So my company's RRSP plan started finally. I don't have my paystub yet but I can already see that the pay deposited into my bank is $X smaller, and I can see in my Sun Life account that $X (6% of salary) was deposited, as well as an employer match of 50% of X. And $X is exactly how much I asked to have deducted.
But the problem is... for RRSP that's supposed to be a pre-tax deduction right? So my pay deposit should not be $X smaller, it should...
Values below were obtained via the internal HR tool.
It seems to me the projections for the next three years are ridiculously optimistic. That said, can one count on the amount at age 62(present date)?
What can be valid claims against an Estate a few examples - lawyers will be involved looking for general comments
14 years ago mother dies estate is still not settled
1) Executor #1 & 2* decided to subdivide property missed the market eventually sold for $250k less then if listed immediately. Great if there was upside liable if there was downside?
2) Executor # 1 had properties listed at unmarkable prices so took years to sell until market...
Quebec's financial planner regulator and FP Canada, the group that runs the CFP designation program, have released this year's Projection Assumption Guidelines for financial planners. Totals 23 pages.
These Projection Assumption Guidelines are intended as a guide and are appropriate for making realistic long-term financial projections. Predicting the direction the economy will take and how financial markets will evolve is a difficult exercise...
I am retired and I have a defined benefit pension. I am curious as to how much it is worth. In other words, what would be the price of an annuity (purchased today) that would give me the same benefit as my defined benefit pension. There must be a calculator somewhere or a thread on this forum.
My age: N years old. (N > 65)
My wife’s age: M years old. (60 < M < 65)
Current pension payments: X dollars per year.
COLA: half of inflation up to a...
Here is my real life situation since 01 January 2015.
I am in pure withdrawal since that time though less than I had originally thought since I have had more work income than anticipated.
My 01 January 2015 balance was not 1 Million$. I do not want to make public my real numbers but I will use 1 Million$ and all other numbers will be proportionate to that one as I actually experienced it...
I was recently injured on the job and have had to go on medical leave while I recover. My insurance company is paying me about 60% of my salary but it is not taxed at all.
My total household income is now 50k after tax. While this is tight for me, I may receive some other forms of assistance which could allow me to make some modest contributions towards my retirement fund, and I am now in my late thirties.
This may be a silly question, but I am legitimately curious. The fundamental question is how do you control what your heirs spend the money on. Let me give a specific example.
Let's say I die with $500,000 and its is to be split between my two sons. I have a bunch on concerns but let's narrow it down to one. If they happen not to out live some or all of that money, I don't want them giving it to drinking buddies. I basically want to control who...
Hello everyone,
Long time reader first time poster here.
So I am in need of some advice/opinions on my financial situation.
So to start I am 54 and retired for 2 years with a wife of 52. We live in Alberta. Have no Debt of any sort. Kids are out the door.
We have all our assets with Investors Group. I know, bad move but convenient at the time and my advisor has been really good.
But I am getting tired of the fees they now charge as I have a...
I was wondering how you might respond to a real-life conversation comment when a retiree says betting on greater than 3% after inflation is like betting on winning the lottery . I mentioned the FP Canada Standards Council Projection Assumption Guidelines but it didn't convince them.
I'm thinking I could I use Firecalc to build a graphs that show that a 3% withdrawal rate is almost always safe in the long term.
I arrived at your site in order to post a link to this week's government paper on RRIF stats, that (afaik) is the only calculations for more than about a decade? I won't be maintaining public access to it, so take a copy if you like. There is a privet members bill getting support from all the parties, proposing to reduce RRIF draws ... because of a list of woe-is-me excuses that really are just We don't want to pay tax so screw our kids ....
If I already have LAPP, would you say that is not enough for retirement and I should still save/invest to ensure a comfortable retirement? I am 39 y.o. and probably at least about 20-25 years away from retirement but I don't have much in savings at all. Long story as to why but divorce is a major part of it. I have a RRSP but very little in it as I only started 2-3 years ago and only contributing 2% of my paycheck which is matched by my...
I'm trying to figure out if I'm saving enough for my retirement.
This, of course, means I need to make a whole bunch of assumptions...
- average rate of return for investments until retirement
- % of income I want to replace in retirement (eg: the 80% rule)
- % of savings I can spend per year in retirement (eg: the 4% rule)
- retirement income from CPP, OAS
- etc.
The one I'm wondering about at the moment is how I should project out my...
Should I mind if my RRSP account has my full legal name?
I already have an existing non-registered bank account at a FI which I plan to also open a RRSP account. When the bank account was originally opened, it only asked for the first name and last name and so that has been my account name. My legal name has a second and third name.
When I was about to open the RRSP online, the system is asking for the full name but since it's online and all...
We met with a retirement planner person. They didn't use Monte Carlo probabilities, nor backcasting returns (FireCalc style), but rather some basic assumptions, which seemed conservative (3% inflation, 6% total return after fees, i.e. 3% real return after inflation, 2.5% real-estate growth).
