How much do you know about financial independence?

if you got to the point you realize you can be less vigilant thats probably a good thing and its probably cuz you were vigilant to begin with

many people were not or had bad luck, how many times have you seen someone do something that was not a good idea and wonder why ?

for every winner there has to be losers

McGill uni has a free personal finance course you can do online. Might be of interest to some people here:

https://www.mcgillpersonalfinance.com/

If you have a pension this is good news

PENSION PROTECTION BILL C-228 TO BECOME LAW!
The House of Commons unanimously passed MP Marilyn Gladu’s private member’s Bill C-228 last year.
On April 18, 2023, it passed the Senate without a dissenting vote.
Bill C-228 will receive Royal Assent shortly – and come into full force in four years.
Impact of Bill C-228 on the Security of your Pension
Bill C-228 will improve the security of your pension in the event our pension plan is underfunded and involuntarily terminated – in the following two ways:
In a bankruptcy, Bill C-228 elevates pension plans in the order of precedence in the division of remaining corporate assets. While pensions will continue to rank below government remittances (taxes and other payments) and officers of the Court (e.g. bankruptcy trustee, lawyers, etc), they will rank equal to earned, unpaid employee wages. But more importantly, pensions will rank ABOVE secured and unsecured creditors, specifically banks.
In a corporate restructuring, no proposal to restructure may be considered by the Court unless it provides for full funding of the pension plan(s).
Given sufficient remaining assets, pensions will be paid in full.
Bill C-228 is very good – but not perfect
We cheer the adoption of Bill C-228 – but we must remember it has actual and potential gaps in its protection of pensions.
· Four-year delay before coming into force: Any bankruptcy or restructuring filed prior to April xx, 2027 will be governed by current legislation.
· Possible avoidance: Recent history provides examples of US parent companies successfully draining assets from distressed Canadian subsidiaries prior to restructuring or bankruptcy.
· Possible legal challenge: At least two opponents of Bill C-228 threatened to challenge it in court – on its first use or before.
The BPA continues to seek 100% security for your pension

Posted by: XXX_er

If you have a pension this is good news

PENSION PROTECTION BILL C-228 TO BECOME LAW!

https://www.parl.ca/legisinfo/en/bill/44-1/c-228

that makes me feel much better for my sibling, who is relying on a "too big to fail" company pension.

https://srv111.services.gc.ca/generalinformation/index

here's a fun one for a Friday night.

don't forget your income tax is due !

It was so easy with Wealth simple last year but this year they did not auto-fill all of my T-1 like it has done in the past

so i had to wank about finding/ inputing some slips by hand

then i got a large tax bill cuz the investment firm doesn't with hold any taxes on RIF $$$$

which is i guess > CRA having my money but its definatly enough to give ya a sweaty crotch

edit: so proof positive all those RRSP contributions eventualy DID get taxed, I will have to do a little math and see if i actualy saved any tax altho I continuously  quit buying RRSP 18 yrs ago so I wouldn't have too many

I contributed to my RRSP for many years just like everyone told me I was supposed to. I stopped contributing when I realized I may end up in a higher tax bracket once I am forced to start taking money out.  First world problem I guess.

What's wrong with being in a higher tax bracket once you start taking it out?  It's a marginal increase.

Or are you running the math on wanting to spend it now vs spending it later?

Posted by: skooks

I contributed to my RRSP for many years just like everyone told me I was supposed to. I stopped contributing when I realized I may end up in a higher tax bracket once I am forced to start taking money out.  First world problem I guess.

I theoretically could have the same issue, but it would mean enjoying great returns between now and 71. That's not really a problem. It's just winning too much. I won't complain if that's my situation.

the banks tell you the RRSP is a good idea and they give their bank officers quotas which they fill even tho they know its not always good for the customer,

the idea was that you buy em when you make lotsa money to reduce taxes and cash em in when you are old/ making less money

but if yer old and making lotsa money there is no tax saving

at some point just buy something beside RRSP

the whole point was to pay less tax on money you made in yer youth by taking it out when yer old and not making as much money, the banks tell you the RRSP is a good idea and  they give their bank officers quotas which they fill  even tho they know its not always good for the customer,

at some point just buy something else

RRSP is not something you ‘buy’.  It is a type of income tax deferred account.   If you currently ‘buy’ RRSPs from your bank teller, lets talk.  

RRSP is also not something that you must wait till you're ‘forced’ to take out a high taxable income.   Its a tool, when used properly, to reduce lifetime income tax.

My plan is to take 10-15k RSP out per year between 50ish(?) and death, supplementing a new lower but funner work, dividend or CPP income to keep me under the first or hopefully second tax bracket.  I’m just working with a big bank financial planner to get a free second opinion, and its already quite obvious he knows I’ll ignore his sales pitch.  

And yes- check your CPP estimates in My Services Canada.  You might be surprised.   I was. 

https://www.canada.ca/en/employment-social-development/services/my-account.html

Posted by: XXX_er

the banks tell you the RRSP is a good idea and they give their bank officers quotas which they fill even tho they know its not always good for the customer,

the idea was that you buy em when you make lotsa money to reduce taxes and cash em in when you are old/ making less money

but if yer old and making lotsa money there is no tax saving

at some point just buy something beside RRSP

Yeah that's the conclusion I came to as well.

Posted by: heckler

And yes- check your CPP estimates in My Services Canada.  You might be surprised.   I was. 

https://www.canada.ca/en/employment-social-development/services/my-account.html

I'm not sure how Services Canada gets to their estimation, I think it assumes continuation of your current income in the future. If you plan to (semi-)retire early it might not be accurate.

There is a spreadsheet you can download from the link below in which you can enter your CPP contributions so far (which you can also find on the Services Canada website) to calculate how much CPP you have actually built up. It gives a much lower number for me than Services Canada.

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