My 65th birthday is in a few weeks, and i am tempted to send in my OAS forms, because with the covid and my job( in the tourism sector) not satisifying me anymore I am tempted, to retire, but thanks to your info i might grind it out, at least until the week after my birthday! ha! Great stuff thank you.
*The reality of the rich and the poor is this: the rich invest their money and spend what is left. The poor spend their money and invest what is left"*
Kent one thing you skipped over or missed with the OAS is that when you delay taking it and the amount rises, it means that while the clawback floor stays the same about $79,000, the ceiling when it is completely clawed back rises, because the total amount has increased. Yes I know that the number of people in the situation where being concerned about the total clawback of the OAS is vanishingly small, still there are some.
At the 11:20 to 12:20 mark my brother-in-law made that mistake even after his tax accountant told him not to tax OAS at age 65 because the was still working so he got nothing for the next two years and a lesser amount for the rest of his life.😁
Hi Kent; Thank you for this and previous TH-cam content. For one reason or many, some of us are heading into retirement with little than OAS, CPP and maybe GIS. But also some of us are ‘lucky’ enough to be sitting with a house and built up equity. Will you talk to us about reverse mortgages in Canada. Those seem a viable options!? I’m most interested in the downside of them. Ie compounded interest, residual value. Yes, unfortunately my heirs are going to be left short 😕
Hi Peter. Not sure why I wasn't seeing comments as of late. I did a video on them a while ago. Will probably do one again soon as I have seen a bunch of new discussions around them. For now, hopefully this helps: th-cam.com/video/xtRsPKWSfd0/w-d-xo.html
Just a comment about international agreements and OAS and CPP. Using the UK Canada agreement is not really useful in this context. The one with Canada and the UK is kind of different in that all it allows is that if you are working for a Canadian company while you are living in the UK, you can contribute to CPP for those years. Similarly if you’re working for a UK company in Canada you can contribute to the UK pension. That’s it. There is no totalization of benefits. By that I mean, if you lived 10 years in the USA, with whom Canada has an agreement, and 20 years in Canada, you could qualify for a 30 out of 40 year pension from the CPP international benefits andtechnically get one payment. There are many other countries with whom Canada has agreements, but they are all different. If you spent enough time in the UK, you could be eligible for a pension from the UK. And then a separate pension from Canada. But they don’t intermingle. If that makes sense. Your video popped up while I had other ones on. I know it’s a couple of years old so you probably already know that.
Very informative, I would like to have a meeting with you ( in person or on video call to have my situation explaind and have your service ) I dont know how to contact you. Could not find the mentioned link. Im from Ontario
You can visit K4Financial.ca anytime and there’s a couple of options there. Easy enough to just fire us an email at info@k4financial.ca and we can go from there.
Thanks for the explanation, Kent. If I still keep working after 65 and has a lot of room to contribute to RRSP, would you suggest to withdraw the CPP at 65 and reinvest into RRSP to get the higher rate of return. I like to delay the CPP until 70 to get the maximum benefit, but reinvest into RRSP will have higher gain in the long run.
Can’t believe all the pensioners I’ve met who regret taking retirement benefits early. Mind you the dead ones are there anymore to say it was a good idea.
I have question, please. Assume I have been leaving in Canada for 20 years till age 65. If I decide to postpone till age 71, will my OAS increase from 20 to 26 years of leaving in Canada. Will it also compound with 36% of benefit for postponed reason. Thank you for your videos.
The percentage doesn’t change, you’re going to get 50% of OAS. Then that number will increase by 7.2% a year. Don’t delay until 71. Take it at 70 at the latest.
For the lucky few with a defined pension and bridge account until age 65, would it then make sense to use RRSP savings more aggressively in years 65,66 etc, reducing clawback risk, lowering tax footprint , before taking OAS.
That’s a good question. My assumption is that you’re still technically a resident of Canada when you’re deployed? In that case, you’d still get the OAS years and you’d be contributing to CPP, so you’ll be golden with those two and your military pension.
Hi, I have a GIS question for you, I was just reading that people can make $5,000 before it affects the amount of GIS than one receives. My question is this - if I have a $4,000 annual pension will this amount affect my gis, is my pension considered income when it comes to gis and am I allowed $5,000 annually penion before I see a decrease in my gis? Thanks!
@@K4Financial thanks for the response. I thought I read that I was allowed the first $5,000 free... I also read that income would only reduce the amount I receive by .50 on the dollar but when I look at the amount I would get with a $6500 annual pension, the amount it is reduced by is much higher than .50 on the dollar. $6500 = $544 / month and half of that is $272 reduction / month However, the 6500 / year amount = $582 gis / month But if I only lose .50 on the dollar I should be clawed back 544 divide by 2 = $272 per month. Seeing as full gis = $948, I would have thought I should receive 948 - 272 = 676, not the $582 that the gis calculator shows. So much misinformation out there..
