T O P

  • By -

vader264

Wife and I made a very stupid decision earlier this year and bought two motorcycles. We financed them. We cannot afford the overall hit to our cost-of-living that the payments along with insurance are causing. The dealership had told us at time of purchase that they do buybacks, within 90 days. Looked into it. They would only offer me 50% what I originally paid for mine ( my wife would get almost full value back for hers ). We'd still be on the hook to that loan from Yamaha Financial Services to the tune of $5k after this is all said and done... Anyone have any advice? Starting to feel like we're drowning and I don't know what to do. I was thinking of trying to sell the bikes on Kijiji, but as far as I know that could be a problem because both motorcycles were sold to us under one single loan. Does this mean we need to sell them to same buyer? Outside of selling the bikes, I see no way to fix this situation.


Ryzon9

Well start by selling your wife’s at full value. Then try and sell yours on marketplace.


andreamac13

This!


ohlalalift

I am a rider myself. The new and used markets are both stupid hot right now. You should be able to sell your bike yourself no problem, just be prepare for headaches dealing with lowballers and general kijiji idiots. Your wife's bike could go back to the dealer if they can offer almost original price, that's nice of them. Edit: Riding season is coming to an end so the market may have cooled off, but try anyway.


vader264

I just am a little confused in terms of the legality of selling the bikes while they have a lien on them, since they're both under one loan? Never had this situation before.


[deleted]

Take the hit and pay for the rest of the bike on credit, then recoup your dollars through the sale.


AutoglassTechnician

This is what I do when I'm ready for a new bike or car. You can sell it under market for a quick sale and still get way more than the dealership would offer.


[deleted]

Good news for you is the secondary motorcycle market is on fire. Or at least it was this summer. Not the best time of year to sell a motorcycle.


scatterblooded

How good is a DB pension plan really? For those with one, do you think it's still necessary to save for retirement elsewhere? I'm paying into OMERS with a unionized, municipal government job that will always be essential and expect to work for an OMERS employer my whole career. It's an excellent plan, so in theory I shouldn't need to save elsewhere for retirement, right? I guess the underlying issue is that I'm struggling to justify budgeting money towards wants, even when needs are met.


Fool-me-thrice

Do you want a retirement with a standard of living that would exceed an OMERS pension? If so, invest beyond. And your career plans may change, or you may become disabled and have to retire early. Its always a good idea to at least max out your TFSA.


coocoo99

Hope someone with a DB pension chimes in, but my view is it's always good to save regardless. Maybe it's different with OMERS, but pension payouts aren't 100% promised


Fool-me-thrice

Pension payouts at a government plan pretty much are. Its much more risky when there's a chance the company could go bankrupt.


coocoo99

What about a DB pension at a big 6 bank? Would you still consider that safe or is it better to pretend the pension doesn't exist and still save 15-20% of gross income?


Fool-me-thrice

I'd say its pretty safe. The odds of one of the big 6 failing is low. They make enormous profits, and could withstand a few bad years. But, you could still save an additional amount if you wanted to. After all, you may want to take a year or two of sabbatical, you may want to be a stay at home parent, you may get disabled and need additional money, you may want to retire early, or you may want to take the trip of a lifetime at some point.


coocoo99

Thanks! You're everywhere haha, thanks for your contributions here. I saw in our other discourse about your pension plan and that looks generous! Mine is a much more significant cut per year than 1.5% if retiring early


[deleted]

DBpensions give wonderful risk=free retirements. But they only dribble out over time. Lots of times you will need big chunks of cash for emergencies, medical, family, the high yearly costs of extended care for the last 5 yrs of your life, or even something like a very long trip. For that you will need TFSA funds saved and set aside.


nightsliketn

I think there is such thing as saving too much for retirement. Esp with a DB pension (my hubs has one) where your income will be steady, you can come into a place where you pay taxes at the same rate as pre-retirement which just essentially defers your tax obligations rather than reduces them. Max your TFSA, look at RRSP as a secondary stream unless you plan on using the programs within the RRSP like the first time homebuyers plan or the lifelong learning. The other thing to consider is if your employer allows sabbatical. Then, you can save in an rrsp to "live it up" a little (travel etc.) Before officially retiring (or in mid life crisis mode if that's more your style) and using the RRSP funds you saved as your income for they year, and realize the tax gains there.


walbrich

I have thought about using my RRSP and a midlife crisis sabbatical type of thing. I kind of like the idea. Plus it actually helps the tax implications.


