, I am faced with prospect of spending it all before death do we part. Problem is I've got ORPs, TSAs, TDAs, IRAs, mutuals, annuities, etc. strung out at Fidelity, TIAA, USAA, BoA and US Treasury (already taking social security)....
I am seeking some advise on a job change decision with the view of impact on my retirement income.
My scenario as follows:
- New to Canada, age 42, Married, working in IT, BC, Canada
- Currently working with an employer with DB pension plan, 4.5 years service, pension as calculated with no. of years of service, recent statement indicates about monthly 4000 (joint life) at 65 retirement, assuming my salary doesn't increase. If I leave the...
How much do people profit on their TFSA investments? The Canada Revenue Agency doesn't say, but their latest info allows estimates to be made of the average gains and losses made in TaxFree Savings Accounts from 2010 to 2019.
The world's most famous investor, Warren Buffett, recommends that ordinary folk looking for long term investments should use broad market exchange-traded funds. Therefore, for comparison, I've also shown the total returns...
This post is related to the topic of removing an executor. However, to avoid mixing up the topics, I thought I'd ask this separately.
Some of the above responses to the executor removal thread prompt me to ask exactly which tasks the executor needs an official appointment for. I've seen appointment by a court referred to as certificate of appointment letters testamentary and letters of administration .
I'm posting to assess the desirability of hiring a lawyer to encourage and, if necessary, require an executor to transfer the estate documents to a professional estate management firm. I'm conflicted because the condition of the estate documents is a shambles, and the executrix is in over her head, but won't admit it. The opposing consideration is that many have advised me that estate litigation can be prolonged and costly.
I want to transfer DCPP to RRSP. As per letter I've got from Sunlife who manages DCPP , the money is not locked in and can be transferred to RRSP. My question is if this transfer will somehow affect my RRSP room (deduction limit)?
I am writing from south of the border and was recommended this site from Bogleheads.org. I have been reading about Canadian rules which are somewhat different from the USA, and would like a review of the plan I put together for my sister (age 62) in BC. Widow with no dependents. She has no need to leave legacy funds. Will inherit around $300,000 in the next few years.
Currently she is receiving survivor benefits (CPP plus pension). She had all...
Hi All,
I’m new to the forum. Been reading various posts and gaining great information. Wish I had found this a couple years ago!!!
Before and after retiring we have been working with a financial advisor to put together plans. We tried to research the information our advisor was providing us to make informed decisions on the direction of investments and scheduling how/where to draw money from as we move along. Things looked great at first. Then,...
Hello all , Urko here. My wife and I are retiring in 6 months both at the age of 53. We are fortunate in that we both will have pensions with health care right away. In addition we have roughly 1.3 Mil in our 457's , 120,000 in the bank, $250,000 in the 529 plan,one child (17). House is paid off. No debt. I feel pretty good about it , just a bit concerned because of our young age. Maybe emotions are just stressing me a bit. Anyway, thanks group.
Retired at 58 end March. I have two indexed pensions from military service and the other from work for the Dept of Defence so inflation is mostly covered. I have three accounts: Taxable, RRSP, and TFSA that I manage through a discount broker. I find myself wavering on best investment strategy during retirement and am considering moving to XGROW and GICs in my RRSP, and XGROW in my TFSA. Taxable account is invested in dividend ETFs and select...
Wondering if I can get some collective brainpower to help me choose my best option.
Here’s the story:
I currently work for the government with a defined benefit pension plan (DBPP #1). I contributed to the plan for 2.5 years before moving to a different employer, also with a DBPP. I worked for employer #2 for six months, also a public sector employer with a different DBPP. I quit that and I am now in a new role with the government with much...
Hi, long time lurker hoping to get some opinions from the group. Last year I was let go from my exec position. My severance package ends in Feb 2023 and I do not intend to return to the workforce. In my former position my compensation pushed me into the highest income tax bracket. My former employer has been withholding the bare minimum of tax from my severance pay, I believe around 15%. My thinking is to take $90,000 in cash and put it into my...
Britain has a 40% inheritance tax that's payable by the estate, not the heir. Does anyone know if this would apply when a Canadian estate pays a bequest to a British resident? The amount might be about $250,000. The testator has no British status and the heirs are not immediate family.
I couldn't find anything about this on the net -- surprising given how many Brits have settled in Canada with family still in the UK.
Reports of Harper's speech at Davos suggest, amongst other things, that:
Harper said the country's aging population has become a backdrop for his concern about how to keep the country strong over the long term.
If not addressed promptly, this has the capacity to undermine Canada's economic position and, for that matter, that of all western nations well beyond the current economic crises.
Indeed, Harper said the country's demographics — an...
I have a RRIF GIC with a big bank that has the Product Name ‘ Redeemable GIC’ on the Transaction Confirmation sheet. It was issued in Nov. 2021 and matures in Nov. 2023 paying .7% interest
I tried to redeem and re-invest it in other RRIF GIC’s that pay a higher interest rate. I’m not withdrawing the funds out of the RRIF which would then attract taxes and be considered income.
However, the branch rep after talking to someone at the bank says...
Does anyone have experience with private health insurance?
My spouse and I (mid 50s in ON) don't have extended health insurance now and we might need diabetes meds ($400/m) as well as some other meds which are not cheap.
