Author Topic: Entering the CF and YOUR Money.... (Read 102540 times)

DustintheWind · « **Reply #125 on:** November 06, 2008, 09:46:50 »

Quote from: BulletMagnet on November 06, 2008, 09:19:24

No worries Marshall I was jumping on you just wanted to lend a hand in getting right, it's the little things and the mastering of the basics which makes the differeince between just a soldier and an Excellent soldier. And my 9er calls it 2LT (the Aerican way) just to drive me!

Any help is good help. I am always open to information if it betters my career chances

PMedMoe · « **Reply #126 on:** November 06, 2008, 09:53:59 »

Quote from: Eye In The Sky on November 06, 2008, 09:37:08

Yes and no. MCpl is an appoinment vice a rank, hence why you keep your IPC.

D'oh!

ada · « **Reply #127 on:** November 25, 2008, 09:17:38 »

Just a small peice of advice.... sometimes investment brokers have house products (mutual funds that are in the same family as the firm) that you can invest in for free. Free is never a bad thing.

Redeye · « **Reply #128 on:** November 25, 2008, 10:47:48 »

Wrong. Nothing is free. Mutual funds all have management fees and expenses. I can't think of any examples that fit what you're describing, but if you want to tell me who told you this I'd be interested to know - it's borderline unethical. Proprietary products may also tie you to the firm which means if you wind up unhappy with your advisor it's a lot harder (and potentially more expensive!) to leave.

Quote from: ada on November 25, 2008, 09:17:38

Just a small peice of advice.... sometimes investment brokers have house products (mutual funds that are in the same family as the firm) that you can invest in for free. Free is never a bad thing.

ada · « **Reply #129 on:** November 25, 2008, 11:14:52 »

Sorry, sorry!! i should watch my wording, imeant that the account fee is waived, for ex rsp yearly fee, if you are investing in their 'house' funds. I think i'll stick to lurking

Redeye · « **Reply #130 on:** November 25, 2008, 23:41:50 »

Anyone who would charge account fees when you're buying mutual funds of any description is basically screwing you in the first place.

Quote from: ada on November 25, 2008, 11:14:52

Sorry, sorry!! i should watch my wording, imeant that the account fee is waived, for ex rsp yearly fee, if you are investing in their 'house' funds. I think i'll stick to lurking

ada · « **Reply #131 on:** November 26, 2008, 06:59:56 »

as far as I'm aware, you get charged a yearly admin fee for an RSP whether its a bank or a brokerage....;

Redeye · « **Reply #132 on:** November 26, 2008, 07:40:57 »

Banks do not charge for RRSP accounts, though unless you have a good sized balance they'll only sell you their own funds if you go the mutual fund route. That's not necessarily a bad thing, some of the best fund companies in Canada are bank-run - RBC and TD's fund offerings in particular are excellent. Discount brokerages charge for RRSPs, but the fee is usually waived if you maintain a minimum balance or make a certain number of commissionable trades a year in them - but that's because there's the option to hold a lot of different assets which don't necessarily pay anything to the broker, and they have to make money somehow off of all the little accounts they have to service.

Quote from: ada on November 26, 2008, 06:59:56

as far as I'm aware, you get charged a yearly admin fee for an RSP whether its a bank or a brokerage....;

Greymatters · « **Reply #133 on:** November 26, 2008, 19:09:40 »

Quote from: Redeye on November 26, 2008, 07:40:57

...but the fee is usually waived if you maintain a minimum balance or make a certain number of commissionable trades a year in them...

Getting fees waived may be harder to accomplish in the future, based on the current situation...

Redeye · « **Reply #134 on:** November 26, 2008, 22:29:34 »

On discount brokerage accounts not likely - it's usually built right into the account agreements. As for banking fees, everywhere is being a little tighter but in the last couple of years I think pretty much all the majors have improved on ways to get around most of their fees by having a lot of business with them, and that probably won't change. The business is as competitive as ever, even more so potentially.

Quote from: Greymatters on November 26, 2008, 19:09:40

Getting fees waived may be harder to accomplish in the future, based on the current situation...

Jadzia · « **Reply #135 on:** January 15, 2009, 11:19:47 »

Some things you may want to look into...

