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The other thing to note is that the IRS is covered by US law, and they will poo poo all over you and put you away for a long time if you commit tax fraud. You don't mess with the IRS.
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Jan 5, 2016 23:55
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So I'm curious if anyone has any thoughts on Ontario's proposed ORPP. Noticed a thread about it on Reddit, but to be honest, they all seemed clueless on it. http://www.ontario.ca/page/ontario-retirement-pension-plan Here is some information I've gathered so far: Employer contributes 1.9% of your pretax wage. You have to contribute 1.9% pretax wage. First $3,500 exempt, up to $90,000. Max $1,643.50 contribution each. Exemption is for all wages, so working two part time jobs at 3k a year each, 6k total, is still exempt. EI premiums are being reduced to offset this. Assuming you made 90K a year for 40 years, contributed, and retired at 65, it would pay out a benefit of $12,815 a year until you die. The benefit will be inflation adjusted You can begin receiving benefits as early as 60, and as late as 70. If already have a DC or DB pension plan through work that is comparable or better than ORPP, you are exempt from it. If you're self employed, exempt. They plan to work on changing this though. Money will be handled by an ORPP Advisory Corporation, held in a trust, and not usable as general income to the provincial government. I do have some questions though that I have not found an answer to: Will the minimum and max wage values be inflation adjusted? How much are EI premiums being reduced compared to the cost of ORPP? Which inflation tracker are they using to adjust benefit payments? Are contributions tax deductible? (Likely) Are benefits considered taxable income? (Likely) Exact math to determine benefit payouts? How many cushy jobs at the top of the ORPP Advisory corporation will be friends, donors of the politicians pursuing this? In punching some numbers, higher averages on returns makes personal investment better. While higher inflation, and how it is handled in the contribution phase, makes the ORPP better in the long run. Overall, I think they have a chance for this not to be terrible. But I'm not holding my breath. Anyone else from Ontario had a look into this?
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Jan 6, 2016 01:02
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Given that it's an Ontario thing, it'll inevitably be a huge loving boondoggle. I don't think it merits any further analysis than that.
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Jan 6, 2016 01:20
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Golluk posted:If already have a DC or DB pension plan through work that is comparable or better than ORPP, you are exempt from it. That's not true, the private plan has to be much better to be exempt. They also said they want to use it to invest in Ontario infrastructure in the 2014 budget. Plus what Lexicon said. quote:In particular, some companies with defined-contribution (DC) pension plans may not qualify. DC plans operate like personal savings accounts, with payouts varying depending on the success of the investments. The government says it will only exempt DC plans if they have a minimum annual contribution rate equal to 8 per cent of employee pay, and if the employer matches at least half of all employee contributions. quote:For the ORPP, there is conflicting information in the Ontario Liberal platform. The platform says both “the ORPP will be publicly administered at arm’s length from government” and that “the ORPP will be able to invest the premiums it collects in Ontario businesses and infrastructure.” These seem to be in conflict.
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Jan 6, 2016 01:44
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I work for an Ontario company and have withholdings as if I were an Ontario resident but I actually file as a BC resident. Am I going to have to pay into ORPP? Will I be eligible to collect it?
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Jan 6, 2016 10:20
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Also the whole thing might get scraped if the Federal governments agrees to raise the CPP rate, maybe no one knows. You also don't pay into if your company has a pension plan sbaldrick fucked around with this message at 18:08 on Jan 6, 2016 |
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Jan 6, 2016 18:02
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I hate RBC so much. I had a GIC mature with them on the 1st. It took until the 5th for that money to actually appear as cash instead of a GIC. Then they deposited in to some weird investment savings account instead of my chequing as directed but transferring it from that dumb account to my chequing then took another day despite it being internal. Someone tell RBC we don't bank by snail mail over the course of days anymore. At Tangerine or any other modern bank this all could have been done in a couple minutes.
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Jan 6, 2016 18:44
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lol internet. posted:Some questions about work RRSP program (Great West Life) I was in a similar situation. My employer did a trivial amount of matching, so I wanted to take their money, but after that it was locked into a lacklustre investment product. You're going to have to read the fine print to see when you can get at it and if any fees are involved. I think I recall being able to request the balance of the previous year's contributions after a year or something like that. I ended up being able to use the HBP to bypass their dumb rules and cash it out, but that's not an everyday opportunity.
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Jan 6, 2016 19:26
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Lexicon posted:Given that it's an Ontario thing, it'll inevitably be a huge loving boondoggle. I don't think it merits any further analysis than that. I sadly expect you to be right... I just came across this report by "The Conference Board of Canada", funded by the Ontario Ministry of Finance. http://www.fin.gov.on.ca/en/pension/orpp/orpp-cb-analysis.html Worst thing for me, is they expect it to lower RRSP contribution room. And it's already impossible for me to make full use of my employer contributions due to limits (I'd need 29k contribution room each year, max is 25k).
