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Yeah, I already talked to a guy who said he knew how to handle this type of investment, and then proceeded to try and sign me up for a bunch of investments that aren't actually allowed, so now I'm worried about finding the right person for this. My dad suggested I talk to his guy, who is the Senior Account Manager at his bank, but my dad also doesn't know anything about investments so I have no idea if that guy is any good or just managed to sell my dad on stuff.
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Jan 31, 2014 19:44
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The Berzerker posted:Yeah, I already talked to a guy who said he knew how to handle this type of investment, and then proceeded to try and sign me up for a bunch of investments that aren't actually allowed, so now I'm worried about finding the right person for this. My dad suggested I talk to his guy, who is the Senior Account Manager at his bank, but my dad also doesn't know anything about investments so I have no idea if that guy is any good or just managed to sell my dad on stuff. You want a fee-only advisor. There's a directory here, but you can find one locally and save time by calling ahead and asking about how your advisor gets paid. If they take a commission then you should probably not even waste your time. The commission motivates the advisor to juggle your money around in criminally inefficient ways and may be tied to products that will basically steal your money.
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Jan 31, 2014 20:29
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tuyop posted:You want a fee-only advisor. There's a directory here, but you can find one locally and save time by calling ahead and asking about how your advisor gets paid. If they take a commission then you should probably not even waste your time. The commission motivates the advisor to juggle your money around in criminally inefficient ways and may be tied to products that will basically steal your money. Hear, hear. Speaking of criminally inefficient - for precisely that reason, the UK recently banned non-fee-based financial advisors - i.e. the type that flourishes here. I wonder if that sort of enlightened legislation will ever make it over here. (side note: having lived in both places - Canada is noticeably behind the UK, well Europe really, when it comes to consumer protection laws. It's night and day in fact).
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Jan 31, 2014 20:34
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Whatever you do, don't buy real estate.
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Feb 1, 2014 08:04
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The Berzerker posted:Yeah, I already talked to a guy who said he knew how to handle this type of investment, and then proceeded to try and sign me up for a bunch of investments that aren't actually allowed, so now I'm worried about finding the right person for this. My dad suggested I talk to his guy, who is the Senior Account Manager at his bank, but my dad also doesn't know anything about investments so I have no idea if that guy is any good or just managed to sell my dad on stuff. melon cat fucked around with this message at 22:08 on Feb 4, 2024 |
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Feb 1, 2014 15:25
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melon cat posted:"Senior Account Manager", eh. Let me guess- RBC? Bingo. He's been helping my dad with his own investments, but my dad is very new to it (he only had money to start investing when he got his own inheritance from the estate and has no financial knowledge) so it's not like my dad would actually know if this guy knows anything or not. The frustrating thing is that I could easily sign off my responsibility on this and have the Office of the Children's Lawyer handle the money until my brother can have it, but because of the language in the will my brother won't get anything until he's 22. I'd rather do this for him because that way, I can release money to him at my discretion when he's 18/19 if he wants to use it for school. Anyway, thanks for the advice so far. I've also got some really helpful people sending me PMs which I appreciate.
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Feb 1, 2014 19:03
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Speaking of advice, this article is the best one about investing I've seen. Not that it's necessarily helpful, but the advice is true and it's much better than some tripe FP published last week pimping a TOTALLY COOL ETF WITH A CHEAP CHEAP 0.8% MER! Also feeling the pain about the forever time frame it takes Questrade to do things, it's going into week 4 and I'm still waiting for the TFSA transfer to happen.
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Feb 3, 2014 01:05
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e: Never mind.
ductonius fucked around with this message at 02:04 on Feb 3, 2014 |
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Feb 3, 2014 01:58
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Guest2553 posted:Speaking of advice, this article is the best one about investing I've seen. Not that it's necessarily helpful, but the advice is true and it's much better than some tripe FP published last week pimping a TOTALLY COOL ETF WITH A CHEAP CHEAP 0.8% MER! That's really weird. Have you tried contacting them?
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Feb 3, 2014 02:09
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tuyop posted:That's really weird. Have you tried contacting them?
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Feb 3, 2014 03:00
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That's not Questrade. That's every Canadian bank/institution/broker on the planet.
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Feb 3, 2014 03:55
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Been extremely busy with work/school/imminent babby so it's been on a list of things to do. IIRC the form said 15-20 business days so I'm still technically in the window. Wish I coulda jumped on some of that sweet bond action though 
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Feb 3, 2014 05:45
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Just saw this in the general personal finance thread, and thought it was highly applicable here:100 HOGS AGREE posted:For anyone who comes in here and freaks out about your credit score, stop giving a poo poo and just commit to making good financial decisions. It'll sort itself out. It's utterly silly to obsess over this stupid number and try and attempt game the [opaque] system. Don't be an idiot with borrowed money - simple. We don't even know the algorithm for credit scores (so any "best practice" is at best speculative), yet people seem to obsess in hushed tones about utilization and card account durations and other silliness.
