I know what I can do, but I don’t know how to do what I can do.
For simple math:
LIRA 200k
Minimum withdraw 5k
Maximum withdraw 10k
@55 I “unlock” by converting LIRA to a LIF and transfer 50% to rsp and 50% to LIF I can also transfer 5k per year from LIF into RSP (assuming minimum withdraw).
How exactly does this work? I already have an RSP. Obviously I open up a LIF, but for the actual transfers do I ask my institution to do the...
In my retirement plan, I will probably spend most of winters where there is no snow, as I hate it. And I also travel quite a few times a year. From what age does it come more complicated to get health insurance, assuming the traveler (fit and active male, non-smoking) has no medical condition? I knew 95 yo man who walking a lot daily - he is almost my model how to age!
Over the last 2 years my wife has had a few pay bumps. At this point she is making more now the she will in retirement.
We have ample room in our TFSA's and RRSP's. We started late to investing. The last 3-5 years we have been contributing more to the TFSA vs the RRSP.
We are wondering if it would be better for her to start contributing more to the RRSP for tax purposes. As I understand it, it is typically better to contribute to the...
There are bits and pieces in various topics about single premium immediate annuity (SPIA) however until now there hasn't been a dedicated discussion. From another topic
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.
Ontario resident here. I am trying to buy LTCi for my parent, but going through the list of companies / institutions that offer it , there are only 3 companies that have a rating of A or above. Manulife, SSQ and Sun Life. From browsing their website, only Sun Life gives an in-depth look at the coverage. How's everyone else's experience buying this insurance? Were you able to find more trustworthy insurance companies that offer this type of...
I have 200K federally regulated LIRA.
I've been thinking about unlocking and transferring 50% of the LIRA into my personal RSP at age 55.
Obviously, I wouldn't be able to close the LIRA with the remaining 100K, as it is more than 50% of YMPE.
However, I feel by transferring to the personal RSP:
1. I'd have more control over withdrawals, i.e. no regulated max rates of w/d.
2. Also, the remaining 100K plus whatever growth will...
I've let my contribution room stack up and I'm trying to fix it now.
I want to make the maximum contribution today but obviously I don't want to accidentally over-contribute.
Could someone confirm that my logic is correct here on what I can contribute today:
2023 RRSP deduction limit: $156,791.00
Contributed in 2023 + early 2024 $123,748.43 (only deducted $61,460 of it - I think that's not relevant for contribution limit discussion tho)
Thus:...
I work in the USA and make a good salary $ >200k USD/year. My financial situation is stable.
My parents still live in Ontario and are divorced. Both are coming up on retirement age (they are each 64 years old). We are first generation immigrants and came to Canada without much to our names. My parents put all their efforts/money into raising me and worked low wage jobs. As a result they do not have a reasonable nest egg for retirement. I...
This was not what we expected to find: on average across all wealth levels, most current retirees still had 80% of their pre-retirement savings after almost two decades of retirement according to research conducted jointly with the Employee Benefit Research Institute (EBRI). One-third even grew their assets over the course of retirement.
While that sounds like good news, the reasons why some retirees...
Hello there. First post. Looking forward to some responses. Having done lots of reading here, it’s obvious I will receive some quality advice. I thank you in advance.
I have a LIRA and I’m not sure how I should go about getting the money out. There are several options.
1. Convert whole thing into LIF
2. Unlock 1/2 to rsp, the other 1/2 lif
3. Buy annuity (if even possible with lira)
4. Take out non registered investment loan (withdrawal...
Hi
I understand that if there is designated name, the amount in these accounts are outside of the estate.
In the event after the account holder’s death.
Is it part of the duties / the obligation of the executor of will to let known to the residuary beneficiary of the will, the name of the designated beneficiary of these investment assets even they are not in the residuary beneficary's name?
Thank you in advance of any answer.
Note: : This VPW foward test was restarted a few days later in the July 4, 2019 post with a simpler income dampening approach.