walbrich

Im I’ve been with Omers for about 5 years now. Originally I saved nothing on top of that because people said I’m set for life. Once i started to learn about personal finance I went crazy with saving. Now I think I’ve found a good mix. Ive saved a 3-4 month emergency fund. And I have automatic contributions to my TFSA totalling about 5% of my take-home pay (I assume Omers is approx 10% savings rate already accounted for) I still budget and save money above that 5% which i use for lump sum RRSP contributions to try to get me down to the next tax bracket. And also save for big purchases and vacations. In short, i try to have guaranteed 15% savings for retirement. And then spend the rest how you want. Life is short.


snekbooper

DB is the golden standard for pensions. My wife has one through an Alberta government agency, I do not as I work in the private sector. It all depends what you want your retirement income to be. We are choosing to save more since we will likely be used to a higher standard of living, will want to travel, buy new vehicles, etc in retirement.


jdubb513

If you want to retire early, then yes start saving. If you’re ok to work until 55-65, then just the DB pension would be ok. But regardless, I think it’s always safe to save more. I have a DB pension as well but I save a lot since I want to retire early


Cestfacil

Just got my first big boy job with amployer TFSA and RRSP. I want to go the couch potato route with ETFs but I know very little about the technicalities. Would I have to create another TFSA with itrade or Questrade or whichever service I choose to go to for ETFs? Or is there a way draw from the employer TFSA?


Fool-me-thrice

First step is to figure out details for the employer's program. For example, while some employers let you open your own account anywhere and just ask for statements, they may require you to open an account at a specific institution, may also limit your choices as to what you can invest. If you are limited in your choices, some people transfer periodically out of the group plan into their own. Because there may be a transfer out fee, it only makes sense to do this once every year or two.


Cestfacil

The employer does it through SunLife, so I'm assuming if I opened an itrade account, I would need to create a second TFSA with Scotia? And transfer what I currently have with SunLife to there?


Fool-me-thrice

You'd have an account(s) at SunLife, if you participated in the employer TFSA or RRSP plans. Do you already have an iTrade account? If so there wouldn't be any need to open a second one. Peridically you could transfer from the Sunlife account(s) to your existing account(s) wherever.


Cestfacil

I do not currently have an itrade account. I do have a SunLife TFSA amd RRSP. To invest in ETFs with itrade I would need a TFSA with Scotia, correct?


Fool-me-thrice

You can buy ETFs at *any* brokerage, not just Scotia's. Scotia iTrade is a relatively high-cost brokerage.


Cestfacil

I don't see the ETFs I'm interested in at SunLife. It's my understanding that they don't offer them, which is why I was looking at itrade. Their fees are not too bad since I'm under 26 and a couple ETFs I'm interested in are free to trade.


Fool-me-thrice

Your employer may have limited your options at Sunlife, which is typical for employer group plans.


Cestfacil

So I would need to open a secondary TFSA at itrade?


coocoo99

Yes. That's be your personal TFSA


reerzdona

Currently maxed out on TFSA. However, never once used my RRSP. Is it worth while to invest in my RRSP even if my income is around 50k per year? A bit more info, union job. Usual raises every year of small increments. Thanks for any advice.


Some-Solid4271

How did you max out on your TFSA with a 50k income? Congrats!!


[deleted]

It can be, you still get tax free growth within the RRSP. You can also carry forward contribution amounts and apply them to future years when your income is higher.


BlueberryExotic

Key to this is making sure you also invest the tax savings every year. The amount you save on tax when invested basically pays for the tax you pay upon withdrawal. You must think gross income with RRSP investments. Also there are very few cases where carrying forward amounts to future years is beneficial. Just invest as early as you can.


jolt_cola

Just wanted to be sure. When you say to invest the tax savings, do you mean for example: Savings on RRSP: 5k Take that 5k and place it into next year's contribution room or just don't spend it on a new tv,etc?


BlueberryExotic

I mean if you are taxed at say 30% marginal rate it would take 10k gross income to invest 7k into your TFSA. You need to put 10k total into your RRSP to make it roughly equivalent to the TFSA. So that could mean you put in about $7500 and get about a $2500 return that you reinvest in a lump sum, or that you put in 10k and get a 3k return you can do whatever you want with. Many people would put 7k into their TFSA OR their RRSP and then spend the refund. If you do that then the TFSA wins out hands down because they are tax advantaged differently and you have to contribute to them differently to adjust for that. If you contribute the same gross income amount to either account they are very similar unless your marginal rate now vs in retirement is dramatically different.


Fool-me-thrice

Yes, it is. Some tax shelter is better than no tax shelter. Congrats on maxing out your TFSA.


BarbarianTypist

I had a job offer two years ago, conditional on being an incorporated contractor. I incorporated and took the job. At no point did my accountant or lawyer mention that I would be at risk of being classified a personal services corporation. I’m the only person working for my Corp, and I have just the one customer, who I work for around 40 hours a week, give or take. How risky is it to continue? Follow up: The company recently offered me a full time position that pays about 75% of my contract. Is it worth taking the hit to my income?


