Painful

This is ridiculous. Seriously. Four posts on RRSPs? I must be losing it.

However, my mailbox is brimming. The masses cry for direction. So before we move on from this deadly topic, here are some answers.

“I have around 1,000 ounces of silver bullion,” says George. “Am I able to somehow put that sliver into my RRSP without selling it?”

First, why would anyone want $16,000 worth of silver? The metal pays no interest or dividends, costs money to store and is 27% lower in value than it was five years ago. Given central banks’ tight grasp on monetary policy and inflation, it’s hard to see why silver would appreciate. So why own it? And why inside an RRSP where gains are not taxes, where you’re better off holding other assets?

Anyway, the answer’s yes. You can hold it in your retirement plan. But in order to qualify the bullion must be 99.9% pure, from a recognized refiner and be certified by a bone fide, third-party, credible organization. Of course if you’ve made any money on it, tax is payable on the capital gain going into the RRSP. But, George, why?

Now over to Tyler, who sounds a tad insufferable:

“Great blog! Partly thanks to you (good enough of a suck-up or would you like full credit?) we were able to get from $200k to $1.2M in the past 6-7 years: TFSA (200k), RRSP (700k). LIRA (100k), and some non-registered (200k). During that time my wife hasn’t worked for the past 3 years and I am about to go on my second unpaid parental leave of 14 months (the first one was 8). We’ve been “throwing our money away” on rent this whole time.

“Now comes the question: You have written about using RRSPs to finance parental/maternity leaves. But I think a couple of years ago the child benefit rules changed and the amount is now dependent on family income (from prior year). Is the advice still the same? I have other sources that I could tap (e.g. non-registered investments that were purchased relatively recently so not much gains there). At some point we will start taking sabbaticals (or just retire early) so would it not be better to use the RRSP money later when we’re not receiving the child benefits?

“P.S. We’re pension actuaries in our mid/late 30s by the way.”

Is the tax-free Canada Child Benefit really meant for millionaire couples who have more than quadrupled their net worth in a handful of years and where dad wants to stop working for 14 months? Just asking. Maybe I’m paleo.

In most marriages mom takes a mat leave and foregoes some or all of her income during that time. By planning for this in advance, a spousal RRSP can be built up, then collapsed during the leave period, helping to replace lost income. With a spousal plan one spouse funds it (and benefits from the tax reduction) while the other is the beneficiary who can withdraw the money after three years. If s/he is in a lower tax bracket (or on mat leave) this can effectively split income and finance the time off. Of course making big RRSP contributions also lowers net family income and potentially increases the tax-free moolah from Ottawa. It’s now worth over $101,000 per child from birth to age 17. As mentioned, it costs the country $22 billion a year. Chew on that.

Sheila quoted this from yesterday’s blog: “Money taken from an RRSP to pay an advisor’s fee is tax-free and does not need to be repaid.”

“I pay approx. $1100 a month for advisor fees on all my Non Reg, RRSP and TSFA accounts,” she says. “My Master Card gets charged monthly as per my request and as a small perk I collect some cash back rewards. If I understand correctly I could pay this $1100 a month by pulling from my RRSP account without any tax implications even though I am paying fees for Non Reg holdings ? If so would this be a better solution ?”

As stated, advisor fees come out of an RRSP account and are not counted as income when that happens – so the feds actually pay a chunk for you (since it’s pre-tax money). This is the only instance in which RRSP money can be sucked off, tax-free since withdrawals for a house downpayment or education need to be repaid, or are added to taxable income.

But don’t push it. The CRA will not allow you to raid your RRSP monthly to pay for fees on others kinds of accounts, using untaxed dollars. Besides, the fees on your non-reg account are 100% deductible from taxable income. Finally, I hope you pay your CC bill in full every month, or you’re giving the bank 19% interest. Ouch.

Here’s, John, who is easily excited. “I think I discovered a beautiful thing today! I was reading your blogs over the last two days and thought of spousal RRSPs. Not entirely sure on how they work, but slowly starting to understand they are a Godsend.

“Turns out my wife hasn’t been contributing to her RRSP as I thought. I was mixing it up with her pension. She makes 75k a year and owes 500 bux back to the CRA in taxes. Our total income is 150k. We got married in 2018 and according to CRA rules, we can use a spousal RRSP contribution for the whole year rather than prorated. Right?

“Now here comes the tricky part. Because we have over 50k total in RRSP contribution room together, can she dump this money into the Spousal RRSP and bring her income down to 25k? Or will it reduce both our incomes? Because no sense in reducing my income since it’s already down to 0.

“If she does this, she will get like 9000 back on her taxes rather than paying the 500. When we want to buy a house, we can take the 50k out of our spousal RRSP? 25k each is the rule for first time buyers right? Thanks Garth, got me excited about RRSPs haha.”

You’re right about being able to fund a spousal RRSP in the year of marriage, but take some time to understand how a spousal plan works. RRSP room cannot be combined between spouses, no matter how much you adore each other. It’s earned individually, and remains the property of each taxpayer. However, you can open a spousal plan, fund it up to your own contribution limit and claim that against your own income. After three years the money may be withdrawn by the beneficiary – your squeeze.

In your case spouses make the same amount, so a spousal plan won’t income-split. If you plan on kids down the road, it could help finance the mat leave. But you can’t take your room and give it over to reduce her tax bill. There are limits to chivalry.

Helpful tip: be excited about her, not an RRSP. Better returns.

 

92 comments ↓

#1 For those about to flop... on 02.20.19 at 5:01 pm

The Phantom.

Recently, during a Pink Snow in Vancouver post, I highlighted this phantom sale from July 1st,2018.

Full details.
https://pinksnow103480648.wordpress.com/2019/02/07/pink-snow-falling-in-vancouver-21/

I had it in the folder where I await confirmation to see all is true what was reported at sales time.

Look at the old listing, they still have sold as July 1st 2018,it never happened.

https://www.zolo.ca/vancouver-real-estate/1749-w-62nd-avenue

Back on the market.

https://www.zolo.ca/vancouver-real-estate/1749-west-62nd-avenue

I revisit this situation because another one I have been waiting for this sale to be confirmed from August 28th 2018

It never happened.

Phantom sale.

Was bought for 5.5 million in 2017 and it’s assessment just got rolled back to just over 4 million.

Currently trying to find a tenant.

Absolutely hooped.

This sale never happened.

https://www.zolo.ca/west-vancouver-real-estate/1141-crestline-road

https://www.rew.ca/insights/60841/1141-crestline-road-west-vancouver-bc

https://www.bcassessment.ca/Property/Info/QTAwMDAyOUJFTQ==

I should have been highlighting this type of behaviour before, but was mainly concentrating on the actual sales and confirmations I could get my hands on.

Wouldn’t be able to say how many times I have seen this the last few years, but once is too often, I guess.

The sales most likely get bundled up into the monthly numbers and it doesn’t matter if the sales collapse or are misrepresented, it would appear.

This wouldn’t have been cause for much concern for anyone on the way up the mountain, but now we are heading back down,perhaps not as low as before the market became flooded, people need the right information at the right time.

I know, I know, this is where someone tells me to get a life.

If you’re happy being blindfolded and being asked to throw your life savings into the Realtor Well, then wish that everything turns out o.k and you were treated professionally and ethically, then good for you.

You want to buy real estate?

Go ahead, don’t let me stop you.

As I have proven on here, I’ll even help you out.

At least take the blindfold off…

M44BC

#2 BlorgDorg on 02.20.19 at 5:27 pm

Garth, you’ve said in the past to max out your TFSA before funding anything else. Are there scenarios in which funding an RRSP while you still have TFSA room is advantageous?

