Adam, this is a great video!! Thank you!! I have a DB pension, and my wife has a DC pension. We are targeting to retire in our mid 50’s ( 7 ish years away) with 25 years of service in our plans. We also have been utilizing our RSP room now that we are mortgage free and taking the tax refund and putting that into our TFSA. Almost time to book a retirement planner to ensure we’re on the right track.
I just downsized and came away with a nice little profit. I will likely max out my TFSA as I have some contribution room and put a chunk into RRSPs as well. I worked full and part time for many, many years. Glad I don't need to do that any more. I certainly can see myself as semi-retiring young-ish and working part time only.
Good video i like the idea of up sizing your home. The only drawback is Probate Tax. In Ontario its 1.5%. I guess it doesn't matter to you once your gone but really it strikes as obscene. The government takes money from your estate because you did well in life. Its like OAS clawback. Its a tax on success. It may be worse than Probate Tax because you paid into it your whole life only to have a portion taken away. Many people worked hard for decades and did without during those working years only to be penalized for not living extravagantly. Saved vs Spent
Can you tell us more about what we can do with a cash windfall, like downsizing a home, so it doesn't generate taxable income? What kind of tax-efficient investment vehicles are available? I know we could put the money into non-dividend paying stocks but want less risk.
Thanks for all your great videos. Interesting that you favour home upsizing over a taxable portfolio. I always assumed the tax drag on a stock portfolio wasn't as bad as the higher property taxes, utilities, upkeep, furnishings and selling costs of a larger home. Does this strategy only apply in red hot real estate markets?
Service buyback doesn't really seem to be a way to save for retirement, more so a way to get to retirement earlier, but like you said expensive as you generally have to pay both sides and it's calculated at current salary levels so unless it's done right away after the leave the costs are usually prohibitive in my opinion. But like you said well worth it to some people.
@@DoneByD I funded it with proceeds from my RRSP, so one registered vehicle to another. I retired 18 months earlier than would have otherwise been the case. My pension for 18 months is worth far more. Pension maximization is absolutely a way to save for retirement.
I bought back 3.5 yrs of my DB pension which allowed me to retire at age 60 with zero penalty. I had a total of 31 pensionable years but my knees gave out. Using my RRSP to payback all the money was totally worth it and I've been retired for 11 years now and I've easily made back that money many times over.
@@laed3520 not sure how you made money doing a service buyback as you are responsible to pay for the total actuarial costs to the plan - here is some verbiage from a pension plan on service costs buyback that clearly demonstrates person buying back the service is responsible for paying all actuarial costs to the plan --- "The cost to purchase prior service is the amount required to fund the additional pension payable to you due to the credit of the prior service plus the amount required to fund the expense of your earlier retirement. All else being equal, the closer you are to qualifying for the early retirement rule or age 65 retirement, whichever will occur first, and/or the higher your earnings, the greater the cost to purchase the service. The cost is calculated by the Pension Plan using methods and assumptions established by the Plan’s actuary." Pension plans and plan fiduciaries are not in the business of letting members make money on this transaction and in fact are responsible for protecting the interests of the plan members. Now I'm also not saying the value you receive wasn't worth it as it clearly was in your mind and the added time in retirement is real. The making many times over is the only thing I take issue with.
I started contributing to RRSP when I was still a student with part time job. At that time, RRSP investment was restricted to Canadian assets. Now I am about to retire and believe it will provide me with all what I need plus a bit extra.
My work has a Group RRSP plan, but just started offering a pension product I had never heard of before. I work in the finance/payroll department so I'm actively involved in the set up of it. It's a defined benefit pension, but it uses defined contributions. So it gives cost security for the employer and employee with defined contributions, but provides a secure defined benefit pension to employees. It's through CAAT Pension plan. Have you ever heard of them?
@@JadziaCee1977 Company I work for is with CAAT as well. Best thing they ever did for us. The huge plus is that it's a pool of companies, so if yours went under in the future, pension is safe 👍
I am a BC teacher. 54 years old. I’ve taken a reduction at work and have the opportunity to buy back my lost pension. How do I decide if I should buy back my pension? Currently, I’ve been paying extra on my mortgage. Is it a better investment to put that money back in my pension instead? Or RRSP or TFSA? Or???