If I move to Canada at the age of 17, and I worked here until of age of 65 meaning a residence of Canada for the length of time. But from 18 all the way down to 65 I been living six months out of Canada, is that considered living in Canada for 47 years? in essence I only live in Canada for half the time if you would do the math. But the home address is always been Canada.
I'm taking rsp to get me to 65 then taking oas and gis with a little tfsa to supplement and waiting on my cpp at age 70. Finally going to get a little moola from our government.
So in any way even if you almost killed yourself for last 40 years and paid sh#t ton of taxes your income after retirement would be lesser than bank teller's salary... Doesn't sound fair to me TBH.
What sounds more fair? This is also one of three pension plans that Canadian seniors receive. It is not a huge amount, but it’s enough to survive. The remainder is supposed to come from your own savings, or work, if you want a more comfortable life as a senior.
Very well explained. Taking it just because you're entitled to it not always being the best decision is a great point.
Very helpful with a few funny jokes.…thank for what you do!
You’re very welcome. Thanks for the very kind comment.
Great breakdown -Kent....especially the spread sheet....very easy to understand... Thanks.
Thanks Kevin. We do our best to keep it simple.
My 65th birthday is in a few weeks, and i am tempted to send in my OAS forms, because with the covid and my job( in the tourism sector) not satisifying me anymore I am tempted, to retire, but thanks to your info i might grind it out, at least until the week after my birthday! ha! Great stuff thank you.
I retired at age 35.
As usual great advice. Appreciate your candour. It makes a difference to many.
Thanks Mark.
Great advice and lots to think about.
Your show is awesome Thank You for helping us understand much more , 100% awesome
You’re very welcome. We try our best.
Good video. Thanks .
*The reality of the rich and the poor is this: the rich invest their money and spend what is left. The poor spend their money and invest what is left"*
Investing in crypto is the best way to earn financial freedom,Without doubt crypto is so money making
This is the kind of information that we don’t get from most youtubers..
I could invest in Crypto but always got confused by it’s volatility in nature
@@chrisbenjamin2219 That won't bother you if you trade with a professional like Mr Larry Stafan.
Count me in, I’m placing my trades with Expert Larry Stafan ASAP
Kent one thing you skipped over or missed with the OAS is that when you delay taking it and the amount rises, it means that while the clawback floor stays the same about $79,000, the ceiling when it is completely clawed back rises, because the total amount has increased. Yes I know that the number of people in the situation where being concerned about the total clawback of the OAS is vanishingly small, still there are some.
At the 11:20 to 12:20 mark my brother-in-law made that mistake even after his tax accountant told him not to tax OAS at age 65 because the was still working so he got nothing for the next two years and a lesser amount for the rest of his life.😁
Thx Kent
You’re very welcome
For me personally I will go with RRSP first, then QPP 5 years later and take AOS later down the road
Hi Kent;
Thank you for this and previous TH-cam content.
For one reason or many, some of us are heading into retirement with little than OAS, CPP and maybe GIS.
But also some of us are ‘lucky’ enough to be sitting with a house and built up equity.
Will you talk to us about reverse mortgages in Canada.
Those seem a viable options!?
I’m most interested in the downside of them. Ie compounded interest, residual value.
Yes, unfortunately my heirs are going to be left short 😕
Hi Peter. Not sure why I wasn't seeing comments as of late. I did a video on them a while ago. Will probably do one again soon as I have seen a bunch of new discussions around them. For now, hopefully this helps:
th-cam.com/video/xtRsPKWSfd0/w-d-xo.html
Don't ever take a reverse mortgage just remortgge your house and pay a rate of interest less than halkf.
Just a comment about international agreements and OAS and CPP. Using the UK Canada agreement is not really useful in this context. The one with Canada and the UK is kind of different in that all it allows is that if you are working for a Canadian company while you are living in the UK, you can contribute to CPP for those years. Similarly if you’re working for a UK company in Canada you can contribute to the UK pension. That’s it. There is no totalization of benefits. By that I mean, if you lived 10 years in the USA, with whom Canada has an agreement, and 20 years in Canada, you could qualify for a 30 out of 40 year pension from the CPP international benefits andtechnically get one payment. There are many other countries with whom Canada has agreements, but they are all different. If you spent enough time in the UK, you could be eligible for a pension from the UK. And then a separate pension from Canada. But they don’t intermingle. If that makes sense. Your video popped up while I had other ones on. I know it’s a couple of years old so you probably already know that.