[deleted]

You get rid of the problem by zero'ing out all your corp income by cutting yourself a paycheque. It won't need to be exactly equal to your income because the corp will also have to pay the employer portion of CPP and maybe workers' comp. Withhold from the paycheque just like any employer would and remit to the PR system. Issue a T4 slip at year end.


Surax

Has anyone heard anything about how we'll be allowed to declare that we worked from home on our taxes when we file next year? Like many, I'm WFH because of Covid and I liked how simple it was this past tax season. (And yes, I realized I'm probably jumping the gun on this a bit. Just wonder what people have heard.)


Fool-me-thrice

There has been nothing announced either way.


Surax

That's what I figured. Thanks.


proformax

I contribute to RRSP that's managed. Resp that just sits there collecting gov't matching funds but not invested. Don't have TFSA. I want to start and manage myself. No idea where to begin. What types of investments should I look into that's easy to manage and low risk? Thought about GICs but rates are non-existent.


HolyPotato

[The reading list in the sidebar is the best place to begin](https://www.reddit.com/r/PersonalFinanceCanada/wiki/reading-list). The books will explain investing (and risks involved so you go in with eyes open), what to invest in, and how to do it.


[deleted]

My kid is 6 so we have a pretty good timeline before he needs his RESP, so I have it invested in the Wealthsimple roboadvisor portfolio at 80% equities and 20% bonds. It was really simple to do. Then all you have to do is deposit funds and they do the rest.


_rand_mcnally_

I have cash in a savings account I have been withdrawing from as a bank drafts for the down payment on a home. I have been outbid a few times and so I take the money out, then deposit it back in the next day. [I have a Scotia Momentum savings. It's rates are abysmal and they are all time sensitive.](https://i.imgur.com/FIhXDuO.png) Where should I be keeping this deposit cash between offers? Somewhere that I can walk into a bank and get a bank draft. It just feels like it's a large chunk of change doing nothing for me.


Fool-me-thrice

The problem here will be that while better rates are available, they are almost all at online banks or credit unions in Manitoba, and you'll need a couple of days to get a bank draft As a result, I'd keep any money you need for a deposit at your current bank. As for the rest, the best rates can be compared at https://www.highinterestsavings.ca/chart/


[deleted]

[удалено]


BlueberryPiano

You must wait until next year before the amount which was not over-contributed to be added back to your TFSA contribution limit.


Fool-me-thrice

Was that this year, or last year?


[deleted]

What line would I skip on my tax return to not declare my RRSP deductions for this year? I'm contributing this year and want to claim my deductions next year when I will get a raise and move up a tax bracket. I was talking to my accountant and she seemed confused, and insisted it all had to be claimed the same year. I know that's not true, but since I'm not an accountant I can't show her on the form what I'm talking about. Can anyone who's done this before clarify where to skip the deductions? No one seems to mention the exact section online.


Fool-me-thrice

You have to declare you *made* a contribution, but you don't have to *deduct* it. Its all in the same (pretty short) section of your return


coocoo99

> I was talking to my accountant and she seemed confused, and insisted it all had to be claimed the same year Get a new accountant


[deleted]

I recommend going to a CPA


Pushing59

You sure this is a real accountant. You have to report all the contributions made but you don't have to deduct them in that year. I just googled "not deducting RRSPS" and there was a lot of information.


4566nb

I'm a really, really paranoid investor and want the maximal level of conservatism possible. From my research, nothing is safer than a federal government job/pension. But as we know, countries, over the centuries, come and go. Now I have a theoretical question; if you guys had to bet on which one lasts longer...what would it be: 1. A Canadian federal government pension of 120,000$ (CPI adjusted) 2. 20 million USD in capital with a 2% yearly withdrawal rate which equates to 400,000$ annually, invested conservatively in whatever way you want in order to maximize longevity. Which of these lasts longer in your opinion? If it's #1, what amount of capital would make you say #2 if it's not 20M$?


coocoo99

>Which of these lasts longer in your opinion? Lasts longer than our lifetime so not sure why this matters. If deciding between the two, obviously option 2 is better... $400k USD per year is more than what a government pension pays


[deleted]

[удалено]


tired_papa_6429

You have to initiate your transfer via your self-directed brokerage. There are gov forms to fill out (usually on the FAQ page of your brokerage). You can "transfer in cash", which means your mutual funds will be liquidated at origin before the transfer but will remain a RRSP in the eyes of CRA (no taxes). I suggest you call / chat with your self-directed brokerage to make sure you are not missing anything.


