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Hi David,
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You have answered one of my questions in the past, for which I am very =
grateful. I hope you don't have a rule of one answer per year per =
person. I have a dilemma=20
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I am about to retire on Jan 1, 2005, and have registered for my CPP and =
OSA benefits to start at that time, however the company I have been =
working for has just announced the closing of its operations in October =
2004, and has offered me a severance package consisting of 17 months of =
continued monthly wages, with all the normal deductions including CPP, =
and GRSP contributions.=20
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I still intend to retire regardless, but should I know delay my CPP and =
OSA benefits for 17 months, if that is possible, and thereby earn an =
extra 6% on my future CPP cheques? I understand there is no 6% on =
deferred OSA benefits. If CPP contributions are accepted after =
retirement, must I reapply for the benefits to start a year later?
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I don't want to be hit with taxes on both the government benefits and =
the severance in 2005. Should I put my severance payments of net $3,000 =
per month into an RRSP or some other tax-free investment and hope for a =
better return than the 6% from the government? =20
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david ingram replies:
Talk about being lucky. an extra year's pay AND a chance to bump up =
yuour CPP.=20
I think that you should put the extra year into the CPP. If you live a =
long life, that will be to your benefit.
Topping up an RRSP with money that you do not need could be a good idea =
but you really need to have it spelt out in black and white. It well =
could be that you should investigate seg funds or even buying a =
retirement condo for ten years from now when you do not want to cut the =
lawn any more.
If you are in Vancouver, call Fred Snyder (host of IT'S YOUR MONEY"ON =
600 AM every Sunday Morning) at (604) 731-8900 and get him to give you a =
written financial plan. =20
There is no charge because he hopes you will deal with him. =20
You can also come out (with no obligation) to one of our free Thursday =
Night Seminars put on by Fred.
Fred Snyder and I are giving free seminars on making your CANADIAN =
mortgage interest tax deductible at our new office at=20
1764 West 7th
Vancouver.
This is in the Spence Diamond Building at the corner of 7th and Burrard
and is very easy to find.
When: Just about " Every" Thursday Night
Time: 7 to 9 PM
RSVP: phone (604) 731-8900 to reserve (limited to 15 people)
My time is still spent for the time being at:=20
108-100 Park Royal South
West Vancouver, BC
(604) 980-0321
david ingram
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Answers to this and other similar questions can be obtained free on Air =
every Sunday morning.
Every Sunday at 9:00 AM on 600AM in Vancouver, Fred Snyder of Cartier =
Partners and I will be hosting an INFOMERCIAL but LIVE talk show called =
"ITS YOUR MONEY"
Those outside of the Lower Mainland will be able to listen on the =
internet at
www.600AM.com=20
Local phone calls to (604) 280-0600 - Long distance calls to =
1-866-778-0600.=20
Old shows are archived at the site.
David Ingram's US/Canada Services
US/Canada/Mexico Tax Immigration & working Visa Specialists
US / Canada Real Estate Specialists
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Calls accepted from 10 AM to 10 PM 7 days a week
Res (604) 980-3578 Cell (604) 657-8451
Bus (604) 980-0321=20
[email protected]
www.centa.com www.david-ingram.com
Disclaimer: This question has been answered without detailed =
information or consultation and is to be regarded only as general =
comment. Nothing in this message is or should be construed as advice =
in any particular circumstances. No contract exists between the reader & =
the author and any and all non-contractual duties are expressly denied. =
All readers should obtain formal advice from a competent financial, or =
real estate planner or advisor & appropriately qualified legal =
practitioner, tax or immigration specialist in connection with personal =
or business affairs such as at www.centa.com. If you forward this =
message, this disclaimer must be included."
ask International real estate immigation and income tax experts expert =
- David Ingram 's CENTA Services Group in West Vancouver BC Canada
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