ElyceHarris

Hey thanks very much, it does help but naturally has spurned additional questions.

Hey there,

Your responses are awesome 😎 you must be an accountant or finance professional, or just very smart.

Your Pension adjustment reported for your T4 for 2022 will impact your 2023 room, so your RRSP contribution room for 2023 will be any room you're carrying forward from prior years + your current years contribution room (18% of your income up to $30,780) less any pension adjustments on your T4, and plus any pension adjustment reversals on the same T4.

You should receive a package from Sun Life once your plan administrator terminates you from their Group RRSP (most are pretty good about this, but fair warning some can be a bit slow on this since there will be no salary to match so no real employer cost if they don't get to you right away - if this is your situation an email can usually get their attention back on it).

Thanks for the info. I guess I will see what my MERs change to since I will be exiting a group plan and going to individual. Will help make the most informed decisions

Best of luck! There's never any guarantees, but often the range of investment options + fees means moving away from the carrier makes sense - but it's always wise to have information before making a decision :)

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Income tax definitely depends on your income rate - at lower levels it's lower in BC than AB but as your income increases it then starts to favour AB.

Hey there! Unfortunately without knowing your situation, it is impossible to say what is going to be the best in your situation.

If it's an individual and fully underwritten policy in which you have disclosed your medical conditions, you should know when they give you your offer if those conditions are excluded (it would be a specific exclusion that would need to be agreed to in order to put the policy in force), or if they have rated the policy (charged extra to continue covering those conditions), or if it was issued standard (those conditions are covered and there is no extra premium). Since those policies have already had their underwriting completed, unless you misrepresented your health history it should pay out.

One thing nobody mentioned here is it's no guarantee that your top earning years are in your 40's and 50's. You could become disabled and unable to work. You may have life altering events that force you to change jobs or professions. Nobody can predict the future, so for that reason I would do whatever I can today to prepare for tomorrow.

You could contribute and carry forwared the deduction, but as you mention there is no guarantee that you will continue to earn above a certain amount.

When I first registered for Level 1 I had some basic background but was not finance-oriented (I was a marketing major but had to take intro econ, stats, finance, and accounting). I generally felt like I was starting from scratch and I found the Q back to be very helpful, because even if I got the answer wrong I could read through the explanation and learn what I was missing to move forward.

I would ask more details about DCPP -- does it allow you to transfer to another self directed RRSP as you wish? If yes, I probably get it in group plan first and transfer cash to my own RRSP account to do other investment once in a year. This way you get better cashflow (I.e. less prepaid tax)

DCPPs can only be transferred once employment has ended, so if they contribute to the Sun Life DCPP those funds will be locked in until they leave. However, if they are able to contribute their funds to a Sun Life RRSP (so employer funds go to the DCPP and employee funds go to the RRSP) they may be able to transfer the funds out once or twice per year - this is set by the plan administrator (the company) and may have a transfer fee attached to it (imposed by Sun Life). This will all be highlighted in the benefits booklet, which OP should review to determine the best course of action.

Yeah I had sunlife for my company rrsp. Sunlife funds all have an MER over 2.0%.

This is incredibly varied - Group RRSP fund MERs depend on how large the group is, how large the asset base and annual cash flow is, and how much compensation the advisor is taking. While higher MERs than say a BlackRock or Vanguard ETF are to be expected, the mileage is incredibly variable and large companies will often have competitive MERs.

So the idea with the tax deferral is that you are contributing during your high income years and withdrawing during low income years.

Good information, but to add: there's also a considerable advantage to investing with before tax dollars rather than after - if you are in that 48% tax bracket, for instance, you now have nearly double the amount of money to invest.

Yes, thank you for putting that more clearly than I did! You did not live up to your username :)

And I understand that biologically I will always be XY, but I’m just trying to do what makes me happy maybe in the end I’ll pay for what I’ve done but for now I’m just trying to live life like any other human on this earth is.

I'm sorry that someone on this thread was making the "Calgary is conservative point".

Super interesting! I'm a fan of businesses that treat their employees well.

Prairie Dog has amazing chicken in my opinion - I know you were asking about ribs but the chicken is delicious... I kind of want some now..

Hey there! Happy to see if I can be of any assistance - if you want to connect feel free to DM or contact info is on my website. From the post it looks like the newborn is yours, so congrats!

