Over the past couple of years I have been simplifying my holdings in our tax sheltered accounts from a big mix individual (dividend growth) stocks/REITs/+ index ETFs into mostly VBAL + GIC ladder and HISA (For income buffer). My non-registered account is still CDN dividend stocks (Too much capital gain to change now.)
This year (And last year) the bond performance has been poor (My spreadsheet indicates VBAL is up 1.45 YTD vs VEQT 6.17%) - it...
I am a US person living permanently in Canada. I have about $100,000 in a Roth IRA at T Rowe Price in a Retirement 4040 Acct (and about $70,000) in a 401k in the States that I would like to do something with. I realize I am not to contribute to the Roth and I have requested and received in Election from the CRA. I don't want my funds to be managed by a cross border advisor (like Raymond James) because the fees are high. What do you recommend?
I haven't seen this topic covered much. The reason I'm interested is my pension is underfunded and one option i have is to convert it to an annuity. What are the pros and cons of annuities? What are my options? What companies sell annuities? Is there anyone here who has bought an annuity? Any advice you have is appreciated.
Hello I have a modest pension of 1k per month. Now I have just sold my investment condo and I'm left with 500k and want to know how I can invest this to earn a passive income. My TFSA is maxed out and earns about 1100 per month with a mix of banks and energy stocks and I have no RRSPs. I also have 30k in an HISA. I would like low risk and avoiding the taxman as much as possible. Thanks
The Federal government shifted the administration of this plan over to Canada Life on July 1. In October I wanted clarity on an issue and I waited 3 hours before a person answered my call. I am down south in the US until December 10. Yesterday I noticed some flashes in my left eye and it is my only good eye. A Google search says that is a common sign of retina problems . I decided to see an eye doctor on Monday. I figured I should contact Canada...
I don't get it. When you go to withdraw or convert to rrif and withdrawal how exactly is rrsp creditor proof? Everywhere on internet says it's creditor proof but as soon as you use it for anything like withdrawals won't it get garnished?
I recently completed an RRSP transfer from Sunlife to Wealthsimple, and the funds have been deposited into my RRSP as cash. Now, I am considering purchasing funds with this cash. However, I want to clarify if this transfer, conducted by Wealthsimple, would count as a contribution towards my RRSP.
Thank You..
I came across this online Will and POA service with some friendly rates. Also allows for regular updating for much less than any lawyer I've ever encountered.
Wondering if anyone here at FWF has considered or used this service?
I have been living in Canada for 9 years and in the process of returning to the US for retirement. I’m 64 years old and a US/Canada dual citizen. I hope to return to Canada at some point but at this moment that is undefined. My husband and house are in the US. When I leave Canada I will have no family ties or property and believe that will put me in the position to make a full exit.
My RRSP is currently held at Canada Life through my...
I'm very happy to have found this forum and the boglehead universe! Looking for some wisdom after lurking for a bit.
TLDR; How much is too much to pay a cross border adviser?
I'm a dual citiizen, resident in Canada, and will be getting a $1M + inheritance windfall. The last couple months I've been getting my financial literacy up to speed and lucked into Bogle's mutual fund book and then Bogleheads.com and this forum. I know (now) that...
I remember reading somewhere here that the sweet spot of RRSP is 500k at 65? If so, what's the reasoning behind it? I know the more, the merrier and each and every individual's financial situations are different. But does it still hold true for aiming at 500k? TIA!
I am a new member here and like the VPW worksheet. I will be starting to draw down my RIF next year.
What is the best way to incorporate RIF data into the VPW?
Exclude the RIF values from the portfolio to obtain the monthly withdrawal for the other portfolio accounts such as the TFSA?
Put the RIF into the Defined Pension side using the annual minimum withdrawal or higher as desired?
My need is to establish a withdrawal rate for non RIF...
Hello All
After many many years of getting advice from this site, and having lived 65 yrs, I will now end my full-time career and just work one or two days a week for fun. I will need to start restructuring/deaccumulating the portfolio of investments ( that you all helped me grow) to fund my retirement life stlye, this will be pyscologically difficult as it is a complete 360 from the save save attitude I have. With the help of my wife who is...
The Year’s Maximum Pensionable Earnings (YMPE) comes up a fair amount. I wanted to share some work I’ve done on the subject of YMPE.
I wrote a description of the YMPE calculation. The technical paper includes:
References to CPP legislation.
References to the data used in the calculation of YMPE.
Description of how YMPE is incremented.
References to the data used when incrementing YMPE.
In the paper, I propose and transparently provide...
I would like to share an animated educational video about the Canada Pension Plan that I published.
This 6 minute video features a jug of water & ice cube tray analogy to visualize Canada Pension Plan rules and calculations. YBE, contributions and YMPE are covered. As are the dropout provisions.
I'm interested to learn what you think about the animation.
I appreciate the time of everyone who watched the video. Thank you.