Thanks for Making RRSPs Great Again!

#3 QuadrigaCX RRSP on 02.20.19 at 5:41 pm

Michael Patryn is one of the founders of Quadrigacx.

Sources say he is part of a criminal mafia mob and has been to jail before for carding theft, ID theft and ponzi schemes and that his real name is Omar Dhanani.

Sources say he was arrested and convicted in California under the name of Omar Dhanani as a member of Shadowcrew, an organization trafficking stolen credit and identity information primarily using E-Gold.

So, anyone who gave ID in order to use the Quadriga platform might want to initiate a credit freeze.

#4 yorkville renter on 02.20.19 at 5:42 pm

although we’re done with kids, a question on financing a mat leave with RRSP withdrawals…

my understanding is that EI/mat leave $$$ is only paid if the one on leave doesn’t earn more than $X/month ($500?).

would the withdrawal mean the EI/mat leave $$$ is reduced or eliminated?

#5 Penny Henny on 02.20.19 at 5:53 pm

Is the tax-free Canada Child Benefit really meant for millionaire couples who have more than quadrupled their net worth in a handful of years and where dad wants to stop working for 14 months?-GT
/////////////

I’m entitled to my entitlements!- JC

#6 Smartalox on 02.20.19 at 5:53 pm

@ #1 Flopper: They call these ‘zombie sales’ like the one that happened to ‘Derek’ and that was discussed here at length here last year: the buyers backed out, the whole thing went to court, yaddah, yaddah, yaddah.

From what I see when I tabulate the REBGV stats each month, the ‘Sales’ figures are counts of accepted offers, NOT completed sales. depending on the closing date, it can take 60 to 90 days before a sale is not completed. By then, new statistical reports have been released, and the “Month over Month” comparisons don’t go back far enough (only 30 days, not 60 or 90) to make it easy to detect any changes. This is the ‘blindfold’, if you ask me.

But the numbers of zombie sales are probably still small, compared to the number of accepted offers in a given month. With so-called sales falling all over the Greater Vancouver Region, the bigger problem is getting enough sales (20) in a month to be able to report a median selling price.

#7 Midnights on 02.20.19 at 5:57 pm

Big G
you listen to Cube?
Oh shoot, I never new…
Good stuff.

#8 Ray Skunk on 02.20.19 at 6:14 pm

Just gonna leave this here, since our paid-off-with-$600m Canadian MSM are pussyfooting around the real reason why Butts has decamped…

https://buffalochronicle.com/2019/02/19/scheer-wants-bmo-and-treasury-official-questioned-in-snc-lavalin-probe/

#9 not 1st on 02.20.19 at 6:17 pm

$1100 a month for an advisor? Thats a TFSA contribution. Thats nuts.

Sounds like she has a few million invested. Maybe that’s how she got that way. – Garth

#10 Smartalox on 02.20.19 at 6:25 pm

Notes about RRSP withdrawals:

– RRSP withdrawals get taxed as they happen – unless it’s under an approved plan, like the ‘lifelong learning’ or ‘Home Buyer’s plan’. If you’re just withdrawing funds to supplement a parental leave, or a sabbatical, you have to file a tax return showing your annual wealth (or lack thereof) to get a tax refund.

The Liberals talked about letting people use any reason for withdrawing limited amounts (up to $50k) tax-free from their RRSPS for any reason (to be re-paid over time, like the other schemes) but I don’t think that it ever took off.

Imagine: you could have been able to withdraw $50k from your RRSPs – Tax Free – use it to fill up your TFSA, and then pay back the RRSP over 15 years.

Then do it again. And again.

Another note about the RRSP home buyer’s plan:
– You and your spouse can each take $25k out of your own RRSP accounts, BUT if one person has already used the plan to buy a home, and then marries, the spouse cannot use the Home Buyer’s plan to take $25k out of their own RRSP. So rent together before you get married.
– The home buyer’s plan is not a one time / first time thing. If you took money out of your RRSP using the home buyers’ plan, sold the home, paid back your RRSP, and rented a home for 4 years, you can use the home buyer’s plan AGAIN! Like a born-again RE Virgin! (Maybe this time go Dutch with your spouse on the RRSP raiding).

#11 Terry on 02.20.19 at 6:31 pm

Laughable and pathetic explains what I read here about how so many have no idea what they are doing with their home finances. There seems to be no shortage of people with high incomes yet they have no clue how to properly process that income into wealth accumulation. It’s no wonder that Canadians are the most indebted population in the G-7 group. Thank-you for the evening entertainment Garth.

#12 Penny Henny on 02.20.19 at 6:45 pm

#9 not 1st on 02.20.19 at 6:17 pm
$1100 a month for an advisor? Thats a TFSA contribution. Thats nuts.

Sounds like she has a few million invested. Maybe that’s how she got that way. – Garth

///////////////

A few million?
Assuming the adviser’s rate is 1- 1.5% plus hst that would mean the amount invested is between $780,000 and $1,170,000

Million-dollar clients normally pay less than 1%. She has a few. – Garth

#13 Boomer Bill on 02.20.19 at 6:47 pm

#71 Steven Rowlandson on 02.20.19 at 6:26 am

“My 1986 to 2009 average profit was $15,600.”

Steve, Steve. You were averaging about half the current minimum wage….

Ever thought of working at a fast food joint and doubling your income?

#14 kam on 02.20.19 at 6:48 pm

Good news from Australia
https://www.news.com.au/finance/economy/australian-economy/let-the-bloodbath-begin-house-prices-in-sydney-and-melbourne-could-halve-in-worst-crash-since-1890s/news-story/5918ea13042d5f819cb13c77629f060a

#15 Mattl on 02.20.19 at 6:53 pm

Sounds like she has a few million invested. Maybe that’s how she got that way. – Garth

Amen, would be happy to write that cheque each month. One of those ‘good problems’ to have.

#16 Reality is stark on 02.20.19 at 6:59 pm

The wonderful RRSP.
The government giveth before the government taketh away.
Now for the taketh away.
There have been a couple proposals already regarding raising the OAS age to 67. However it is much more palatable to pull the wool over the average Canadian’s eyes by clawing back the OAS by reducing the income threshold for the claw back.
Whatever tax they lose by getting you to fund your own retirement they will make up and then some to overpay their own flock.
Taxes in this country are insidious. They are making it damn near impossible for millennials to prosper. Fortunately they can import folks as they tax the life out of the indigouness population. As a result of this policy there is a high level of unhappiness infecting the domestic people. Anti-anxiety medication consumption is rising meteorically.
Socialist agendas rarely end well.
Be wary of the great RRSP. It is just a tease so that the government can rape you later and it won’t hurt as bad.

#17 crowdedelevatorfartz on 02.20.19 at 7:00 pm

@#1 Flop

Wow!

Can you imagine ANY other licensed “profession” other than a registered sex therapist that could screw their clients more efficiently?

And yet it goes on and on and on…….

#18 For those about to flop... on 02.20.19 at 7:01 pm

Hey Smartie, good to hear from you.

I don’t disagree with any of your points.

I just think for starters that Zolo could check and change the details when a house gets relisted.

When I found out that Boom had passed in late 2016 I reinvented myself on this blog and as best I could went from being a commenter to a contributor.

There are two main things that hamper this effort.

One, my comments appear in the little box just like everyone else’s.

Two, I can’t write.

Despite this handicap I soldier on to the best of my ability try to bring something of note to people’s attention each day when I get time.

