Where possible and feasible, we would always caution our clients to not rely on the government regarding their financial security.
At any given time, the government can change the game. This is why it's best to understand OAS is supplementary income.
Not only that, if you succeed in life, the government penalizes you in the form of a clawback. Something about your duty to be thy brother's keeper in the face of irresponsibility and incompetence - something, something.
"The Old Age Security pension (or OAS or OAS-GIS) is a taxable monthly social security payment available to most Canadians 65 years of age or older. As of July, 2013, the basic amount is C$549.89 per month. At tax time, recipients with 2010 incomes over C$67,668 must pay back a portion of their Old Age Security at a rate of 15% of net income. This is often referred to as a clawback. The OAS pension is fully clawed back for people with incomes over C$110,878."
So. Like my parents, who paid into the system and are in the 70s, now have to pay back the money.
It's unfair but hey, it's what the people want apparently.
The best way, I argue, to invest your money is to invest it yourself. Control your finance, control your destiny. That way, you won't be subjected to clawbacks (remember, you have to find the money in your retirement to pay the government back), along with no worries about government inefficiencies or being subjected to changes in the law.
I think, with proper guidance, at the very minimum people can easily match the the inflation-matching returns of any forced government pension plan. You can throw your coin in a money market and do better.
For the life of me, I can't understand anyone who entrusts giving their money to an entity that has no real checks and balances and you have no way of knowing what your returns are. No control, more uncertainty.
Ah. Control. That's right. We cede freedoms in return for "security" offered by the government.
Wake me when people wake up and smell the espresso.
At any given time, the government can change the game. This is why it's best to understand OAS is supplementary income.
Not only that, if you succeed in life, the government penalizes you in the form of a clawback. Something about your duty to be thy brother's keeper in the face of irresponsibility and incompetence - something, something.
"The Old Age Security pension (or OAS or OAS-GIS) is a taxable monthly social security payment available to most Canadians 65 years of age or older. As of July, 2013, the basic amount is C$549.89 per month. At tax time, recipients with 2010 incomes over C$67,668 must pay back a portion of their Old Age Security at a rate of 15% of net income. This is often referred to as a clawback. The OAS pension is fully clawed back for people with incomes over C$110,878."
So. Like my parents, who paid into the system and are in the 70s, now have to pay back the money.
It's unfair but hey, it's what the people want apparently.
The best way, I argue, to invest your money is to invest it yourself. Control your finance, control your destiny. That way, you won't be subjected to clawbacks (remember, you have to find the money in your retirement to pay the government back), along with no worries about government inefficiencies or being subjected to changes in the law.
I think, with proper guidance, at the very minimum people can easily match the the inflation-matching returns of any forced government pension plan. You can throw your coin in a money market and do better.
For the life of me, I can't understand anyone who entrusts giving their money to an entity that has no real checks and balances and you have no way of knowing what your returns are. No control, more uncertainty.
Ah. Control. That's right. We cede freedoms in return for "security" offered by the government.
Wake me when people wake up and smell the espresso.
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