Their forecast seemed reasonable (aside from the fact that 1) it had no variation/probability, and 2) it was a bit pessimistic compared to 150 years of...
I've never leased a car before, usually paid cash after we'd saved enough. When I was in my 20s I think I financed my first RX7, but that was decades ago. We've always kept our vehicles for 15+ years.
I'd like to try this VPW thing, but we'll need a new car soon. So, my options are:
1) Lease or finance the car over ~5 years, and pay for it with my VPW monthly withdrawals, and tighten our belts a bit initially, having more money to spend when...
I'm deferring CPP until age 70 and was planning on deferring OAS as well, until I read this article;
I'm turning 65 this July, and while still on the fence for deferral, this article has somewhat tipped the scales to starting at 65, because I now feel that waiting until 70 is pretty much pointless unless clawback is a consideration.
I was wondering what others think about the logic presented in the article, specifically the age 91 breakeven...
I am helping a relative who is looking at buying an Annuity. Having been spoiled by the DIY brokerage world, it pains me to be locked into an insurance agent to buy an Annuity. I know it is the way it has to be done, so does anyone have recommendations for finding an agent that is any good?
Rather than making this about my particular search (Victoria, BC) perhaps people could offer general tips for finding good agents.
I was looking at the forum to find if there is any topic for an approximative cost(retiree single/couple) for:
--dental care
--extended health care (vision/drug/paramedical)
For AB:
-- ABC has retiree plan exclusively for ages 50 to 75
-- ARTA has some options for Public/Private Sector
--Great-West Life/Manulife - in need for a call to get a quote.
It's time for us to at least pretend we're retired, while I start winding down my day job. Our idea is to live off the investments as if we're retired, using a VPW strategy (say 70/30 equity/fixed) with bridged CPP/OAS to age 70. (To trick ourselves, any remaining salary that comes in we'll bank into a separate equity probably VGRO and try to ignore it for a while.)
Say our VPW withdrawal rate was $95K/year $23.75K/quarter. I'm thinking about...
C.D. Howe Institute says TFSA beats RRSP for many, if not most, Canadians if you consider marginal effective tax rates before and in retirement.
Here's the press release:
Despite the widespread assumption that saving for retirement in a tax-deferred plan such as a Registered Retirement Savings Plan (RRSP) is the right way to go, many – perhaps most – Canadians would do better adding to tax prepaid plans such as Tax Free Savings Accounts...
A friend was telling me they know someone in B.C. who pays about 6k per year for Telus LifePlus, and they get to see Dr's right away and any imaging and lab work next day. The friend said it was private health care, and avoids the public queues, anyone know if this sounds about right?
I've been putting off naming a power of attorney for far too long. Having now hit 70, it's time to bite the bullet.
I have no children, no spouse, and friends that, while dear friends, would not be suitable as a power of attorney.
I don't have a lawyer or notary. A younger, very responsible friend is my executor, but he lives in another province and I don't want to ask him to take on the additional responsibility of managing my affairs at...
Gic's in deceased name what can be done before probate?
One Gic is at 4.7% great we can just let it run but there is another GIC not due till 2024 that is at 1.6%. They have Death Cert. and Will and know who is executor. They will cut a check for the whole amount and send it in Estate of what the Executor wants at the moment is cash in the 1.6% GIC and put it in a savings account which earns 3%. Their response was...
I know this topic will have been addressed in a myriad ways in different posts over the years but I would really appreciate hearing about anybody's recent experience with giving up DIY financial management for professional management because of either declining interest or in anticipation of declining ability. I'm deeply convinced of the benefits of the low cost, low complexity approach widely espoused on FWF and feel very uncomfortable dealing...
My name is Justin. I'm in my mid 20's and I live in a Canadian city that borders the USA. I work in the USA and therefore I do not contribute to a CCP through my work. I was wondering if there is anyway that I can contribute to a CCP to set myself up better for retirement. Any help is appreciated, thanks!
Quebec allows notaries to both write a will and also be the executor (liquidator) of the will, provided they don't charge for the latter service.
Can anyone recommend a notary in Montreal who would do this for me, in English?
My existing, younger executor must withdraw (for family reasons), and I'm stuck for a new executor: I have no spouse or kids, and my friends are either too old, or not suitable. My estate is small and simple, and most of...
I've just spent a long afternoon wading through three existing threads about VPW, without finding the answers I'm seeking. My eyes glaze over at all the scenarios, what ifs, and analysis; it's too much for me. I've also read the finiki page on VPW. So I thought it might be helpful for newbie Canadian retirees like me (no aptitude for spreadsheets, and just starting mandatory RIF withdrawals) to start a new thread with some very...
not claiming residency or obtaining benefits under a claim of residency in another province, territory or country
for example, Ontario does not have this requirement.
if you are a factual Canadian resident you are paying 50% income tax to Canada. but you may be a resident abroad too, or have a private health insurance (many countries have private health insurance on top of any resident insurance which you may not use if you use the private...
A few of our older (and wiser) posters have occasionally alluded to this question.
