Low engagement or Disengagement - Result of daily stress, unclear expectations, high unemployment (= reduced choice in employment opportunities), family issues, health issues, inflation, other external factors, ...
Gallup defines the trend as when employees “put in the minimum effort required” and are “psychologically disconnected from their employer.”
Loud quitting = Taking “actions that directly harm the organization, undercutting its goals and opposing its leader” and not engaged in their work.
It is better to have an employee flat-out quit (and to find a more engaged replacement) than quiet quit.
By paying the same premium every year she hadn't increased it, so she hadn’t put any more money into the cash value. Therefore, there’s not enough money to offset the cost of insurance (COI), so now the policy is about to end.
Whole life insurance - Whole life insurance is a permanent life insurance policy with a fixed premium, death benefit and a fixed interest rate for cash value growth.
Guaranteed death benefit, plus cash value that grows at a rate guaranteed by your insurer. If you choose what’s called a participating policy, the insurer may also pay dividends.
Low returns & compound interest you’d see through traditional investing
The policyholders can only use the cash value while they’re alive.
When you die, the insurer keeps your money, absorbing the cash value of your policy while survivors receive the leftovers in what’s called a “death benefit.”
Term life insurance - Term life insurance is valid for a specific period of time (10-20 years) and guarantees payment if a person dies within that term. It’s typically the cheapest form of life insurance because it only offers a death benefit for a restricted time and it doesn’t have a cash value component. You don’t get any money back if your policy term expires and you’re still alive.
Each jurisdiction has different definitions and legislation that may require strict compliance for wills to be legally valid. You need to consult a lawyer.
Beneficiary vs. Sucessor
Primary Beneficiary vs. Contingent Beneficiary vs. Successor Annuitant vs. Successor Holder
RIF - Successor Annuitant
TFSA - Successor Holder
A beneficiary would receive the funds (taxable) from the TFSA, and the deceased's TFSA would be closed.
A successor holder would receive the TFSA with the funds still held within it. Therefore, the successor holder would get to keep all that tax-free room.
If you are a beneficiary under the testator's will, your involvement in the preparation of that will can create suspicious circumstances. If suspicious circumstances exist in the preparation, execution and signing of the will, you may be called on to defend the will in court.
FIRE = Financial Independence, Retire Early = saving aggressively and living frugally
FI number = FU money (because you can tell your boss what to do with your job)
Safe withdrawal rate of 4% (assuming a 30-year retirement) - The goal is to save 25 times your annual expenses to retire and then tap into the 4% rule, where you withdraw 4% or less per year from your accounts.
Savings of $1-$3 million - depending on lifestyle (expected expenses), life expectancy, geography, investment strategy, etc.
FIRE Alternative: microretirements = shorter breaks for travel or other pursuits
The well-known four per cent rule, credited to a 1994 Journal of Financial Planning paper by William Bengen, has some merit. Bengen’s rule of thumb suggests that a retiree can withdraw four per cent of the portfolio value in the first year of retirement, then increase the dollar amount of that withdrawal by inflation each year and likely not run out of money. While there are many factors that can make this rate too high, too low, or totally irrelevant, the rule provides an easy retirement-readiness barometer and it’s a simple starting point.
The four per cent rule has been challenged in recent years for being too high, especially with people living longer and spending more time in retirement.
Factors to consider:
expected longevity (= length of retirement) (= health)
changes in expenses or pension income during retirement = expected spending during retirement
Personal Investment | Use this formula to decide how much to invest in stocks: (100 minus your age) | e.g. At age 25 you should invest 75% of your portfolio in stocks. At age 50 you should invest 50% of your portfolio in stocks.
political stability -politics, political ideology, racism
climate & weather
the ability to legally reside in the new location
the language spoken and overall culture appeal
overall quality of life as compared to Canada
health care - public, private, for-profit, non-profit, wait times, quality of medical services
The U.S. does fund the national Medicare program for people 65 and older
where family and friends are located
taxes - resident/non-resident, disposal tax on required disposal of all worldwide assets (due upon departure), you must consult an experienced tax/financial specialist
Alan Simpson, Senator from Wyoming, Co-Chair of Obama's deficit commission, calls senior citizens "the Greediest Generation" as he compared Social Security to a Milk Cow with 310 million teats. August, 2010.
Although this retarded American senator said it, there are many other uninformed (ignorant) people who expound the same rhetoric without any logical or factual basis.
However, the author of the response to this senator's stupid remark is really not known.
