Mailbag of Client Questions

Each month, we select a handful of questions that were asked by clients or soon-to-be clients. We like to post our answers online because others may have that same question as well. Here are a few of the things we were asked about most recently. Please contact us at info@schneiderpollock.com.

How do I log in to my National Bank account?

Whenever we open a new account, we send the login and temporary password information to our new client. While we send a portfolio statement to you in the first week of every month, logging in to your National Bank account lets you see things in real time.

If you need to reset your password because the temporary password expired, just let us know. Once you have that worked out, you can log in to your account by clicking on the “Client Login” button at the top-right of our website or by visiting https://myportfolioplus.ca/nbin/login.

What do you think of AI making investment decisions?

While we use AI to answer questions and clarify uncertainties, it’s a tool, not a decision-maker. AI has allowed Schneider & Pollock to become much more efficient, giving us more time to work directly with clients, but we don’t use it to have the final say on anything.

There are also important reasons to be cautious about letting AI make investment decisions. AI relies on historical data and patterns, which don’t always predict the future, especially during market shocks or unprecedented events. It can’t fully understand your personal goals, risk tolerance, emotional triggers, or broader life situation. AI models may also reflect biases in the data they are trained on and could react too mechanically to short-term volatility.

How do I find out my TFSA limit?

The TFSA was introduced in 2009, with an initial annual contribution limit of $5,000. Since then, the limit has increased with inflation, and as of 2025, the annual contribution limit is $7,000. Any unused contribution room carries forward, just like an RSP. The cumulative contribution limit is $102,000 as of January 1, 2025. 

Your CRA account provides an estimate of your contribution limit, but we recommend confirming this number in April—after financial institutions have submitted all tax slips and related documents. We’ve seen discrepancies in CRA’s early estimates, so waiting carries a better chance that their estimate is more accurate.

You can log in to (or register for) your CRA account at https://www.canada.ca/en/revenue-agency/services/e-services/cra-login-services.html.

Why do I have so many RSP contribution slips?

The National Bank Independent Network prints multiple slips depending on when you made your contributions. If you made a few deposits to your RSP after December 31, you would have received multiple tax slips. Nevertheless, you should take the sum of all RSP contributions and report that total number when filing your taxes. The last day to make an RSP contribution is 60 days after January 1.

What do you mean when you say there’s a difference between the stock market and the economy?

The economy tells us where we are today based on previous data and information, while the stock market prices in future expectations. As a rule of thumb, the stock market tends to price in what the future will look like about six months from now. 

For example, during the Great Financial Crisis, the S&P 500 bottomed in March 2009 while the economy was still in recession until June 2009 — by which time the stock market had already rebounded by +35%.

Should I take CPP at 60?

You can begin receiving your Canada Pension Plan as early as age 60 or as late as age 70. We recorded a webcast on this topic in September 2022 (click here).  When you take it depends on your situation. Please reach out and we will discuss your specific circumstances. Nevertheless, here are some things to consider when deciding to take CPP.

Pros of Taking CPP at Age 60:

• If you have health issues or a family history of shorter life expectancy, taking it early may result in getting more overall.
• You start receiving payments earlier, which can be helpful if you retire early or need the income.
• Provides financial flexibility to reduce withdrawals from other savings.
• You can use CPP to supplement part-time work or phased retirement starting at 60.
• Taking CPP early allows you to leave other investments untouched, potentially allowing them to grow.

Cons of Taking CPP at Age 60:

• You receive 36% less than if you wait until 65 (0.6% reduction per month x 60 months before 65). This reduction is permanent.
• You receive 42% more if you take CPP at 70 instead of 65. Your CPP increases by 0.7% per month for each month after age 65, up to a maximum of 42% more by the time you reach age 70.
• If you live into your late 80s or 90s, you may receive significantly less overall than if you had waited.
• Early CPP added to employment income can push you into a higher tax bracket.
• Your early start could reduce the survivor benefit your spouse might receive.
• Though CPP is indexed to inflation, the smaller base amount means smaller inflation adjustments over time.

Should I pay down my mortgage or invest it?

It’s not just a financial decision — some people simply don’t like having debt. Being debt-free can make it easier to sleep at night and can give you more freedom to take bigger risks, like starting a company. 

However, if you are focused just on the numbers, it usually depends on your interest rate. Historically, the market appreciates about 7% a year, so if your interest rate is over 7%, it might make sense to pay off debt. If it’s under, say, 5%, you could be better off investing the money instead. Another strategy is to contribute to your RSP and then use the refund to pay down your mortgage.

Everyone is different. Please reach out and we can have a discussion about the pros and cons to paying down mortgage debt or investing the money instead.

What is the T1135?

The T1135 is a Canadian tax form called the Foreign Income Verification Statement. It’s not a tax — it’s a disclosure form. 

If you’re a Canadian resident and own foreign property that cost more than C$100,000 at any point during the year, you are required to file a T1135 with the CRA. Missing or filing it late can result in big penalties. The penalty is the greater of (a) $100, or (2) $25 per day late, up to a maximum of $2,500. 

Foreign property includes foreign stocks (even if held inside a Canadian brokerage account), foreign rental properties, foreign bank accounts, interests in foreign trusts, and certain types of cryptocurrencies if held outside Canada.

-written by Jeff Pollock