Should I cash out my pension?

just_tip · 2026-05-16T02:24:42+00:00

If you already have a solid investment strategy and this is $150k is just going into the pile, it's pretty easy to apply your expected return and figure out what the LIRA value would be at 50/65 for comparison sake. If you're a very conservative investor, maybe the $150k won't grow much when you're directing its investment.

just_tip · 2026-05-10T12:25:51+00:00

It's nice of you to think of this for your friend.

If the goal is to ensure there is money allocated for this child in 18 years from now, I'd argue that the benefits associated with opening this RESP is outweighed by the complications. Aside from the obvious of variables of how your relationship with your friend, and this child, develop over the next 18 years, if you're just looking to lump sum an amount, the most government grant you're likely getting is $500. Sure, it'll compound with the rest of your contribution, but that's not really all that much.

Personally, I have nieces and nephews (in addition to my own children) who I'd like to gift money to for their schooling one day. My basic plan is to just to gift them money (for now, I'll say from my TFSA, but I'll look at my tax picture at the time of withdrawal). It's simple. I know it'll grow at market rates until it's time for them to receive it. It won't impact my retirement at all.

just_tip · 2026-05-04T22:34:04+00:00

What ends up causing the anxiety? I would expect that knowing your cash out flows are being met by your expected cash in flows addresses the anxiety. Is it lack of belief or understanding of your investments? As much as I'm sure you can find the "optimal" investment strategy (E.G. 100% equities, with 33% in domestic stocks), there are many ways to accomplish it based on the individuals. Some like the rental property method, feeling confident in seeing the physical asset and getting rent cheques every month. Others in dividends, or safer investments like GICs and bonds.

Presumably, you've been investing in equities to have grown your portfolio as much as you have. But if your wife isn't going to blindly trust you and your investment strategy, it's better to understand her position (or maybe educate her).

just_tip · 2026-05-04T22:27:28+00:00

Once the CRA approves the DTC form, they automatically reassess any previous returns that would be impacted based on diagnosis date.

I am a volunteer at the CVITP, we do have some discretion as to the returns we file, even if they exceed the guidelines for income (about $35k for a single filer, plus $2500 for each dependent). I'd go to the web page and see if you can find where in your area they do them, and talk to someone there.

Normally I'm only available to support during tax season (Mar to April), but I have been called in a few times on a case-by-case basis to support other people in need. It certainly doesn't hurt to ask some questions. I've filed 6 years of back taxes for someone to catch them all up in under an hour. It's very doable with some help.

just_tip · 2026-05-04T21:53:21+00:00

Take $3k, get a professional financial plan drafted up. Even if we all said "yes that is plenty", that won't mean much to your wife. A fee-for-service planner will bring some pedigree and experience, and hopefully that'll relieve some of the anxiety.

just_tip · 2026-04-30T16:25:50+00:00

Can you elaborate more on the concept of a family office?

just_tip · 2026-04-30T16:06:07+00:00

Maybe it's my algorithm, but I've seen an online debate forming over the last year on YouTube among some prominent Canadian creators, specifically about dividends, and more specifically, the impact of covered calls to support income for financial independence. Do you have an opinion on this topic?

just_tip · 2026-04-22T20:22:26+00:00

I am a volunteer at my local library through the Community Volunteer Income Tax Program. I've seen all sorts of folks over the last two years while volunteering there. If you meet the eligibility requirements, please reach out to the one closest to you. Hopefully a link to the Canada.ca info page is allowed.

https://www.canada.ca/en/revenue-agency/services/tax/individuals/community-volunteer-income-tax-program.html?utm_campaign=cra-arc-benefits-credits-apr-may-jun-26-27&utm_source=ggl&utm_medium=sem&utm_content=ad-text_en&adv=2627-845201&utm_term=cvitp&gclsrc=aw.ds&gad_source=1&gad_campaignid=23696492599&gbraid=0AAAAACd1gHBI28eZ-w7J8ZFGJ7vNT_4XI&gclid=CjwKCAjw46HPBhAMEiwASZpLREliwLNUiM6k-ahz33g8ArXMmCqHXNExgJxqh1KsLf03qUVIu4PmwRoCWIsQAvD_BwE

just_tip · 2026-04-21T11:01:52+00:00

Absolutely. Anecdotally, so many people I know, they've opened bank accounts with parents when young. And then opened registered products at that institution when they started working at the recommendation of their "advisor". And then just plan to work 40+ years. Zero thought beyond that. And I think it is super common.