Gratitude must be extended to this unknown author for explaining facts that any self-respecting politician should have verified before vilifying a whole generation of citizens.
The response is brutally honest and correct even if the author is really anonymous.
CPP Investments - Canada Pension Plan Investment Board (CPP Investments) was created in 1997 by an Act of Parliament with the objective to invest the Canada Pension Plan (CPP) fund assets to maximize returns without undue risk of loss, having regard to the factors that may affect the funding of the Canada Pension Plan.
The Canada Pension Plan Investment Board (CPPIB) manages the fund’s assets. The proceeds from these investments are used to pay CPP benefits to retirees. Based on current projections, the CPPIB estimates the plan has at least 75 years of sustainability.
Should millennials complain? No, in fact, thanks to efforts by CARP, which lobbied hard for CPP enhancements, when millennials retire, they’ll actually receive higher payouts than their parents or grandparents did.
The best time to start CPP —if you don't know when you will die
Bear in mind that, like most pensions and annuities, CPP and OAS are income streams that "run out" or reduce upon the passing of a spouse, unlike personal assets that have both a survivor and estate benefits.
What does this mean?
One thing the "delay CPP" crowd often forgets is the tricky issue of Survivor Benefits. We looked at this earlier this year but Diamond says that while you can receive both a CPP retirement pension and a survivor benefit, the sum of the two cannot exceed the maximum CPP retirement pension payable at age 65. So if both spouses wait until 65 or beyond and are at the maximum payout, there would be no CPP survivor benefit for the one who outlives the other. And OAS has no survivor benefit nor an estate value (CPP has a $2,500 death benefit).
Should I collect CPP early?
You can begin collecting CPP as early as 60 or wait until 70 at the latest. However, the government will penalize you (subtract 0.6 per cent a month before 65 if you begin collecting early) or incentivize you (add 0.7 per cent a month after 65) if you defer it. To illustrate the difference, suppose your annual CPP benefit is $10,000 a year, if you begin collecting at 60, you'll be penalized $3,600 over the five years. Conversely, if you delay to 70, you'll collect an extra $4,200. Runchey says if you live to 80 (the normal life expectancy), it doesn't matter what age you start receiving benefits: "Based on the math, by 80 the total payouts will be about equal."
You may have to repay OAS benefits (see line 235) if your net income (T1-line 236) is more than $74,788 - 2018-07-01
If you have taxable income over a certain amount (for 2022 it was $81,761) you will start having to pay back some or all of your OAS (known as the OAS clawback).
2025 - OAS reduced by 15% for all taxable income over $93,454
The Canadian pension model, pioneered by the Ontario Teachers’ Pension Plan during the 1990s, is based on the principle that funds should be managed independently of both governments and unions and free of political interference. It calls for independent boards whose members are experienced in investments and finance.
RRSP = Registered Retirement Savings Plan
By the end of the year you turn 71, you need to either convert your RRSP to a Registered Retirement Income Fund (RRIF) or purchase an annuity (a monthly payment from an insurance company in exchange for your RRSP savings).
You can convert your RRSP whenever you want - even before you retire. But you must convert it by no later than the end of the year in which you turn 71. That’s when it’s time to stop contributing to your RRSP and start drawing retirement income from a RRIF.
"If you’re age 65 or over, you’re entitled to claim a pension credit on up to $2,000 of eligible pension income (generally, income from a registered pension plan, annuity or registered retirement income fund). Do this before year-end to receive that $2,000 with no or low taxes each year going forward."
Withdrawals are taxable. All the money in your RRIF will continue to grow tax-free until you take it out.
RMD = required minimum distributions = decumulation of retirement savings
Your annual minimum withdrawal percentage gradually increases with age. For example, at age 71, you will have to withdraw 5.28% of your portfolio’s value; at age 82, it’s 7.38%.
In the year the RRIF is opened, the minimum withdrawal is nil. (probably the year in which you turn 71)
Any payments (withdrawals) in excess of the minimum are subject to the following withholding tax rates: 10 per cent if the excess payment is less than $5,000, 20 per cent if the excess payment is between $5,000 and $15,000, and 30 per cent if the excess payment is more than $15,000.
This withholding tax is on top of (= in addition to) the regular income tax on the full amount of the total withdrawal (minus the minimum allowable withdrawal).
If you’re converting RRSPs from a number of financial institutions to a RRIF, it’s a good time to review your portfolio and consolidate your investments. Not only will you get a better overview of your investments, but it will also be easier for you to decide how much you’re going to withdraw each year and from which investments.
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