If I have never maxed out my TFSA and currently have around 40,000 of unused contribution room from previous years. I then withdraw 6500 from my TFSA in April of this year and then redeposit the 6500 in May of this year that will leave me with a contribution limit of 27000 for the rest of this year and I would then get an additional 6500 at the start of next year to cover the amount of the withdrawal from previous year.
Want your money to go further in retirement? Defer CPP until age 70 (Fred Vettese)
In past articles, I have argued that retirees are better off waiting until age 70 to start their Canada Pension Plan pension, assuming they have enough savings to tide them over until then. Doing so increases the amount of guaranteed income they will have for the rest of their lives. It also reduces your long-term investment risk because you are spending your...
I will have used up all my 2023 and past years’ RRSP contribution room by December 31, 2023. Can I contribute more starting on January 1, 2024 and the money will be covered by my 2024 contribution limit? Or do I have to wait to contribute until early March 2024 for my contributions to be covered by my 2024 limit?
The internet is so enamoured of the fact you can contribute in Jan/Feb and apply to the past year that no one states...
Permanent life insurance is a complex product combining life insurance with an investment component. It includes both whole life insurance and universal life insurance . We don't have a general topic on permanent life insurance that I could find, so I am starting one.
Background reading: finiki, Permanent life insurance .
There are lots of issues with permanent life insurance and the way it is sold. My general impression is many people who buy...
Forgive me if this has been answered before. I have some embarrassingly simple questions about how JTWROS accounts are supposed to work when one of the two account holders passes away (i.e. the spouse). I provide a bit of context below and then pose my questions after.
Background
I am a total novice at this.
I am in Alberta and assisting my father in cleaning up his direct investing accounts after the passing of my mom.
A few days in and...
A friend recently checked the RRIF accounts of his elderly parents. Both accounts are substantial and are managed by two different big bank wealth management groups.
As I understand it from his MIL, he noticed that the managers of both accounts had arranged for the RRIFs to borrow cash (from the manager's bank) to fund the minimum required cash withdrawals. Then the interest on the loans was charged to the RRIF.
I've been doing some digging into my company group RRSP from my previous employer (which I left in the plan after I left the company) and wanted to know if anyone else interprets this the same way.
On the fund facts, there isn't an explicit mention of MER or Management Fees but there is mention of Total Fund Operating Expenses which for 2022 are listed as 0.033% for a Global Equity (Invesco) fund. Global Equity.PNG
This was just brought to my attention. Its sneaky because the email text looks like a Canada Pension Plan estimate (from a MyService Canada Account or a CPP Statement of Contributions).
I'm not sure how to post an image, so I'm re-producing the email text:
Review Your Updated Retirement Pension Statement
We've received updated data about your pension that needs urgent review.
Please click the button below to access your statement.
My wife (56), a dual citizen of Canada and the US, has been residing in the US since 1994, though we frequently visit Canada for family commitments. I have a question concerning my wife's pension from her previous employer. Here's some background information: she worked at McGill for 3.5 years before moving to the US and contributed to the McGill University Pension Plan (MUPP), which the University matched. We are interested in moving the amount...
I've been looking at the LIRA min requirements and VPW table. See attachment below where I put both in the same spreadsheet. Seems like at about age 70 it begins to align with a 50/50 VPW target. What seems weird to me in the start and the tail of the LIRA vs VPW. Try as I might, I cannot find the underlying assumption used to calculate the withdrawal rates under a LIRA. Does anyone know what the underlying assumptions are for the LIRA vs VPW?...
I'm trying to develop a retirement plan in Excel to replace the Going out of Business - Retireware software that I am currently using and have a couple of questions.
1. What portion of equity returns would you attribute to Dividends and Capital Gains? For instance, say for projection purposes, you use 6% annual return for Canadian equities. Is there some standard for determination of what portion of that 6% is Dividend income and what portion...
Looking but haven't found and answer to this question yet. Can someone acting as a Power of Attorney open a TFSA for a person deemed incapable of making these sorts of decisions for them self due to a dementia / alzheimer's type of condition? If yes can they also name beneficiaries? Thanks in davance.
I'm hoping to hear the opinion of people who retired or plan to retire and how they approached this topic.
*Assumption: house paid in full, no mortgage.
A house might have different meanings for everyone:
-- a source of income: rental income, LOC, reverse mortgage, renting and investing the house equity
-- a place to build and retrieve your memories;
-- a place to live;
-- a place for your hobbies (gardening, small projects, working on your...
Hi all,
I opened a LIRA account with a big bank. They asked my wife to sign a Waiver of Survivor or Death Benefit form.
She will be the beneficiary of the LIRA anyway, why is this form needed?
I asked the financial planner at the bank, she explained. But, I had to hurry back to work, so I told her that we would follow up later. At home, my wife and I puzzled about this form.
If the wife is not the beneficiary, then it makes sense if she is...
I'm looking for insight on a mortgage payoff strategy.
I'm 55, spouse is 54. We plan to retire in 2 years.