Retirement funding can be simple. It's sufficient to combine income from the Canadian Pension Plan (CPP), Old Age Security (OAS), both possibly delayed to age 70, and a pension (if any) with portfolio withdrawals from a balanced index portfolio using a sensible approach.
I'm just wondering if there's any reason to unlock 50% of a LIRA if one doesn't need the money. Our RRSPs are quite a bit bigger than the LIRA so we have plenty of liquidity to deregister RRSPs if we want to spend money.
I understand that once one converts a LIRA into a LIF, there's only 60 days to unlock 50% of it. So, it's a one-time opportunity. But now I'm thinking we should wait until age 71, or until we suddenly need the money, to...
I will retire in about two and a half years. My wife will retire in about one and a half year.
Our main sources of retirement income will include the following:
- my (very generous) DB pension plan
- our pension from QPP
- our Canadian OAS
- my (very small) RRSP
- my wife's (relatively large) RRSP
- our (maxed out) TFSAs
- my (relatively large) 401k from USA
- my wife's (small) 401k from USA
- my (very small) SS from USA
- my wife's (moderately...
More than 90 Canadian business executives recently signed an open letter calling for governments to make re-evaluating pension model “a national priority,” with a focus on introducing unclear mandates not related to financial returns. The idea is to force investment board to buy Canadian assets. One has to assume that the idea didn’t come out of nowhere and that prior discussions with Government ministers had taken place. I also assume that...
This is a 16 minute American clip, but I viewed clip with an open mind and I found myself on the fence for this recent controversy regarding our safety social nets
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...
I was wondering whether people generally draw on their TFSAs in retirement, or keep them for a legacy, or? Maybe it’s all over the map.
For the first few years, I will admit I saw the TFSAs sort of as an afterthought, didn’t always even fund them, didn’t much focus on investing them. I was still working and distracted, and the amounts were pretty small. Then when we retired, I sort of reserved our TFSAs for housing the speculative parts of our...
I contributed $10k to my spouse's SRRSP account in 2023, $8k more this year. 2023's already come to $20k worth (within 2023) due to investment capital gains. Say if she has the whole $28k ($20k + $8k) to holding GICs from now and no other contributions will be made thereafter, when 2026 comes, can my spouse withdraw $20k without triggering the attribution rule or must she wait until 2027 to avoid income attribution back to me? Thanks.
Over the past 5 years I have been going back and forth in my head about the amount of money that I will need to retire. Ive paid for a portfolio analysis (fee for service), Ive calculated savings rates, Spending rates, thought about renting in retirement VS owning something and have basically went through every scenario I could think of with regards to what I want from life going forward.
There is a lot of talk about decumulation strategies on this forum but I am curious as to how many of the regular posters actually have a portfolio that keeps growing during retirement.
Unless there is a truly outrageous counter-offer from my boss, I will quit exactly a year from now. I will periodically write about my preparations for retirement here. Maybe people can learn from this folly. Maybe I can learn from you. Maybe it will be a little entertaining for the both of us.
Why am I retiring?
For a while now, the balance between what is more important, making more money or better use of my remaining time, has been...
I understand my spouse can make contribution into my SRRSP so she gets the tax deduction. If I also have RRSP contribution room, can I contribute to the same SRRSP and claim the tax deduction myself, or must I open a personal RRSP for that purpose?
I having been lurking behind the scenes for a while and am looking for arguments and or critiques regarding the retirement strategy of withdrawing only dividend income to fund ones retirement?
I am single own my residence and at this point feel I can comfortably live on the dividend income from my portfolio consisting of mostly dividend growth companies in Canada.
I am certain this has been discussed before but cannot seem...
Given current interest rates, would anyone consider investing their entire RRSP in GIC's only? For example, 5 year GIC's, or even 10 year GIC's at 4.35%? The advantage is that your principal would be secure for 5 or even 10 years. Downside? Elevated inflation could result in a negative real return and ......?
