I left my Ontario government job with a PSPP pension and now have to decide between leaving it as-is or taking the commuted value. I've moved to the US for now but may return after 3-5 years.
Commuted value: $41,669
Monthly pay for deferred pension in today's dollars at age 65: $390/month
Advantages of deferred pension:
Payable for life and guaranteed
Survivor benefits (will transfer to spouse in event of...
I am a non-resident now residing in the US (filed for non-residency with CRA two years ago). I recently visited Canada and moved my RRSP from Investor's Group to TD Waterhouse in order to purchase the TD e-series (became a boglehead and saw the light). I had no problems opening the account and once the cash arrives will be able to make online trades.
However, I have found out that there are restrictions for non-residents with TD...
I worked in Canada for about 10 years before moving to the US. I work for an employer who does not contribute towards Social Security benefits. To obtain SS in the US 40 quarters of earnings (I leave the details) are required. Will these years of working in Canada count towards 40 quarter earnings to obtain SS.
An official document from Canadian Revenue Agency states as below:
United States benefits
The pension program of the United States is...
I normally wait until April or May to make an RRSP contribution. This is because I wait for CRA to send me the Notice of Assessment with the exact dollar amount that I can contribute.
I want to get a head start this year and make a contribution this month, but I don't know how much I can contribute. Income has slightly increased this year by maybe 5k.
To be on the safe side: what if I contributed 80% of what I contributed last year? I...
Financial planner Fred Kirby warns RRBs can pose cash-flow problems as RRSPs convert to RRIFs because of minimum withdrawal rules.
Inflation-indexed life annuities are designed specifically for the withdrawal process. They can eliminate the whole RRIF withdrawal/formula dilemma. They even deal with the succession issue created by the DIY family wealth manager.
An interesting situation has come up in my RRSP, and I'm wondering if its happened to anyone else, and what (if any) recourse I may have with my broker.
I hold several convertible debentures in my RRSP (at Questrade), and one of them was planning to redeem a portion of the debenture some time in January. I have had this happen before, and don't like being left with a small non-standard portion that can be hard to sell, so I decided to sell the...
I am a dual citizen of Canada and the U.K.... I have a TFSA in Canada and have lived here for my entire life, but in April I will be moving to the U.K. to live and work for an indefinite amount of time
I understand that any contribution I make while a non-resident will result in a 1% tax per month, but what happens if I make a contribution before I leave? Am I disqualified for the entire year or will it be counted as a normal...
Interactive Brokers now offers RRSP and TFSA accounts. On the RRSP acounts, there is a $12.50 quarterly fee. I can't find any mention of what one can trade in these accounts. Right now, it's difficult to trade foreign stocks (other than US) in RRSPs/TFSAs. IB has a strength in foreign stock trading, and I'm hoping they'll allow it in RRSPs/TFSAs.
If you're a Canadian resident who has an IRA, you may have a problem. Vanguard sent me a letter a few years back saying I could no longer do any trading in my IRA. I moved my IRA to TD Ameritrade, and the service has been good. However, Interactive Brokers is another option. Downsides to IB are the $7.50 quarterly fee. Also, if your balance is under $100K, there is a monthly fee up to $10 for inactivity. However, it looks like you can trade...
Is there something wrong with this CPP calculation?
I got this from:
Example
Although Amrita enjoys her job as a nurse, she plans to retire when she reaches 65 in 2014. Based on her CPP Statement of Contributions, she expects her CPP retirement pension in 2014 to be $6,220 annually. This amount will then grow with the cost of living, as measured by the Consumer Price Index.
However, if Amrita decides to delay taking her CPP pension until...
I know this has been discussed numerous times before, but I could not find a good thread to post to.
One golden rule of asset allocation is/was to have approx your age in fixed income. So someone or a couple with average age of 70 should have just 30% in equity and the rest in fixed income and cash.
I am sure that with the low returns on fixed income, many of us are not following that golden rule.
An elderly relative (here in Ontario) is no longer in a cognitive condition to drive. Between her vision and what we can only label dementia at this point, she is a hazard to herself and others. Once we revoke her licence of course her insurance will end too.
She would be willing to give the (7+ year old) car to her son in BC, and he would potentially have the time to take it west sometime in the autumn. However he is currently going through...
How much money would someone need to retire at age 40 or 45? I'm currently 34 and will have mortgage paid off in about 18 months on poperty worth $250k. Monthly expenses after mortgage is paid off would be approx $1500-2000. Current income is approx $85k per year (before taxes).
The conventional advice is that you should convert your RRSP to a RRIF before Dec 31st of the year you turn 71. I am at that stage.
But why wait until December. Is there any reason not to convert anytime during the year? I already have a small RRIF, so am thinking of moving my RRSP into it now. No great benefit, but that way everything is in one place.
Second thing to decide, is frequency of withdrawals. A single withdrawal in January, would...
in which they also referred to this Manulife document:
It's something I had been thinking about. I haven't looked at our wills for a while, but if I recall correctly, in the event of one of us dying, the surving spouse becomes the executor. If both us or the surviving spouse dies, our two kids are joint executors.