The following is only my opinion, so takes what you want of it. However, I am working in the pension plan field (actuary), so I have some knowledge about investment, pensions, and other savings.

CF and the new tax-free saving account (TFSA).

As you may be aware, it is now possible to invest up to 5000$ a year in a TFSA. Any investment return on that fund is tax free.

Whether it's more interesting than a RRSP or not depends on many factors, but consider this:

In the military, you're eligible to your pension after 20 years of service, unreduced after 25 (I'm talking about the Regular Forces, since I don't know the rules for the Reserve)

So if you plan to go career, but retiring early, it might be better for you to invest in TFSA now, and save your RRSP room for later.

Here's my thinking :

In the early years, your salary (hence taxes) is lower. Impact of RRSP isn't as big as if you had a huge salary.

You might retire very young like around 50. If you retire, it is better for you to take the pension immediately EVEN if you plan to work elsewhere.

Depending of your trade, you would probably have the same salary (or better) in the private. Of course, any other benefits than salary is usually way better in the Forces than elsewhere (pension plan included). My point is that if you work elsewhere, you won't need the pension you get.

However, salary (from other source) + pension = higher taxes

So at this moment, investing in RRSP would be VERY interesting to save taxes in those year. If you've invested in RRSP all your career, you won't have much room (I won't put numbers here, but still). If you've always invested in CELI, you'll have a lot of room in your RRSP (it is cumulative).

It COULD be a way to maximize your earnings / minimize taxes over your overall career. It is worth to think about it !!!

4Feathers · « **Reply #136 on:** January 27, 2009, 16:22:12 »

I am so bad with numbers unless it's just a week to week thing, I would just spend a few bucks and hire a professional to manage for you, or in a lot of our cases, just give it all to the "ex" wife.

challenge-driven · « **Reply #137 on:** April 08, 2009, 16:31:39 »

Exactly - I'd personally hire a "money manager" and save a ton in the long-run. I'm half-tempted to not even look that far down the road, but as someone with no kids who is divorced with NOTHING owing to anyone, I think I can have the cake and eat it too, so to speak.

Different strokes...

tobin84 · « **Reply #138 on:** April 26, 2009, 22:56:26 »

I'm applying soon to join the military, as a reg ncm and I'm concerned with the pay. I'm aware of the monthly salary given, I was just wondering what recruits come out with after the deductions for living costs (housing, meals) have been taken from your pay.

The pay seems good, just concerned about what money I'll have left over so I can organize what money I will have for bills and student loan debts, and money for my family.

Any approx amount would be great to know, I want to make sure that I wont be missing any payments.

Thanks!

Cooldevil789 · « **Reply #139 on:** April 26, 2009, 23:14:57 »

Quote from: tobin84 on April 26, 2009, 22:56:26

I'm applying soon to join the military, as a reg ncm and I'm concerned with the pay. I'm aware of the monthly salary given, I was just wondering what recruits come out with after the deductions for living costs (housing, meals) have been taken from your pay.

The pay seems good, just concerned about what money I'll have left over so I can organize what money I will have for bills and student loan debts, and money for my family.

Any approx amount would be great to know, I want to make sure that I wont be missing any payments.

Thanks!

I am in the exactly same position. I am still a young gaffer(21) and I am enlisting as we speak. I have seen the salaries, and also wonder what I am looking to earn for investments, bills and thrills. Please any advice or information a regular NCM can give us would be great.

CDN Aviator · « **Reply #140 on:** April 26, 2009, 23:24:41 »

Expect to lose between 30-40% for taxes, EI, CPP, CFSA, etc, etc,etc...

RobinsonM · « **Reply #141 on:** October 24, 2009, 02:46:44 »

I was wondering what the total taxes are on a privates salary, I know the orught pay is 30000 annually but how much of that goes to taxes and any other fee's, Other than rent ETC.

As well how much do you make in Basic in a month, Becuase I know recruit pay is lower but how much?

Help appreciated

JBoyd · « **Reply #142 on:** October 24, 2009, 03:07:41 »

A recruit actually makes the same amount as a Pte, which is $2624/month. 2009 Pay scale NCM regular force http://www.cmp-cpm.forces.gc.ca/dgcb-dgras/ps/pay-sol/pr-sol/rfncmr-mrfr-eng.asp

This amounts to $31,488 annually before taxes.