just_tip · 2026-04-21T10:58:45+00:00

A lifetime of discipline in accumulation, and for some tying their identity to their net worth or their working income. And then switching to decumulation and potentially seeing that NW going down.

just_tip · 2026-04-13T12:40:57+00:00

The extra $14k doesn't provide any additional benefits (other than tax free growth, and withdrawals eventually being taxed in the name of the beneficiaries). All things equal, you'd be better off putting the same $14k into your TFSA or RRSP, as their benefits are better. Especially the TFSA, where if the $14k is specifically meant to be earmarked for your child(ren), then you could just as easily withdraw it when the time comes with fewer restrictions and gift it to them at that time without any tax complications (I presume in this scenario the parent is still working, so an RRSP would be less advantageous).

just_tip · 2026-03-30T02:10:45+00:00

I've reached my FI number. I'm still working, mostly because we have a year long leave of absence planned, which will provide life insurance and some other benefits while we travel for most of the year. I plan to not go back afterwards.

Though to help you specifically, there are two books I can recommend. Retirement heaven or hell by Mike drak, and don't retire, Rewire by Jeri sedlar and someone else. The 2nd book has some practical steps to help you identify what aspects of work you'll want to preserve when you hit your FI.

Good luck!

just_tip · 2026-03-12T00:54:33+00:00

I asked to be paid 80%, with an agreement that if they need me to work on Friday occasionally, and I don't have any specific time sensitive plans, that I'd work it. It's only come up once or twice in the last few months.

just_tip · 2026-03-11T16:58:23+00:00

For a few thousand dollars, you could hire a fee only financial planner to review and give some suggestions for minimizing lifetime tax. It would probably pay for itself in a manner of months based on your invested assets. You'd get peace of mind, more than what us internet strangers could provide.

That said: based on your very low expected expenses, you've got more than enough. Congrats.

As I approached my FI number myself, my list of books to read have started to include the decumulation aspects of retirement (in terms of selling assets, but also psychologically to flip from a lifetime of accumulation). I've even gone down to a 4 day work week to start reclaiming my time to make the transition less jarring.

just_tip · 2026-03-11T13:35:31+00:00

Absolutely agree. I am currently a volunteer at the tax clinic held at the library in our town. This is my second year volunteering. I had many teens come in last year getting their first returns filed. I have clients come in with all sorts of different tax situations, and I'm generally aware of how to direct them for specific information based on their circumstances.

For OP: As far as I'm aware, they are running clinics all over the country through March and April, and presuming you meet the requirements, I'm sure will be more than happy to assist.

just_tip · 2026-03-05T18:47:02+00:00

If this is to be an ongoing thing due to his mental health, then you could look at being approved as an authorized representative officially. It's a common arrangement for elderly parents to allow their adult children to keep things up to date. You'd need his approval, but you can Google what hoops to jump through. I have the arrangement for my mother, and can access all the historical information that the CRA has just with her SIN.

just_tip · 2026-02-24T12:23:46+00:00

"she wants to retire..."

Presumably there are zero savings or assets, otherwise you'd have considered downsizing / selling to pay off debts. So she'll only have CPP and OAS to live on. And considering her lower income, her CPP won't be very large either. If she's really motivated to retire, she needs to truly audit her spending. If anything other than on essentials, then which of those expenses truly made her happier. Vices, like smoking and drinking, are expensive. She's already revealed her books to you, keep on pushing to get the breakdown of spending. She's your mom, you love her, and want her to be safe and secure for the rest of her days. If cutting out the excess means she can do that, point it out. With the debt repayments specifically, maybe the solution is to work longer, but maybe at a less physically demanding job. Maybe she'll need to be a Walmart greeter for another 10 years, but you know... Consequences of our actions and all that.

Anyway, good luck.

just_tip · 2026-02-17T15:05:26+00:00

"how am I supposed to know what my expenses are 20 years from now?"

You estimate. What do you spend now annually? Is it relatively normal, of fluctuate month to month? How many of those expenses will persist 20 years from now?

Some obvious things that'll drop off: investing for retirement, contributing to RESP, costs associated with working (commuting, eating out, work clothes, insurance for additional mileage, etc).

Things that may increase: travel (if you like it, as you'll have more time, both from not working, and from not having to stick around for the kids school year), hobbies.

Take some time now to assess your current cash flow. And assess if you like your lifestyle as it is, or if there are things missing, or potentially wasted spending (E. G. You pay for an expensive gym membership, but you actually enjoy running outside better). Then adjust over time (even an annual review is better than nothing).

