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Lexicon posted:I sent a cheque for ING along with the instructions to automate withdrawal. I buy eseries weekly from that account. Ah, I see. I was trying to push from PC into TD, not have TD withdraw from my chequing. That makes much more sense now.
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Nov 22, 2013 03:34
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The dollar has taken a big stinky poo poo against the US$ the last little bit, hasn't it?
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Nov 22, 2013 18:29
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slidebite posted:The dollar has taken a big stinky poo poo against the US$ the last little bit, hasn't it? The US economy is bouncing back in a significant way. Additionally, the Canadian Fed's latest announcement was very "interest rates are not going anywhere for a while guys", which was a big change in tone from even 3 months prior.
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Nov 22, 2013 20:13
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Saltin posted:The US economy is bouncing back in a significant way. Additionally, the Canadian Fed's latest announcement was very "interest rates are not going anywhere for a while guys", which was a big change in tone from even 3 months prior. I'm glad to hear that, especially with the outrageous interest rates on my Federal student loan that I'll need to be paying back. Also, I just wanted to say thanks to everyone who has contributed to this thread. I think I've finally got my head wrapped around TFSAs, index funds, and ETFs. I have a copy of YNAB, and I'm really looking forward to my next (paltry) paycheque so I can continue on my informed financial journey. Now why didn't I learn any of this poo poo before I went to university!?
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Nov 23, 2013 01:01
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Grouco posted:I'm glad to hear that, especially with the outrageous interest rates on my Federal student loan that I'll need to be paying back. You're way ahead of the game. I'm 25 and I didn't learn about any of this stuff until like January!
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Nov 23, 2013 01:16
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tuyop posted:You're way ahead of the game. I'm 25 and I didn't learn about any of this stuff until like January! I'm 25 as well, and was feeling pretty bad that I'm just starting. I have about ~11k in Federal loans, and ~22k from the Alberta government. I currently make 45k/yr, so I'm building up a 5k emergency fund, and then beginning to work aggressively on the loans. After that, it's index/ETF time.
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Nov 23, 2013 01:25
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Tony Montana posted:Heh, Lexicon already pointed this out with the example of if you let your idiot brother-in-law pick your stocks, you're wearing plenty of risk with a pretty lovely chance of reward. But of course Joe from HR knows what he's talking about. He's investment guru and only works a day job "for the fun of it", right? 
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Nov 24, 2013 21:28
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melon cat posted:But of course Joe from HR knows what he's talking about. He's investment guru and only works a day job "for the fun of it", right? I used to have a job where I'd have to spend eight hours a day standing alone in a room with another guy. The same guy every days for months on end (Occasionally there'd be another guy I guess). We could leave to pee or smoke on the balcony, but that was pretty much it. One time I ended up with this loving investment guru. He'd tell me all about penny stock, what he was doing with his retirement fund, how loving awesome he was... "Good going, why are you standing here with your thumbs up your rear end at $24/hr?" After about twenty minutes of silence, he started going on either about how hot Miley Cyrus was (This was in 2008-2009 or so) or about the escort service he was going to start up during his next vacation; those were his other two subjects. Last I heard of him he'd been terminated for alcoholism. Guess it's still better than the guy who kept insisting that slot machines were a better investment than RRSPs... Not sure what my point is right now, maybe "Don't listen to idiot's investments advice and don't underestimate the stupidity of people"?