2009 federal tax rate for income up to $40,726 is 15% (http://www.revenu.gouv.qc.ca/eng/particulier/impots/taux.asp)
If your BMQ is in Quebec and you are taxed by their provincial rate then for 2009 their income tax rate for income up to $38,385 is %16 (http://www.revenu.gouv.qc.ca/eng/particulier/impots/taux.asp)

A rough estimate of income tax taken is $9,761.28 leaving you with $21,726.79 annually (1810.57/month).

Keep in mind this does not include amounts deducted for CPP/QPP, EI, and CF Pension, nor does it include possible separation expense and/or PLD that you could earn during BMQ.

goldenhamster · « **Reply #143 on:** October 30, 2009, 22:55:48 »

Quote from: JBoyd on October 24, 2009, 03:07:41

A recruit actually makes the same amount as a Pte, which is $2624/month. 2009 Pay scale NCM regular force http://www.cmp-cpm.forces.gc.ca/dgcb-dgras/ps/pay-sol/pr-sol/rfncmr-mrfr-eng.asp

This amounts to $31,488 annually before taxes.

2009 federal tax rate for income up to $40,726 is 15% (http://www.revenu.gouv.qc.ca/eng/particulier/impots/taux.asp)
If your BMQ is in Quebec and you are taxed by their provincial rate then for 2009 their income tax rate for income up to $38,385 is %16 (http://www.revenu.gouv.qc.ca/eng/particulier/impots/taux.asp)

A rough estimate of income tax taken is $9,761.28 leaving you with $21,726.79 annually (1810.57/month).

Keep in mind this does not include amounts deducted for CPP/QPP, EI, and CF Pension, nor does it include possible separation expense and/or PLD that you could earn during BMQ.

I think the tax rate is not applied straightforwardly like that. I mean, $9,761.28 tax for $31,488 annual income is inaccurate. Remember that some of the income is categorized as non-taxable. For example, we are entitled to deduct the basic personal amount, which is about $10,000 this year. So, perhaps only $ 21,000 roughly will be taxed.

Maybe you folks want to try simulation with tax software (UFILE is good for that) and try simply put some numbers there and figure out which numbers comes from where. I found that helpful at least to understand the tax's mumble jumble

Maelstrom · « **Reply #144 on:** October 31, 2009, 00:05:34 »

The numbers seem a bit off...a tax 15% of $31488 would be $4723.2

Giving you an annual amount of $26764.8 before other deductions.

Therefore giving a rough estimate of $2230.4 monthly with only tax taken...

hamiltongs · « **Reply #145 on:** October 31, 2009, 00:22:48 »

The Ernst & Young tax calculator (which takes all the exemptions into account), says that the take-home on $40,726 is $32,398 in Quebec: http://www.ey.com/CA/en/Services/Tax/Tax-Calculators-2009-Personal-Tax

Zman · « **Reply #146 on:** November 01, 2009, 11:34:31 »

HELLO ALL....

I'M LOOKING FOR SOME INFORMATION, REAL INFO NOT THAT BASKET OF DREAMS RECURITERS SELL YOU.
I AM CURRENTLY WORKING TOWARDS A CAREER IN LAW ENFORCEMENT. HOWEVER I FIND MYSELF WANTING TO DO SOMETHING MORE. MY GRANDFATHER WAS A CAPTAIN IN THE ROAYL CANDIAN AIR FORCE, I FIND MY SELF CONSIDERING A CAREER AS A MILITARY POLICE OFFICER, EVENTUALLY ENDING IN A CIVI FORCE. HOWEVER I PLAN (IF I JOIN) TO STAY FOR SOME TIME. MY QUESTIONS ARE; WHAT IS THE BASE FOR MP, AND WHAT ARE THE BENEFITS AND DISADVANTAGES. CAN I ENTER OR STUDY ANOTHER SPEC TRADE ON THE SIDE? AS FOR LEAVING MP TO JOIN A CIVI FORCES IS THIS A QUICK OR DELAYED PROCESS?

