But, I guess that is left up to morality etc.

What I can say, just from working around provincial politicos the last few years, is that yes, quite frankly, most politicians are indeed decent people — when they very first enter the arena. The longer they stay, the more disconnect there is between their view on what reality is and what reality actually is.

Example in case: annual 10% pay raise.

But, we all know politics and politicians have been corrupt since the very first vote way back in days of yore. Accept it and move on.

RBC also gave me a very wrong financial advice. My husband and I had RRSP in various financial institutions and we were advise to withdraw them instead of transfering them – you know, to save the 50 $ cost AND work I guess for our account manager. She was fully aware we were planning on doing one withdrawal in October 2009 then the rest of the money would be in a RRSP for 90 days, as it should be. She even acknowledge herself she gave us the wrong info.

Turns out we withdrew one of our RRSP in October 2009 and we wanted to withdraw the biggest RRSP last week…. well we couldn’t, because we officially already participated in 2009 to the HBP. So we no longer are eligible for our 10 k at RBC.

I get it, I should have done my homeworks. I think it’s bad tho that they let us do that, aren’t they supposed to know better, isn’t their job ? Anyway…

At first they told me the same as you, they couldnt do anything. Actually their solution was to cancel my taxes (which are already done and sent out including my 10 k contribution for the year), they wanted to cancel the transaction, put back the 10 k in my deposit account so I could take it as my cashdown, and basically send back my 6k taxes refund I should get in the mail very soon. Yeah right, they are clowns !

I talked to the branch manager today and told her I was ready to cancel the house purchase and that I’d see her in court, since most llikely we will get sued ourselves by many, many people for cancelling on them at 5 days notice of the transaction. Of course I was bluffing but she started to look very worried. I contacted her boss (regional sales manager) and made an official complaint.

The last recourse I have in my case is to explain and plead and beg the federal government I didn’t know and see what they can do to help me on this so I don’t have the stupid 5k penalty if I go ahead anyway and withdraw the 10 k.

We will see how everything plays out, good luck to you too !

Overall I would say it’s our responsibility to be kept informed

You really need to speak with a tax and legal professional. This needs to be escalated beyond the advice of a financial advisor. ANy financial advisor who provides accounting advice on tax matters is stepping beyond their role and scope of their position.

I think the main lesson is that banks are designed to perform two primary functions. Taking deposits (ie. bank accounts) and lending money (ie. mortgage/car loans/line of credit etc.).

Where are you from John? Your situation may warrant a personal financial planner, beyond an individual in a bank who may be in that role for a year to 3 years then moving on. It’s a training role for future positions and often times leads to situations that arise like you’ve experienced. Check my email address a few posts prior and get in touch if you have any direct questions.

SO WHAT ARE YOUR BEST TWO OR THREE CARDS YOU USE?

For me:
1) Costco Platinum Cash Back
2) My new Smart Cash

I will use Amex as it gets up to 1.5% back except when I get gas or shop for groceries (those not at Costco) at say Loblaws to get 3% back.

Thanks for your quick response!! I’ve been in contact with RBC Client Services and they’re the ones who spoke with the bank manager who informed them that they are choosing to not do anything about the situation. As this has already been approved, should I still go ahead with my income tax like nothing is wrong or is there anyone else I should contact about this situation, outside of RBC?

Thanks again,
John

thanks for your reply….
are there any insuarace company offering the features you mentioned you currently have on your insurance.

thanks
Bob

You’re right, taking a contrarian approach can really pay off. Interestingly, Warren Buffett has become one of richest persons in the world and is arguably the best investor of all times. Yet, most investors take the opposite approach when they invest (short-term vs long-term, focusing on the market vs the companies, momentum vs value, herd mentality vs independent thinking, etc).

Without knowing anything about you, I’d think you are too young to consider an annuity. At your age the down side is the lack of use and control of your money.

If you have a family have extra cash (conservative) and want more options later, I’d say check out a max funded whole life policy (see case study above). Later, (in life) if you want to look at an annuity you have the principle covered.

Have I missed something here? also $14 a month is quite competitive to other chequing accounts out there.

You’ll need to speak with your advisor and/or insutitions manager. Call the head office and look for an option to log a complaint if they are unable to address your issues to your satisfaction – making your voice heard is always an option.

I suppose the important thing for anyone to understand with strategies like this is that complex tax and legal matters always come into play. Unfortunately, you may run into a planner who provides inadaquate advice. Whenever tax matters and legal issues come into play, it’s always advisable to seek the advice from your accountant and lawyer. At the very least, ensure your financial advisor can present what is being done in writing. That way you can verify how you were advised should any issues result in the future.

Happy RSP HBP purchases for years to come! Remember, always seek professional advice before implementing financial strategies to ensure the strategies is appropriate and applicable to your situation.

Sorry I missed your questions before RRSP deadline. I usually try to be helpful, but as you can imagine RRSP time was busy and I wasn’t checking back.

I hope your situations have been addressed and any questions were answered. If you require anything further, and if I can help, I’d be happy to. Just send me an email @ brian.eckhardt@investorsgroup.com

Great question. When you DO NOT pay back the RRSP HBP, make sure your tax preparer properly files out “Schedule 7″. If done properly, and you’re taxed on NOT paying it back, then you will be 1 year closer to having your RRSP HBP paid back!

Speak with a qualified professional about your unique situation.

I really don’t know of any books to read, but I did come across Annuities for Dummies. This book was written in the US but the ideas seem to be ok here as well. Maybe someone can let me know if it is any good.

I assume if you can’t sleep at night, this would be an excellent read.

You forgot GIC’s get taxed, much higher. If you have a pension etc. one may find OAS gets clawed back as well as the age amount (age 65 ..$5,200 line 303) this gets clawed about starting at about $31,000!

If you have a GIC alternative that factors in taxes and guarantees I’d like to see it. Remember, to get the best rates one has to lock in for longer terms like five years is there a cashable five year GIC at high rates?