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Nov 24, 2013 22:10
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So I'm reading Four Pillars, talking with you guys, talking in the other thread, posting around some other forums (although they're so poo poo that I have more useful conversation with Americans and Canadians and learn all about their countries systems as I go, than my own countrymen, I guess if I marry a Canadian or American I can tell her all about how to invest for her retirement  ). I ordered a ton of books from Amazon (I have The Intelligent Asset Allocator here as well as a few on stocks) and I'm attacking this like I was back in Uni. As I work in computing, I've been sitting with textbooks and making notes pretty much the whole way though.. Uni was only the beginning.My notebook is growing and I'm really quite enjoying this, the motivation is the payoff which is learning how to manage money.. something that is incomprehensibly important when you're a fresh grad and you think you'll just earn enough to do anything. Something that is really becoming obvious to me, gently caress all people can even vaugley understand me when I talk about this stuff. My own mother, who was a hospital scientist and highly educated.. tells me nono, please I really don't understand or care to about that stuff. She pays her fund manager a fat percentage and enjoys her 'peace of mind'. I've just had an.. well it wasn't an argument.. but it's a prickly loving thing with my sister. Dad died recently and gave us each 300k. My response is poke around and start learning what to do with it, eventually end up in here and get directed to some top books and I'm doing my self-imposed undergrad in it now. My sister went straight out and bought a 2 bedroom flat in Melbourne for 520k. She took on another 270k debt and used most of Dads money. She called me after sending me a message saying 'I'd like to get your opinion on something' and then dropped 'I've bought a house!' and I said um ok, yeah I don't really think that's for me' and started, briefly talking about some of the concepts we discuss in here. She eventually got really loving mad with me and literally said 'I don't loving care about the financials.. why can't you just be happy for me?!'. She also said shes not interested in spending a lot of time checking stocks and learning the financial game, which we know is a myth and totally unnecessary. I'm going to smooth with her and just say I am happy and congratulations.. but the 'head in the sand' mentality is quite incredible. 6 months ago, I would have been that person. People literally don't want to know, and if that means they can trust some other person, whoever that is, then that is infinitely superior than spending the literal few hours to get a handle on how easy this whole thing is. You can then sperg out like I am and take it to the next level and plot early retirement.. but you don't have to do that. It's a crazy world.
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Nov 24, 2013 22:50
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Well, to be fair anybody in this thread could be Joe from HR. The reason to be skeptical of investment advice from coworkers is not because they're coworkers. Now if Joe is telling you to get in on the twitter IPO or buy buttcoins or something, then he's an idiot. But I don't even know how I'd communicate about index investing in a water cooler context. "Man, I'm rocking market matching returns while only paying .4% in fees, you should get in on this!" Just doesn't sound exciting.
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Nov 24, 2013 22:53
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People suck at understanding complex systems or abstract concepts. Also they're busy and aren't interested. If you try to get someone to care about saving 1% a year on their MER their eyes will glaze and they wont care because it's only like $1.
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Nov 24, 2013 23:09
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No they don't, they suck at motivating themselves to talk about something new that they don't consider to be part of their current identity. People can tell you the most complex esoteric details of celebrity lives or the royal family or baseball averages or MMA politics or loving pop music, but most people are not "finance people" and they've attached a huge portion of their identity to the otherness of those people to the point where they react with hostility if you suggest they learn about finance. You might as well ask a catholic to go to a mosque or a republican to do democrat things.
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Nov 25, 2013 00:01
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Are there any Questrade offers going at the moment? I'm just about to open up a TFSA with them.
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Nov 25, 2013 00:04
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This is totally it, my sister was openly hostile about it.. after asking me for advice!
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Nov 25, 2013 00:04
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Stupid question perhaps, but will banks typically perform a withdrawal transaction in the form of a cheque? I'm centralizing my TFSA account at BMO Investorline, and just liquidated my eSeries TFSA (I'll rebuild the portfolio with ETFs). Can I get the full amount from TD (currently sitting in non-registered savings) as a cheque that I can deposit January 1st?
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Nov 26, 2013 16:28
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Cross-post from the other finance thread: how should I be handling my finances as a dirty foreigner in freedomland? Should I funnel my USD back into my TFSA, or open an American brokerage/savings account?
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Nov 26, 2013 23:05
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Rated PG-34 posted:Cross-post from the other finance thread: how should I be handling my finances as a dirty foreigner in freedomland? Should I funnel my USD back into my TFSA, or open an American brokerage/savings account? Be careful, now. Depends on your tax residency and plans for the future. From first-hand experience, you're in territory fraught with potential taxation landmines. There are all sorts of rules governing who may contribute to a TFSA when outside the country, the IRS' [non-]recognition of them, etc. You, more than anyone else so far in this thread by a wide margin, need to be speaking to a professional (one who knows about cross-border tax/accounting, pretty niche stuff).
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Nov 26, 2013 23:14
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Us Australians and the English have a thing about tax residency and if you're not earning any income at home you don't declare what you're earning overseas. I was talking to the guys in the other thread and they told me in the States the IRS wants you to declare all income, even overseas. The US is one of the few countries in the world to do this. Listen to Lexicon, see a CPA. I'm not American and never been to America.. but Wesley Snipes, bro. Don't gently caress with the IRS.
