Living the good life in 2029
January 31, 2012 2:38 AM   Subscribe

[Brainy accountant-type filter] 37yo expat Canadian has a public service pension plan and too many options!

The options are (a) Take a lump sum now, which is $35,000, taxed at ~50%. (b) Move it to an RRSP (currently ~4% interest), pay no tax until it is withdrawn after age 55 (then probably minimal tax as withdrawing gradually while living overseas), or (c) Take the pension plan instead, yielding $277/month from 55-65yrs old, then $194/month thereafter (fixed, not indexed to inflation). We are thinking option (b) is the best, are there any reasons why it wouldn't be? Or any other solutions? This is not going to make or break our retirement, but we want to get it right.
posted by superfish to Work & Money (5 answers total)
 
Take your statement to a financial planner (ideally at your local credit union).

I take care of this all the time. I don't know where you're getting a 4% figure on an RRSP, RRSP is merely a tax shelter and it can hold any number of various investment options.

I would recommend moving it into an RSP, but have a plan in place. Go to your local credit union and talk to an investment specialist there.
posted by smitt at 7:35 AM on January 31, 2012


Sorry -- I just realized you are not living in Canada. Are you trying to set this all up from overseas?
posted by smitt at 7:38 AM on January 31, 2012


Smitt: yes
posted by superfish at 1:12 PM on January 31, 2012


I would look into possibly using an online brokerage in that case. Perhaps see if you can open an account with QTrade (or a similar service, but Qtrade is highest ranked). Then transfer the pension to them within the RSP shelter, and invest it from there.

Calling them would be your best bet to ask if they can do this for you, I'm just not sure what their rules are for non-residents..
posted by smitt at 1:54 PM on January 31, 2012


Thanks, I'll look into it.
posted by superfish at 1:54 AM on February 1, 2012


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