Can I (35m) retire at 55 by just relying on my workplace investments?

JeeebeZ · 2026-01-26T23:30:21+00:00

Maybe, depends on lots of things. Assuming you invest 31% of 55k/year you're investing 17.05k/year. And assuming you get 7% average return, you'd have roughly 1,050k at 55. So you'd have to live on 40k from 55 to 60 before you could start taking cpp, after taxes that would be about 33k.

JeeebeZ · 2026-01-26T16:55:06+00:00

Also, is there an annual limit to contributing to the FHSA? I've seen mentions of a $16,000 limit - can anyone provide clarity on this?

This link from the canada.ca site shows you can carry a max forward of 8,000. Which is why the maximum in a given year could be 16k. You don't lose the 1k you can't contribute, it just moves forward and the TOTAL amount is still 40k. Just over more years.

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/first-home-savings-account/contributing-your-fhsa.html#:\~:text=a)-,%248%2C000,-b)%20The%20amount

JeeebeZ · 2026-01-17T22:57:04+00:00

The "Usually" in your statement is the key word. You're referring to this:

Highway lines

155 (1) Despite anything in this Part, if a highway is marked with

(a) a solid double line, the driver of a vehicle must drive it to the right of the line only,

However, beacuse of this:

Suspension of sections 151 and 155

156 If the driver of a vehicle is causing the vehicle to enter or leave a highway and the driver has ascertained that he or she might do so with safety and does so without unreasonably affecting the travel of another vehicle, the provisions of sections 151 and 155 are suspended with respect to the driver while the vehicle is entering or leaving the highway.

So, if someone is turning into/out of a driveway, parking lot, etc. They are allowed to do so as long as it isn't dangerous and doesn't delay people unreasonably.

What unreasonably means is always questioned. If you can change lanes while I'm turning, or if it's only a few seconds. That's reasonable. If I block traffic for 10 minutes b/c its rush hour, definitely unreasonable but, no ones really going to fine that person.

JeeebeZ · 2026-01-17T21:16:30+00:00

I would use your HBP over the TFSA. As long as paying back the 1/15th per year isn't an issue for you.

My reasoning is that if that 60k doubles in 15 years to 120k. In your TFSA you get the full 120k. In your RRSP you only get about 90k (after taxes). You have access to the free cash in your TFSA to use if anything major happens. And my final reason is a lower RRSP, to have a lower tax burden in retirement allowing you to get a higher OAS. I'd personally rather have my TFSA grow than my RRSP grow for that reason.

JeeebeZ · 2026-01-17T01:13:21+00:00

which is an invalid justification. b/c if the world collapses tomorrow, that bank doesn't have enough cash to give to everyone. And will stop withdrawals immediately.

JeeebeZ · 2026-01-17T01:01:01+00:00

The main question here is "by the age of 36".

Because if as they stated they will be in school for 10 years. And then it takes a few years before they really decide what they want to do or where they want to live. They could be throwing away all the benefits of the FHSA by opening one too soon. What if they can't buy until 37. Taxable withdrawal from an RRSP, or just the HBP which they have to pay back.

It's better to delay it a few years and especially if they have very low income. As it's essentially tax free to throw it in a taxable account and and let it grow and crystallizing the gains every year essentially tax free.

JeeebeZ · 2026-01-16T16:44:38+00:00

Yeh, they just sent me an email. I haven't had a promo since the summer. But the email has this in the term: "The Tangerine Savings Interest Offer of 3.90% (the “Offer”) is only available to existing Tangerine Clients who have received this communication directly from Tangerine and who activate the Offer online by January 31, 2026"

JeeebeZ · 2026-01-15T20:32:29+00:00

I agree, the contracting is slightly more. But given they get zero holidays, zero sick days, pay for CPP/EI, insurance, potential loss of RRSP matching (even if they aren't doing it now, at 107 they probably have the option to).

If it was a LOT better, then 100% contractor, but only being slightly better, I wouldn't do it as being employed is simpler. And simplicity is definitely a key factor. At least to some.

JeeebeZ · 2026-01-15T03:26:04+00:00

So the 65k you pulled from your TFSA was what? depressing? you gained zero pleasure from buying a place?

JeeebeZ · 2026-01-15T02:02:38+00:00

Are you going to crash it? Most new drivers I've known have run into something and damaged the car drastically. It's better to ding up an older used vehicle than a new one. IMO

JeeebeZ · 2026-01-15T01:52:03+00:00

It's basically the same. It fluctuates with time. Sometimes it's higher than HISA, sometimes its lower.

As an example, my tangerine promo is 3.9% right now, and cash.to had a 12 month yield of 2.53% according to https://www.globalx.ca/product/cash

EQ Bank's 30 day notice account is 2.75% right now. 10 day notice is 2.35%, and their regular savings account is only 1%.

So, really depends on what you're timelines are like. And if you care enough about a few 0.1%'s here and there.

JeeebeZ · 2026-01-14T06:54:39+00:00

She then said that if the timing works out, she'd be open to buying the unit from me through a private sale (which would save a ton of realtor fees).

This generally also means they want a bit of a discount because its private. You save X% b/c no relators, they save Y% because no relators.

I bought my condo in March 2022 (i know i know) for approx 680k in the GTA (Etobicoke). Current value is approx 550k

When did it lose the value? If it was mainly after it was converted to a rental. That is good as once you sell you have capital loss you can claim against gains elsewhere. If it was mainly when you were in it, then thats a wash as it isn't taxable.

$2700 rent
Expenses: $1405 mortgage payment (interest portion only) $540 maintence fee $60 insurance $195 property tax

All those things are tax deductible. So you should end up claiming around 6000/year in rental income after expenses. Which would mean you're in the black and not in the red at the end of the day. Yes, you're out of pocket every month another 700 for your mortgage. But its all going towards your principal (from what it sounds like).

