Investing

LIRA --- what would you do in my situation?

  • Last Updated:
  • Apr 22nd, 2018 9:44 pm
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[OP]
Deal Addict
Jan 18, 2014
1493 posts
499 upvotes
Rouyn-Noranda

LIRA --- what would you do in my situation?

I've released from the Army reserve, and I have the right to a transfer value for my pension benefits.

One option is to transfer the amount to a LIRA. The amount is very small --- $900.

I'm in my early 30s, I won't need or have access to it for another 30 years or so.

I was thinking of putting it in XUS so that the "dividends" are re-invested automatically within the fund.

What would you do in my place?
5 replies
Sr. Member
Jun 3, 2012
621 posts
250 upvotes
Scarborough
Sounds like a good plan; I would do the same.
Deal Addict
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May 11, 2014
4788 posts
5854 upvotes
Iqaluit, NU
Before you go ahead and invest, have you considered seeing if you can get the value unlocked? maintaining an account with such a low balance is somewhat of a hassle. Since this amount is less than 20% of the YMPE, you should see if you can get it unlocked penalty free and transfer the amount to your regular RRSP or withdraw it. The rules of unlocking LIRAs will be different by province however.
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[OP]
Deal Addict
Jan 18, 2014
1493 posts
499 upvotes
Rouyn-Noranda
xgbsSS wrote: Before you go ahead and invest, have you considered seeing if you can get the value unlocked? maintaining an account with such a low balance is somewhat of a hassle. Since this amount is less than 20% of the YMPE, you should see if you can get it unlocked penalty free and transfer the amount to your regular RRSP or withdraw it. The rules of unlocking LIRAs will be different by province however.
Thanks --- exactly the kind of info that I was not aware of and that I'm glad to find out about!

I will have a look, but from the questions I asked the people at the federal pension department, if I want to transfer in kind, I have to transfer at least 50% into a LIRA. --- so about $900.

It's true that it's a hassle; I think though that it's a better hassle to set up a LIRA now at the financial institution where I already have my other investments --- than to keep track of a pension that will pay a very small amount in 30 years.

Thanks again for the tip!

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