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Jan 6, 2016 20:39
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Ahaha man gently caress Ontario. Enjoy your bullshit regressive tax you illiterates, I hope your stupid province implodes after manufacturing disappears completely and anyone with talent becomes an expat.
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Jan 7, 2016 01:24
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I thought this was funny. I've had a positive balance of $0.03 for a year on my CIBC no-fee VISA because I haven't used it since I received $0.03 as cash back. CIBC clawed it back today:  Banks love it when you owe them money. Not so much in reverse.
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Jan 7, 2016 14:05
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I had the opposite happen with TD. Used a card I normally don't to pay for parking, and when the statement came in it showed the balance but said nothing was due. Same the next month. And the next. And the following month they basically said, you know what, don't worry about it, and cleared the balance.
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Jan 7, 2016 21:03
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I have three credit cards with 0% credit usage (I only use my tangerine mastercard for everything). Should I close my MBNA smart cash mastercard and RBC VISA gold rewards now or just leave them open?
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Jan 8, 2016 18:24
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cowofwar posted:I have three credit cards with 0% credit usage (I only use my tangerine mastercard for everything). Should I close my MBNA smart cash mastercard and RBC VISA gold rewards now or just leave them open? There's an argument for keeping (and using! at least occasionally) your oldest card, but otherwise get rid of the ones you don't need. Don't overthink the impact on MUH CREDIT SCORE.
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Jan 8, 2016 18:47
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Lexicon posted:Given that it's an Ontario thing, it'll inevitably be a huge loving boondoggle. I don't think it merits any further analysis than that. sbaldrick posted:Also the whole thing might get scraped if the Federal governments agrees to raise the CPP rate, maybe no one knows. Most of the big ontario pension plans have lent their expertise in designing the thing, and they're all competent and successful for the most part. The problem is that ORPP was put into action because the federal government wasn't going to expand CPP, which it desperately needs. Now the new federal government says they want to expand CPP so there's technically no need for ORPP but they're still going ahead with it.  CPP wasn't brilliantly implemented either but it worked out. The fact that anti-pension nutbags have gotten everyone thinking that pension contributions are a tax is pretty sad though. Pension law is by design insanely complicated and it means a lot of people don't really understand how they're managed or even how they work.
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Jan 11, 2016 23:59
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Dreylad posted:The fact that anti-pension nutbags have gotten everyone thinking that pension contributions are a tax is pretty sad though. I'm a nutbag, explain to me how mandatory defined benefit pension contributions aren't a tax? It's a tax demanded by the government for a specific facility. You pay $x and you get roads, you pay $y and you get food inspection, you pay $z and you get some monthly bingo cash when you're old.
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Jan 12, 2016 01:27
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Even if it magically turned out to be a solvent, well thought out and not regressive plan that couldn't be used as a short term bailout fund, it would still be managed by the ontario loving liberals. I wouldn't trust the OLP to die properly if they're ever (deservedly) lined up against the wall.
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Jan 12, 2016 01:59
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Guest2553 posted:Even if it magically turned out to be a solvent, well thought out and not regressive plan that couldn't be used as a short term bailout fund, it would still be managed by the ontario loving liberals. I wouldn't trust the OLP to die properly if they're ever (deservedly) lined up against the wall. By law it cannot be any of those things, even the last part that you think is true. I get that it's not a popular policy in this thread, people here are informed and motivated investors, but there is a lot of misinformation out there (which is partly on the OLP).
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Jan 12, 2016 02:51
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The market is making my cash holdings look so good right now
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Jan 12, 2016 07:55
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Works for me. I'm tossing more in this month for company matching. I like stock sales.
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Jan 12, 2016 17:21
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Ikantski posted:I'm a nutbag, explain to me how mandatory defined benefit pension contributions aren't a tax? It's a tax demanded by the government for a specific facility. You pay $x and you get roads, you pay $y and you get food inspection, you pay $z and you get some monthly bingo cash when you're old. It's basically an attempt to make sure you don't starve to death on the loving street when you're old. It's that loving hard to understand.
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Jan 12, 2016 17:31
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jm20 posted:The market is making my cash holdings look so good right now Ditto. I was waiting until March in any event to see if CIBC would repeat their month-long no-trading-fees-on-ETFs deal that they had last year, and so far it has been working in my favor.
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Jan 12, 2016 17:42
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sbaldrick posted:It's basically an attempt to make sure you don't starve to death on the loving street when you're old. It's that loving hard to understand. What you described sounds like a social safety net. Taxes pay for social safety nets all the time and people are ok with that. I don't get what you have to gain from pretending it's not a tax.
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Jan 12, 2016 17:53
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Dollar below 70 cents US.