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Feb 4, 2014 18:36
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Can someone account for the difference in these two charts of CPD (iShare Preferred Share Index): A: http://ca.ishares.com/product_info/fund/overview/CPD.htm  B: http://tools.ishares.wallst.com/ishares/qc/summary.asp?symbol=CPD&pt=false&locale=en-CA&user_tier=CAIndv&user_id=INDIVIDUAL&countryCode=CA  B shows a clear capital loss that has never recovered since the GFC. A, by contrast, shows a recovery and eventual gain [if not a capital gain] in percentage terms. I guess maybe I answered my own question. I guess A demonstrates the effect on ones capital by investing in CPD at time zero and collecting dividends throughout - thus eventually recovering the loss value?
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Feb 5, 2014 04:47
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Lexicon posted:Can someone account for the difference in these two charts of CPD (iShare Preferred Share Index): Yes, you answered your own question. The top chart shows total return, which includes dividends, while the bottom shows only unit price movement, so the bottom tells you what your $1 invested is worth today (in terms of remaining money in the fund), while the top line tells you what that $1 is worth including all the dividends you received - note that these charts usually assume reinvestment of dividends in the originating fund. Also, presumably you ran these both in USD, as currency difference would impact the result as well but the currency reference wasn't immediately obvious in both charts.
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Feb 5, 2014 18:49
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Kalenn Istarion posted:Yes, you answered your own question. The top chart shows total return, which includes dividends, while the bottom shows only unit price movement, so the bottom tells you what your $1 invested is worth today (in terms of remaining money in the fund), while the top line tells you what that $1 is worth including all the dividends you received - note that these charts usually assume reinvestment of dividends in the originating fund. Also, presumably you ran these both in USD, as currency difference would impact the result as well but the currency reference wasn't immediately obvious in both charts. Thanks, makes sense. I wish they made it more clear precisely what a chart is actually showing. I don't quite follow your USD comment, as this is a Canadian index of Canadian preferred shares. Should be CAD throughout, unless I'm missing something.
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Feb 5, 2014 18:58
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Wasn't clear, if it's a Canadian index then the currency thing is a non-issue. I didn't look at the description so wasn't sure if it was a US pref index, in which case the share price might be quoted in US$ while the total return was shown converted back to C$, depending on how you had it set up - was just another possible source of error. All good.
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Feb 5, 2014 19:42
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I could have sworn that someone in the last couple of pages had mentioned a credit card that had a really good foreign exchange rate (ie: used the actual rate, with no extra % tacked on). Was I dreaming that? I can't find it now. Going to Italy in a couple of months, and I wouldn't mind picking up a card with a better rate before we go.
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Feb 6, 2014 03:22
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anitsirK posted:I could have sworn that someone in the last couple of pages had mentioned a credit card that had a really good foreign exchange rate (ie: used the actual rate, with no extra % tacked on). Was I dreaming that? I can't find it now. Going to Italy in a couple of months, and I wouldn't mind picking up a card with a better rate before we go. Amazon's Chase card does exactly this. It's fairly mediocre otherwise, but I keep it simply for travel. They charge spot rate conversions which is virtually unheard of.
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Feb 6, 2014 03:24
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Lexicon posted:Amazon's Chase card does exactly this. It's fairly mediocre otherwise, but I keep it simply for travel. They charge spot rate conversions which is virtually unheard of. When I read that, I suddenly realized what card it was that I was thinking of. It's the "Marriott Rewards Premier Visa" that I recently received a "pre-approval" for, with the first year's annual fee waived. Time to set up a cancellation reminder in my calendar, and take them up on some free hotel rooms. The Amazon card looks good as one to have in one's back pocket, though, with no annual fee, so thanks!
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Feb 6, 2014 03:38
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anitsirK posted:When I read that, I suddenly realized what card it was that I was thinking of. It's the "Marriott Rewards Premier Visa" that I recently received a "pre-approval" for, with the first year's annual fee waived. Time to set up a cancellation reminder in my calendar, and take them up on some free hotel rooms. The Amazon card looks good as one to have in one's back pocket, though, with no annual fee, so thanks! Yeah, it's worth having. Infuriatingly, they don't have a paperless statement option, but that's the underlying bank's (Chase) fault. Still, you think Amazon would've insisted on that as it's their brand on the front of the thing.
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Feb 6, 2014 04:11
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Lexicon posted:Amazon's Chase card does exactly this. It's fairly mediocre otherwise, but I keep it simply for travel. They charge spot rate conversions which is virtually unheard of. On the other hand, if you have access to US credit cards then cards with no foreign exchange fees (like, say, the Chase Sapphire Preferred) are really common and have way better rewards. Next time I go back to Canada I'm probably not even going to use my Canadian cards.