Very informative, I would like to have a meeting with you ( in person or on video call to have my situation explaind and have your service ) I dont know how to contact you. Could not find the mentioned link. Im from Ontario
You can visit K4Financial.ca anytime and there’s a couple of options there. Easy enough to just fire us an email at info@k4financial.ca and we can go from there.
Thanks for the explanation, Kent. If I still keep working after 65 and has a lot of room to contribute to RRSP, would you suggest to withdraw the CPP at 65 and reinvest into RRSP to get the higher rate of return. I like to delay the CPP until 70 to get the maximum benefit, but reinvest into RRSP will have higher gain in the long run.
I’m not sure. I’d have to run the math on the particulars and then answer. If I were to guess, I’d say delaying would win, but that could be wrong
Can’t believe all the pensioners I’ve met who regret taking retirement benefits early. Mind you the dead ones are there anymore to say it was a good idea.
I have question, please. Assume I have been leaving in Canada for 20 years till age 65. If I decide to postpone till age 71, will my OAS increase from 20 to 26 years of leaving in Canada. Will it also compound with 36% of benefit for postponed reason.
Thank you for your videos.
The percentage doesn’t change, you’re going to get 50% of OAS. Then that number will increase by 7.2% a year. Don’t delay until 71. Take it at 70 at the latest.
YOu get 100 percent of y0ur oas and yes wait til 70 and getz 36 percrtnt more.
For the lucky few with a defined pension and bridge account until age 65, would it then make sense to use RRSP savings more aggressively in years 65,66 etc, reducing clawback risk, lowering tax footprint , before taking OAS.
It can make a lot of sense in a scenario like that. Even if it’s just a case of having more RRSPs than necessary
If You didn't getz YER money intio offshore tax havens them shove most of it intom gold bars.
Just curious, are military personnel subject to the same residential requirements? Some of them spend a large amount of time posted outside of Canada.
That’s a good question. My assumption is that you’re still technically a resident of Canada when you’re deployed? In that case, you’d still get the OAS years and you’d be contributing to CPP, so you’ll be golden with those two and your military pension.
Hi, I have a GIS question for you, I was just reading that people can make $5,000 before it affects the amount of GIS than one receives.
My question is this - if I have a $4,000 annual pension will this amount affect my gis, is my pension considered income when it comes to gis and am I allowed $5,000 annually penion before I see a decrease in my gis?
Thanks!
Your GIS will be reduced because of your pension income.
@@K4Financial thanks for the response.
I thought I read that I was allowed the first $5,000 free...
I also read that income would only reduce the amount I receive by .50 on the dollar but when I look at the amount I would get with a $6500 annual pension, the amount it is reduced by is much higher than .50 on the dollar.
$6500 = $544 / month and half of that is $272 reduction / month
However, the 6500 / year amount = $582 gis / month
But if I only lose .50 on the dollar I should be clawed back 544 divide by 2 = $272 per month.
Seeing as full gis = $948, I would have thought I should receive 948 - 272 = 676, not the $582 that the gis calculator shows.
So much misinformation out there..
if you do income splitting with your spouse is the clawback post income splitting?
Yes it is
If I move to Canada at the age of 17, and I worked here until of age of 65 meaning a residence of Canada for the length of time. But from 18 all the way down to 65 I been living six months out of Canada, is that considered living in Canada for 47 years? in essence I only live in Canada for half the time if you would do the math. But the home address is always been Canada.
As far as I know, yes
YER covered
I'm taking rsp to get me to 65 then taking oas and gis with a little tfsa to supplement and waiting on my cpp at age 70.
Finally going to get a little moola from our government.
Good plan for those who can make that work.
By that time the government will be bankrupt and you'll getz pennys ion the dollar.
What do you consider a lot of money in your rrsp?
Don’t have a specific number. Too many factors to consider. P
I enjoy your shows!!
@@charlesvanderwoude8745 thanks. Appreciate it
Where are you guys located?????????????
Hard to trust people on virtual space
Edmonton and Winnipeg
17:00 Did Kent accidentally amuse himself?
Sometimes I do that. Haha.
Haha, no. I was laughing because I remembered how sad I was.
So in any way even if you almost killed yourself for last 40 years and paid sh#t ton of taxes your income after retirement would be lesser than bank teller's salary...
Doesn't sound fair to me TBH.
What sounds more fair? This is also one of three pension plans that Canadian seniors receive. It is not a huge amount, but it’s enough to survive. The remainder is supposed to come from your own savings, or work, if you want a more comfortable life as a senior.