Strategy 1 and 3 should be mentioned in conjunction or as a side hybrid strategy. Invest in RRSP, then invest tax return in TFSA. Basically build both with the same single contribution
Hey Adam, I have a question, I will be receiving a defined benefit pension, My wife contributes to Rrsps with her employer matching 2%, Would it make more sense for her to stop rrsps since I will receive my work pension and if I die she will be receiving payments from my pension, And invest in the tfsa for tax purposes down the road? I know we will be paying 15-25% tax out the gate into retirement lol, Any advice would be greatly appreciated, Thank you.
Adam, thank you for your kind words about primary residence. Between primary residence and TFSA there is no tax difference. You pay both with AFTER tax dollars. But here, in Canada, primary residence goes up every year, as you mentioned from $300k up to $2m. TFSA is just a distraction. To take your money from your main goal - to pay off your mortgage - to something meaningless... TFSA.
!I recently sold some of my long-term position and currently sitting on about 250k, do you think Nvidia is a good buy right now or I have I missed out on a crucial buy period, any good stock recommendation on great performing stocks or Crypto will be appreciated
As a beginner investor, it’s essential for you to have a mentor to keep you accountable. Ruth Ann Tsakonas is my trade analyst, she has guided me to identify key market trends, pinpointed strategic entry points, and provided risk assessments, ensuring my trades decisions align with market dynamics for optimal returns.
I managed to grow a nest egg of around 120k to over a Million. I'm especially grateful to Adviser Ruth Ann Tsakonas, for her expertise and exposure to different areas of the market..
I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $100k passively by just investing through an advisor, and I don't have to do much work. Inflation or no inflation, my finances remain secure. So I really don't blame people who panic.
I need a side hustle that pays me to watch TH-cam retirement videos.
Where do I sign up?
I'd already be a billionaire if this existed lol
Start the company and I’ll come work for ya 😂
😂
Me too. Let’s partner up!!
Adam, this is a great video!! Thank you!!
I have a DB pension, and my wife has a DC pension. We are targeting to retire in our mid 50’s ( 7 ish years away) with 25 years of service in our plans.
We also have been utilizing our RSP room now that we are mortgage free and taking the tax refund and putting that into our TFSA.
Almost time to book a retirement planner to ensure we’re on the right track.
I just downsized and came away with a nice little profit. I will likely max out my TFSA as I have some contribution room and put a chunk into RRSPs as well. I worked full and part time for many, many years. Glad I don't need to do that any more. I certainly can see myself as semi-retiring young-ish and working part time only.
Great advice 🙏. Thank you for all the wonderful financial info for Canadians.
Our pleasure!
Good video i like the idea of up sizing your home. The only drawback is Probate Tax. In Ontario its 1.5%. I guess it doesn't matter to you once your gone but really it strikes as obscene. The government takes money from your estate because you did well in life.
Its like OAS clawback. Its a tax on success. It may be worse than Probate Tax because you paid into it your whole life only to have a portion taken away. Many people worked hard for decades and did without during those working years only to be penalized for not living extravagantly. Saved vs Spent
Can you tell us more about what we can do with a cash windfall, like downsizing a home, so it doesn't generate taxable income? What kind of tax-efficient investment vehicles are available? I know we could put the money into non-dividend paying stocks but want less risk.
I will be in the same situation next year , Going from a home in Toronto to a condo in a small city .
Any suggestions would be appreciated.
Thanks for all your great videos. Interesting that you favour home upsizing over a taxable portfolio. I always assumed the tax drag on a stock portfolio wasn't as bad as the higher property taxes, utilities, upkeep, furnishings and selling costs of a larger home. Does this strategy only apply in red hot real estate markets?
Excellent video as usual.. thank you for the info you share
😊 Great video as always Adam.
Although a niche topic, maybe a vid on service buybacks? I bought back 18 months. It was costly but well worth it.
Service buyback doesn't really seem to be a way to save for retirement, more so a way to get to retirement earlier, but like you said expensive as you generally have to pay both sides and it's calculated at current salary levels so unless it's done right away after the leave the costs are usually prohibitive in my opinion. But like you said well worth it to some people.
@@DoneByD I funded it with proceeds from my RRSP, so one registered vehicle to another. I retired 18 months earlier than would have otherwise been the case. My pension for 18 months is worth far more. Pension maximization is absolutely a way to save for retirement.
I bought back 3.5 yrs of my DB pension which allowed me to retire at age 60 with zero penalty. I had a total of 31 pensionable years but my knees gave out. Using my RRSP to payback all the money was totally worth it and I've been retired for 11 years now and I've easily made back that money many times over.