I lack the vocabulary to put my knowledge or stuff I notice into proper words.

There are a lot of things I would like to write about but lack the confidence to write a proper article like the boss of this blog does each day.

Here’s something I’ve never admitted before.

I’m not sure when I did my first post on here maybe late 2015, but I called myself ” For those about to flop…” long before the correction in Vancouver started because I was working for the 1% in Vancouver and saw a lot of discontent first hand and perhaps most important developers complaining about not making enough money after everything was added up.

I thought if these guys can’t make decent money in 2014/2015 they never will, and one little rollback and they will be in trouble.

They were stockpiling blocks of land for 5 million dollars like they were stockpiling a bit of wood for winter.

One owner I worked for paid 5 million for a decent house and I went in to do some alterations.

The couple squabbled in front of me for four days about doing a job in the den that I told them would cost them around $250.

I thought it should be one of the happiest periods of their lives, instead they were miserable.

They have probably lost close to a million in equity since then,I can only imagine the dinner talk.

I guess I should finish up, let’s just say I’ve seen some stuff.

Paul Allen would spend 2 million pounds on an ugly statue, he was the only truly wealthy person I have worked for.

I just finished up a $10 million house that took me 7 months to complete.

No bottle of wine at the end, that’s o.k

A Thank You would have been nice…

M44BC

#19 Lesley on 02.20.19 at 7:06 pm

Another quick tip for ‘John’, who’s excited about spousal RRSPs. If you create and contribute to a spousal RRSP for your wife, only she can withdraw from the spousal RRSP for the Home Buyers Plan up to the maximum of $25,000.00. ‘John’ can also withdraw up to $25,000.00 under the HBP, but he must withdraw it from his own RRSP. Only funds that have been in the RRSP for 90 days or longer are eligible under the HBP, so you can’t make a contribution and turn around and withdraw the amount immediately under the plan. Also, if your wife makes a taxable cash withdrawal from her spousal RRSP, and you have contributed funds to any spousal RRSP in the preceding three years, the funds will be taxable in your hands. So be careful when planning to use spousal RRSP to fund a maternity leave for your wife.

#20 Dolce Vita on 02.20.19 at 7:10 pm

#8 Ray Skunk

That was EXCELLENT, good eye.

Sad day for Canadian’s when we find out about how messed up our Government is on SNC-Lavalin and now add BMO Kinder Morgan with Brison from the Yanks.

Sad day indeed. There are still investigative journalists out there worth their salt. Today, they were South of the Border.

I like their Twitter page moniker:

“Insider Information.
Anti-establishment perspective.”

Well, they sure do deliver on that.

Scheer wants the Government to come clean on SNC-Lavalin. He needs to come clean with the Canadian people about what he knows and not wait until the election.

Quid pro quo.

——————————-

Garth:

Rome is burning. You’re fiddling.

Yes, it’s your Blog and the topic today a part of your livelihood. I get that. And obviously, it is very, very much appreciated.

It would be nice to read what you think and know about all this (the above and not RRSPs).

#21 Gray matters on 02.20.19 at 7:13 pm

Garth, enough of the RRSP discourse. Have you run out of ideas? I am starting to lose interest… P. S. More dog pictures, please.

#22 LP on 02.20.19 at 7:20 pm

Re Tyler, who says his wife hasn’t worked for the last 3 years. If she had two children in 14 months, believe me when I say she certainly has worked! I’m going to depart here from my usual restraint and say Tyler is an idiot.

#23 Re: phantom on 02.20.19 at 7:22 pm

#1 flop.

Could it be one of those sales with conditions?

Bank says no to mortgage, or building inspector finds fault, sale is cancelled?

#24 earthboundmisfit on 02.20.19 at 7:23 pm

$1100 a month in advisor fees!?!? Lord thunderin’ Jaysus!! Somebody sure saw you coming.

#25 Jack in the box on 02.20.19 at 7:35 pm

I’d like to know how did Tyler managed 700k in RRSPs. What investment strategies did he use? I’m in the same age and we have maxed out our RRSP every year with 11% return and the best we could manage is 380k. As for TFSA we are also at 200k…again the RRSP at 700k? Mid 30s, raising kids.. How?

#26 NoCash on 02.20.19 at 7:39 pm

A person who bought gold just prior to the oil collapse in 2014 when the Canadian dollar was at par with the US green back you could have made a handsome return on the currency. I know I did!

That is luck, not investing. PMs are a mistake for almost everyone. – Garth

#27 crowdedelevatorfartz on 02.20.19 at 7:52 pm

@#108 marcus
““Why would anyone want $16,000 worth of silver? ”

+++++

preparing for the werewolf apocalypse I presume?

#28 crowdedelevatorfartz on 02.20.19 at 8:11 pm

@#18 Flop

Yep, the rich are rich because they’re usually the stingiest.

I worked on a house in Horseshoe Bay years ago.
I was a highrise window cleaner at the time and my boss had the contract for cleaning the windows of several office buildings that the homeowner owned.
So, we arrive at his house.
Built OVER a cliff with ocean water below.
Skylights on most of the west facing exposures.
None of this had been discussed before we arrived. Most luxury houses usually took a day.
I had to rig a Bosun’s chair to wash the skylights and then hang over the skylight glass to clean the Livingroom, Diningroom, Master bedroom windows over the 80ft cliff.
Each drop I did involved the other guy to come, toss a rope out me while I was hanging and haul me back into “terra firma” or I’d be swimming.
I was tied off to a massive cedar on the other side of the house just to rig up.
It took 2 of us, 3 days to clean all the glass.( the underside of the skylights were filthy and the owner’s miserable wife followed us everywhere the entire time bitching about how expensive we were and “dont get any dirty water on my carpet!”.
She had the maids follow us everywhere inside the house.
3 days later. We finished and were packing up.
The maid came out somewhat embarrassed and said, “You didnt clean the windows in my room.”
She had been very nice to us and I grabbed my gear and went to wash the windows. She lived in the basement with one tiny 1ft x 2ft crappy window above her head facing east into the trees.
I noticed 8 other beds in the room….WTF?
“Whats with these?”
“Oh those are the other staff that come and go.”

It took us 6 months to get paid for that job and we lost money….
So. about a year later when I was cleaning the glass at the Immigration Building in downtown Van…… I told some very interested officers about the house, the address, etc.
They got popped on an immigration scam.
You can be Rich…..without being a prick.

#29 akashic record on 02.20.19 at 8:16 pm

You missed one Garth: can you contribute crypto in kind to RRSP. That would complete the full coverage.

We can then start talking about the Trudeau impeachment, that could be at the same time of the end of the Mueller Trump-hunt.

#30 espressobob on 02.20.19 at 8:18 pm

I must admit one of my guilty pleasures is watching shows like Yukon Gold. These individuals pour loads of coin into operations that eventually sluice the yellow stuff. Its obviously a crap shoot but they trade it for currency none the less.

Ever wonder why?

#31 Interstellar Old Yeller on 02.20.19 at 8:35 pm

Helpful tip: be excited about her, not an RRSP. Better returns.

Aww, that was sweet.

Tyler, you need to do the math for your specific situation to figure out if the tax savings of withdrawing from your RRSP now (vs. later) are worth the reduction in CCB. They might be but you need to crunch some numbers to find out.

#32 F1 on 02.20.19 at 9:01 pm

““Why would anyone want $16,000 worth of silver? ”

People are clueless if they ask this question.

Ah, I get it. You have a big house and need lots of doorstops. – Garth

#33 the Jaguar on 02.20.19 at 9:06 pm

Garth. Concur with Dolce Vita.