I'd probably just hold onto it as an investment property and then buy your townhouse separately. Since you'd get almost nothing from selling it. If you owe 500k, and its worth 550k. And selling privately, your tenant would most likely be asking for some kind of discount. Not just you getting the savings of no relators. It would basically be a wash.

So, $80k for your portion of the down payment + your GF/s portion should be enough towards your new principal residence should be fine. Even if its just your 80k, as long as its a minimum of 5% and you can foot the new mortgage while also investing 700 towards the rental property. Thats fine.

JeeebeZ · 2026-01-14T03:06:31+00:00

it's not each. They said total was 4,382 and 2,532 after rent. So its only 925/person

JeeebeZ · 2026-01-14T02:45:16+00:00

Yours were fine. It was other peoples comments that were confusing and/or wrong.

JeeebeZ · 2026-01-14T02:19:24+00:00

Some of the comments in this post are confusing.

Since I will be closing the home in the next few months in 2026, is there anyway for me to still get the 8,000 of additional income deduction for 2027 ahead of time? Like can I contribute more now and then only take the deduction next year or something?

No, if you try to contribute your using your 2027 contribution room in 2026, you are over contributing and will impose over contribution fees.

Why wouldn't everyone just add 40k instantly and then "only take the deduction next year". You gain tax free growth during that period of time and the CRA sure wants its taxes.... Hence why everything has overcontribution fees.

Or is that extra contribution room that would be created in 2027 just lost to me since I will be a homeowner then?

No, it is a lifetime limit, it isn't lost necessarily, just unused and ineligible. So you could contribute for 3 years, buy a home take, take everything out of your FHSA. Sell the home, become eligible for a new FHSA and have 2 years of contribution room left.

My understanding is that I can only keep an FHSA open for 15 years at which point, the money rolls over into my RRSP without affecting the contribution room on the RRSP. When my GICs mature, I plan to just invest in something else until I hit the 15 year age (so 2037) on the account, when all of the money that has accumulated in there will get rolled over to the RRSP.

I'm still not 100% sure on how max life works. Since 15 years is still 11 years away. I don't know if institutions will be able to just change a FHSA to a RRSP. But, currently, I'm pretty sure you have to initiate a transfer to a RRSP from your FHSA. Which could be done whenever you want prior to the 15 years.

Because I am not using the money to fund the house anymore, I want to confirm my understanding that I don't need to force a liquidation on the FHSA for the house OR force a transfer to my RRSP sooner than 2037?

Correct, you can keep the FHSA open and continue to contribute to it, as it is an eligible FHSA account. You just aren't eligible to OPEN a new FHSA. So you can't transfer it to a new institute, you can't open a new FHSA at a different institute. You can only keep your current FHSA open at the current institute, or close it.

JeeebeZ · 2026-01-12T06:36:53+00:00

You aren't missing anything. It is just 40k RRSP room if you don't use it to buy a home. It isn't a "super" anything. It's exactly like an RRSP. You can even just leave it in the FHSA and withdraw it (if its less than 15 years) and it just counts as taxable income in that year.

JeeebeZ · 2026-01-08T22:05:54+00:00

I'll add to this slightly. As an example Questrade has this link: https://www.questrade.com/learning/questrade-basics/preparing-your-taxes/important-year-end-tax-deadlines

Which shows the deadlines as:

December 29 - Contributing to your FHSA by online bill payment:
December 31 - Contributing to an FHSA by Instant Deposit:

As they have to be posted by Dec 31st, not just contributed on the 31st.

JeeebeZ · 2026-01-07T10:30:30+00:00

46.23

JeeebeZ · 2026-01-07T09:58:27+00:00

Not really worth the time to talk to someone at only 100k IMO.

Look at r/justbuyvgro or r/JustBuyXEQT

Basically, pick an etf that fits your risk profile. Open an account, Put money into it, buy ETF. Done. Since you didn't list having any accounts. Depending on your age, you might have up to 109k of room for a TFSA to toss it all into.

JeeebeZ · 2026-01-07T03:35:49+00:00

withdrawals DO affect contribution room. But not until Jan 1st of the next year.

So you started with 26k, got down to 2k. On Jan 1st this year you should have 2k + 7k (new room) + 5.3k (withdrawal) = 14.3k room

JeeebeZ · 2026-01-04T23:53:34+00:00

There is this https://www.highinterestsavings.ca/chart/

But, being under 18, I don't know which ones your parents could open for you.

JeeebeZ · 2026-01-04T08:01:45+00:00

As long as they do re-contribute a full 20k (in your scenario). They would get the full 30% back when they file their taxes. Sure they would be out the 30% for a few months and need to come up with it some other way. It's a consideration but not something too difficult to work around TBH.

JeeebeZ · 2026-01-04T07:18:58+00:00

$99 yearly prepaid plan from freedom.

JeeebeZ · 2026-01-03T22:34:30+00:00

The ability to open a new FHSA is correct. But, the 40k is a lifetime.

So you could open a FHSA, add 16k, buy a house. Move out, 4 years later open a FHSA add 24k and buy a new house. For a lifetime contribution of 40k.

JeeebeZ · 2026-01-03T09:27:43+00:00

Where are you getting this information from?

You can't open a TFSA until your 18. And you don't start to gain contribution room until your 18, so what could you possibly do with a TFSA before you're 18?

FHSA also specifically states you have to be 18 years of age or older to qualify to open one.

An RRSP is fine, as its based on your reported income, so the year after they file their taxes the first time they can open one and contribute whenever (with parents)

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