06-23-2016 01:38 PM
We don't have all the details yet, but based on what you've heard, are you for or against the CPP expansion and why?
06-23-2016 02:05 PM
I'm so far out of the loop, I don't even know what CPP is.
06-23-2016 02:39 PM
Definitely for.
The arguments against (mostly from businesses and the Conservatives) are the same they were fifty years ago: "payroll tax", these fees payable by employers will ruin the economy, employers will stop hiring, etc... etc...
At the end of the day, employees will see a few more dollars deducted from their pay cheques. However, for every one dollar deducted, their employer also contributes one dollar and the employees now has two dollars working towards a better retirement.
And that is the key to it all. Employees get the benefit of $2.00 for every $1.00 contributed. It does not get any better than that.
06-23-2016 05:22 PM
@femmefan1946 wrote:I'm so far out of the loop, I don't even know what CPP is.
CPP - Canada Pension Plan
06-23-2016 05:51 PM
.... she forgot she gets it every month!
06-23-2016 07:27 PM
Between the senior moments and the blonde moments.....
So few workers have pension plans these days that the social safety net will need strengthening when they want to retire.
We all contribute (or did contribute) a little from each paycheque and in the long run we all benefit.
That fascistic old anti-semite Henry Ford had one thing right. When he paid his assembly line workers a decent daily wage ($5 a day if I recall correctly) it was the boost needed to spread out wealth and allow his employees to buy their own cars (which was $500 at the time, I think).
Making him richer than he would have been if he had paid lower wages and sold fewer cars.
06-23-2016 11:25 PM
In the end, I don't think it will matter much for those taking a pension down the road. By the time they are eligible the price of things going up and up will only mean the elderly will be still just barely making ends meet. Two things are keeping the elderly above water at the present moment....a) pensions from their past workplace and b) investments they have made and for the most part the average main investment has been their homes which have gone way up in price.
As for employers and the extra they will have to pay....yes it will make a difference and especially from small businesses. Three things will happen, either people will be paid under the table or people will be laid off or prices will go up and my best guess is the latter will be the way things will go.
In the end it's all about money and profit and the consumer will pay. But look on the bright side.....they'll have that extra money from their CPP.
06-24-2016 02:00 PM
I'm for it however if people rely fully on CPP plus OAS it may be adequate to survive but not to prosper. Not to be lulled into a false sense of security along with the CPP use of the TFSA and RRSP should ensure a better retirement experience. In that vain restoration of the TFSA to it's previous yearly deposit amount should be considered. The Trudeau promised (cancelled or delayed?) small business tax reduction to 9 percent should be implemented to partially offset the increased CPP employer deductions.
06-24-2016 03:08 PM
"I'm for it" No. No. No. You are a conservative. You cannot be "for it".
06-25-2016 12:38 PM
07-09-2016 01:31 PM
My inheritance made the cpp peanuts
07-09-2016 04:25 PM
My investments over the years, especially BCE also make the CPP as it is and will be peanuts.
07-09-2016 04:33 PM
You are registered as a member in the USA since October 15, 2015. As such CPP changes in Canada would not apply to you.
07-09-2016 04:36 PM
Perhaps dual citizenship?
07-09-2016 04:40 PM
"and will be peanuts."
Too late for both of us, old men in our 70's.
The changes are for the new generations, our children and grandchildren, Canadian workers without indexed defined benefits pension like you enjoy. It is a lot more difficult for most new adults to save today as we did thirty, forty or fifty years ago.
Everyone will eventually benefit from the changes. When you look at the very long term, the return on investment by CPP is superior to most investment indexes (or mutual funds). The biggest advantages for Canadians is that they have $2.00 working for them for every $1.00 coming off their pay cheques. There is no way individual Canadians can get that return with RRSP and TFSA.
A generation or two from now, most of that extra money received by seniors will be spent in the economy - and that will help everyone.
07-09-2016 04:42 PM
"Perhaps dual citizenship?"
The rules at eBay are simple: you reside in Canada, you must register on eBay.ca with Canadian address; you reside in USA you must register on eBay.com with US address.
07-09-2016 05:43 PM
"There is no way individual Canadians can get that return with RRSP and TFSA."
Maybe not the average Canadian. You forgot to mention trading accounts where doubles, triples, quadruples and more are not uncommon. Buy a bellwether dividend stock and hold it. BCE split 3 for 1 in 1979 and 2 for 1 in 1997. Looks like it's headed for another if it can reach $68 which seems to be the trigger level. And all along the way paying a substantial dividend which can be reinvested automatically to buy more shares. Canadian bank shares are similar although are more volatile.
$80 in 5 years?
http://www.fool.ca/2015/07/17/bce-inc-why-this-dividend-stock-may-reach-80-in-5-years/
07-09-2016 07:07 PM
You are smarter than that.
Nobody in their right mind would invest 100% of their pension in any one stock, regardless how good it did in the last twenty, thirty or forty years. Diversification has always been the only safe way to invest pension money.
The point of CPP - I repeat - is that you have $2 working for you after having invested only $1 in the plan. And the return on the plan have been well above average, well beyond what most very smart very intelligent very experienced individual investors can do - even you.
The improved CPP plan is for all working Canadians, not the few successful speculators trading in and out of the stock market. We all know most of them end up losing money.
07-09-2016 10:47 PM
"Nobody in their right mind would invest 100% of their pension in any one stock"
Absolutely. I didn't say to. I said buy a bellwether stock. Used BCE as an example. Think before you respond!
07-16-2016 06:57 PM
Not entirely true.
I live in Canada, don't have dual citizenship, but have a registered Ebay account in Canada and a registered Ebay account in the US under a different ID.
Residency is not the sole requirement or factor.