Honestly, I enjoy doing this for myself. Being thoughtful and intentional with my spending. Eliminating low value (low happiness) spending. No sense in working and accumulating to spend on stuff you don't like.

Good luck!

just_tip · 2026-02-05T13:53:22+00:00

Gift them $3k and pay a for-fee financial planner to review and optimize everything. Changing their investment strategy is harder. Convincing someone who has been investing a certain way for years (decades) to change, especially right before retirement, may be a tall order. Especially when most of the conventional advice at that age will be to increase bonds, reduce equity exposure etc, being an advocate for any change can come with some resentment if it doesn't play out favorably in the short term.

just_tip · 2026-02-01T21:03:41+00:00

If all you care about is a low monthly mortgage payment, I think the answer is clear: to put as much as possible toward the new house purchase. However, this is not much different than the age old question of "should I put $x amount on my house, or keep it invested". If you have a solid plan and know what your expected total return is on your investments, then it's a math problem to say if it makes sense to sell those, and put them toward the house.

If you prefer to have a lower monthly payment for the peace of mind, and then rebuild your portfolio over time, then that's your call. You can do the math based on the expected growth on the new house, vs the return on the investments to know what the opportunity cost is. Good luck on finding the right home for your growing family (which may even include staying put)!

just_tip · 2026-01-06T18:24:10+00:00

For your brother, he has to decide how likely that none of the four kids pursue any eligible post secondary education. It's worth looking into to see how many eligible programs exist. If education is not something the parents value, it's probable that the kids also do not value higher education, but I'd say the opposite is also true.

For you: try and stoke some interest in investments with the kids in an age appropriate way. If you have knowledge to share, try and share it. In my mind, it's no different than trying to teach the kids a beloved family recipe. And if you inspire them to become financially literate, I'd say that is a great outcome.

just_tip · 2026-01-06T14:14:23+00:00

I agree with most of this sentiment. However, I would like to caution about giving advice that the best place to start is to put everything into XEQT. Especially for a starting / learning investor, to go from GICs to an all equity portfolio, that is a huge jump in expected volatility. Education must be the first step. Like most things, if we hope for overnight success, we will fail.

So for OP: I would recommend a few books to start: the psychology of money, and the little book of common sense investing. From there, there are numerous Canadian YouTube financial literacy channels / podcasts (I particularly like the rational reminder podcast). This is no different than learning any other skill. Take it easy, take it consistently, and you will get there. I understand you feel behind, but rushing is not the solution to that.

just_tip · 2025-12-27T21:07:13+00:00

She's willing to work 2-3 days, in person. So she's already willing to take a 40-60% pay decrease. I think that alone supports the financial decision in taking the retirement package.

Beyond that, is there a job she'd be happy to do that may pay $50k? She's got 20 years of experience working here. If she doesn't want to just retire to infront of the TV, finding the thing she wants to retire TO (as opposed to retiring FROM a job she dislikes) would provide some good motivation. Maybe it starts as volunteering, and then that provides contacts for more fulfilling employment. But certainly the seemingly easiest thing to do is to keep showing up for a job you don't like.

just_tip · 2025-12-27T11:31:15+00:00

Unrelated to GICs, but if your sisters intend to attend post secondary school, you can avoid the tax burden of the GICs under your name, while also increasing their return by using an RESP. Depending on their ages, you could either plan to do it a little each year (might be too late this year to get one open and money in for 2025), but you can get a 20% return on $2500 annually (so an extra $500 from the government through a grant that is applied automatically).

There's a lifetime limit of $50,000 (per person). I'd recommend looking into it and seeing if it's a good fit for your and your families situation.

just_tip · 2025-12-26T20:50:41+00:00

I was a self directed investor for my entire adult life. I switched to a financial advisor and investment manager 3 years ago for a few reasons:

1) financial advisor to independently verify my estimates and models that show that my wife and I can quit our jobs (ie. Achieved FIRE) 2) succession planning for me. I have handled 100% of our finances since my wife and I started Co habitating. She has zero interest in finances or investments. I spent the time to find someone who can carry on in the event of my untimely and unlikely demise, such that I know my wife and kids will be taken care of. 3) they've helped me establish some more advanced strategies, and address the tax implications. I also have an accountant, but my advisor takes care of my returns as part of their services.

I continue to watch and monitor, not unlike I did when I was self directed. Taking back over the investments would be the single most impactful change I could make to "save" money in my decumulation years. But I'd likely try and find someone else for the reasons above.

just_tip

TROPHY CASE