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How much do you know about financial independence?

May 5, 2023, 6:41 p.m.
Posts: 18883
Joined: Oct. 28, 2003

https://www.taxtips.ca/rrsp/what-is-an-rrsp-or-a-rrif.htm

https://www.taxtips.ca/rrsp/converting-your-rrsp-to-a-rrif.htm#rrsp-partial-conversion-to-rrif

Again, an RRSP is a type of tax-deferred account, and an RRIF is a type of Income account that an RRSP holding must be converted to by the age of 71. But nothing states you must convert your entire RRSP account holdings to an RRIF account holding.

So, take a 500K RRSP account, open an RRIF account and move 100K from RRSP to RRIF at 55 (or whenever), holding the same funds/stocks/ETFs the big banker didn't sell you, but you were clever and bought yourself with knowledge. At 55, take out a $2850 minimum (2.85%, much lower than the 5-8+% annual growth) from RRIF and pay income tax on it. Keep the other 400K in RRSP, growing tax deferred till you need it.

Sure, at 71 it'll be so much I have to fly to Mexico twice a year. Problem is?


 Last edited by: heckler on May 5, 2023, 6:42 p.m., edited 2 times in total.
May 5, 2023, 6:46 p.m.
Posts: 18883
Joined: Oct. 28, 2003

Posted by: [email protected]

https://www.finiki.org/wiki/CPP_and_QPP_calculator

Sweet, thanks for the link!   I'll be asking big bank financial planner about the My Services Canada CPP estimates I gave him (he asked for them). No, he won't be "selling me RRSP's".


 Last edited by: heckler on May 5, 2023, 8:05 p.m., edited 1 time in total.
May 5, 2023, 6:48 p.m.
Posts: 18883
Joined: Oct. 28, 2003

Posted by: XXX_er

at some point just buy something beside RRSP

for sure, when you've reached your RRSP contribution limit, non-registered accounts are needed.

May 5, 2023, 7:09 p.m.
Posts: 663
Joined: Oct. 23, 2003

Wow. Must be nice to have all that extra  cash in a year living in vancouver.. why yall aint left the lower mainland yet is baffling and probably the best financial advice i could ever offer

May 5, 2023, 8:03 p.m.
Posts: 18883
Joined: Oct. 28, 2003

Posted by: Adam-West

Wow. Must be nice to have all that extra cash in a year living in vancouver.. why yall aint left the lower mainland yet is baffling and probably the best financial advice i could ever offer

It’s all hypothetical planning talk. If you don’t plan, you’ll never have it, no matter where you live.

I hear ya on gettin outta Dodge, but as an example, we also drive a 17 year old Pontiac as our good car (the other is 42 years old). Even in the big shitty where everyone else drives either a Tesla, a bimmer or a Taco.


 Last edited by: heckler on May 6, 2023, 7:27 a.m., edited 2 times in total.
May 5, 2023, 8:40 p.m.
Posts: 3253
Joined: Nov. 23, 2002

Posted by: Adam-West

Wow. Must be nice to have all that extra  cash in a year living in vancouver.. why yall aint left the lower mainland yet is baffling and probably the best financial advice i could ever offer

Every place has it's advantages and disadvantages. What makes any place good is how you take advantage of the advantages and manage to slip by the disadvantages.

May 9, 2023, 9:54 p.m.
Posts: 18883
Joined: Oct. 28, 2003

Posted by: XXX_er

at some point just buy something else

Just not something like this.  If it sounds too good to be true, it probably is. 

https://www.cbc.ca/news/canada/british-columbia/victoria-mortgage-clients-worry-about-life-savings-1.6837491

May 17, 2023, 5:23 p.m.
Posts: 3253
Joined: Nov. 23, 2002

Some strange/amazing gains being made in the market lately. Redfin is up almost 300% since Feb.

May 17, 2023, 6:39 p.m.
Posts: 18883
Joined: Oct. 28, 2003

$7.48 to $10.53? how do ya figure? +40%

https://g.co/kgs/sCERZ5

VTI, on the other hand is dead flat since Feb 1, plus dividends. Or +6.13% if you bought March 13.

Even the Motley Fool headline is fooling fools. 165%? I calculate $4.31(Jan3) to $10.53(today) as +144%

https://www.fool.com/investing/2023/05/15/redfin-is-up-165-in-2023-could-it-still-be-a-long/

And if you're lucky to have FOMO'd it in peak covid (Feb 19, 2021), you've lost -89%


 Last edited by: heckler on May 17, 2023, 9:48 p.m., edited 7 times in total.
May 17, 2023, 9:16 p.m.
Posts: 3253
Joined: Nov. 23, 2002

I don’t have the exact dates in front of me but it was $3.80 near the start of the year and was up to $10.75 or so in the last little bit - so close to 300% or almost tripled in value. I almost bought when it was under $5 but went in a different direction.

May 17, 2023, 9:49 p.m.
Posts: 18883
Joined: Oct. 28, 2003

Percent change is something I'm struggling to understand clearly, that's why I jumped on overanalyzing your claim. Nothing personal.

https://www.calculatorsoup.com/calculators/algebra/percent-change-calculator.php

"This is a % change calculator. Going from 10 apples to 20 apples is a 100% increase (change) in the number of apples"

https://www.calculatorsoup.com/calculators/algebra/percent-difference-calculator.php

"The Percentage Difference Calculator (% difference calculator) will find the percent difference between two positive numbers greater than 0. Percentage difference is usually calculated when you want to know the difference in percentage between two numbers."


 Last edited by: heckler on May 17, 2023, 9:50 p.m., edited 1 time in total.
May 17, 2023, 10:06 p.m.
Posts: 879
Joined: June 17, 2016

Posted by: syncro

close to 300% or almost tripled in value

If the price changed +300%, it quadrupled.

If the price tripled, it changed +200%.

May 17, 2023, 10:22 p.m.
Posts: 3253
Joined: Nov. 23, 2002

Posted by: heckler

Percent change is something I'm struggling to understand clearly, that's why I jumped on overanalyzing your claim. Nothing personal.

https://www.calculatorsoup.com/calculators/algebra/percent-change-calculator.php

"This is a % change calculator. Going from 10 apples to 20 apples is a 100% increase (change) in the number of apples"

https://www.calculatorsoup.com/calculators/algebra/percent-difference-calculator.php

"The Percentage Difference Calculator (% difference calculator) will find the percent difference between two positive numbers greater than 0. Percentage difference is usually calculated when you want to know the difference in percentage between two numbers."

No worries, I’m only sleeping every second night right now so I’m kinda like whatever tripled, 300%, whatever.

May 17, 2023, 10:25 p.m.
Posts: 3253
Joined: Nov. 23, 2002

Posted by: [email protected]

Posted by: syncro

close to 300% or almost tripled in value

If the price changed +300%, it quadrupled.

If the price tripled, it changed +200%.

yup

June 17, 2023, 7:38 a.m.
Posts: 18883
Joined: Oct. 28, 2003

https://www.cbc.ca/news/canada/british-columbia/victoria-mortgage-clients-worry-about-life-savings-1.6837491

I think I’ve posted this cautionary tale before. 

If it sounds to good to be true, it probably is. 

Diversify. 

(my intent via index investing is to own a mere 0.01% of any possible publicly traded small fry who fry up)

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