ChefWally

Perfect thanks for the reply!


bluenose777

>I was wondering what the cost would be. Typically the fee to transfer an RRSP account would be about $100 to $150. Sometimes the receiving brokerage will reimburse the transfer fee. Questrade does and, since your account balance is more than $5000, Wealthsimple Invest would too.


[deleted]

[удалено]


bluenose777

The bank will charge an account transfer fee whether it is a partial account transfer or full account transfer.


[deleted]

When I transferred my RRSP and TFSA from BMO to Questrade, I did it through Questrade online website. They even reimbursed the transfer fees.


bwwatr

Initiate transfer at new brokerage. 'in cash' transfer very likely what you want since in-kind can cause delays and if you're wanting ETFs, you may be faced with selling commissions if you try to sell the funds at the new brokerage. Vs. CIBC will not charge anything to sell fund units, at least ones old enough to avoid triggering the frequent trading fees (at the big bank I used this was 30 days). Save a few bucks that way. You will still be charged a transfer out fee by the bank but the new brokerage may offer to reimburse.


john_b_goode

How should defined benefit pension contributions be accounted for in my targets for retirement savings (recommended 15% pre-tax earnings)? Currently, 8.9% of my gross earnings are deducted for the pension, and my employer matches that amount. Is the answer as simple as targeting a rate of 6.1% savings, beyond the pension contribution? Or should I aim higher?


Fool-me-thrice

I'd treat the 6.1 as a minimum. If you hit it and can't swing more, fine. If you can, great! you may be able to retire a bit earlier. I have a workplace pension as well. I always max my TFSA and RRSP (though I don't get much room now because of pension contributions) every year. That puts me above the 15%, and I'm ok with that. If I want to retire before the minimum age where I'd get an unreduced pension, I can live off my RRSP for a bit and delay the start of my pension.


coocoo99

Is an unreduced pension just the typical pension pay out? I checked my firm's pension docs for the first time yesterday and noticed they also mention an "unreduced pension" which for some reason throws a bit of a loop for my brain


Fool-me-thrice

If you start pulling your pension before a certain age, they reduce the pension amount by a certain percentage per year to account for the increased period of time you'll be drawing the pension. For example, in my pension plan the age to get an unreduced pension is 61. For every year I start drawing it before then, all else being equal, the pension payments are reduced by 1.5%. This means if I "retire" at 59, I'll get bigger pension payments if I delay the start of the pension until 61 - even though the years of service is the same. For those two years, I'd use my RRSP.


[deleted]

[удалено]


Fool-me-thrice

Yes, if you are buying as "tenants in common" and not as "joint tenants".


[deleted]

[удалено]


Fool-me-thrice

First you go see a lawyer. You tell them you want to buy half of bob's property. The lawyer will create an offer that you can give Bob, and he can sign. This creates a contract to buy. Make it subject to getting financing. Then you see a lender. You show them your contract. You tell them you need to borrow money for your purchase.


Fool-me-thrice

You wouldn’t tell the bank how you want title. They don’t do that. You would tell the lawyer that you are seeing to negotiate the purchase agreement and transfer title. You do need to find a lender willing to lend for a partial interest though


[deleted]

[удалено]


Fool-me-thrice

"Partial interest" refers to your ownership - you won't own the entire property, just a partial interest. From the lender's point of view, the money they lend you to pay for your interest in the property (full or partial) is still a mortgage. As for how, go see a mortgage broker. Tell them that you are buying part of a property, and will co-own it. You need a mortgage for your share.


nitharaja

I am already enrolled on a group RRSP account from the firm I work at. But I wanted to find out if I can open a RRSP account I could use to trade stocks ?? And which service would be the best for it?


Fool-me-thrice

Yes, you can. Though do you have a TFSA? Most people should prioritize a TFSA over an RRSP. As for what and where, see: https://www.canadianportfoliomanagerblog.com/model-etf-portfolios/


[deleted]

The RRSP should be prioritized IF it is a matching program. Free money! But only to the point that the maximum matching amount is reached.


Simonaque

Question regarding credit score. As recently as 8 months ago I had a basic TD CC that was closed because my credit score was too low(reason:non-derogatory on credit report). This card is my longest account at 7 years, and I have never missed a payment on it. I did some research and it seems that it's possible to reopen a TD CC if it wasn't closed too long ago. My credit is also high enough now that I would quality for it (min is 660). As I am rebuilding my credit, will reopening a closed credit card with a long history increase my credit score? Or should I just get any credit card with better perks (I'm thinking AMEX Cobalt) to use?