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Jan 12, 2016 18:12
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the talent deficit posted:I work for an Ontario company and have withholdings as if I were an Ontario resident but I actually file as a BC resident. Am I going to have to pay into ORPP? Will I be eligible to collect it? If you are resident in BC then your company is doing your payroll wrong and if they deduct Ontario taxes and other wage-based rates you will get it refunded on your tax return. You should get them to fix this as it could result in both you having to pay instalments and then having to pay penalties if it results in underpayment if your taxes.
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Jan 13, 2016 16:45
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Here's a dumb question. I own some shares of a cable company worth less than $1500. They were purchased when I was an employee back in the day. If I wanted to sell these, how would I go about doing that? All I know is that I get a quarterly statement from CST Trust Company telling me that my tiny dividends are being used to buy fractions of more shares.
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Jan 13, 2016 18:34
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Another dumb question. I log into CRA and see X for RRSP contribution room. Can I put X into my RRSP, or can I only put in X minus my total RPP contributions for this year? If the latter, that means I wait until I get that tax form from my employer, correct?
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Jan 14, 2016 17:59
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My 2015 RRSP deduction limit is: My 2015 RRSP contributions during the 2015 calendar year are: My total RRSP contributions during the first 60 days of 2016 are:
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Jan 14, 2016 18:41
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Tarandis posted:Another dumb question. I log into CRA and see X for RRSP contribution room. Can I put X into my RRSP, or can I only put in X minus my total RPP contributions for this year? If the latter, that means I wait until I get that tax form from my employer, correct? I believe RPP contributions only effect your RRSP contribution room for the following year - that is, it will be reduced based on your previous year's RPP contributions. My 2015 RRSP contribution room was calculated as such: Contribution Room = $12,046.00 Minus: 2014 pension adjustment − $7,801.00 Minus: 2015 prescribed amount for connected persons − $0.00 Additional deduction limit based on 2014 * = $4,245.00 Rick Rickshaw fucked around with this message at 18:58 on Jan 14, 2016 |
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Jan 14, 2016 18:53
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Rick Rickshaw posted:I believe RPP contributions only effect your RRSP contribution room for the following year - that is, it will be reduced based on your previous year's RPP contributions. This is correct. The pension adjustment affects your contribution room for the next calendar year.
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Jan 14, 2016 18:59
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I have a couple of dumb questions. Are RRSP limits cumulative like TFSA? And does anyone with td know if you can move money into the td rrsp with out automatically allocating it to funds? I'm trying to move money into my existing account so I can transfer it to questrade without paying fees, but don't want to have to actually buy funds and wait the 90 days before I can sell the e-funds.
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Jan 14, 2016 21:43
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Demon_Corsair posted:I have a couple of dumb questions. Are RRSP limits cumulative like TFSA? Yes. Every year 18% of your earned income up to a maximum ($24,930 for 2015) is added to your contribution room. The contribution room does not expire.
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Jan 14, 2016 21:56
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Also you can contribute in one tax year but defer claiming it on your taxes.
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Jan 14, 2016 22:01
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Hey, my girlfriend and I are going to the states in April and she's worried that the exchange rate is going to get even worse. I'm sceptical. I have 2000 that I can either exchange now or invest. What would be a better bet? Side question: How much cash do you guys keep in your chequeing account?
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Jan 19, 2016 02:19
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Don't invest the money in anything more than a HI(lol)SA if you need it in 3 months jesus. And yeah it's probably going to get worse. I'd change it over now if I were in your position.
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Jan 19, 2016 02:52
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TheOtherContraGuy posted:Hey, my girlfriend and I are going to the states in April and she's worried that the exchange rate is going to get even worse. I'm sceptical. I have 2000 that I can either exchange now or invest. What would be a better bet? No one is going to be able to answer this for you at anything other than a guess
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Jan 19, 2016 02:54
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We can make some pretty informed guesses though  I'd exchange now myself but if the $100 difference a 5 cent change would cause is enough to make or break a trip then there are probably greater concerns.
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Jan 19, 2016 03:51
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Does anyone here using TD have any preferences for using US TFSA or CAD TFSA? I have about $40,000 CAD I'd like to build a Vanguard portfolio with (was previously using e-series) and am a bit unsure of whether I should be exposing myself to Forex risk.
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Jan 19, 2016 17:23
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Hold it all in CAD to avoid transaction costs. If you want exposure buy the unhedged versions of funds, if you don't want exposure buy the hedged versions. All in CAD.
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Jan 19, 2016 17:28
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Mantle posted:Hold it all in CAD to avoid transaction costs. If you want exposure buy the unhedged versions of funds, if you don't want exposure buy the hedged versions. All in CAD. Does that limit my purchasing options though? I notice that I only have the funds here available: https://www.vanguardcanada.ca/individual/etfs/etfs.htm vs https://investor.vanguard.com/mutual-funds/vanguard-mutual-funds-list. I was hoping to capture US REITs somehow - I don't want to touch VRE and would prefer VGSLX.
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Jan 19, 2016 17:41
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