This is something I've done in the past: a partial transfer out of my work's RRSP system into a self-directed one at another institution once there's enough that the other place will pay the transfer fee.
But this time they aren't allowing it: I got a letter saying
We are unable to process your request as your group retirement savings plan does not allow withdrawals or transfers while you are still employed.
I guess there is it in black &...
Interesting.
Competition for those bank-issued monthly income mutual fund products I'll bet.
Rob Carrick writes in the Globe & Mail (behind paywall), A new ETF offering 4-per-cent retirement income is going to be big .
You can tell an investment product is going to be a hit when you instantly see a huge and hungry market for it.
The new Vanguard Retirement Income ETF Portfolio, which makes its debut on Wednesday, is designed to pay...
My latest Canada Pension Plan video answers how it might be possible to income split with the CPP…in less than 5 minutes.
I also introduce an elevator-and-pulley analogy to help visual how marginal tax rates work. I hope you find the video helpful for understanding the CPP.
I'm working with my mom on transitioning to retirement and am exploring the possibility of buying an annuity with part of her funds (with the rest in a RRIF). My question is whether I have to go through an insurance broker to buy it. I see the various annuity rate tables with the different annuity providers, and it's fairly clear which offer the highest rates (with or without a guarantee period). I imagine there's more to it than calling up...
How much money does one (or a family) need to retire? No DB pension, just CPP and OAS (let's leave GIS out).
At 65, 60, 55?
It's a popular subject. I recall reading a book called The number, IIRC.
It made an obvious point that people with different incomes need different 'numbers'.
I see posts here with people saying, they have more than they need, donating to charities (let's leave taxation favorable schemes out) etc.
I can't imagine ever...
I've used Retireware for financial retirement planning on and off for several years, but need a replacement as they are ceasing operations.
It was great to find a low-priced Canadian financial and retirement planning software (e.g. income splitting, CPP, OAS, provincial tax rates, etc.). It also did Monte Carlo estimations.
Unfortunately, their web site has announced they will cease that product on Dec. 31, 2021. No new subscriptions will be...
We're in the US and all US citizens but hoping for some advice from our neighbors to the north. :D
I'm trying to help my sister with a question about moving Canadian assets to a US custodian. My sister owns an account that she inherited from her husband when he passed away. I don't know the exact kind of account. I'm trying to get more details.
Her husband worked for Wisconsin Central Ltd. railroad in the US. This railroad got bought by...
I've been self-employed for a good chunk of my working life, which means my income has been variable. There were about 15 years of max CPP contributions but a lot of partial-contribution years. I think I'm at about 80% of the maximum at the moment. So now I'm 64 and planning to delay my CPP till 70. But I still plan to work on a few projects, which means six more years of partial CPP contributions. The question is, is that a mistake? Will I end...
1. Keep your equities outside tfsa and defer capital gains to a year where you purposely have a high enough income that losing GIS is compensated by a lower marginal and average tax rate. You need about $60000 of extra taxable income to make it worthwhile. You will have to pay tax on oas where you may not have paid tax previously.
2. If you have rrsp contribution room after 65, you can make rrsp contributions to avoid the 50 percent tax on gis....
RRIF newbie here. My first quarterly scheduled RRIF payment of $27,500 is coming on March 1. I need to sell stocks to ensure there is enough cash in my Questrade account to fund the transfer. Question, as a matter of practice do you sell all your stock in one day to fund the sale or cost average it over a number of smaller sales in the week(s) prior? Or do you sell on a very up day, even if it's a few weeks before the payout? Thx.
I am not sure if this is bad etiquette on this forum, but looking for some recommendations. I am going to be the executor of an estate in the near to medium future. The estate is is very simple. However, for things like probate and even some simple tax planning, I might want some professional advice. This forum is awesome, but let's just say I have family members that would only listen to advice if they are paying for it.