@@laed3520 not sure how you made money doing a service buyback as you are responsible to pay for the total actuarial costs to the plan - here is some verbiage from a pension plan on service costs buyback that clearly demonstrates person buying back the service is responsible for paying all actuarial costs to the plan --- "The cost to purchase prior service is the amount required to fund the additional pension payable to you due to the credit of the prior service plus the amount required to fund the expense of your earlier retirement. All else being equal, the closer you are to qualifying for the early retirement rule or age 65 retirement, whichever will occur first, and/or the higher your earnings, the greater the cost to purchase the service. The cost is calculated by the Pension Plan using methods and assumptions established by the Plan’s actuary."
Pension plans and plan fiduciaries are not in the business of letting members make money on this transaction and in fact are responsible for protecting the interests of the plan members.
Now I'm also not saying the value you receive wasn't worth it as it clearly was in your mind and the added time in retirement is real. The making many times over is the only thing I take issue with.
I started contributing to RRSP when I was still a student with part time job. At that time, RRSP investment was restricted to Canadian assets. Now I am about to retire and believe it will provide me with all what I need plus a bit extra.
My work has a Group RRSP plan, but just started offering a pension product I had never heard of before. I work in the finance/payroll department so I'm actively involved in the set up of it. It's a defined benefit pension, but it uses defined contributions. So it gives cost security for the employer and employee with defined contributions, but provides a secure defined benefit pension to employees. It's through CAAT Pension plan. Have you ever heard of them?
@@JadziaCee1977 Company I work for is with CAAT as well. Best thing they ever did for us. The huge plus is that it's a pool of companies, so if yours went under in the future, pension is safe 👍
I am a BC teacher. 54 years old. I’ve taken a reduction at work and have the opportunity to buy back my lost pension. How do I decide if I should buy back my pension? Currently, I’ve been paying extra on my mortgage. Is it a better investment to put that money back in my pension instead? Or RRSP or TFSA? Or???
Strategy 1 and 3 should be mentioned in conjunction or as a side hybrid strategy. Invest in RRSP, then invest tax return in TFSA. Basically build both with the same single contribution
Nope. Loads of times it makes sense to build one and not the other
@@jeffsim4191 Nope? What you say after that is 100% true However, loads of times it makes sense to build both
Hey Adam, I have a question, I will be receiving a defined benefit pension, My wife contributes to Rrsps with her employer matching 2%, Would it make more sense for her to stop rrsps since I will receive my work pension and if I die she will be receiving payments from my pension, And invest in the tfsa for tax purposes down the road? I know we will be paying 15-25% tax out the gate into retirement lol, Any advice would be greatly appreciated, Thank you.
If her income is high enough to warrant RRSP contribution I would do that. Plus a free 2% match. I would still focus on the RRSP if it was me
Adam, thank you for your kind words about primary residence. Between primary residence and TFSA there is no tax difference. You pay both with AFTER tax dollars. But here, in Canada, primary residence goes up every year, as you mentioned from $300k up to $2m. TFSA is just a distraction. To take your money from your main goal - to pay off your mortgage - to something meaningless... TFSA.
!I recently sold some of my long-term position and currently sitting on about 250k, do you think Nvidia is a good buy right now or I have I missed out on a crucial buy period, any good stock recommendation on great performing stocks or Crypto will be appreciated
As a beginner investor, it’s essential for you to have a mentor to keep you accountable.
Ruth Ann Tsakonas is my trade analyst, she has guided me to identify key market trends, pinpointed strategic entry points, and provided risk assessments, ensuring my trades decisions align with market dynamics for optimal returns.
I managed to grow a nest egg of around 120k to over a Million. I'm especially grateful to Adviser Ruth Ann Tsakonas, for her expertise and exposure to different areas of the market..
I don't really blame people who panic. Lack of
information can be a big hurdle. I've been
making more than $100k passively by just
investing through an advisor, and I don't have
to do much work. Inflation or no inflation, my
finances remain secure. So I really don't blame
people who panic.
nice!! once you hit a big milestone, the next comes easier. How can i reach her, if you don't mind me asking?
I've just looked up her full name on my browser and found her webpage without sweat, very much appreciate this
Why did you block me from commenting using my timcat100 account?
TH-cam might block accounts if they have left inappropriate or offensive messages on any channels.
If I hear “ side hustle “ one more time…….🤬🤬