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Feb 6, 2014 04:23
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blah_blah posted:On the other hand, if you have access to US credit cards then cards with no foreign exchange fees (like, say, the Chase Sapphire Preferred) are really common and have way better rewards. Next time I go back to Canada I'm probably not even going to use my Canadian cards. Oh yeah, totally. I lived in the US a while back and to this day I still sorely miss the comparatively-huge difference in benefits* afforded to the American consumer in virtually all aspects of the economy. I've kept my Bank of America card active, which I use on occasion when I'm down there - but it's a bit of a hassle to actually pay it if you don't have a paycheque funnelling into an American bank account. *: It doesn't help that the average Canadian would rather be ripped off by a compatriot than offered a good deal by a foreigner, but all of that is a rant for another day. Lexicon fucked around with this message at 17:49 on Feb 6, 2014 |
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Feb 6, 2014 04:33
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So in order to defer some hefty taxes due to a capital gains, today I went and opened a self-directed RRSP account so that I could put some money into TD E-series. Since I was there, I figured I should stop dithering and opened a self-directed TFSA at the same time so I can do some CCP work as well as play with a couple smaller stock trades. Was this a wise plan for someone 24 and making under $40k/yr? VVV: Cap gain was a one-time event in 2013, making the contribution just before the deadline to defer about $1k worth of taxes. Rime fucked around with this message at 23:05 on Feb 6, 2014 |
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Feb 6, 2014 22:49
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Rime posted:So in order to defer some hefty taxes due to a capital gains, today I went and opened a self-directed RRSP account so that I could put some money into TD E-series. Since I was there, I figured I should stop dithering and opened a self-directed TFSA at the same time so I can do some CCP work as well as play with a couple smaller stock trades. Was this a wise plan for someone 24 and making under $40k/yr? If you have the disposable income, there's never a bad time to put money away. e: that said, if you expect your tax rate to be significantly higher in the very near future (say next year due to the cap gains you mentioned), you might be better off saving the RRSP contributions until then. It's a pretty marginal case however.
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Feb 6, 2014 23:02
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Rime posted:So in order to defer some hefty taxes due to a capital gains, today I went and opened a self-directed RRSP account so that I could put some money into TD E-series. Since I was there, I figured I should stop dithering and opened a self-directed TFSA at the same time so I can do some CCP work as well as play with a couple smaller stock trades. Was this a wise plan for someone 24 and making under $40k/yr? I've made my views known on this - I differ from others - but I wouldn't bother with an RRSP at your income level. Save it for when your marginal rate is far higher. If I were in your position - I'd make my priority getting my TFSA maximized. You can still do the CCP stuff in there.
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Feb 6, 2014 23:08
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Rime posted:
In your case the benefits of an RRSP contribution are minimized by your relatively low current tax bracket, so it's not really as attractive.
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Feb 6, 2014 23:52
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Hmm, so you guys think would be best to cancel the RRSP and just pay the outstanding taxes, focusing on the TFSA instead?
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Feb 6, 2014 23:54
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Rime posted:Hmm, so you guys think would be best to cancel the RRSP and just pay the outstanding taxes, focusing on the TFSA instead? If you've already done it, I'd just leave it. Might be more hassle than worth to withdraw the money, etc. If you've opened but not funded, you could always just leave the account open for now as long as there aren't any maintenance or inactivity fees. The thing is, at your marginal rate, the tax on capital gains is low. You'll be paying roughly 10% of your capital gain profit, and that remainder is yours to keep forever. Put that in a TFSA, and the whole thing including its growth is yours to keep forever. Conversely, do the RRSP, and save the 10%. Your entire capital gain profit grows over time, but you'll owe taxes on the full account on withdrawal - and maybe your marginal rate is as high as 30% at that time. Or maybe not. Maybe it's still 10%, and so you'd be slightly ahead. The RRSP really shines when you have a super high marginal rate due to a high salary. You get a massive reduction in tax for that year, and chances are your retirement marginal rate will be lower than your working marginal rate. Moreover, if you contribute now, you're squandering that room in future for when you do have a high salary. Bottom line: it's a complex, nuanced issue. But my position is that people without a high salary are generally far better served by filling a TFSA first. Get that thing packed, fill it every January, and leave it for 40 years... you'll be looking at a serious chunk of change that's all yours and not-taxable.