I've developed a spreadsheet to calculate CPP and QPP pension amounts.
DOWNLOAD LINKS
Online ( Google Sheets ): Read the following instructions before clicking on the link!
Click on the link below.
Sign into your Google account (if not already signed in).
Make a copy of the file as follows: File -> Make a copy...
The copy is yours to modify or download.
Here is the link: CPP-QPP
Download ( Microsoft Office Excel ): CPP-QPP.xlsx...
The CPP maximum is $1,365.77 in February, and
The CPP maximum is $1,366.96 in March, and...
Unlike the calculation for the Basic CPP, the retirement pension for the Enhanced CPP works by taking an individual’s best 480 months (40 years) on a going-forward basis. The maximum monthly amount of $1,364.60 is only applicable for January 2024. As the monthly enhanced parts accumulate every month that follows, the maximum retirement pension for new...
Someone on this forum suggested recently that locked-in retirement accounts should be the last ones to be accessed, as a way of limiting the amount of financial damage that can be done, either by an investor losing mental capacity, or by an unscrupulous POA or person trusted to help with finances. A lot of investors want to convert their LIRAs to LIFs ASAP, and unlock 50% where permitted. That exposes the funds to being taken or used...
Hello,
In 2007 we moved a UK Plice pension to Canadian RRSP, due to family reasons we moved back to UK and became UK Tax residents. However the RRSP is still in canada and as we are now not Canadian residents no financial advisors in Canada can help us, and in UK we just can’t find a financial advisor to help us - How do we move this RRSP money to UK - best tax efficient way ? is there anyone who could give us some pointers please - we are now...
Over the last year, a group of Bogleheads forum members, including FWF's own LadyGeek, have been helping me to develop a new variable withdrawal method called VPW along with a back-testing spreadsheet to investigate how it would have behaved in the past. Here are a couple of related links:
Bogleheads discussion thread:
Bogleheads Wiki VPW page:
This morning, I have just uploaded a new version that includes Canadian historical...
I received a query from a client who wanted to see how a well diversified portfolio would have done under withdrawal starting at the top in 2000. (Common question these days. :?) To answer the question, I updated some work I did about two years ago (see e.g. this post ). I added a line for the simplest possible inflation adjusted portfolio, namely one invested entirely in RRBs. The result looks like this ...
Some FWF members have either a) retired early or b) plan to retire early. Say early is 55 or earlier.
Assuming no other incomes and equally sized registered and non-registered assets, I would be curious to listen to lessons learned from those who already retired and strategies from those who plan to retire earlier as to optimal times to tap into their registered investments.
Would it be better to strategically melt down registered assets in...
- I've been told by a friend who is older and also a dual citizen that their estimated social security payments that they will receive will be about half of what they expected. Because the USA social security says if you're getting a Canadian pension, you're not entitled to your full social security
- does anyone know if this is true?
- if it is true, I would start taking social security as early as possible and then hopefully get the full...
I'm trying to work through some early retirement scenarios with respect to one of my RRSP accounts but I'm struggling a bit with determining the optimal outcome on an after-tax basis.
Scenario: 40 years old, married with spouse (35) who still works full-time. Retired in April 2022; expect to have zero or minimal employment income but consistent, yet variable amounts and forms of investment income in perpetuity. Expect existing savings +...
If I contribute to my TFSA in US dollars and the total amount exceeds the $7,000 limit slightly due to exchange rate fluctuations, would that be an issue with the CRA? Particularly if it's only over the limit by a small amount, less than $100?
Several people have posted in the past that they have both an RRSP and a RRIF open where a substantial amount, if not all that is withdrawn from the RRIF.
My understanding is that FI has to take the FMV and multiply it by a prescribed amount to end up with it.
My questions for those who are doing this or may know are:
a) when does your FI take the FMV?
b) if one plans on a $50K withdrawal, does one transfer a higher amount to have more of the...
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