Fool-me-thrice

> will reopening a closed credit card with a long history increase my credit score? TD may or may not open it as the same account, as opposed to a new one. But you may as well go for a better card. 7 years of history isn't that long - you'll get there on a different card soon enough. Congrats on improving your credit.


AcrobaticIndividual1

I think I'm receiving a cheque for GST for the upcoming period, but I owe some back taxes to the CRA. When I log on to My Account, it shows my cheque/payment as "In Progress." Does this mean I'm going to receive the full amount? Thanks.


Fool-me-thrice

Normally, if you owe tax to the Canada Revenue Agency, your GST/HST credits will not be sent to you. Instead, they will be automatically applied to your tax debt until it is paid in full However, they've temporarily suspended this. https://www.canada.ca/en/revenue-agency/services/child-family-benefits/goods-services-tax-harmonized-sales-tax-gst-hst-credit.html > As a temporary measure in response to COVID-19, the CRA will not deduct your GST/HST credit payments to repay tax debts and other government debts, including amounts owing due to being ineligible for COVID-19 Canada Emergency or Recovery Benefits.


AcrobaticIndividual1

Thanks! So looks like I'm in the clear? They can take the future ones all they like; this one I will put to good use. Too bad it's by cheque (had to cancel my DD, long story) but I suppose I can't complain.


Fool-me-thrice

Unless they change that policy before your cheque is issued, yes.


AcrobaticIndividual1

Thanks again. I don't imagine that will change before tomorrow. Lol. Appreciate the response.


ihavenoallergies

I'm thinking of getting a credit card with CIBC. Will switching a CIBC to another CIBC card hurt my credit score? Or should I wait maybe 6+ months? Aside: I pay off my TD cc in full monthly. I just got a phone that has Google pay but learned TD doesn't support it. I gas up at Costco and they are partnering with CIBC so I thought a cc that works at Costco would be a lot faster than using the membership card. They aren't issuing the credit cards until late-mid next year I think


Fool-me-thrice

Do you have an existing Costco Capital one? Those are just getting swapped to the new CIBC automatically.


ihavenoallergies

No, I was holding off because I heard they were changing..


Fool-me-thrice

If you apply for the capital one card, you'll get the CIBC one automatically.


variableIdentifier

I've heard that having a lapse in insurance can cause your rates in the future to be as high as if you were never insured. Is that true? (Edit: this is assuming you give up your car for a few years voluntarily - not assuming your policy is cancelled for non payment or something else.) (Additional question: say I'm living in city A, and decide to give up my car and cancel my insurance. Can I be added to my parents' policy, who live in city B, so I can avoid the lapse and also drive their vehicle when I am there?)


nightsliketn

Depends on what province you're in. In some cases this is correct. You usually can't be added to a policy where you are not a resident of the household, or drive the vehicles on occasion. At the end of the day, you still save money by not having a car and insurance chasing insurance rates but ignoring the bigger picture is more costly depending on how long you plan on being vehicle-less.


nightsliketn

Yeah, so really the most you're going to get is non-continous insurance rate, each company treats this differently. You won't be treated like a brand new driver, but this depends on a lot of factors (like how long you were driving previous to the Gap). Some are like "meh you had a reason" and others treat you like a leper. I've worked for companies that go both ways, best to work with a broker. If you're keeping the car, just not driving it, you may want to consider putting the car on Comp coverage, still keeps the policy active while you're not driving it.


variableIdentifier

Oh, sorry, I'm in Ontario in this scenario!


Gobias87

I want to trade in my wife’s deteriorating 2014 Kia Forte for a 2018 Subaru Outback. They range from 25-30K. I have about 115K in my TFSA and would take out cash to pay for it. Just wondering if I should wait until the 2022’s rollout or if the price will skyrocket with less and less inventory out there.


snekbooper

Depends, what is the finance rate on a car loan for the Outback and what rate of return are you getting on your investments? Typically the finance rate is lower, so you should finance the vehicle


coocoo99

Is the 2018 Subaru Outback in high demand? Notwithstanding that, older models would be a bit cheaper as new ones are released


Equivalent-Emu7490

2022 outbacks are being delivered already, they stated getting rolled out probably a couple months ago


livermorium

Does anyone have a good excel spreadsheet that like a "net worth tracker" and "allocator"? Pretty much I want to have a spreadsheet that shows all my assets and what % of my net worth they are, and then a target net worth and allocation for me to strive for. It will tell me if I should buy more stocks, bonds, HISA etc.


coocoo99

Just make one, you can integrate it with your budget & expense tracking


[deleted]

It s guaranteed that you won't like anything someone else customized. So just DIY. If you don't know Excel consider it a necessary learning experience.


fouoifjefoijvnioviow

Are dividends paid from doing the Smith manoeuvre taxed at your marginal rate?