#8 post about the Buffalo Chronicle article is a mind blower.
The blow back could be severe.
Your valued opinion sought.
Help me Obi Wan Kenobi. Your insight is sought.
What will happen to BMO stock in the morning?

#34 tccontrarian on 02.20.19 at 9:27 pm

I’ve been debating whether to fund my RRSP (have about $15k or room available), or to just continue investing the funds in a margin account (where I can lever up 50-70% loan value).
With a 70% loan value applied, the $15k can buy me $25.5k worth of stock (or ETFs). Assuming a 50% return, that’s $38,250 (as opposed to $22,500, inside an RRSP and without leverage).

So, I ‘lose’ $38,250-22,500 = 15,750 additional (potential) gains inside a registered plan. Of course, I’d get taxed on it…

I tend to like the freedom to move cash in and out of unregistered accounts – but I don’t like to be subject to cap gains taxes! And if I have losing years, the losses carry forward into the future, indefinitely, and offset gains when they occur.

Thoughts?

I’ll have to decide soon. Presently, I have over 80% of my financial assets outside of TFSAs/RRSPs.

TCC

#35 Remembrancer on 02.20.19 at 9:50 pm

#29 akashic record on 02.20.19 at 8:16 pm
You missed one Garth: can you contribute crypto in kind to RRSP. That would complete the full coverage.

We can then start talking about the Trudeau impeachment, that could be at the same time of the end of the Mueller Trump-hunt.
——————————————————–
The yucks keep coming today, must be the RRSP super moon. So, you want to take your paleo fiat currency gov restriction busting untraceable crypto currency and imbed it in a taxed on withdrawal heavily legislated gov financial vehicle? Isn’t that like a flat earther using their birthday money to buy a globe?

Oh, and dream on, wrong country’s legislative procedures dude. Trudeau and impeachment ain’t gonna happen with a Liberal majority, besides the Libs like to use the metaphorical long knives at night, not arcane parlimentary procedures, when they want to or need to make a change at the top.

#36 xaucad on 02.20.19 at 9:52 pm

garth, with all due respect, state the currency you are quoting silver.

physical silver has lost -2.88, or 11.92 percent in CAD over 5 years.
in USD it has lost -5.63 or -25.82 percent in 5 years.

this is as of posting today on silverprice.org.

gold.has gained 20.36 percent in CAD in 5 years, OR 299.28 loonies.
and 1.49 percent, or 19.7 dollars USD.

quote in the right currency. it has gained 650percent in venezuelan bolivars in thr last 11 years.

#37 AfterTheHouseSold on 02.20.19 at 9:53 pm

#8 Ray Skunk

That link, if true, is absolutely EXPLOSIVE, maybe enough to take down the government!

Brison, BMO, Kinder Morgan pipeline, Morneau, Gerald Butts.

Thanks for posting.

#38 Nuka on 02.20.19 at 10:01 pm

I for one am happy about all the interest in RRSPs. Thanks for your continued insight. Gives me hope that more people get it right for retirement!

#39 AK on 02.20.19 at 10:01 pm

“First, why would anyone want $16,000 worth of silver? ”
=====================================

Well, Peter Schiff and Marc Faber manage to attract a few followers along the way.

#40 crowdedelevatorfartz on 02.20.19 at 10:08 pm

Would the last Realtor to moderate a bidding war in Ontario…….

https://www.cp24.com/news/ontario-may-allow-disclosure-of-prices-in-real-estate-bidding-wars-1.4277036

……remember to be working in their clients “best interest”……

#41 espressobob on 02.20.19 at 10:19 pm

#34 tccontrarian

This is the function of an advisor. If you have to ask then why not hire one to handle those pesky situations instead of suffering a subject your not comfortable with?

#42 The homemoaner on 02.20.19 at 10:45 pm

If spousal rrsp money is withdrawn under the home buyers plan before the three year attribution rule, is that allowed without attribution back to me? How do repayments to HBP work in this case? It seems to me the spouse would have to repay or else that repayment amount would definitely attribute back?

#43 WUL on 02.20.19 at 10:45 pm

#33 the Jaguar on 02.20.19 at 9:06 pm

#8 post about the Buffalo Chronicle article is a mind blower.

What will happen to BMO stock in the morning?

zip…zip…zip…

Are you suggesting Andrew “Beige” Scheer has the jam to go after any potential wrongdoing by BMO?

Nope. Silly idea. Andrew “Milquetoast” Scheer? Really?

My hardcore conservative friends in Calgary concede he will lose the next election. They are glum about that.

#44 Peter on 02.20.19 at 10:58 pm

why would anyone want $16,000 worth of silver?

Slowly raising my arm in the air….YES PLEASE!!!

#45 Vampire Studies on 02.20.19 at 11:07 pm

8 pm on the west coast and only 37 comments?

garth – you have to pick topics people are angry about!!
Nobody is angry about RRSPs. Anybody?

I asked my acct if it made sense to draw more wage out of my corp and pound it into RRSP. He said no, your wage will be “only” $69k, but if I want to I can dump
$10k in if it makes me feel better. It does, so I will.

#46 Remembrancer on 02.20.19 at 11:09 pm

#37 AfterTheHouseSold on 02.20.19 at 9:53 pm
#8 Ray Skunk

That link, if true, is absolutely EXPLOSIVE, maybe enough to take down the government!

Brison, BMO, Kinder Morgan pipeline, Morneau, Gerald Butts.

Thanks for posting.
—————————————————————–
Before starting the Andy! Andy! Andy! chants and awkward high fives / flossing victory dances, this particular site has an interesting take on Canadian news.

Apparently the GTA NDP apparatchiks are fixing to have Jagmeet endorse JW-R to take over the NDP leadership according to another story as well as the potential for Niagara Falls NY Go Train service to Toronto.

I’d suggest waiting for the National Enquirer to verify or maybe the Vancouver Sun?

#47 For those about to flop... on 02.20.19 at 11:14 pm

Recent sale report.

This one at the bottom of the market in Kitsilano just sold in quick time.

The details…

3417 w 10 ave , Vancouver

Sold 1.67 February 2019

Asking 1.59

Assessment 1.75

So it was only on the market 8 days.

You can get a house in Kitsilano under 2 million without any problem.

Lack of selection, which is slowly increasing, is the one dampener.

These guys priced it right and didn’t bother playing any games, like a lot of other sellers on the Westside are trying, much to their detriment…

M44BC

https://www.zolo.ca/vancouver-real-estate/3417-west-10th-avenue

https://www.rew.ca/insights/77266/3417-w-10th-avenue-vancouver-bc

#48 akashic record on 02.20.19 at 11:14 pm

#37 AfterTheHouseSold on 02.20.19 at 9:53 pm

#8 Ray Skunk

That link, if true, is absolutely EXPLOSIVE, maybe enough to take down the government!

Brison, BMO, Kinder Morgan pipeline, Morneau, Gerald Butts.

Thanks for posting.

—-

Funny that this is published in a Buffalo.

#49 AGuyInVancouver on 02.20.19 at 11:29 pm

#18 For those about to flop…

Out of curiosity, how many of those jobs were for homeowners of the offshore money variety?

#50 For those about to flop... on 02.20.19 at 11:44 pm

Recent sale report.

Here’s another one in Kits that just sold in quick time under 2 million, still elevated, but for a while it was easier to find a camel with fresh breath.

The details…

3537 w 13th ave, Vancouver.

