RPP Advice - Page 2 - Calgarypuck Forums - The Unofficial Calgary Flames Fan Community

OilKiller · 06-10-2011, 09:24 PM

Yup, that's what we will have to do. Any advice as to where to go from here? How do we take it and invest it elsewhere? Not sure what we do with it now.

Slava · 06-10-2011, 09:54 PM

Quote:

Originally Posted by OilKiller

Yup, that's what we will have to do. Any advice as to where to go from here? How do we take it and invest it elsewhere? Not sure what we do with it now.

Basically you open a LIRA at an institution you choose and then transfer the funds into it (you just fill out a couple of forms). You can invest it in basically anything that you can for an RRSP. One of the main advantages of your own account as compared to a group plan is the options that you have. A lot of group plans only give a few options and a lot of the options are not that great (IMO).

Like I said though, if you need some help feel free to PM me. I won't give you the hard sell or anything...just offer some advice or answer your questions if you like.

MoneyGuy · 06-12-2011, 07:55 AM

Quote:

Originally Posted by OilKiller

We're not talking CPP, we are talking an RPP from her work. Two totally different things IMO.

I know we aren't. Just making a comparison. I don't think folks should be able take spend locked-in money at will.

MoneyGuy · 06-12-2011, 07:57 AM

Quote:

Originally Posted by OilKiller

Yup, that's what we will have to do. Any advice as to where to go from here? How do we take it and invest it elsewhere? Not sure what we do with it now.

Call Slava.

Southside · 06-12-2011, 08:06 AM

What line of work was your wife in? That could potentially change things up.

OilKiller · 06-12-2011, 09:15 AM

Quote:

Originally Posted by MoneyGuy

I know we aren't. Just making a comparison. I don't think folks should be able take spend locked-in money at will.

Meh, disagree. Small amounts like 10 or 11k I think are fine, but in the end, it is her money and she should get it when she wants IMO.

Quote:

Originally Posted by Southside

What line of work was your wife in? That could potentially change things up.

Not sure why that would change this situation?

Southside · 06-12-2011, 09:44 AM

The matter is if your wife worked in a federally regulated industry (airlines, telecommunications, railways etc.) Or for the federal government. Makes a large difference to the answers you are seeking.

Slava · 06-12-2011, 09:52 AM

Quote:

Originally Posted by Southside

The matter is if your wife worked in a federally regulated industry (airlines, telecommunications, railways etc.) Or for the federal government. Makes a large difference to the answers you are seeking.

Not really. She's nowhere near 50-55 as far as I can tell, so not anywhere close to unlocking. Investment-wise the options are no different really, so it just doesn't matter. Depending on how they decide to invest it might be one different form to sign...but nothing for them to worry about.

Southside · 06-12-2011, 09:55 AM

You're assumptions incorrect. Can't help you without answers.

OilKiller · 06-12-2011, 09:57 AM

She's 45 and does not work in any federally regulated industry.

Slava · 06-12-2011, 10:18 AM

Quote:

Originally Posted by Southside

You're assumptions incorrect. Can't help you without answers.

If I am wrong then I definitely want to know. Looking forward to hearing this...

Southside · 06-12-2011, 01:01 PM

So it would be an Alberta pension then. Are there any medical issues such as large expenditures or shortened life, terminal illness or disability? Large debts oweing that could lead to eviction or foreclosure? Is your move out of the country? These are more questions which would have to be addressed in proper counsel. There are many possible options. Do you REALLY want or need the funds? Thats importnat to ask yourselves as well.

Slava · 06-12-2011, 01:25 PM

Quote:

Originally Posted by Southside

So it would be an Alberta pension then. Are there any medical issues such as large expenditures or shortened life, terminal illness or disability? Large debts oweing that could lead to eviction or foreclosure? Is your move out of the country? These are more questions which would have to be addressed in proper counsel. There are many possible options. Do you REALLY want or need the funds? Thats importnat to ask yourselves as well.

I think that you need to re-read the thread. Some of these points were already addressed and pointed out, or at least presented as possibilities to the OP.

Southside · 06-12-2011, 04:21 PM

Don't you hate when the fact finding gets in the way of the sale? I have nothing to sell, not in the investment realm as much as I am the pension realm. If the OP wants a solution they exist, but, more information is needed. Proper counsel takes time. No, all of my questions had not been answered.

Slava · 06-12-2011, 04:27 PM

Quote:

Originally Posted by Southside

Don't you hate when the fact finding gets in the way of the sale? I have nothing to sell, not in the investment realm as much as I am the pension realm. If the OP wants a solution they exist, but, more information is needed. Proper counsel takes time. No, all of my questions had not been answered.

I'm not trying to sell anything, actually. I figure he can go wherever makes the most sense for him.

I'm very interested to see how you can make this work though. As you're well aware pension regulations a strict and getting an exception granted to the existing rules is far from simple.

When you find th solution though, please be sure to post it. I would like nothing more than for the OP to get access to the funds he requires, so if you know something I don't I'm more than happy to learn.

MoneyGuy · 06-12-2011, 07:13 PM

Quote:

Originally Posted by OilKiller

Meh, disagree. Small amounts like 10 or 11k I think are fine, but in the end, it is her money and she should get it when she wants IMO.

We'll disagree then. I've been in this business for many years and have hundreds of clients; I know human nature. If you give people access to their locked-in money, many will blow it and those savings are gone. The people who would blow it are the same people as have little in RRSPs and are not saving new money. I'm seeing this with a couple of clients now. They're blowing through their non-locked-in savings and soon all they will have left is their locked-in money. I await the day they ask me to start drawing from their locked-in money. It's locked in to protect them from themselves. By the way, their reasons for "needing" these funds are pretty pitiful. They don't really need the money; they need lessons in money management but have not accepted my offer to provide such lessons. These people will be poorly off one day.

ken0042 · 06-12-2011, 10:41 PM

Quote:

Originally Posted by MoneyGuy

If you give people access to their locked-in money, many will blow it and those savings are gone.

Yep, and I'm one of those people. Very thankful that I now have a pension that I cannot touch until retirement. Because "Present day Ken" does not give a rat's bum about "Future Ken." And why should I- those retirement fund issues aren't my problem; they are his problem.

So thank you for your efforts to save your clients from themselves.

OilKiller- with your wife's money was there not some employer contributions? I know with my plan if I cashed in my own contributions I would be only getting ~45% of what I could at retirement. 12K now vs. 25K then (assuming 0% interest); that could be a couple hundred per month as soon as 15 years from now.

OilKiller · 06-12-2011, 10:46 PM

Quote:

Originally Posted by MoneyGuy

We'll disagree then. I've been in this business for many years and have hundreds of clients; I know human nature. If you give people access to their locked-in money, many will blow it and those savings are gone.

Well, then that is their problem. Sorry, I think that if it's their money, they should be able to access it as needed. Eating fast food can kill you, but there are fast food places everywhere. People choose to eat poorly or healthy. I like choices, not people limiting my choices or deciding for me, that's all I'm saying.

At the end of the day though, it's 11k is this case. It can sit there or we'll invest in something else, as it is locked in. Oh well, we could have really used it, but it's not the end of the world.