Hey there! I can definitely help look through the options and see what the best fit for you would be - feel free to DM me or contact info is on my website if you would like to connect :)

Term policies don't add to the capital dividend account. So you're just making a bet on your life, with insurance companies charging an actuarial premium. So no benefit.

Hey there! That's not actually true, a term policy that pays into the Corp would still create a CDA credit, however premiums do renew and tend to get extremely expensive, or terminate by age 85.

Hey there, insurance broker chiming in.

This could get very interesting if anyone making these tweets has market positions in any of these companies... like possible jail sentences interesting.

Ya I already know I'm gonna have to get taxed like a CEO even though I'm not lol but it's still a good sum

The estate will be responsible for the taxes on the RRSP (and the pension) - however in the event the estate cannot cover the tax liability the CRA has gone after the proceeds in the hands of the beneficiary to cover the tax liability.

Since your father passed away intestate you should apply to be appointed as his personal representative (or executor, some jurisdictions call it different things). Institutions may not give information about the accounts of the deceased unless you are the executor, and they may not release funds until the estate has passed through probate (which may or may not be applicable to these funds depending on beneficiary or going to estate - but even if you are the beneficiary, his estate will responsible for the taxes on the RRSP and the pension).

Max out your TFSA contribution room first. You won’t get a tax credit but you can take your money out without tax in case of an emergency.

There is already 20K in a TFSA. You can get government grants up to age 49 in an RDSP, and as mentioned above, there is the ability to carry forward up to 10 years of grants and bonds eligibility (provided they met the criteria for the account). Getting the matched funds absolutely beats out tax free withdrawals.

I don't understand, aren't GIC's as stable as it gets? Can you're GIC fail? Or are you just referring to not keeping up with inflation?

They are essentially saying that it won't keep up with inflation - nominal returns do not include inflation, real returns do.

PFC fucked me up so bad the lottery dreams start with “max TFSA & RRSP” 🥲😂

Soon you can add "FHSA" to that as well!

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Yep there's nothing a TFSA can't fix 😄

I am a lawyer. This comment is bad. No offense. Duty of care is tort. Closest thing here would be duty of honest performance.

Thank you for proving my point that you want to speak to an actual lawyer.

I'm not meaning to be mean. But there is no duty of care here really. I know you meant well.

All good, I didn't realize I had hit on a specific term and in the law words definitely matter. Appreciate the clarification 🙂

This raises some interesting opportunities for Bob and Bob's kids, obviously for accounts such as TFSAs he can continue to invest every year assuming from this point on the benefit is for his children and allocate new funds according to that - with the added benefit that the funds are still under his control should his needs or wishes changes.

Depending on what you would have normally allocated this to, it's not necessarily a loss - if you would have been on an insured plan instead that "money" would have been lost regardless unless you completely max out your benefits.

My partner's company allows them to use the money in the HSA for anything that helps them be healthy (emotionally or physically). This includes sports equipment, bikes, gym memberships, etc. They had a bunch in theirs and we used it for camping equipment and to top up coverage on some massages.

You are talking about a taxable spending account - this can include just about anything that can be used as a health or PD expense, from gym memberships to golf clubs. Anything spent here is considered a taxable benefit (i.e. you don't pay the full amount but you pay the tax). Camping eqipment would fall under this.

Your spouse as the annuitant can withdraw amounts within three years from the spousal RRSP you set up. However there would be a withholding tax of 30%. That may or may not be enough to cover off the final tax assessed on the withdrawal.

The issue there is the withholding would be at source so the spouse would get the net amount, while the OP would get the tax hit.

In the US, but, AFAIK, not a crime in Canada.

https://www.fintrac-canafe.gc.ca/guidance-directives/transaction-operation/indicators-indicateurs/fin_mltf-eng#s7

There have been a lot of good comments here but step one is definitely talk to your partner - not only from a financial perspective as he's on the new car loan and if you need to sell it to cover other debts that impacts him too, but also because you are talking about getting married and have already somewhat financially intertwined yourselves with a home together. This is something that you need to be on the same page on - in fact finances is one of the top things couples fight about and divorce over. Have the conversation now, not later - no good comes of trying to hide this and go it alone. As someone else mentioned, if you are considered common law, you are considered married for the split of assets and debts, except for property acquired before the relationship, inheritances, or gifts.