Sold 1.83 February 2019

Asking 1.88

Assessment 2.11

Couldn’t get ask or anywhere near assessment, but they got good coin and they decided to sell after two weeks.

Houses like this before last year when sold always seemed destined for a bulldozer, now some of them might get to live a little longer.

This one looks like its got a few more years in it yet.

I’m turning 45 this year, but have been working in construction since I was 15 as that was when I started my apprenticeship just out of high school.

This is my 30th year and each year the stuff that the houses get built out of seems only to get worse.

These old timers, they were ahead by a century…

M44BC

https://m.youtube.com/watch?v=QE2joQsWXJg

https://www.zolo.ca/vancouver-real-estate/3573-west-13th-avenue

#51 Dogman01 on 02.21.19 at 12:14 am

Interesting article on some hazards of condo ownership, the state of quality in new builds as well as the breach of trust that seems to be more common place in the modern market place.

https://www.cbc.ca/news/canada/calgary/calgary-condominium-repairs-cardel-panorama-west-lawsuit-1.5018766?cmp=rss

Cardel is a well known builder in Calgary. Very tricky move to leverage their brand, leave a shell company so no liability for shoddy work. More and more our economy seems to be moving to the “screw you buddy” approach, commerce does not work well with no “good faith”.

2 Decades ago I was in construction, lowest bidder, few inspections, few inspectors. Looks like it is getting worse.

#52 reynolds531 on 02.21.19 at 12:17 am

#35 rembrancer

Literally the best comment I’ve seen on this site

#53 Smoking Man on 02.21.19 at 12:35 am

Laura Ingerham had a great story on the lefty infestation at the universities.

White privlage and injustice.

What a total crock of shit being pushed out to young weak minds at schools.

Prosperity requires risk and IQ, Not safe spaces.

Skin pigmentation has nothing to do with it. If you rely on your spelling skills or your timeless skill of punching a clock your never going to drive the exotic car or have the big boat. The non risk taker jealous bots will see to that.

Climate change from grade one to the shit degree.

I don’t know any teachers that have the balls to trade Forex with 400 to 1 margin. Let alone learn to code and put your computer in a tax free island hoping a freind don’t burn you. That’s risk bitches.

Reading people is everything.

Your teachers were taught by other teachers who said fit in at all costs.

Prosperity = risk. Trump people
Provery = coward. Hillary people.

Life is a coin toss. Make a bet. Make lots of bets.

Dr Smoking Man
PhD Hetdonomics.

#54 Not So New guy on 02.21.19 at 12:45 am

I assume because it is not in the banking system’s best interest that we never hear in the media about holding a mortgage in your RRSP. I’m not talking the home buyer’s plan but your actual mortgage with an arm’s length setup so that you become your own banker and pay yourself a fairly decent ROI

Any comments?

#55 Steven Rowlandson on 02.21.19 at 7:14 am

“First, why would anyone want $16,000 worth of silver? The metal pays no interest or dividends, costs money to store and is 27% lower in value than it was five years ago. Given central banks’ tight grasp on monetary policy and inflation, it’s hard to see why silver would appreciate. So why own it? ”

Because of all the official lies and fairy tales told about gold or silver.

#56 David Driven on 02.21.19 at 7:17 am

Well, the Screwball Team of Energy Hate aka Trudeau-Butts chases more billions out of Canada, likely never to return.

https://business.financialpost.com/commodities/long-overdue-devon-energy-late-to-the-party-in-selling-off-oilsands-assets

Hundreds of thousands of jobs lost and hundreds of billions in revenue (that won’t build schools or hospitals for all those fast tracked voters Trudeaus bringing in)….during a recession yet!!! GDP falls three months in a row, the very definition of recession looming.

Trudeau is a job wrecker, a Canada hater, a UN lackey and activist lickspittle for American political handlers ( Vivienne Krause proved up every dime of the collusion to interfere with Canada’s elections and leave millions in Trudeaus personal accounts!! Wake up people. Trudeaus personal criminality is nothing compared to the knife he’s taken to Canada’s guts.

#57 crowdedelevatorfartz on 02.21.19 at 8:23 am

@#56 D. Driven
“Trudeau is a job wrecker, a Canada hater, a UN lackey and activist lickspittle for American political handlers ….”

******

How was the drive from Alberta to Ottawa?

#58 Remembrancer on 02.21.19 at 8:27 am

#54 Not So New guy on 02.21.19 at 12:45 am
I assume because it is not in the banking system’s best interest that we never hear in the media about holding a mortgage in your RRSP. I’m not talking the home buyer’s plan but your actual mortgage with an arm’s length setup so that you become your own banker and pay yourself a fairly decent ROI

Any comments?
————————————————————
Less a conspiracy and more that its more expensive to you for various fees etc on an ongoing basis and more complicated for them then selling a GIC to you…

After the “cool, lets pay ourselves in our RRSP” there’s the legal work to set up a mortgage, appraisal fees to establish market value, yearly mortgage management costs like an arms length trustee etc. Sounds good on paper, but its a lot more than writing yourself an IOU and depositing that in your RRSP account… Oh, and your RRSP just invested in a single property on a single street, in a single city etc etc – no diversification…

This was a thing a few years ago more than now Google RRSP mortgage or similar and you get things like this:
https://www.theglobeandmail.com/globe-investor/personal-finance/should-you-be-your-own-mortgage-lender/article4328264/

#59 dharma bum on 02.21.19 at 8:50 am

Remember to contribute yearly, young dogs.
When you’re old like me (over 50), you’ll be glad you did.
Get some effyoo money.
Quit slaving.
Start living.

#60 Midnights on 02.21.19 at 9:03 am

Sam Zell…

https://www.google.com/amp/s/www.bloomberg.com/amp/news/articles/2019-01-17/billionaire-zell-buys-gold-for-first-time-in-bet-on-tight-supply

#61 Midnights on 02.21.19 at 9:14 am

Good for anyone who bought silver or any precious metals. That’s called not thinking like the herd. I don’t look at cashing it out but one of the assets that I’ll hand down. Life insurance doesn’t really pay much interest at all. I wouldn’t cancel it or trade out of my Life Insurance because it doesn’t. If one bought consistently over time as Mr Turner pontifficates over stocks, your in the money.

#62 James on 02.21.19 at 9:39 am

#106 Smoking Man on 02.20.19 at 4:25 pm

James I can talk about anything I want with in the GF rule book. Now go shovel your driveway.
____________________________________________
Yes you can but you should be more considerate in conveying your disdain for the people in the country from whom you came from. Remember Old Man we live here it is our problem not yours. Now while I go and fire up the snow blower, oh shit sorry it’s raining here right now, you can go play shuffle board with the rest of your Old men friends. Conversely you and the wife can go shopping at Ross Dress for Less store in Costa Mesa on E 17th St.

#63 James on 02.21.19 at 9:43 am

#56 David Driven on 02.21.19 at 7:17 am

Well, the Screwball Team of Energy Hate aka Trudeau-Butts chases more billions out of Canada, likely never to return.

https://business.financialpost.com/commodities/long-overdue-devon-energy-late-to-the-party-in-selling-off-oilsands-assets

Hundreds of thousands of jobs lost and hundreds of billions in revenue (that won’t build schools or hospitals for all those fast tracked voters Trudeaus bringing in)….during a recession yet!!! GDP falls three months in a row, the very definition of recession looming.