In a recent Globe and Mail article Fred Vettese asks Should older retirees trust their financial judgment? - The Globe and Mail A U.S. study first released in 2012 found that as people age, they have a diminished ability to make sound financial decisions. The study asked Americans aged 60 to 88 a series of multiple-choice questions on insurance and investments....
For example, is there any way for someone with an expected retirement income of $150,000 per year to ever take advantage of OAS? This level of income exceeds the $143,000 upper ceiling range for someone who starts their OAS at age 70. The answer is yes.
Has anyone attempted or planning to attempt this 1 year OAS “super-ceiling”? I had never heard of it so a FWF search didn’t yield much. Does it go by another name? Is it just irrelevant?
I opened a TDDI LIF account on Feb 8 and had nothing but major problems ever since. After calling them for 2 months, some of the issues are fixed now but I'm still having an issue with the Account Details page. On the Performance, Gain & Loss and Projected Income Tabs, I can't click on the Selected Account box. When I try to click on it, I get a red circle with a diagonal line through it and the box can't be opened (see attached pic). Anyone...
I'm presently reading Backyard BBQ Financial Planning . The book makes the case that for the self-employed, CPP is a bad deal. It mentions that if you die, all you'll get out of it is $2,500 in death benefits. That I knew about.
But it's the rate of return that got my attention. It mentions 3% as a rate of return, which is similar to what I've read before. The book doesn't mention it, but I believe that is a real rate of return. Tax advantaged...
For over a decade I've been waiting to see what the commuted value of my DB pension with my former public sector employers would be. I was expecting the decision to be a no-brainer, but the numbers up to the age of 75 are not nearly as different as I was hoping they'd be.
I've contacted the pension plan for more info as to how they calculate any future increases as COLA is not guaranteed. I'd like to make as informed a decision as possible. In...
I'm looking for a sanity check on a question my wife and I have been considering. I understand the following is usually a personal decision, just looking for some outside perspectives/double check my own math.
Question: Would it make sense to cash out our TFSA to become mortgage free at the end of our current mortgage term?
Numbers etc.:
- ~$308K outstanding on a $405K mortgage on a variable...
A couple with joint bank and brokerage accounts. No other assets. No will. Both sides have siblings.
When one of them die:
1. Will the surviving one have immediate access to the cash/assets in the joint bank/brokerage accounts?
2. Can the siblings of the dead sue the surviving couple on any estates in the joint bank/brokerage accounts?
Debated where to put this post, so if I missed, I ask the Mod to please move or delete if need be.
So, I have always kept 5% of my worth in US Dollars. Used for travel and for a bit of a hedge. So, now I have retired and am moving to a GIC only portfolio to finance my retirement, I still have that chunk of USD. Torn between keeping it or just converting it to $CAD and putting it in a GIC. Most US travel is over now and I need the income stream....
My wife and I are seriously thinking about early retirement. I read somewhere people are paying much less tax on dividend incomes. We are targeting 50k income each annually and melting RRSP as a priority. I have a small corporation and it has some retained earnings. Our emergency funds are about 80k. So as of today, it yields 3200.
my income:
20k dividend from Canadian public companies
5k usd dividend from US public companies
15k from my RRSP...
I would like to purchase bonds and hold them to maturity (a bunch maturing each year). After TFSA, RRSP accounts seem like a good place to hold them. I have room left on my RRSP. I am thinking of topping it off so that I can purchase the bond in the RRSP instead of the non registered account.
The tax return advantage would be minimal as my income is, and will be, stable. I am not doing this for that. I see...
Wife has a UK Nurses pension that has come to term from my wife working in the UK prior to 1990 its not a significant amount of money in reality and my wife is still working in Canada for a few more years.
We have done the usual google search and read articles and it looks like there are not rally any options to really reduce the tax hit with foreign pensions any that were available ended in 2017.
Someone close to me is an executor for their parent's estate. They got their first bill from the estate lawyer, after achieving probate in Alberta. There was some sticker shock. Also, the lawyer served notice that they are raising their hourly rate by about 20% to over $600/hr. (The original rate in the engagement letter was interpreted as a price quote that would be honoured, but that's a separate issue...)
Looks like we made a small excess RRSP contribution to my spouse's account. Turbotax says it will be carried forward to future year . Do I need to do anything except remember that this amount will become part of her 2023 contribution total?
One of my useful lockdown projects had been to update the list of bank and brokerage accounts, credit cards, utility accounts, etc., that I keep in a file with our wills. If I die, my husband has a start on clearing up the mess. If we die, our executors can find all of the important things in one place.
I handle all of our investing without an advisor. We have a nice portfolio of dividend stocks that provide us our retirement income. Husband is...
i am a canadian citizen. i recently submitted my oas application in the residency portion of my oas application i lived and worked in US from march, 03,1997 to sept. 27, 2001. the rest of my residency has been in canada. total residency in canada is 42.47 years. my question is this in 1997 a passport was not required to enter the US from canada to live or work, only a drivers license. i have no documents to that i can provide to service canada...
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