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Feb 7, 2014 00:27
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That's a fantastic response, thanks! There's an annual fee associated with the RRSP since it's through TD-Waterhouse and I was only planning to put $3000 in it anyways, so I'll likely just cancel it (haven't contributed yet) and bite the taxes instead. I'll spend the next week doing some further reading, have until the end of the month to decide anyways. Rime fucked around with this message at 03:08 on Feb 7, 2014 |
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Feb 7, 2014 00:36
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My student loans are due for repayment in March, and I'm wondering if there's any benefit to reducing my amortization period. The current state of my finances: Loans
$22,780 @ 3% (Alberta, prime) Cash Flow
~$1100 monthly expenses Savings
I almost have a 1-month buffer in YNAB, with some money already built up in categories like Car Maintenance, Medical/Dental, and Fuel. I will certainly be buffered 1-month in advance by March, thanks in part to the tax return I am expecting. My current plan is to aggressively pay down the loan at 5.5%, while making minimums on the 3% loan until then. I plan to continue keeping my expenses low, and apply the same amount I was paying towards the 5.5% loan to the 3% loan once the 5.5% loan is paid off. Because I will be paying down the 5.5% loan aggressively, is there any real benefit to decreasing my amortization period, and increasing my minimum monthly payments? I will be paying well over the minimums, and my loan allows anything over interest to be applied directly to the principal balance. I can make additional payments anytime without penalty. My job is fairly stable, but I figure if I do happen to lose it before paying down the loans, the low monthly payments won't crush me in such an event. Am I thinking this through correctly? I feel like I have a good grasp on my financial situation-- certainly much better than I have ever had in the past, but I would appreciate an outsider's perspective. Grouco fucked around with this message at 04:33 on Feb 7, 2014 |
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Feb 7, 2014 04:30
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Grouco posted:My student loans are due for repayment in March, and I'm wondering if there's any benefit to reducing my amortization period. Yes, of course there is a benefit if you can afford it. Any extra payments you make are an instant 5.5% return.
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Feb 7, 2014 05:07
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Some decent news after logging into TD Web Broker this morning:quote:Starting February 7 – All online and TD app trades for $9.99 flat!
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Feb 7, 2014 16:55
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Clearly a response to RBC's move. I'd love to know the management decision/discussion at RBC behind their initial move. My guess: virtually no-one was paying a $30 commission anyway - anyone with under $50k in assets with the sense to invest was probably using Questrade/e-series, and the rest are clamouring for condos.
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Feb 7, 2014 18:08
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Sorry if this has been asked before, but I'm a little confused. If I can purchase ETFs for free from Questrade, and am investing for retirement, is there any reason for me to consider purchasing index mutual funds? Overall, ETFs just seem like a better deal with the lower MER.
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Feb 9, 2014 06:08
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Grouco posted:Sorry if this has been asked before, but I'm a little confused. If I can purchase ETFs for free from Questrade, and am investing for retirement, is there any reason for me to consider purchasing index mutual funds? Overall, ETFs just seem like a better deal with the lower MER. You are completely correct. This is a very recent situation however.
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Feb 9, 2014 07:05
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Grouco posted:Sorry if this has been asked before, but I'm a little confused. If I can purchase ETFs for free from Questrade, and am investing for retirement, is there any reason for me to consider purchasing index mutual funds? Overall, ETFs just seem like a better deal with the lower MER. If you already do your banking with TD, eSeries index funds are super convenient in my experience, but with TD lowering their trade fees, I'm definitely switching over to ETFs. Free ETF buys from Questrade are attractive, but I've read enough disappointing stories about their service and delays, and have been content enough with TD to stick with for now. On a separate note, how do you guys manage your emergency funds? I have a HISA with CIBC and I've diverted all the funds towards maxing my TFSA, so I'm starting fresh and looking for a better place to stash my cash. The CIBC HISA provides decent interest (1.5%), but that's only when they decide to offer the deal on new balances. Would it be crazy to open a non-registered account, investing in index funds/ETFs, is that just too risky and/or not liquid enough for an emergency fund? I'm leaning towards an ING Direct HISA for this, but I'm interested to know what everyone else here does for an emergency fund.
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Feb 9, 2014 18:18
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Your emergency fund should bring in returns like seatbelts should make your car go faster. Leave it in a saving account, ideally unregistered (You wanna keep that contribution space for something that'll yield a return) and just think of any return you do get as a nice bonus.
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Feb 9, 2014 18:45
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FrozenVent posted:Your emergency fund should bring in returns like seatbelts should make your car go faster. True, though I'd insist on preservation of purchasing power at the very least.
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Feb 9, 2014 19:02
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Lexicon posted:True, though I'd insist on preservation of purchasing power at the very least. You can get a saving account at 1 - 1.5% pretty easily these days, I'd say the liquidity is worth the minute difference between that and purchasing power changes. I'd be extremely leery of anything involving market fluctuation and an emergency fund, but if you have any other high-liquidity guaranteed capital vehicles, go for it.
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Feb 9, 2014 19:04
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