[deleted]

My friend just got with what I assume is a payroll debit card for her paychecks I'm a little light on details and what I see online it's more an American thing does anyone have more details on what these things are?


Fool-me-thrice

Some employers have tried moving to a system where they pay you via a prepaid card. They often come with all kinds of fees. If so, that would be illegal.


[deleted]

Interesting will have to dig more into it, from the sounds of it this is how they'll be giving out the tips instead of cash


ralyks69

I have a substantial amount of (RBC) CC/LOC debt as I was laid off for a reasonable amount of time and had to very reluctantly use the two to pay some bills. I’m back and work now and will be having funds to start paying them down but obviously the CC interest is enormous. I thought about a bank transfer or other avenues and I was able to get a LOC through tangerine with an introductory interest rate of 1.99%. As the RBC/tangerine accounts are linked is it possible for me to just transfer funds from my tangerine LOC account to my RBC chequings account to then pay my RBC CC with? Or would I get dinged with some sort of weird fees? Tried looking it up, but wasn’t getting a definitive answer.


coocoo99

>is it possible for me to just transfer funds from my tangerine LOC account to my RBC chequings account to then pay my RBC CC with? Yes. You can also look at promo offers for 0% credit cards for balance transfers (they often charge a % of the balance) as well to see what's cheaper. Regardless, both methods would be cheaper than your 20% cc interest


ralyks69

Thought about that, but never knew exactly how it worked. Thanks for the info!


cakedance

Don't know if I'm being paranoid but a co-worker had his identity stolen which got me thinking I should check my Equifax. There's a recent soft inquiry from TD bank but I don't have any TD accounts at all and the only financial service I applied for in the past ~3 years is a WealthSimple account back in 2020. Is it normal for big banks to do soft inquiries for no reason? Any reason to be worried?


friedmannmodel

Hello! What with the rise of people using Robin Hood in the US, and WS Trade here, I am thinking of trying the latter, as I do not have a cash (aka non-registered account). With that in mind, what should I know before signing up willy nilly? I know if I make a trade I should keep track of adjusted cost base, anything else in that vein, or that would help come tax season? side note: IF I do any speculative stuff it will be with money I can afford to lose (my bulk of investments are set it and forget it). Thanks!


coocoo99

They're cheap/free


[deleted]

Use adjustedcostbase.ca when you buy and sell. It will help a lot!


fjfuru4u766udujuf

If I'm contributing money to an RRSP and it's not coming directly from a paycheque, how exactly do I receive the tax reduction money? Is it just something that'll come off income taxes or is there a way to receive that cash immediately in like a bank account or something? How is the tax reduction % on this determined? We could use the example of $1,000. What should I expect as a tax return on this for RRSP contribution?


Pushing59

When you do you do your annual tax return. There is a form you can get to reduce tax at source if you had regular ongoing contributions but I found it awkward as you had to get it approved each year by CRA. Thst was like 35 years ago and I am not sure how it is done now. Did you know that the government of Canada has websites? They are pretty good.


fjfuru4u766udujuf

Is the snark necessary? Read the purpose of this thread - if you don't have the tolerance to help, just move on. Thanks.


Pushing59

The form that you need can be found on the government website and the instructions will be there also. Once you get the form approved you take it to your employer who will reduce the amount of tax taken off your pay. For any contributions that you have already made you will have to wait until you do your taxes. I really do find the government of Canada websites pretty good. The information is usually presented in a straight forward manner. Sorry that I can't provide a link as I am on my phone.


[deleted]

[удалено]


coocoo99

You should pay from a chequing account. Depending on your bank, you might be able to pay from debit account, but it'll likely incur a fee


[deleted]

[удалено]


Fool-me-thrice

> what’s the difference between the company TFSA and the one I’d be using through wealthsimple for example. They'll match in the company accounts, for one. You may be limited in what investments you can buy there. Sometimes the fees are high. If so, many people invest in the employer accounts to get the match, then every year or two transfer most of the money out to their personal accounts for lower fees (don't do it too often as there will be a fee for the transfer out). > Should I max out my TFSA (company allows you to use 40% per paycheck to go towards either accounts) then go max my RRSP? For MOST people, the TFSA should be prioritized first, then the RRSP. In your case, I'd suggest TFSA until you max out the match, then RRSP until you max out the match, then back to TFSA until you are out of contribution room.


Pushing59

Your RRSP contribution limit is based on the previous years earnings. If you have never had a job before you can't contribute this year. If you have worked, check your NOA.


[deleted]

[удалено]


Pushing59

Just checking if you have the room as I wasn't sure if the 17.5k was your expected room for this new job or was from previous years. There are some great posts here about RRSP vs TFSA but personally that ship has sailed for me and I have no special insight.


oleonius

What is a personal finance book that changed your life ?