Reading that article, it seems that acting as executor can be quite time...
The online CPP calculator is a well-intended but poorly designed tool, and I strongly suggest that you don't rely on its results for your retirement planning.
As an example, I had a client yesterday who was 54 years old and had recently retired after 30 years of max earnings. His CPP statement of contributions (SOC) showed his age-65 estimate as $985 and when he used the online calculator with $0.00 earnings until age 65, it said that he would...
If ‘retiring’ at age 60 with a company defined contribution pension, it appears that the only income eligible for pension splitting and pension income credit from age 60-65 would be from a life annuity purchased from (a portion of) the DC pension – are we correct in this regard?
If so, rather than an annuity, we’ll consider the DC > LIRA > LIF route (with potential unlock and 50% transfer to RRSP during last step). We don’t need to annuitize...
The setting is in Kamloops, BC where a character was traveling
and got caught in a snow storm. He stayed the night in a motel and met
some interesting characters. Either he or some other guests spoke about
wills, savings, retirement.
I am trying to remember the name of this book and its drive me nuts.
Thanks in advance for any tips.
Hi everyone. I am hoping to get some feedback on my present situation. Last Dec 2013 my senior technical level federal government job was deemed affected by the government. At the time I opted to go on Education Leave Without Pay for a period of two years which ends in Dec 2015 at which time I will be officially surplussed by the government. During this leave I am still contributing into the DB pension plan (employer and employee portions). In...
Yesterday morning I was at the MoneySense workshop(?) here in Toronto - see
Retire Rich: Four hours that will change your financial future
Good turnout - my guess between 350 to 450. Registration fee at $45 - reasonable.
A couple of presenters I appreciated - like Malcolm Hamilton and Dan Bortolotti - but some less so.
I have some questions -
(1) Was anybody else on this FWF forum there? If so - any thoughts?
(2) Why was the event...
An opportunity has come up at my current job where I could move into a more interesting position that would provide me much more autonomy, creativity, and job satisfaction.
The only problem is, I would have to leave my unionized position, give up all my benefits and DB pension plan, and move to contract work. I would likely get compensated 20-30% in lieu of these benefits, so my gross and net pay would increase to compensate for the lose of...
Years ago, in the old Wealthy Boomer forum, I had some discussions with someone re: whether DB pension plans would be collapsing and in the news headlines on a regular monthly basis.
I'd say we're pretty close to that stage right now, with the cancellation of Nortel's DB plan yesterday, the buyout of health care benefits by GM, the attempted wind-up of the IBM pension plan in the US etc.
I'm trying to remember who I had this debate with. I...
OK Here's my puzzle for the experts-rephrased!
I guess I made my first post it too complicated -too much unnecessary details I guess- so this is the edited version. Essentially what I'm getting at is the fact that where a retiree has both unregistered assets such as retained earnings in a professional corp and also registered assets to draw upon at retirement it is usually regarded as axiomatic that the unregistered funds should be drawn down...
A new brief from the Boston College Center for Retirement Research prompted me to start this thread.
Funding retiree health care is a huge concern in the US. While medicare makes it much easier for us, health spending can still be substantial and, of course, typically increases as we age.
This paper reports on a study that calculated the present value of likely health care spending by a 65-year-old U.S. couple over the rest of their lives....
If you're under age 65 and you're thinking about starting your CPP in January 2015, you may want to consider starting it in December 2014 instead. That's because the age-adjustment factor increases from 0.56% per month in 2014 to 0.58% per month in 2015. For some people, that means that by waiting that one extra month your monthly CPP will actually be less, plus you will have missed out on one month's pension.
If a person will be turning 45 in December 2014, and his CPP statement of contributions indicates that he could receive the maximum CPP retirement pension of $1,038.33 if he were age 65 today , what will his actual retirement pension be at age 65 (in 2014 dollars) if he makes no further CPP contributions after 2014?
Please explain your answer.
I will give the answer in one week, assuming nobody comes up with the correct answer before then.
Hello, received some quotes from an insurance broker for term life insurance offered by Industrial Alliance . Anyone have any experience with that particular company or feedback? Doesn't sound like they are the big 3 lifecos in Canada, so just hoping for some feedback. Should it be safe to go with them? Other preferred companies of choice?
I am well into retirement, small government pensions, but living well off the income of his, hers and our portfolios. The problem is the portfolios are all managed by me, no advisors agents or consultants. It is very probable my wife will outlive me and perhaps by a substantial margin. It is not prudent to leave her these extensive, active, managed portfolios. I need to simplify our investments so my wife can manage them in my absence.
I left a job 7 yrs ago and was only given the option to transfer my pension money to a Lira. I went to a govt job with defined pension plan but the company didn't do transfers nor was I allowed to leave the pension money in the company's pension plan. Now I am close to retiring and want answers as to why I wasn't given any options. The company today does plan to plan transfers. These 7 yrs are...