Trudeau is a job wrecker, a Canada hater, a UN lackey and activist lickspittle for American political handlers ( Vivienne Krause proved up every dime of the collusion to interfere with Canada’s elections and leave millions in Trudeaus personal accounts!! Wake up people. Trudeaus personal criminality is nothing compared to the knife he’s taken to Canada’s guts.
___________________________________________
Great point and all true so what are you going to do about it? Come fall of 2019 we can kick this waste of human life to curb and start over! That is what I intend to do by voting. We are a resilient country and have gone though the cycle before. Lets not give the Liberals another 4 years to further destroy the country.

#64 James on 02.21.19 at 9:54 am

#53 Smoking Man on 02.21.19 at 12:35 am

Laura Ingerham had a great story on the lefty infestation at the universities.
White privlage and injustice.
What a total crock of shit being pushed out to young weak minds at schools.
Prosperity requires risk and IQ, Not safe spaces.
Skin pigmentation has nothing to do with it. If you rely on your spelling skills or your timeless skill of punching a clock your never going to drive the exotic car or have the big boat. The non risk taker jealous bots will see to that.
Climate change from grade one to the shit degree.
I don’t know any teachers that have the balls to trade Forex with 400 to 1 margin. Let alone learn to code and put your computer in a tax free island hoping a freind don’t burn you. That’s risk bitches.
Reading people is everything.
Your teachers were taught by other teachers who said fit in at all costs.

Prosperity = risk. Trump people
Provery = coward. Hillary people.
Life is a coin toss. Make a bet. Make lots of bets.

Dr Smoking Man
PhD Hetdonomics
_______________________________________
Again your PhD moniker would imply that you have been schooled up the wazzoo Old Man. So your a schooled bitch! Or are you?

Here are steps to obtain a Doctoral Degree
1. The first step in the journey toward completing a doctoral degree is to obtain an undergraduate degree.

2. Your next step is enrolling in a master’s degree program. Then you complete a Master’s Degree.

3. Your last step is you complete a Doctorate Degree.
I would be willing to bet you have done neither and therefore you are as your glorious leader says FAKE, FAKE NEWS. FAKE, FAKE, FAKE!

#65 IHCTD9 on 02.21.19 at 9:59 am

#24 earthboundmisfit on 02.20.19 at 7:23 pm
$1100 a month in advisor fees!?!? Lord thunderin’ Jaysus!! Somebody sure saw you coming.
____

If someone had a modest 1 Mil invested in a crap mutual fund that charged an MER of 2.4%, that’s already 2000.00/month.

I’ll bet that Sheila has more than 1 mil, and if so, it looks to me like she’s getting a great deal at only 1100.00/mo.

If she has a comfy 2 mil and pays only 1% – that’s still $1670.00/mo.

#66 James on 02.21.19 at 10:03 am

#51 Dogman01 on 02.21.19 at 12:14 am

Interesting article on some hazards of condo ownership, the state of quality in new builds as well as the breach of trust that seems to be more common place in the modern market place.

https://www.cbc.ca/news/canada/calgary/calgary-condominium-repairs-cardel-panorama-west-lawsuit-1.5018766?cmp=rss

Cardel is a well known builder in Calgary. Very tricky move to leverage their brand, leave a shell company so no liability for shoddy work. More and more our economy seems to be moving to the “screw you buddy” approach, commerce does not work well with no “good faith”.

2 Decades ago I was in construction, lowest bidder, few inspections, few inspectors. Looks like it is getting worse.
_________________________________________
Here in the GTA there are thousands of buildings that are not going to make it over the next 25 years without significant infrastructure improvements. Not only that the city infrastructure supplying the civil aspect can not keep up with the demand imposed by new technology that requires higher outputs. The owner tenants are going to be faced with higher condo maintenance fees and higher taxes to pay for these improvements and general maintenance. Good luck to all those moisters on fixed incomes courtesy of old age pension and Canada pension. They will be left in the cold and there is noting they can do about it.

#67 Midnights on 02.21.19 at 10:58 am

Wow, unbelievable…

https://www.bnnbloomberg.ca/32-of-canadians-don-t-know-difference-between-tfsa-and-rrsp-survey-shows-1.1217808

#68 IHCTD9 on 02.21.19 at 10:59 am

Well, Trudeau and his corrupt class of 2015 have pretty much shown us their true colours at this point. When it gets down to brass tacks, they’re just as corrupt, “misogynist”, “racist” and greedy and the next guy. It looks like the top end of the Lib cabinet might be one of the most corrupt troops of elitist douchebags we’ve seen yet in Ottawa.

The real question is are Canadians going to give a rip? The answer is probably not. So, is it time to just forget about right and wrong altogether in Canada?

Millionaire tax evaders get a slap on the wrist. Our Politicians do favours for big corps for cash. RE shenanigans and money laundering abound. Every where I look there’s another story about “wrong”, pretty much going unpunished.

I’ll tell you this much, every year I ignore more and more regulation, bylaw, and permit requirements. I’m having trouble persuading myself that I am beholden to follow any rules made by folks who themselves ignore same.

It should be pretty bloody obvious to anyone with half a brain that there is some serious corruption happening in Trudeau’s cabinet. If Canadians are so partisan that they’d vote these doorknobs back in again regardless, I’ll hang my hat on it: Canada really has changed, really has got that stupid, and it’s time to start preparing for some major economic issues to begin developing.

#69 For those about to flop... on 02.21.19 at 11:03 am

Cheat sheet.

Canada 2.7%

Australia 2.2%

Also R.R.S.P ain’t getting any R.E.S.P.E.C.T…

M44BC

“Visualize the World’s Funding for the United Nations.

President Trump likes to argue that other countries should pay more to fund international groups like NATO and the United Nations. He frequently criticizes globalism and advocates for his “America First” foreign policy agenda. Among other things, this has meant decreasing the money the U.S. spends for on the UN.

We decided to dig beneath the headlines to uncover exactly how much money different countries and continents contribute to the UN. As it turns out, the President has a good point about how much Americans contribute compared to everyone else.

The U.S. contributes hundreds of millions more than any other country in support of the UN, providing some 22% of the organization’s total budget.

Developed countries with the largest economies tend to spend more on UN operations than the countries directly benefiting from UN programs.

China and Japan are the only two non-Western countries spending over $100M each.

Our figures come from the United Nations’ Secretariat’s December 2018 report on member contributions. We applied the UN’s own methodology for grouping countries by continent to create the divisions in our visualization. The size of each piece of the visual corresponds to the size of each country’s allocation to the UN, which is calculated in two ways. First, there’s a real financial outlay of money from countries directly to the UN. And second, there’s a contribution of staff and resources to run the organization. Our visual takes into account the combined total of both types of support.

The U.S. alone contributes an incredible $674.2M, or 22% of the entire world’s outlay. No other country comes anywhere close. China, the second leading contributor in the world, provides almost $300M less than the U.S. at $367.9M or 12%, and Japan comes in third at $262.4M or 8.5%. Only a handful of other countries surpass the $100M mark, with the vast majority providing far less. The Russians notably only spend $73.7M despite being a member on the UN’s permanent Security Council.

There are a few other insights we can glean from our visualization. Developed countries in the West tend to contribute significantly more than the rest of the world. The combined total of all European countries comes to $844M. Including China, this means that the major world powers with the biggest economies pay the most for the UN. Meanwhile, the countries most likely to receive direct aid from the UN pay relatively little.

That’s because some countries clearly benefit from the UN’s existence more than others. The UN was originally created after World War II to promote world peace and de-escalate tensions, especially between the U.S. and Russia. More recently, the organization is well known for its humanitarian work, for example, raising awareness of human rights violations. Developed countries in the West as well as the East have a shared interest in stability and economic development.