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Nov 26, 2013 23:21
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Rated PG-34 posted:Cross-post from the other finance thread: how should I be handling my finances as a dirty foreigner in freedomland? Should I funnel my USD back into my TFSA, or open an American brokerage/savings account?
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Nov 26, 2013 23:33
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Y'all missing out on freedom, and higher income taxes.
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Nov 26, 2013 23:51
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Rated PG-34 posted:Cross-post from the other finance thread: how should I be handling my finances as a dirty foreigner in freedomland? Should I funnel my USD back into my TFSA, or open an American brokerage/savings account? Get an accountant. There's gotta be some of them in the border towns (IE, Buffalo, Toronto, Seatle and Vancouver, whatever) that are familiar with the issue. Consider that you could piss off both the CRA and the IRS. At the same time. The potential adverse consequence elevate this beyond the level of acceptable risk that should be mitigated by asking strangers on a comedy internet forum.
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Nov 27, 2013 00:14
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Rated PG-34 posted:Y'all missing out on freedom, and higher income taxes. Australian, mate. One of the highest tax rates in the world and you're free to gently caress off out in the middle of our red sandy wasteland and wear your undies on your head if you want.
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Nov 27, 2013 11:14
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The IRS absolutely treats income in a TFSA as taxable for US residents.
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Nov 27, 2013 13:29
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Anyone want to hook me up with a referral for Questrade? http://www.questrade.com/why_questrade/promotions_refer
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Nov 28, 2013 17:29
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Grouco posted:Anyone want to hook me up with a referral for Questrade? Didn't we discuss this via PM? Send me your details.
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Nov 28, 2013 18:31
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I'm currently working towards a MSc in logistics and it's already worth the cost for getting me interested in business and finance. Right before finding this thread I literally had an hour long conversation with my dad about investing. He prettymuch told me to max out of TFSA and then explained why it was a really awesome idea. Like some other goons, I only thought it was a savings account with a fancy name. I do have one (with TD no less  ) but it's only had like 500 bucks in it since 2009.I live overseas but am a deemed resident of Canada since it's for work (I'm one of those aforementioned government parasites  ). 28, married, kid due in march. I was pretty good with money in that save > spend and I had enough discipline not to burn through the 20k+ sitting in accounts, but only recently realized that it's pretty stupid strategy. Today my wife and I actually made a budget so we could better plan for the future. We had some big purchases in the past couple years like paying off two (used) vehicles and a student loan and buying a bunch of baby poo poo, but are now at the point where we can really save again.I clear about 4000/month and living expenses are only $1500 out of pocket since housing and some other expenses are automatically deducted from my pay. I figure that right off the bat I can squirrel away 2k/month for the next 30 months or so. That will be used to max out TFSA for both myself and my wife and create e-trade accounts to buy into yet-to-be-determined funds. My goal is long term (retirement). Not completely sold on owning a house yet because I don't stay in one place long enough and have seen others lose tens of thousands when they had to move in volatile markets. Currently leaning against RRSPs because my non-working wife keeps my tax bracket fairly low and I'll have a pension to pad other investments. I have about 25k in savings between accounts on both sides of the border and can safely free up another 10-15k for investment (probably TFSA). I'm also expecting a severance payout of 12k (taxable) next year. I really want to save as much as I can while out of country because the cost of living is criminally low and I don't have to pay provincial taxes. On the whole I'm glad to see that I'm not totally money retarded. I've already bookmarked most of the links for further reading but would appreciate any pointers/critiques that my betters can provide in this arena. Thanks! Guest2553 fucked around with this message at 12:15 on Dec 3, 2013 |
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Dec 3, 2013 11:45
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That's really great! You should definitely read this if you haven't yet: http://canadiancouchpotato.com/2013/09/30/your-guide-to-the-even-more-perfect-portfolio/ As for leaning against your RSP: I don't think its as good TFSA, but you should still probably max out RSP before opening a unregistered E-Trade account. The reason is that the money you invest isn't taxed yet and having a larger base monthly investment significantly increases the power of compound interest.