DW is approaching retirement (which I already enjoy) at which time we will lose her employer based health insurance. As residents of Ontario we will continue to have OHIP but have begun to mull over the topic additional coverage. We are relatively young and healthy (for now). Is it worthwhile to supplement OHIP for our current needs (apart from travel, which we view to be mandatory )?
need some validation please, I think the answer is obvious but...
we sell our home and have $100k to put in either of our rsps's (we have room). with the tax rebate we eventually purchase rv. if we retire the same year can we withdraw from rsp in small increments without paying some penalty?
If you just started receiving your CPP retirement pension in 2014, you may want to read this article about 3 adjustments that may occur to the amount of your CPP in 2015:
I apologize if this has been discussed before, but I did not see any previous threads when I searched. In a 2013 article for the National Post, Fred Vettese suggests that soon-to-be-retirees should have (only) six-times the difference between their gross household income and $70k. He doesn't say it outright, but the presumption seems to be that a couple could bring in close to $50k from CPP, OAS, and GIS (e.g. max benefits @ 65 y.o. x 2...
Found this simulation online, not sure how accurate this thing is, but it did give me a general idea of my retirement plan. No harm in checking it out.
PS. The rest of the website is actually pretty interesting, it has a back test function to fool around to see how your AA would stack up if you started investing 30 years ago. As for the data set used, it seems to be from reputable sources (Vanguard, CRSP, Fama/French)
Due to a recent job loss from a job that has a DB pension I've been looking at the rules for LIRAs.
The original plan was pretty simple; NonReg&TFSA providing some dividend income, retire early, deplete the RRSPs as a bridge until the pension+benefits kick in and go from there. Unfortunately, they changed the rules so I dont have enough years of service to qualify for benefits, the pension amount itself is small (2.5k fully indexed), and with...
I was thinking of a strange situation. Most provinces have a 183 day requirement to be eligible for provincial medical insurance.
What if you stay 6 months outside of Canada and when you do spend 183 days in Canada, you spend some time in another province so are never physically present in one province for 183 days? Does this mean you can be a Canadian resident with no medical coverage? Is there private insurance that can cover this gap in...
For those who have been retired a few years (lets say 5+ years), what have you learned during retirement what you wish somebody would have told you before you retired?
What did you think would be important compared to what actually is important?
That's when it shows on my PBS station. Or just watch on the website. It's a repeat and a lot of the content looks US-specific but probably worth watching, not the least as John Bogle appears.
Does RBC have an online fee free online bank like the above? RBC does not have a fee free account
for seniors, yet TD does as well as the online banks above. Am I missing something here from RBC?
My wife and I had a baby last year so we made a will and now I'm wondering how much life insurance we need? We live pretty modest lives, she earns 60K/year in Quebec and currently her position maxes out at $70k/year. She works in health care. I'm self employed and my income fluctuates, at the moment I'm not work and am enjoying being a stay at home dad until the fall. We're both 35 and have considerable savings. I have a whole life insurance...
I have recently opened an RESP account and now need to build the investment portfolio.
The time frame is approx. 15 years (when the first child goes to Univ).
Amount of money is $10K for the first 5 years (family plan with 2 kids, catching up on past years); subsequently $5K per year.
Expecting basic 20% CESG grant on top of contribution.
Investment goals - primarily income, low-cost, low-maintenance investments.
Capital gains...
I know that this issue has been discussed previously, but I'm posting this link to a new article that I've just written on the subject:
Basically, the articles describes what the estimates on your CPP statement of contributions really mean, and why your actual pension calculation might be significantly higher or lower than what is indicated.
I hope I understand correctly that for calculating income tax payable as well as our Guaranteed Income Supplement the use of unused capital losses of previous years does reduce the current year capital gains?
Am I understanding correctly that the application of unused capital losses of previous years does not reduce this years capital gains for the purpose of calculating my Guaranteed Income Supplement?
appreciated,
Luba
Has anyone had any experience with the timeline for a transfer of this nature to take place. I am an executor of the estate and and also one of two beneficiaries of this estate. The will is not being probated, both beneficiaries owned everything jointly with the deceased before death. The only asset that would be in question is the RIf and the forms have been filled out to transfer the RIF to a Grandson of the deceased, who has a Registered...
These terms both really apply to the same thing, but I like to think of the clawback as the amount of your OAS entitlement that's withheld in advance (up to 100%). The clawback for any fiscal year (July to June) is normally based on your income from the previous calendar year, but there is a provision in the Income Tax Act to have the amount of clawback based on your income for the current year instead, if that income is substantially lower (see...
Looks like Mitzie Hunter will be in charge of setting up the made-in-Ontario pension plan.
Her website bio ...
Mitzie Hunter understands our community and the power of working together. A lifelong citybuilder, she is passionate about unlocking the city’s potential by ensuring fair and inclusive access to employment and prosperity.
As the CEO of the Greater Toronto CivicAction Alliance, Mitzie worked to solve some of our toughest social,...
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