Are these benefits worth the size of the American investment? To keep things in perspective, the millions spent on the UN is a rounding error in the U.S federal budget of $4.1T. That being said, the budget deficit keeps growing, and just hit $319B for the first 3 months of the government’s 2019 fiscal year. If the deficit is only going to get worse, then perhaps every penny of U.S. expenditures deserves scrutiny.”

21 February 2019

Visualization
https://howmuch.net/articles/united-nations-budget-contributions-by-country-2019

#70 akashic record on 02.21.19 at 11:32 am

#69 For those about to flop…

To keep things in perspective, the millions spent on the UN is a rounding error in the U.S federal budget of $4.1T. That being said, the budget deficit keeps growing, and just hit $319B for the first 3 months of the government’s 2019 fiscal year. If the deficit is only going to get worse, then perhaps every penny of U.S. expenditures deserves scrutiny.”

That “rounding error” is taxpayers money.

#71 AB Boxster on 02.21.19 at 11:36 am

#54 Not So New guy on 02.21.19 at 12:45 am

GT has promoted self directed mortgages in the past.

It mostly makes sense when mortgage rates begin to get higher (as they have started to) as you are forced to buy mortgage insurance regardless of the mortgage size and only some FI’s actually will mange this. There are also some fees involved with setting this up.

Remember, you are essentially replacing a lump sum of money in your RRSP, and the growth it will give you over time, with a lump sum loan to yourself, and the interest cash flow it will provide over time.

In general I have found that doing this will result in higher RRSP returns over time, more flexibility and less cost when having to refinance or prepay mortgages (the banks charge usurious fees for this benefit) as well as having the satisfaction of paying interest on the loan to yourself, rather than to the banks.

A search for ‘self direct mortgage’ will find you some FI’s that will enable this.
It appears that Canadian Western Bank will do this and in the past I know that TD did as well.

These are not well understood by consumers, as frankly most people are financial illiterates, and the banks really do not want you to do this.

They would rather have you pay interest to them, and then have the opportunity to gouge the consumer when they want to, or have to, payout mortgages early or refinance them.

#72 not 1st on 02.21.19 at 11:52 am

Canada loses again. US strong arms china to buy 30B worth of ag goods every year while our clown show is running around ruining this country.

Anyone even thinking of casting a ballet for Liberals should be shown a padded room immediately. And oh yeah, Trump wins again. That’s what leadership looks like.

https://www.bloomberg.com/news/articles/2019-02-21/china-said-to-propose-30-billion-more-u-s-agriculture-imports

#73 Remembrancer on 02.21.19 at 12:19 pm

#72 not 1st on 02.21.19 at 11:52 am
Trump wins again. That’s what leadership looks like.

https://www.bloomberg.com/news/articles/2019-02-21/china-said-to-propose-30-billion-more-u-s-agriculture-imports
————————————————————-
You and Trump may be getting played calling this a win.

They know he keeps score by a stupid trade deficit top number, not the details. They take more stuff that grows in the dirt, Trump claims win, can claim he’s helping his farming “base” as a bonus reward for their chronic overproduction. Meanwhile manufacturing and tech are relaxed on the eastern front of Trump’s tariff wars and China progresses along the next 5 year plan belting and roading as they go…

Or not. Would be cool to see some of those CIA briefing sheets he famously ignores covering latest China agri production assessments to see if there’s more to this then mets the eye one way or another…

#74 Shawn Allen on 02.21.19 at 12:21 pm

The Scarcity Mentality is Abundant

Most people seem to follow the scarcity mentality. It usually includes blaming others and lots of moaning. It focuses on how to divide up the existing pie and begrudges others’ share of the pie.

I believe most rich people follow an abundance mentality. These people grow the pie.

#75 earthboundmisfit on 02.21.19 at 12:30 pm

@IHCTD9 …. I can confirm from personal experience that $1670/month looks and feels a helluva lot better in my jeans that it does in anyone elses’.

Not a 1%er, are you? They don’t carry cash. – Garth

#76 For those about to flop... on 02.21.19 at 12:32 pm

#49 AGuyInVancouver on 02.20.19 at 11:29 pm
#18 For those about to flop…

Out of curiosity, how many of those jobs were for homeowners of the offshore money variety?

//////////////////////

I have talked about this at length on here before and so I will try to keep this one brief.

I work for people from all over the world so as long as the money keeps flowing the average guy on site wouldn’t know where that money comes from.

I do have a lot of Chinese clients and only once in the last 15 years has a job been shut down and the reason given is that the clients are having trouble getting funds out of China.

Once again, please forgive me if I don’t use the correct terminology, but you are more likely to be onsite and have someone walk through and take photos to prove what stage the house is at for refinancing.

It seems to happen on most Westside jobs because of the numbers involved.

I just finished a job for a Chinese lady who didn’t speak much English and she took some pictures when the job was approximately 3/4 finished and said she had to show someone.

My English is questionable also…

M44BC

#77 Remembrancer on 02.21.19 at 12:37 pm

#69 For those about to flop… on 02.21.19 at 11:03 am
#70 akashic record on 02.21.19 at 11:32 am

$674M? In comparison, a Ford-class aircraft carrier all dolled up is around lets say $13B at last count, not to mention the entourage that follows it around that would make a Kardashian blush, just to make sure it doesn’t get sunk in the first 5 minutes of a real shootout.

A 5% redirection as a down payment on influencing the world, might be a deal, as long as you’re influencing the world and not overly preoccupied with sounding good on Fox News for the ratings and tweeting about it as a major part of your “executive time” #LeagueOfNations

#78 The PM's Promise on 02.21.19 at 12:46 pm

Did The PM keep his election night win promise to us all? You be the judge of it all, because the cloudy days are moving in for one hell of a storm.
https://www.youtube.com/watch?v=P8IcW5TtP0E

#79 Enlightened alias Sheila on 02.21.19 at 1:12 pm

#9, #24, #65 and Garth

Not my real name however Sheila was my mothers name….love it Garth!

“I pay approx. $1100 a month for advisor fees on all my Non Reg, RRSP and TSFA accounts

I do have just shy of 3M.
I pay my advisor 0.7%
There was a typo in today’s blog for the accounts that I pay $1100 a month in advisor fees. It should have been RESP and not RRSP.
Advisor fees for my RRSP holdings are disbursed separately, taken from within the RRSP account by selling off a few shares when needed to pay the advisor.
I miss understood Garth’s post , thinking I could use my RRSP account to pay my Non Reg , TSFA and RESP advisor fees… Which I now understand the CRA would not accept lightly :)

I hear you…I also question is my advisor worth $1100 plus a month?
Well that is the going rate apparently…Garth could comment more in this.

My advisor does and has helped me out in other areas such as Estate Planning preparing/ stick handling our Wills & PAs before getting a lawyer to draw up the final versions, reviewed and had labour lawyers comment on recent employment severance package. He got me out of the highly questionable Investors Group process (thank man above), diversified me, set up spousal RRSP account, a spousal loan at a prescribed rate of 1%. Managed my RESP withdrawals with a couple of institutions. He will manage from a tax efficiency perspective the best way to draw down from my portfolio to cover my retirement expenses. He now has now taken my 18 year old son under his wing with a TSFA and Non Reg account and eventually my 16 year daughter too.
If ever I am incapacitated or worse, my wife has one number to call to guide her through all the finances in highly emotional times.

So yes there is a value.. but is it worth $1100 plus /month?