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Dec 3, 2013 16:47
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TheOtherContraGuy posted:As for leaning against your RSP: I don't think its as good TFSA, but you should still probably max out RSP before opening a unregistered E-Trade account. The reason is that the money you invest isn't taxed yet and having a larger base monthly investment significantly increases the power of compound interest. I happen to disagree with this advice, for what it's worth. Unless you're realizing a massive tax saving today via a refund (because your current salary is very high or it's a good commission year, etc), I wouldn't contribute to an RRSP. With an RRSP, you trade known and efficient tax today for unknown and possibly inefficient tax (no discount for dividends or capital gains) tax tomorrow. I prefer the former, in the absence of a substantial tax refund due to a high-marginal rate in a given year.
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Dec 3, 2013 17:13
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Lexicon posted:I happen to disagree with this advice, for what it's worth. Unless you're realizing a massive tax saving today via a refund (because your current salary is very high or it's a good commission year, etc), I wouldn't contribute to an RRSP. With an RRSP, you trade known and efficient tax today for unknown and possibly inefficient tax (no discount for dividends or capital gains) tax tomorrow. I prefer the former, in the absence of a substantial tax refund due to a high-marginal rate in a given year. This is generally correct in my estimation as well. I do contribute to my RRSP, but a significant portion of my earnings are taxed at the highest marginal rate, so it makes a decent amount of sense. The return it generates is pretty substantial. I also make sure my and my wife's TFSA is maxed before a penny goes into the RRSP.
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Dec 3, 2013 18:56
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Does anyone know how transaction fees behave in a TFSA? Say, I contribute my $5500 for the year. I use it to buy 5490 units of a stock which costs $1 a piece. The transaction cost for this trade is $10. Is that $10 lost forever in my TFSA room? Can I pay for it with money outside of the TFSA?
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Dec 3, 2013 19:04
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Saltin posted:This is generally correct in my estimation as well. I do contribute to my RRSP, but a significant portion of my earnings are taxed at the highest marginal rate, so it makes a decent amount of sense. The return it generates is pretty substantial. Yeah. By all means it's a good idea if it generates a good tax return in that year. But if it doesn't, there's a pretty substantial, hidden downside that many Canadians seem not to realize.
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Dec 3, 2013 19:07
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Lexicon posted:Does anyone know how transaction fees behave in a TFSA? Say, I contribute my $5500 for the year. I use it to buy 5490 units of a stock which costs $1 a piece. The transaction cost for this trade is $10. Yes, it's $10 lost. Why wouldn't it be? I don't know of any broker that would allow you to pay commissions/fees outside your account.
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Dec 3, 2013 19:49
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Kal Torak posted:Yes, it's $10 lost. Why wouldn't it be? It's easy to imagine that a broker might let you pay the $10 out of a separate bank account / non-registered account at the same institution.
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Dec 3, 2013 20:09
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But does it become available as contribution room later?
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Dec 3, 2013 21:00
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tuyop posted:But does it become available as contribution room later? I'm not sure. It would be very useful to know this. $10 compounded annually at 6% for 40 years is ~ $103, after all 
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Dec 3, 2013 21:16
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No, of course it doesn't.Lexicon posted:It's easy to imagine that a broker might let you pay the $10 out of a separate bank account / non-registered account at the same institution. That is very difficult for me to imagine.
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Dec 3, 2013 21:20
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Kal Torak posted:That is very difficult for me to imagine. Sorry to hear that, I guess.
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Dec 3, 2013 21:26
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Lexicon posted:Does anyone know how transaction fees behave in a TFSA? Say, I contribute my $5500 for the year. I use it to buy 5490 units of a stock which costs $1 a piece. The transaction cost for this trade is $10. For what its worth, my TFSA is with RBC Dominion Securities and there are no trade fees whatsoever for something like 20 trades/year on it. They totally gently caress you without the lube on a non-registered investment account though
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Dec 4, 2013 01:33
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slidebite posted:For what its worth, my TFSA is with RBC Dominion Securities and there are no trade fees whatsoever for something like 20 trades/year on it. Yeah, I think I'll be just fine staying away from RBCDS for now On an unrelated note, what the hell is going on with USDCAD these days? CAD is getting hammered. And it seems to be Canadian weakness, as opposed to American strength, if other currency pairs (USDEUR, USDGBP) are compared.
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Dec 5, 2013 00:43
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Lexicon posted:Yeah, I think I'll be just fine staying away from RBCDS for now FX is complex, but in this case it is about the US economy bouncing back and Canada's commitment to a low interest rate environment for the foreseeable future. Don't underestimate the power of the latter.
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Dec 5, 2013 13:35
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