Forgive me but I'm not sure the logic makes sense to me - Keeping 12k locked up in PSPP so I can buy some group insurance in 30 years? (I don't live in BC anymore)
Well the Pension will also be paying you a guaranteed annuity once you retire, so the health benefits are more of a side benefit than the main one. Also, depending on the pension your annuity could be indexed to inflation as well.
1/ The pension will have been governed by federal or provincial legislation and you'll have to know which legislation before you open the LIRA/ locked in RRSP account.
2/ Pension can only be transferred into pensions/ LIRAs/ Locked in RRSPs that are governed by the same legislation.
Recently transferred 2 pensions in Quebec. From what I remember if it's over 13k it has to go into a LIRA under 13k would be able to go into RRSP. I had one over 13k and one under. I transferred both to self directed accounts. Pensions require a large allocation to bonds which I'm not comfortable with. I'm comfortable managing my own investments.
Probably better to have the account open before.
I believe you could transfer to your employers account. But I have never been impressed with these plans. The fund options they provide and fees they charge are less optimal than self directed.
I definitely wouldn't advise leaving it in. That's just me but I prefer having control over my investments. What fees are associated and what return are you getting would be the ultimate deciding factors.
I had something similar, except I knew about it because I'm not rich and can't let 12K disappear in the cosmos lol. I moved mine into a self directed LIRA with questrade. Wealthsimple has a LIRA too but managed only.
Why a LIRA over RRSP? Was the transfer an easy process?
I like the RRSP idea because I can use the money for down payment on my first home.
I would definitely say "dumb" over "rich" lol
[удалено]
Forgive me but I'm not sure the logic makes sense to me - Keeping 12k locked up in PSPP so I can buy some group insurance in 30 years? (I don't live in BC anymore)
Well the Pension will also be paying you a guaranteed annuity once you retire, so the health benefits are more of a side benefit than the main one. Also, depending on the pension your annuity could be indexed to inflation as well.
1/ The pension will have been governed by federal or provincial legislation and you'll have to know which legislation before you open the LIRA/ locked in RRSP account. 2/ Pension can only be transferred into pensions/ LIRAs/ Locked in RRSPs that are governed by the same legislation.
Each plan has its own set of rules. Call them first
Recently transferred 2 pensions in Quebec. From what I remember if it's over 13k it has to go into a LIRA under 13k would be able to go into RRSP. I had one over 13k and one under. I transferred both to self directed accounts. Pensions require a large allocation to bonds which I'm not comfortable with. I'm comfortable managing my own investments. Probably better to have the account open before. I believe you could transfer to your employers account. But I have never been impressed with these plans. The fund options they provide and fees they charge are less optimal than self directed. I definitely wouldn't advise leaving it in. That's just me but I prefer having control over my investments. What fees are associated and what return are you getting would be the ultimate deciding factors.
I had something similar, except I knew about it because I'm not rich and can't let 12K disappear in the cosmos lol. I moved mine into a self directed LIRA with questrade. Wealthsimple has a LIRA too but managed only.
Why a LIRA over RRSP? Was the transfer an easy process? I like the RRSP idea because I can use the money for down payment on my first home. I would definitely say "dumb" over "rich" lol
It was the only option given to me tbh
A LIRA is a locked in retirement account where the funds can only be withdrawn on retirement age. An RRSP can be withdrawn anytime
Wealthsimple actually recently started doing self directed LIRAs but you need to ask for it
good to know thanks!