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flipstah
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quote:

That's like asking which brand has the softest boxers without opening the package.

You gotta do SOME homework, silly goose.

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Old Post 03-13-2017 06:57 PM
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HiTempguy1
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quote:

Originally posted by flipstah
That's like asking which brand has the softest boxers without opening the package.

You gotta do SOME homework, silly goose.



I figured I'd skip some steps Beyond is always telling me how to live my life, why can't they tell me how to invest?

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Old Post 03-13-2017 07:37 PM
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RealJimmyJames
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quote:

The cool thing about RRSP's is that you can access them BEFORE retirement for a few reasons, like going back to school, buying a house etc. If you have a higher chance of using it for that, you don't actually want to be very aggressive at all, since your time horizon is shorter.

if it's truly for retirement, just pick one of those target-date bundle options and be done with it. Zero hassle, just set and forget.

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Old Post 03-13-2017 07:46 PM
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flipstah
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quote:

Is this one of those plans that once you leave the company, it turns into a LRA?

That's what happened to mine!

Can't touch it till I actually retire WTF.

If so, follow what JimmyJames said and set it on your ideal retirement year, whether it be 2045 or 2050.

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Old Post 03-13-2017 07:50 PM
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HiTempguy1
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quote:

Originally posted by RealJimmyJames
The cool thing about RRSP's is that you can access them BEFORE retirement for a few reasons, like going back to school, buying a house etc. If you have a higher chance of using it for that, you don't actually want to be very aggressive at all, since your time horizon is shorter.

if it's truly for retirement, just pick one of those target-date bundle options and be done with it. Zero hassle, just set and forget.



This is very enlightening.

Sounds to me like a TFSA might be a better fit for me? I don't plan on going back to school (I can see it being necessary though with the way the world works nowadays. I'm 28). Already bought my first place, so no HBP for me. I'd prefer for it to be more accessible.

Further reading makes it seem like the pension and rrsps operate similarly enough to not justify having both. The pension is very well funded, and the payout upon retirement is similiar to what I would shoot for financially if I had no pension and did all the investing myself. Anything further is just additional retirement savings on top of that.

Originally posted by flipstah
Is this one of those plans that once you leave the company, it turns into a LRA?

That's what happened to mine!

Can't touch it till I actually retire WTF.

If so, follow what JimmyJames said and set it on your ideal retirement year, whether it be 2045 or 2050.



I will have to look into this, I do not know.

Thanks guys

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Old Post 03-13-2017 08:14 PM
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flipstah
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quote:

TFSA vs. RRSP is dependent on your income bracket IMO.

RRSP is just a way to lower the hit and to bring you down a bracket.

TFSA and RRSP are able to be withdrawn; TFSA has no tax reduction, while RRSP does.

LRA, or locked-in retirement account means you can't touch it until you retire. Unless you're going to die soon.

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Old Post 03-13-2017 08:23 PM
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kenny
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quote:

It's only worth it to do this through your company if they are matching or the management fees are really low due to it being a group plan. You can usually do better on your own.

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Old Post 03-13-2017 10:11 PM
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HiTempguy1
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quote:

Originally posted by kenny
It's only worth it to do this through your company if they are matching or the management fees are really low due to it being a group plan. You can usually do better on your own.



That's what I figured. There is no matching (confirmed with HR because there was mention of it in the provided documentation), and they quote the "management fees" being low, but if we are talking a 1% difference return on investment in management fee savings, I don't have enough money to remotely make that 1% difference matter.

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Old Post 03-14-2017 12:54 AM
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suntan
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quote:

Check the MERs. They may be very, very low. My wife's DC plan has an average MER of 0.03%, managed by Sun Life.

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Old Post 03-14-2017 07:15 PM
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sabad66
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quote:

Pensions turn into LIRAs when you leave the company - not RRSPs. It's not like you can touch yoru pension if you stay at the company til you retire anyways, so not really sure what the big deal is about that? You can still manage your own investments as a LIRA.

Regarding HiTemp's situation, i am curious what the point is of this program if they don't match? One thing i could see as a benefit is that if you're contributing off your cheque, you would get the tax benefits every pay day instead of just when you do your yearly tax return.

Regarding which plan to pick, if you're not savvy with this stuff i'd weight it heavily towards the 2055 plan. Those plans with years in them are referring to your retirement date and essentially they are designed such that they rebalance every year as you get closer to the year name in the plan with the idea that it starts out risky (mostly equities) and as it gets closer to 2055 they balance more towards cash-type investments like bonds which are less risky. If you look at the 2020 plan (people retiring in 3 years) it would be heavily low-risk investments and barely any risk equities.

My suggestion would be to go with 75% of your contributions to the 2055 plan, then split the remaining 25% across 2-3 other funds that interest you. If you login to the Sun Life website it will show you the previous 3/5/10 year average rates of returns and that can give you an idea of how they are performing. Personally i'd go with US equities type funds... Ca equities are not doing so hot lately, but one could argue that means they also have the biggest growth potential.

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Old Post 03-14-2017 08:15 PM
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