And yes Garth I pay my CC bill each and every month in its entirety

#80 LivinLarge on 02.21.19 at 1:20 pm

1/3 of Canadians don’t know the difference between an RSP and a TFSA. Meaning that 1/3 don’t have a clue what either are. And two banks just lowered their 5 year fixed mortgage rates. Looks a tad like the banks really know what side their bread is buttered.

#81 akashic record on 02.21.19 at 1:56 pm

#75 earthboundmisfit on 02.21.19 at 12:30 pm

@IHCTD9 …. I can confirm from personal experience that $1670/month looks and feels a helluva lot better in my jeans that it does in anyone elses’.

I would be happy to pay that as a 0.5-1% management fee of my portfolio.

#82 IHCTD9 on 02.21.19 at 2:01 pm

#75 earthboundmisfit on 02.21.19 at 12:30 pm

@IHCTD9 …. I can confirm from personal experience that $1670/month looks and feels a helluva lot better in my jeans that it does in anyone elses’.

Not a 1%er, are you? They don’t carry cash. – Garth
______

Yeah, but if you don’t pay the $1,670.00/mo, you don’t get to own the resulting $10,000/mo buddy made for you.

I’d take $8,330.00 in my jeans over $1670.00 any day.

#83 tccontrarian on 02.21.19 at 2:31 pm

Some hate gold, while others love it apparently! There’s a time to buy, a time to hold, and a time to sell – ANY asset class. That’s my motto; keeps me from ‘loving’ (or hating), an asset and making emotional decisions.

China, India, Russia, and Iran have been dumping dollars (which are, after all, U.S. debt notes) and accumulating gold – a trend that has not slowed down this year.

Central European nations, and particularly Hungary and Poland, have been accumulating their gold reserves as well. Less global demand for dollars and greater demand for gold is doubly bullish for gold since we tend to measure it against the dollar.

TCC

#84 Ponnaps on 02.21.19 at 4:17 pm

Dear Garth,

The wifes currently on Mat leave and has a chunk of money in her RRSP (its not a spousal RRSP).
Is she allowed to withdraw money from this RRSP to take advantage of her lowered income or is this allowed only on RRSPs designated as Spousal.

Thanks

#85 slick on 02.21.19 at 4:22 pm

#8 and #33
Why would Butts, who pulled the strings that make T2 talk, ever have given the OK to the purchase of a pipeline?
Unless his integrity took a holiday, he is a green nut also.
I said when they made the pipeline deal that there was no way the Federal Gov’t would build that pipeline.

#86 NoName on 02.21.19 at 4:37 pm

#84 tccontrarian on 02.21.19 at 2:31 pm
Some hate gold, while others love it apparently! There’s a time to buy, a time to hold, and a time to sell – ANY asset class. That’s my motto; keeps me from ‘loving’ (or hating), an asset and making emotional decisions.

China, India, Russia, and Iran have been dumping dollars (which are, after all, U.S. debt notes) and accumulating gold – a trend that has not slowed down this year.

Central European nations, and particularly Hungary and Poland, have been accumulating their gold reserves as well. Less global demand for dollars and greater demand for gold is doubly bullish for gold since we tend to measure it against the dollar.

TCC

Now that we are on gold topic, i dint know accurate numbers are but its interesting that first 3 in gold reserves per capita are switzerland (1st), lebanon (2nd) and italy (3rd).

https://smaulgld.com/per-capita-gold-reserves-country/

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And on a side note i believe in tungsten, good for ducks, and in fiture some will figure it out how to syntisized it in a gold cheaply.

as this a dude sad its not fair to ducks…
https://www.youtube.com/watch?v=Aj6xd-Ri28c

#87 Ronaldo on 02.21.19 at 5:07 pm

#84 tccontrarian on 02.21.19 at 2:31 pm
Some hate gold, while others love it apparently! There’s a time to buy, a time to hold, and a time to sell – ANY asset class. That’s my motto; keeps me from ‘loving’ (or hating), an asset and making emotional decisions.

China, India, Russia, and Iran have been dumping dollars (which are, after all, U.S. debt notes) and accumulating gold – a trend that has not slowed down this year.

Central European nations, and particularly Hungary and Poland, have been accumulating their gold reserves as well. Less global demand for dollars and greater demand for gold is doubly bullish for gold since we tend to measure it against the dollar.
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I prefer AG myself due to the fact that it is used commercially and the amount mined yearly is pretty much totally consumed and unrecoverable except for the tiny amount that is produced for investment purposes such as coins. Unlike AU where all that has been mined since they started mining the stuff is still available above ground. The market for AG is very tiny and the total value mined yearly only represents 1/10 of Jeff Bezos net worth. I see it as portfolio insurance and it has done well for me. I was probably one of the very few people who bought at the low in Nov. 2008 and sold at the very top in May 2011. $8.88/$49.44 = 456% gain.
My accountant almost fell off her chair. I took the proceeds in US dollars and placed it in my US savings account and converted back to Cad in 2015 for a further 45% gain. These opportunities are quite rare but if you understand the market it can be very profitable. We should see another opportunity in the next couple years.

#88 Lesley on 02.21.19 at 5:46 pm

#85 Ponnaps on 02.21.19 at 4:17 pm
Dear Garth,

The wifes currently on Mat leave and has a chunk of money in her RRSP (its not a spousal RRSP).
Is she allowed to withdraw money from this RRSP to take advantage of her lowered income or is this allowed only on RRSPs designated as Spousal.
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Your wife can withdraw funds from her own RRSP while she is on mat leave and take advantage of her lower tax bracket. It’s preferable to her withdrawing from a spousal RRSP, since if you had contributed to any spousal RRSP in the three years preceding a spousal withdrawal, the funds withdrawn from the spousal would be taxable to you, the contributor, at your (most likely higher) tax rate.

#89 Armpit on 02.21.19 at 5:55 pm

#85

The wifes currently on Mat leave and has a chunk of money in her RRSP (its not a spousal RRSP).
Is she allowed to withdraw money from this RRSP to take advantage of her lowered income or is this allowed only on RRSPs designated as Spousal.”
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Absolutely ! She can take it out.
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#90 Lesley on 02.21.19 at 5:57 pm

#42 The homemoaner on 02.20.19 at 10:45 pm
If spousal rrsp money is withdrawn under the home buyers plan before the three year attribution rule, is that allowed without attribution back to me? How do repayments to HBP work in this case? It seems to me the spouse would have to repay or else that repayment amount would definitely attribute back?
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A home buyers plan withdrawal can be made from a spousal RRSP at any time; however, to avoid the attribution rule, repayments must come from the owner of the spousal RRSP (the annuitant or spouse) not the contributor.

#91 David Driven on 02.21.19 at 11:33 pm

#57 Crowded…I donate to the max to clear headed rational advocates who support freedom and defend Canada’s democracy, like the Canadian Taxpayers Federation for one, among others. That’s what I do, how about you?

Also, I vote, no matter where in the world I am. I hope every sane Canadian does the same. Trudeau got in with 28% of the vote. If you didn’t vote and woke up with Trudeau, shame on you. Right now , I’m living in Bali and believe me, it’s tough. But I will find my way to an embassy and vote against the Criminal Party at the first chance.

#92 Blackdog on 02.22.19 at 10:00 am

Garth, You’ve done lots of posts recently about RRSPs. How’s about one elucidating your theory that CPP should be taken by everyone at age 60, no exceptions. That is your what you think, right? I trust your wisdom, yet cannot figure out why you think this way (surely I am not the only one). Personally, I think for some, particularly those without defined benefit, inflation indexed private pensions and without high net worth (high being subjective), waiting to 65 or even 70 could be the best move. I would love to be proven wrong though.