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I would kindly ask for an advice
February 3, 2014
7:00 am
calexicoca
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February 3, 2014
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I would appreciate if some of the impressive brain trust on this board could offer me advice about my financial situation and the best thing I can do.

I just turned 60. Divorced living as a common in law with my partner. She is employed and 12 years younger. I moved to Canada 20 years ago and was working full time till May last year. I lost my job in May 2013 and since then I am unemployed. I am not planing to look for another job, instead once my EI runs out I am going to do a light consulting job which should earn me 10-15 K a year. It is obvious that once I officially retire I won't have full CPP and OAS since I was not in Canada enough time and contributed to CPP for 19 years only. I don't spend much and my expenses are around 2,000 a month.

I have investment account and in last few years it grows on the rate of 10% even a bit more. My portfolio consist of 440,000 of non register investment and 105,000 RRSP and TFSA. I am under the impression that it should be enough to keep my lifestyle as is now and after my retirement.

My first question would be: should I top my RRSP say with 20,000 this year since my income will be only 30,000 for 2013. I can do even more since I still have a lot of room in my RRSP (TFSA I always keep to the max because I think it is smart thing to do.

Second question would be to get an advice for my overall financial situation. What would be the most beneficial plan in regards to my investments for me to maximize government benefits now and when I retire. Also does Ontario Guarantied Income supplement considers investments, even if they are not withdrawn, as income counted against receiving it.

Any comments/advice would be highly appreciated.

February 3, 2014
10:17 am
Loonie
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Have you considered proposing marriage? It still has some financial benefits.
The spousal benefit for CPP only applies to the portion that the partner earned while married to you, I believe.
Also, RRSPs can be directly transferred to a spouse when one of them dies, but I think this privilege is not extended ton common law. Someone can correct me on this if I'm wrong.
I think, also, that TFSA can be transferred to spouse's TFSA on death of one of them, whereas if it is bequeathed to someone else, it must go into a taxable account.
You need to confirm these, but I believe them to be correct.

February 3, 2014
12:46 pm
GS1
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Loonie:

Marriage may well be an option. I'd want to really investigate whether or not he is, in fact, as good as married, when it comes to some of the issues.

If he (or she) were to get mad/bored/pissed/etc and move out I would want to really know if one party can make a claim on the others investments and/or income.

Good record keeping is essential in Ontario (and likely everywhere else) as the Family Law Reform Act (of Ontario) has a formula to calculate splitting of assets on a dissolution of a partnership after a certain (fairly short) period of time. May well not happen but the OP is on union number two.

GS

February 5, 2014
6:50 am
calexicoca
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Thanks for all replies! Very useful.

However my additional question is:

1. Having investments disqualifies you from receiving GIS? Even if you are not cashing out any of it including interest?
2. Cashing some of investments is considered as income and as such affect your GIS?
3. If #2 is correct, is there a legal way to avoid this situation?

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