# LIRA Advice



## G-Zilla (Sep 29, 2013)

I need a recommendation for what to do with a LIRA (Locked-In Retirement Account). Keep in mind I am clueless when it comes to investing. I worked 3 years in a union who held almost $10,000 for a pension that was somehow "locked" and I didn't know what to do with it. A family friend, who works for Investor's Group (yes I'm a sucker), said he could transfer it to one of their funds. It's in their "Investors Real Property-A" fund which has a MER of 2.53 (according to this link). If I Google Finance the fund, I see since it's inception in 2008 it hasn't gained anything. My clueless investing mind thinks I'm screwing myself with no gains while taking the MER hit. How screwed am I? Should I move my LIRA somewhere else, if so, how?


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## SpendLessEarnMore (Aug 7, 2013)

by the time I quit this January which is just over 3 years with the company I'll have an estimated $10,500 locked-in. 

Currently to unlock the LIRA in Alberta for 2013 it's $10,220. It will go up in 2014 depending on the YMPE which usually goes up about 1k. So my estimate is $10,420.

I might have to quit a week early depending on how well the pension plan increases.

So if you want to withdraw your LIRA or transfer it to RRSP so that you won't be hit with taxes check what the guidelines are for your specific province.


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## OnlyMyOpinion (Sep 1, 2013)

G-Zilla - it sounds like at the very least you want/need your funds in a lower MER, better performing investment. 

But it also sounds like you may not comfortable as a do-it-yourself investor? Not sure if your Investor's 'advisor' can be approached and told straight up that you very unsatisfied and want to make changes. That could range from a better investment choice with them - to transferring your LIRA to another institution. 
I don't think you will find many/any fans of mutual funds on this forum, but what you do will depend on your willingness and comfort in understanding the choices available - read up on their products, performance and MER's so you are not talked into something you are unhappy with later. What would it cost to exit the fund and transfer your LIRA to another institution, etc. Do you already have another registered account(s) with another institution that you are satisfied with?
Remember any mututal fund company 'advisor' is going to try to convince you to keep your money with them. For you it might be the right choice or it might not. Just remember that it is your money so utimately you need to be responsible for it. Don't be intimidated.

We crossed a similar bridge a number of years ago but were prepared to look after our own investing at that point. The receiving institution (TDW) did the transfer paperwork (LIRA, RRSP, whatever) and we didn't even deal with the mutual fund company.

On the subject of a LIRA, and similar to the earlier post - we had a small defined benefit pension that we trandsferred to a LIRA that TDW opened for us. Then we took advantage of the eligible one time 50% withdrawl (if you are over 50 in Alberta) and transferred that to our TDW sef-directed RRSP. That withdrawl meant that the balance remaining in the LIRA was a 'small amount' (<$10k) so we were able to unlock it and also transfer the balance of the LIRA to our RRSP. We like to keep our assets consolidated rather than 'here and there' in 'dribs and drabs' which get too difficult to track and suffer in performance if you are dealing with small balances and fees. TDW was good in handling the necessary forms. Check your provincial LIRA guidelines as each may vary (Google 'unlock lira in alberta', etc.).

Good luck!


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## AltaRed (Jun 8, 2009)

One issue not mentioned is that the money is in an IG mutual fund. These funds cannot be transferred to other institutions. The OP would incur penalties to first sell the fund before then transferring the cash to another institution. Beware proprietary funds in outfits like IG.


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