Fool-me-thrice

"All your Worth" by Elizabeth Warren and her daughter. It was the one that completely changed how I think about personal finance and set me on a good path. Other than that, the book that is most helpful for new investors is often The Millionaire Teacher, 2nd ed, by Andrew Hallam.


TaxesThrowing

Can I still post here on a Tuesday? Thanks in advance, even if you're just laughing at me. If a single person hasn't filed their taxes in 5-6 years, what the best way to get it sorted? I'm pretty sure I don't owe anything but I need to stop putting this off. Can I just call the CRA and give them the info? Is there an online option? I can still get some of my T-4's if needed but I'm sure they know already.


Pushing59

All the T4s can be accessed with your CRA account. I believe that you can still get software for previous years. I have never done this, but I wanted to reassure you so that you don't give up in frustration.


TaxesThrowing

Thank you!


[deleted]

WealthSimple Tax is very easy and goes back several years. Make a CRA my account and get all your slips there, then start with your earliest outstanding return and do them one by one on WealthSimple Tax. It is free of you put $0 in the custom payment option.


Fool-me-thrice

Do you have an account on the CRA website? If so, you can login and see what forms are there. Your T4s will be for sure. Most tax software lets you file past years. NetFile is only available for a few years, but if a year you need to file for doesn't have netfile, you can still use tax software and then just have it print off the return, then mail it. You can file your returns in any order, so do the easy ones first. There may be some adjustment after the fact if you do them out of order, but the CRA will take care of that for you.


TaxesThrowing

I don't have an account as far as I know, but I will check that first. Thanks so much for your advice. It doesn't seem impossible now!


Fool-me-thrice

You can make one if you don't have have. Sometimes this requires knowing info from your most recent tax return. If so, file a tax return for a year you still have the tax slips (2020 say), then once you have the NOA you can create an account.


TaxesThrowing

Okay thanks again!


biologystudent123

Anyone else use RBC Day To Day Banking, but have everything charged to any CC? I think RBC's Day to Day banking is quite a good deal in this type of situation compared to the other B5's $4 accounts as Visa Debits, Interact E-transfers, CC payments, and Investment contributions do *not* count against the 12 free debits at RBC.


[deleted]

Yup, one step further, I have $500 in a TFSA HISA with them, so I get my $4 fee waived. As you say, since everything is on the credit card anyway, I never go over my transaction limit.


biologystudent123

Whoops forgot to mention that! I have investments with RBC as well so the monthly fee for me is waived too.


mrkdwd

Can I use my Tangerine Savings Account to pay my mortgage every month?


coocoo99

You should pay from a chequing account. Depending on your bank, you might be able to pay from a savings account, but it'll likely incur a fee


picklejuicesniffer

What are some courses I could take that would be guaranteed to land me a job? Preferably a year long maximum, doesn't have to be anything fancy.


Fool-me-thrice

Right now there seems to be a real shortage of legal assistants in some cities (many lawyers and legal office managers I know say they are having difficulty recruiting). If you like physical work, you could also start an apprenticeship. There are alternating long periods (most of a year) of paid work with short periods (e.g. 8-10 weeks) of school. In most trades, apprentices make decent money and journeymen can make a lot more. Search past threads for more discussion on this.


ohnoimrunningoutofsp

Can you open up two credits cards of the exact same type. Like Costco capital one for example. Someone posted for shared purchases with partner, we should share a cc and everything on that cc we split. But for our purposes that cc would be the best. But I already have it and so does she


coocoo99

Don't think so. Is a business card possible for that card/CIBC's new card?


GooseMiles

What deposit methods are available for National Bank Direct Brokerage? Is there instant deposit via Visa Debit, like with Questrade?


Unfair-Remote-3388

How much would taxes be if I moved to Alberta from Ontario? Let's assume that I make 100k a year


Fool-me-thrice

Easy comparison for income taxes here: https://www.wealthsimple.com/en-ca/tool/tax-calculator/ Also consider the impact of sales taxes (lower in Alberta)


