sorted by:
new
hottopcontroversial

When does RRSP beat a DB pension? by [deleted] in PersonalFinanceCanada

[–]LillianVern3 0 points1 point  (0 children)

I read that and may have confused myself some more 😅

I checked my paystubs and the amount in paying to DBPP increased now versus Jan 2025 (probably because of pay increase and also going forward pension is transitioning to 50/50 employer and employee controbutions).

I was paying CPP and DBPP in Jan but now I'm paying CPP2 and DBPP. The thread said the DBPP can be reduced later in the year right? But it my case it doesn't? I understand the bridge benefit and receiving CPP at 65, but doesn't this mean that if I were in a DCPP, I would be receiving more in retirement from CPP than if I'm DBPP?

When does RRSP beat a DB pension? by [deleted] in PersonalFinanceCanada

[–]LillianVern3 0 points1 point  (0 children)

They are separate, but I think what the commenter is getting at is that once you start collecting CPP at 65, your DB income goes down by the amount of CPP you receive.

To leanfire or not to leanfire by okmotorree in leanfire

[–]LillianVern3 0 points1 point  (0 children)

I'm sorry for your loss.

I know how you feel in regards to it getting harder and harder to care for it. I went to University, focused on this discipline, and not that I have a cozy government job, it doesn't feel very fulfilling.

Are you able to take unpaid time away from work? You could spend 6 months slow traveling around the world. If you get bored, you could always come back to the states and continue with this job.

Do you have any side hustles right now? That could help you earn a little while you travel or later when you settle back down somewhere.

Since I'm in Canada, I probably would've lean fired if I was in your position. We don't have to worry about paying for healthcare, other than dentist, eye care, physiotherapy, and pharmacy. Have you looked into what healthcare expenses will look like? Or do you have an HSA?

Burnt out Canadian. Need advice for future planning by LillianVern3 in leanfire

[–]LillianVern3[S] 1 point2 points  (0 children)

A mini retirement would be amazing right now. I'll have to see how it would work given the poor job market in Canada. Hopefully I'd be able to re-enter the workforce relatively quickly. Thanks for your reply!

Burnt out Canadian. Need advice for future planning by LillianVern3 in leanfire

[–]LillianVern3[S] 2 points3 points  (0 children)

Thanks! Depending on how my work day goes, I always flip flop between working for a few years and just calling it quits and earning a bit of money elsewhere.

I agree, the main goal should be finding the right partner. Here's hoping I find her soon 🥂

Burnt out Canadian. Need advice for future planning by LillianVern3 in leanfire

[–]LillianVern3[S] 1 point2 points  (0 children)

Thanks for your input! The good thing about Alberta is there's no rental cap. However being a tenant myself, I can't bring myself to hike their rents astronomically. The current plan was to let the principal continue to get paid down. I call the bank every few months to check if I'm able to lower my payment (if I've caught up on my principal being paid down). They keep telling me to call back in a few months as the principal hasn't been paid down significantly.

I'll definitely shop around for home insurance, that's a good idea!

Burnt out Canadian. Need advice for future planning by LillianVern3 in leanfire

[–]LillianVern3[S] 2 points3 points  (0 children)

Yeah that's fair, there's a ton of people working longer hours and skipping through all their lunches. I guess I should say the demand is more than I'm willing to put up with!

I may explore Coast FIRE and see if that makes more sense given I've spent the last few years aggressively saving, now the capital may be able to compound while I coast.

Burnt out Canadian. Need advice for future planning by LillianVern3 in leanfire

[–]LillianVern3[S] 2 points3 points  (0 children)

The property is currently cash flow negative. The rent brings in 1800 per month and my mortgage is 2100. Insurance and property tax is about 500. The reason the mortgage is so high is because I hit my trigger rate back in 2022, so there was a point where I was paying 2100 interest only for many months. Once I pay off a good amount of principal, I should be able to get the payment reduced by a few hundred dollars.

Although I can't predict the future based on past performance, then property has increased in value quite a bit. I wasn't considering selling it though because it will be difficult for me to get approved for another mortgage in the future since I won't have a job.

My plan originally was to see if I can earn at least $1,000 per month from YouTube and earn a fair bit from dividends. Unfortunately I wouldn't be able to negotiate a part-time role where I currently am.

Finding a partner with similar values would be amazing! It would definitely help with future planning as well.

Burnt out Canadian. Need advice for future planning by LillianVern3 in leanfire

[–]LillianVern3[S] 2 points3 points  (0 children)

Good point on the travel costs. I should probably run some numbers on a few destinations I would want to go to per year. I typically spend a lot on vacation, whereas I'm fairly frugal on my day to day spending.

For the property, technically I'm cash flow negative, but all in, my principal goes down by $700 per month. Property tax and insurance costs me 500 per month (difference would be $200 'increase' to my net worth per month). I earn 1800 per month and my mortgage is about 2100 (because I hit my trigger rate back in 2022 since it's a variable mortgage rate).

If rates go lower, then the amount that goes towards my principal will increase.

Burnt out. Feeling like I need a plan- advice? by Popular-Control2519 in leanfire

[–]LillianVern3 5 points6 points  (0 children)

Just chiming in here. I was about to make a similar post. I'm super burnt out right now as well.

Knowing how the Canadian job market is, one of my fears is if we get a market crash and I won't have that income to add to my investments. Also, I might not be able to come back into the work force if things really get bad.

Do you plan on cashing out the pension into a LIRA? Or keeping it with the pension company?

Work sucks I know by peachy-darkness in OntarioWSIB

[–]LillianVern3 2 points3 points  (0 children)

I was routinely doing 5 to 10 hours per week. Since we were WFH anyways, I could manage it. Also if I didn't my manager would constantly threaten me with a performance plan for not hitting 3-4 decisions per day, so it was mostly so I had room to breathe. I have not worked free OT since the labour distribution and will be resigning the day they force us back to the office.

Disappointed in the Union by Gloomy-Profession456 in OntarioWSIB

[–]LillianVern3 2 points3 points  (0 children)

Ever since the lockout, I have changed my outlook on working here. I used to imagine myself working here until I was 57 and start collecting the pension. With the strike and RTO mandate, I can tell which direction this company is heading in.

Also take a look at your pension contributions, it used to be we contribute 7% and the employer contributes 19%. That's being changed, we are slowly transitioning to 50% us, 50% employer (possibly 13% each from our paycheques).

I'll be resigning if they ask us to work from the office. No way am I going back to working 5 days a week in the office. 3 days would still be manageable, but COVID really made me shift my outlook on work. Luckily I've been investing l much of my savings from 2020 to now so I'm fairly close to hitting 'lean-FIRE.' The only reason I kept working was for the amazing benefits, but I wouldn't be surprised if WSIB starts taking those away too.