We have RRSP's, TFSA's, taxable brokerage account, and DB pension plans which will handle our cash flow in retirement, assuming the mortgage is paid before we stop working.
The current mortgage has two years left in the term at a rate of 2.39%. We have savings in a high-interest savings account equal to the OSB.
My mom seems like she will pass on within the next few weeks, at the latest. Given reports of how difficult it is to get things done with investments post-death, as POA would I be wise to liquidate her investments now in anticipation of her demise? Or is it better to leave them as-is and only liquidate at the time we need to distribute them? This might be a market timing question but I am thinking perhaps there are also tax issues to consider....
So my mother died in September of 2021 and I was named 1 of 3 executors to her estate. I completed the process in December of 2022 and since the process will never be more clear in my mind then it is today, I thought I would give an overview of what we had to do to execute this estate, and the response timeline I experienced from the entities that were involved. Hopefully it may be helpful to someone else. It would have been interesting to me...
We were given some not-so-savvy advice and my wife collapsed her RRSP to RRIF and instructed CU to give her small amounts a month.
Now realizing that monies are not needed and in fact, are just sitting in a HISA she wants to put them back in RRSP so our tax bracket is lower.
My question is this: Is this an easy feat for us to ask CU to do, and what are the implications if she puts the RRIF monies to date back into RRSP?
14 Oct. 2020End of Year RIF Withdrawals and the Option for a 25% Reduction
Important information for those that have yet to receive their full RIF withdrawal for 2020 and for those that wish to take advantage of the government's offer to reduce their 2020 minimum RIF withdrawal by 25%.
Please note the following:
If you do not wish to request a 25% reduction and you have previously cancelled your...
After working in the US for 10 years (and acquiring the 40 credits to be eligible for Social Security benefits), my wife moved to Canada, became a Canadian citizen and renounced her US citizenship. She lives with me in Canada and she travels to the US on average twice a year for 7 to 10 days to visit family. She is now applying for Social Security benefits (at age 63). She might get something like 800 USD per month after WEP. I have a few...
I am 4 months from retirement ( age 65 ). I have a portion of my company pension ( employee contribution ) that I am able to take out and put into a self directed LIRA. The amount is $70,000.00. If I leave it with the pension provider it would be a payout of about $400 per month till I die.. If I leave this amount with the pension provider and I die early ( so far this is not in my plans ) this amount would be gone from my estate permanently....
As a normal part of dealing with one's Will - somebody must play the role of Trustee (Executor if you prefer)
In some cases, the Estate rolls into a Trust - be it short or longer, or long-term
And in some of these cases, for various reasons, a Corporate Trustee is preferable
ie// Scotia-Trust, BMO-Trust, TD-Trust, RBC-Trust etc
Has anyone had experience dealing with any of these - or other Corporate Trustees (Canada)?
I am retired (66) and draw OAS/GIS and CPP. I have no other pensions. On advice from this forum, I draw $2K RRIF from RRSP to get pension credit.
Living frugally with my retired wife. She is 63 and draws only a small CPP.
Would there be any benefit to putting monies into an RRSP at tax time to get the benefits in a tax return?
We are conservative investors and have a decent nest egg all in GIC registered and unregistered and HISA
After 4+ months of emails, forms submissions, calls, faxes and uploads, I have at last managed to open a LIRA with RBCDI which I found has to be federally legislated. My previous LIRA's were provincial (employers in different industries). Am now trying to work out the most tax effective income streams and struggling to find the differences in withdrawal rules between provincial and federal. Would anyone know where to find this info as I'm...
Just a quick question I just turned 65 in June and received my first OAS in July .$ 698.60 was deposited in my account yesterday and that is suppose to be the maximum . My brother in law is 68 and living next to me , He has OAS since age 65 and told me yesterday he gets $ 750 per month .
I want to setup a spousal RRSP and contribute to it so we can have the tax benefits upon her retirement.
In the setup process, I was told I cannot be the beneficiary saying the account holder and beneficiary cannot be the same person. Does it make sense? So does if mean the assets must go to my spouse's estate if she would pass earlier then I do?
I know that Shakes has linked to this website before, but for those of you looking for an on-line annuity quote tool go to LifeAnnuities.com
The main page I have linked to provides tables with rates for the various types of annuities one might like to purchase to give you an idea of the payout rate. The quote tool is on the right hand margin.
Today I went online to My Service Canada Account and I tried to change my direct deposit bank information.
I get the following message: This function is currently unavailable .
I do not recall ever going to the MSCA website and not seeing a currently unavailable message. :roll:
I will start by saying that I am a financial novice so please be gentle with me.
I have accumulated $80k in a company pension plan which has now received approval to wind up. Therefore I have been provided options to transfer it to either a LIRA, LIF or LRIF or purchase an annuity. I am currently under a DB pension plan (HOOPP) and so I also have an option to transfer to this plan. I have obtained a quote from HOOPP to purchase service earned...
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...
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