FINALLY ON A COMPLETELY DIFFERENT NOTE, IF I WANTED TO PURSUE AVIATION WHAT HAS TO BE DONE?

THANKS FOR THE INFO

SupersonicMax · « **Reply #147 on:** March 14, 2011, 23:18:43 »

About paying off your mortgage faster....

I would personally discourage it. Use the money and invest it. Especially during times like now. Chances are you will make more interest than what you would save on mortgage interest. If your RRSPs are not maxed out, invest in them, giving you twice the advantage (more interest and tax deductions). My mutual funds on average make 10% a year. I pay 3% interest on my mortgage. That's a 7% difference, plus tax deductions at the end of the year.

ballz · « **Reply #148 on:** March 15, 2011, 00:45:50 »

Quote from: SupersonicMax on March 14, 2011, 23:18:43

About paying off your mortgage faster....

I would personally discourage it. Use the money and invest it. Especially during times like now. Chances are you will make more interest than what you would save on mortgage interest. If your RRSPs are not maxed out, invest in them, giving you twice the advantage (more interest and tax deductions). My mutual funds on average make 10% a year. I pay 3% interest on my mortgage. That's a 7% difference, plus tax deductions at the end of the year.

I would say you're looking at it a lot simpler than it is. I don't understand for one where you are getting 7% from, from what I can tell it's a 13% difference [+10 - (-3)]. Your annual interest rate and the effective annual interest rate are two different things as well. The housing market growth, a house that you don't have to pay capital gains on if (when) you sell it, the taxes you will be paying when you eventually cash those other investments, liquidity preference, etc. It's a debated topic in finance right now whether mortgaging a house is in fact a good long-term investment. Peter Schiff is vehemontly opposed to it and I'm starting to side with him.

If you're going to go that route though, you're better off not mortgaging a house period and renting instead, and taking the difference between a mortgage payment and a rent payment and investing it (or other things) as well.

One thing that I haven't seen mentioned above is payment frequency. I'm sure most of you know but if it hasn't been considered, the more frequent your payments the better... Semi-monthly payments of $x will pay off a mortgage years faster than monthly payments of $2x. If you can do weekly payments, even better. Same amount of money being paid, all it changes is the amount of interest that gets compounded.

Quote from: Pusser on March 15, 2011, 00:02:16

If your guy had to pay for the stuff lost during his "travels," I would hope that it was because he never should have been "traveling" with the stuff in the first place.

His flights from his unit to Gagetown for the course to be specific... for which he was authorized to take his kit via the commercial flights instead of CMTT... I don't know why but almost everyone from the Reserve units did that.

George Wallace · « **Reply #149 on:** March 15, 2011, 07:38:04 »

Quote from: SupersonicMax on March 14, 2011, 23:18:43

About paying off your mortgage faster....

I would personally discourage it. Use the money and invest it. Especially during times like now. Chances are you will make more interest than what you would save on mortgage interest. If your RRSPs are not maxed out, invest in them, giving you twice the advantage (more interest and tax deductions). My mutual funds on average make 10% a year. I pay 3% interest on my mortgage. That's a 7% difference, plus tax deductions at the end of the year.

Are you nuts? I wholeheartedly disagree with this advice. Pay off your mortgage as soon as you can. You save paying the Bank twice to three times what your purchase price was in Mortgage fees and interest. I paid weekly and knew that a certain amount was taken out of my account every week and didn't have to try to remember if it was this week or next that the bank was taking money out. Weekly or bi-weekly payments are the same, and in the end of a year you will have made thirteen months worth of payments instead of twelve, thus knocking the amount of years left in your mortgage down. If you can afford to make "Anniversary Payments", do so. That will also cut down greatly on the amount of interest you are paying and the number of years you will have to pay. If you can get rid of your mortgage, then you will have even more to put into your investments. If you can get rid of your mortgage, and then be able to pay off your car loan, and then pay off any other debts, and max out your SRSP, you will have even more spare cash to make your investments.

Mortgages, rent and car payments only puts your money in other people’s pockets. Why pay rent, in effect paying off someone else's mortgage, when you can invest in your own property? Property is just as big an investment as stocks, GICs, Bonds, etc.

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Author Topic: Entering the CF and YOUR Money.... (Read 102540 times)