Would they cover pre-existing conditions?
My mother died recently. She had joint bank-issued GICs with my dad, most of which are years from maturing.
What happens to the GIC? Is it matured and the proceeds given to my Dad (he's the only beneficiary of the will)?
If it isn't matured, what happens to the CDIC coverage that she had? Is it discontinued? That would leave my Dad over the CDIC limit :(
My wife just got laid off and was offered a severance package consisting of multiple months of compensation. The separation agreement stated this clearly with no stipulations regarding such severance payout. It only stated the total, method, and time of payment. However the employer is now stating that if she is to take any interview or accept another job anywhere else before her final termination day she will not receive her severence...
Trying to understand issues around executorship of an estate.
Scenario: Widower in Toronto passes away with house ($1,000,000) and investments ($500,000 - split across RRIF, TFSA, non-reg).
Assets will go to children; one child will be executor.
Executor fees: I understand an executor can take up to 5% of the estate value as a fee.
When this happens, it is not clear from what I've read if that percent is inclusive of the executor's expenses or...
A bad decade:
Jan 3, 2000: 1455.
Jan 4, 2010: 1133.
A good decade:
Jan 4, 2010: 1133.
Jan 2, 2020: 3258.
An uncertain decade in progress:
Jan 2, 2020: 3258.
Jan 3, 2022: 4796.
April 25, 2022: 4296.
Jan 2, 2030: ????.
I have a very low 7 digit portfolio that I won’t need until 2031. It is mostly VBAL or VBAL-like. I do not plan on changing anything but I have to admit that the last 4 months have been a bit depressing...
My buddy's mum passed away. She owned a principal residence with his Dad, joint tenancy.
Officially the thing to do would be to remove her name from the deed and make his dad the sole owner.
But is this absolutely necessary? The father would like to just leave her name on it, and skip the lawyer fees.
Good day to all on forum. I am retiring in next couple months ( I think you know when you had enough). I have two part question.
Quick background: I currently have a DC pension and RRSP’s through my employment fund manager in Ontario. I also have some LIRA funds with my own financial broker from previous employment. It appears I am paying 1.2% commision per annum on these smaller amounts with my financial broker plus MER’s on mutual funds. I...
Hello,
I have some questions about income from RRSP/RRIF withdrawal and holding tax
If I want to have $30000 (withdraw) from RRIF/RRSP fund, the 30% holding tax is $10000 , so the total = $40,000 will be withdrawn from RRSP/RRIF account
- Is the $40,000 or is the $30,000 added to the net income (for OAS clawback status calculation) ?
- If I get $2000 tax (refund or credit) back from the $10000 holding tax - Is the $2000 added to the net...
I'm helping my friend with her retirement planning. She's approximately 15 years away from retirement. Her mortgage will be paid off prior to her retirement. She will be a low income retiree. She currently works part-time but has some opportunities to max out her TFSAs.
Based on our first planning meeting she will receive approx $18,000 per year from CPP, OAS and GIS in retirement. I've advised her for now to focus on maxing our her TFSA as...
My friend has a deferred profit sharing plan (DPSP) from Walmart where she currently works. If she leaves Walmart prior to retirement, she would have the option of taking the money now. Considering she will be a low income retiree receiving CPP, OAS and GIS, what are her best options for this money?
She's already planning on maxing out her TFSA in order to minimize any GIS clawbacks.
I assume if she transferred the DPSP money into a TFSA...
I have done some research on the subjects below but cannot find exactly what I am looking for.
Given the turmoil in the world today, seemingly in all jurisdictions, I began looking into share certificates. I have a stock holding in an investment account at a major bank and I intend holding that stock for the long term.
1. I have already ordered a share certificate for that stock and was told the charge would be $15 and it would take 6-8 weeks!...
In general, how flexible are financial institutions on making changes to scheduled monthly RRIF payments? In terms of changing the monthly amount or even stopping/canceling the rest of payments for the year?
I am thinking of converting a RSP to a RRIF this year and from what I understand there will be no minimum required payment this year.
So mid year, I will convert and set up scheduled monthly payments. However later in the year I may decide...
Found this quite interesting... discussion with Fred starts at the 3:00 minute mark.
From the Youtube notes:
Today, we get into a masterclass on retirement planning with a true expert in the field whose perspectives are distinctly evidence-based, Fred Vettese. Fred is a Partner and former Actuary at Morneau Shepell and author of three retirement books including Retirement Income For Life. We hear Fred’s thoughts on what people should be...
I’m looking for some advice from anyone with experience in Retirement Incentive Programs, preferably in Ontario and within the public sector, though I’m all ears from others.
I’m in my very-late 50s and a unionized provincial government employee in Ontario in the college system. My pension is Defined Benefit and I’m eligible to retire on full unreduced pension, which includes a CPP bridge benefit payable until age 65, in about 1 year, when I...
I have a retirement question relating to severance pay. Some background:
Early 50s and planning to retire within 10 years with a DB pension.
RRSP max
~$3000/year RRSP contribution room annually
TFSA max
Severance pay ~$80,000 at retirement
Current retirement rules with my employer do not permit a deferred pension (I have to start my pension immediately and receive severance in year 1)
Does it make sense to defer RRSP contributions...
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