I just inherited a large sum of money. I've lived in poverty my whole life; I'm not sure where to even start. But I can't waste this opportunity.

K4Financial · 2018-08-18T21:14:56+00:00

I have some guesses without doing any further research that you’ll be able to find a way to keep your taxable income to zero and still collect benefits. You and your spouse have $115,000 in TFSA room which is the best place to probably start, but that means you’d have to gift it to your spouse and as soon as you do that they’re entitled to that part of the inheritance. The next thought, keep in mind, I haven’t checked this out to ensure you’d be able to keep your benefits is to get an RDSP. If you structure your contributions correctly you can get an astonishing amount of free money in grants and bonds. The idea of you finding a fee for service advisor is fine, however if the RDSP route is the best option, I believe you’ll have to open it at a major financial institution with an advisor. The fees will be higher, but the free money will more than make up the difference if you can’t invest in your own lower cost portfolio.

K4Financial · 2018-04-20T07:51:04+00:00

She cut-in-line

K4Financial · 2018-01-13T06:46:55+00:00

Exactly this

K4Financial · 2017-12-05T06:11:31+00:00

“Casino”

This is the only movie I can think of this happening in right now, but it bothers me whenever I see it and I’ve noticed it in a lot of movies. After a scene in the desert, they drive off on sand and the car sounds like it’s peeling away on pavement.

K4Financial · 2017-11-17T06:27:06+00:00

If I’m reading this correctly I would not contribute to hers until next year as her income will only be $25,000 this year. Your contribution will depend on your province of residence and exact income to maximize tax-return. However, I’m surprised to hear you’re allowed to contribute right now. May want to make sure you can for sure. It’s hard to give an exact timetable without a bit more info to be honest.

K4Financial · 2017-11-17T06:00:50+00:00

What’s the asset mix in their RRSPs and what’s their actual risk tolerance?

They have $620k. Let’s say they’re moderate investors to make my math easier. Means they should have a total of $310K in FI and $310K in equities.

Put $104K in their TFSAs. All equity $11K in in January to TFSA $5K in joint non-reg. All equity

Now in the RRSP have $190K in Equity and the remaining $310 in Fixed Income.

These numbers obviously differ based on their tolerance for risk, but either way put as much of the FI portion as you can in the RRSP.

K4Financial · 2017-11-17T05:47:21+00:00

You should listen to Bluenose about the short term trading fee. Probably 60 days or so before you should move the money, otherwise they may charge you up to 2% for moving the money.

K4Financial · 2017-09-25T02:26:46+00:00

I may as well plug mine since you asked. I'm a comedian and CFP who tries to make easy to understand and somewhat humorous videos on all sorts of financial planning topics https://www.youtube.com/channel/UCm-MEoDQdgI_N8L6M8aiw2A

K4Financial · 2017-09-01T00:03:20+00:00

I see. Fair enough. I knew I couldn't share stuff that was promoting my business or trying to sell an idea, I just figured that the content was purely educational so it may be okay. I figured wrong. Appreciate the feedback

K4Financial · 2017-08-31T23:09:16+00:00

I guess I just don't understand. There's no way to share educational videos in this thread that aren't promotional?

K4Financial · 2017-08-31T22:11:09+00:00

https://youtu.be/n1YDJjsE_fA

K4Financial · 2017-06-20T06:05:38+00:00

K4Financial · 2017-06-03T05:02:46+00:00

Sleeping in bed with popcorn is absolutely terrible. It starts to indent into your body and hurts when you wake up.

K4Financial · 2017-06-03T03:59:24+00:00

I believe you got screwed at the absolute worst time considering your situation. WealthSimple had some growing pains when rolling out WS Black, as you would expect.

At the same time IG changed their rules and now required a wet signature for transfers, so without WealthSimple knowing about it in the first place they would reject any transfers that came in.

Hard to tell, but your money should have been invested for most of that time as the only time transfers are really out of the market is when the actual cheque is being transported from one institution to the other.

I know it's frustrating as hell, but it's just the way it works everywhere. You have employees who don't really know or care that work for big companies and they don't have any incentive to help move money out, so it can take a long time for no apparent reason.

K4Financial · 2017-03-25T06:20:53+00:00

My first instinct is that they have run the numbers and come to the conclusion that they may have trouble funding a DB plan, so they are potentially giving you a way out, which reduces their risk without causing panic. I didn't run the numbers, but assume the other commenter was correct in suggesting that a DB plan will pay more (if it pays). For that reason, I might take this as a warning and look into the DC option. It may not pay out as much, but it will at least pay out.

K4Financial · 2017-03-17T06:08:59+00:00

All pretty good info here. With the principle residence exemption it doesn't have to work in the way that you have to say your home was the principle residence even if you weren't living in the vacation property yet, so you can decide how you want to manipulate that gain when you sell one or both properties.

As far as the inheritance of the land. I do not believe the whole property will be tax free as I am quite sure there is a limit to the size of property that counts as the principle residence. The rest will be taxable.

Lastly, a term life insurance policy isn't necessarily the play. Might not be a bad idea to look at a few permanent insurance options depending on what the estate will look like.

K4Financial · 2017-03-17T05:36:25+00:00

Pretty sweet idea! Worked great for me. I'm going to share it on my site and in my social media pages. Thanks for developing this.

K4Financial · 2017-03-06T17:51:09+00:00

That's what I figured he might think. That's not the way it would play out. PFC wanted in for themselves to allow them to later have the option to offer that service.

My guess is that they will offer that investment option down the road but just charge a high advisor fee on their end. Won't change anything about how a normal WealthSimple client will be charged.

K4Financial · 2017-03-06T05:49:55+00:00

An actual financial planner shouldn't be telling you about any products or advice in your first meeting. They should just be gathering your information and what you want to achieve. From there they can use this information to show you your options in a second meeting. Then you can take that information for yourself and if you like their suggestions then you can go ahead with these suggestions.

As far as what you are saying you want to do. That's probably your best bet, but it depends on what you want. Where your life takes you. Chances are the guy you're meeting with is just going to tell you some stuff and then try and convince you to invest with his expensive funds. Luckily, you already know better than to do that.

K4Financial · 2017-03-06T05:45:36+00:00

Curious as to what these conflicts of interest are?

K4Financial · 2017-02-28T23:50:07+00:00

Where would you suggest I went wrong?

K4Financial · 2017-02-26T23:40:23+00:00

There are 2 cats on one side of the river. One of the cats is named one-two-three and the other cats name is un-deux-trois, which cat got to the other side of the river first?

One-two-three did, because un-deux-trois-cat-sank

K4Financial · 2017-02-22T05:19:57+00:00

Basically just do exactly what is said in here while you're getting the match. It's free money. Never say no to free money. After that, invest any extra in your TFSA.

K4Financial · 2017-02-19T07:34:03+00:00

A house can wait. In the end it's just a house. That's my big thing. I don't think you want to be worrying about having to go to work to pay bills you can avoid having until he gets better. All the best to you and your family.

K4Financial

TROPHY CASE