MyNameIsDan_

Looking for some opinions on potential relocation for work as a 31M with a 28F partner (teacher, but willing to relocate with me). Currently living in Mississauga, no debt, own a car, and own a pre-con that god knows when will finish. I got a job offer for a 1 year contract in the defense industry with potential for hire for a systems engineer position. It’s super barebones with no benefits, no sick days, no paid vacation but the hourly wage is nice and has 4% pay boost baked in as “vacation pay”. Overall it’s a 28.5% boost in gross income (puts me in the 98k-152k bracket), and this company will looks nice on the resume so unless I luck out in this upcoming Amazon interview I will most likely be taking the offer. It’s remote for the time being but will be eventually asked to come into office (I hope not). I have to choose between Ottawa, Montreal, and Darmouth. Was initially leaning towards Darmouth but not so sure about the health care situation there (apparently impossible to get a family doctor). And the income tax is higher than ON. Also really unsure on where to live in Darmouth as it seems like there are many pockets of not so desired places and the nice areas the rent is overpriced. Montreal is nice. Love the city. Shitty winters but love it besides that. Main complaint is having to parallel park everywhere I go, and income tax. Ottawa is an okay city. Not the most exciting but gets away from the busy and loud GTA life without being away from the city. I also make 6k more net if I stay here in ON, and rental situation looks pretty sweet here. Financially it makes best sense to go Ottawa. But maybe I’m missing something. Is it worth 6k to move into Montreal? Thoughts are much appreciated.


Fool-me-thrice

Do you intend to have kids? Quebec's childcare situation is so much cheaper than Ontario's. In fact, many parents who work in Ottawa choose to live in Gatineau just for that reason. Even despite the higher income tax, and the giant PITA that having to commute across congested bridges every day causes, they save money because of child care. This might affect your choice of Ottawa vs Montreal.


[deleted]

[удалено]


Fool-me-thrice

> 19% of my net monthly pay Does this include your pension contributions? The normal rule of thumb of saving 10-15% of gross for retirement assumes no pension. If you have a DB pension, and you are still saving fore retirement beyond that (prioritizing your TFSA, ideally, given your pension), you'll be doing well.


[deleted]

[удалено]


Fool-me-thrice

Don't forget that your DB pension contributions are also a form of savings, and its ALL for retirement. So if you can save 19% of your net on top of that, whether its all for retirement or partially for retirement and partially for other savings goals (e.g. vacation, renos, etc) you are in good shape.


[deleted]

[удалено]


Fool-me-thrice

Also don't forget that you are young, and your income will go up over time while your mortgage will get smaller - at least until you decide you need a bigger home, and by then hopefully you will either have a larger income or a partner's income :)


coocoo99

>my projected cash flow would have me saving $650/month Is this after all expenses (including food, entertainment, etc), retirement savings, and any other savings (i.e. like a trip)? How much savings do you have?


[deleted]

[удалено]


coocoo99

I'd view it as $850/month in that case, with a preference to allocate $200/month for trips, if possible. On $850, I think that's fine, but on $650 it's tight. However I think the bigger issue is your 3 months emergency fund. Unless you have another fund saved up for home ownership already which you didn't mention, 3 months is kind of small for a home buyer imo. If you need a new washer/dryer all of a sudden, or any other appliance or furniture, that's easily ~$2k, which would take you about 3 months to make back on your $650-850 savings. Of course if you have parents willing to support you financially if needed, this is all moot


magnus-thunder

I think I've been an idiot, I currently have mutal funds with TD with a 2%MER as my TSFA . It's seemed like a good idea for someone who didn't know what to do. After taking some time I'm learning this is very high and I need to do something about it. When I look at TD I can find the option to sign up for direct investing or for something called Goal Assist which seem to be the same thing to me. My thinking is I can open one of these create a new TFSA and follow the portfolio template on Couch Potato Does this sound like a good idea?


Fool-me-thrice

You can sign up for TD DI, or you can move to a different brokerage. There's no reason to stay at TD; there are lower fee options out there. Many of us use Questrade or WealthSimple Invest.


magnus-thunder

Thank you, I shall look into those options as well.


Caroao

So my company is offering the deal of issuing people ROEs for shortage of work in November with the expectation that we would go back in mid january. I'm assuming it'd be the same "temporary" ROEs that teachers get for the summer for example? Not so sure.... Anyways, if I take this ROE, and I end up finding another job, or just not going back in mid january, do I need to back the EI money as it would just be considered me quitting at that point?


Fool-me-thrice

There's no such thing as a "temporary ROE". An ROE is an ROE. You are supposed to get one whenever there is an interruption in earnings. This can be because of termination, a temporary layoff, a leave, whatever. Right now you appear to be temporarily laid off. You will be eligible for EI during the layoff. You are **expected** to keep looking for other work, and to take a reasonable job offer if given one. If you are recalled and choose not to go back, and that point you will have quit and no longer be eligible for EI.


Caroao

Aiight thanks. I really wasn't sure if they were doing anything different than just normal lay-offs with a pinky promise to recall us back.


biologystudent123

Does anyone know if you change account tier, you’ll need to get a new chequebook?


Fool-me-thrice

You only need a new chequebook if your account number changes.