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Golluk posted:I was about to jokingly say welcome to the 1%, except going by that your in the 0.8% percent if you do... It's getting easier and easier passing on a new(er) motorcycle in favor of saving more. I hope for a
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Feb 28, 2014 05:01
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tuyop posted:Wait, less than 240 000 Canadians have maxed out their TFSAs? Wow, am I ever struggling with math on these forums today. I have no idea how you got to that 240K number.
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Feb 28, 2014 05:53
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Kal Torak posted:The TFSA has been around for 5 years now and the CRA has waived the penalties for pretty much everyone who has bothered to make the request. I don't know how you can take issue with something like that. Calling it a tax grab is pretty ridiculous since it costs the Federal Government millions every year (66 billion is currently sheltered tax free in these accounts) and is really the exact opposite of a tax grab. I can take issue with a penalty that even the government itself doesn't seem to take seriously if all anyone needs to do is say "my bad" and it's waived. What's the point then? And the tax grab was specifically about the penalty not the TFSA overall.
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Feb 28, 2014 06:06
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Lobok posted:I can take issue with a penalty that even the government itself doesn't seem to take seriously if all anyone needs to do is say "my bad" and it's waived. What's the point then? And the tax grab was specifically about the penalty not the TFSA overall. You're kind of all over the place. In one post you say there should be a relaxing of the rules and then in another post you take issue with them waiving the penalties. And if it's a tax grab, why are they so quick to waive these penalties? Who's being contradictory now? The Government understands there has been serious confusion about this issue and many people received bad advice. The penalty was put in place when the legislation was written as there needs to be some deterrent to prevent over-contributions. It's basically the same penalty that exists for RRSP over-contributions. So they have done exactly what you asked for and relaxed the rules by waiving penalties for those who request it.
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Feb 28, 2014 06:16
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Kal Torak posted:Wow, am I ever struggling with math on these forums today. I have no idea how you got to that 240K number. Total amount invested/(annual TFSA contribution * years of TFSA) Should show how many units of investors have produced that 66bil number, right? That may be completely the wrong way to do it, but it's a quick overestimate. Obviously every single person in Canada hasn't had max contribution room the whole time. I was just doing it for fun.
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Feb 28, 2014 16:08
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tuyop posted:Total amount invested/(annual TFSA contribution * years of TFSA) Okay but 66B divided by 31K is not 240K.
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Feb 28, 2014 16:19
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tuyop posted:Total amount invested/(annual TFSA contribution * years of TFSA) I figured as such, but then I think your of by a factor of 10. The max you could have put in so far is 25,500. 66b / 22.5k = 2.6 million possible max contributions. And that assumes no gains and only max contributors. Welcome to the 10% ? Edit: I think I'm off by a year, but that was last year's data I assume. 2.1m = 66b / 31k Golluk fucked around with this message at 16:22 on Feb 28, 2014 |
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Feb 28, 2014 16:19
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Golluk posted:I figured as such, but then I think your of by a factor of 10. The max you could have put in so far is 25,500. 66b / 22.5k = 2.6 million possible max contributions. And that assumes no gains and only max contributors. Yeah that's exactly what I did. I read the number wrong.  Edit: and I actually have nothing in my TFSA. Maxing it out is my 12 to 18-month goal.
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Feb 28, 2014 16:33
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tuyop posted:Yeah that's exactly what I did. I read the number wrong. The contribution limit was 5K from 2009 through 2012. It is 5500 for 2013 and 2014 (31K total). Only 48% of Canadians have a TFSA according to the globe & mail. That actually isn't bad...I would have thought it was less than that considering the price of real estate and amount of consumer debt. I imagine the percentage of those who have actually maxed it out is pretty drat low.
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Feb 28, 2014 16:44
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I just wanted to add-on to the previous conversation we had about how bad financial "advisors" can be at Canadian FIs: CBC Marketplace just did an undercover investigation on them. Just watching it made me angry because I've had to work with people like them. Summary: There are plenty of advisors who talk straight out of their asses. Kal Torak posted:Only 48% of Canadians have a TFSA according to the globe & mail. That actually isn't bad...I would have thought it was less than that considering the price of real estate and amount of consumer debt. I imagine the percentage of those who have actually maxed it out is pretty drat low. melon cat fucked around with this message at 17:36 on Feb 28, 2014 |
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Feb 28, 2014 17:33
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melon cat posted:I just wanted to add-on to the previous conversation we had about how bad financial "advisors" can be at Canadian FIs: CBC Marketplace just did an undercover investigation on them. Just watching it made me angry because I've had to work with people like them. It wasn't until this thread that I learned you could use a TFSA as more then just a savings account with a slightly better interest rate. There is not a lot of information floating around about them, and banks just push the savings accounts.
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Feb 28, 2014 18:10
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Demon_Corsair posted:It wasn't until this thread that I learned you could use a TFSA as more then just a savings account with a slightly better interest rate. There is not a lot of information floating around about them, and banks just push the savings accounts. I really didn't either, and I admit that while I know I can place investments in it, I'm not actually sure exactly how yet. I assume it can be done through TD's web account management though.
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Feb 28, 2014 18:18
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Golluk posted:I really didn't either, and I admit that while I know I can place investments in it, I'm not actually sure exactly how yet. I assume it can be done through TD's web account management though. If you have a regular savings account you have to convert it to a mutual funds TFSA or open a new account and close the old one. You will definitely have to go in and make an appointment since the tellers can't do poo poo.
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Feb 28, 2014 18:48
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Demon_Corsair posted:If you have a regular savings account you have to convert it to a mutual funds TFSA or open a new account and close the old one. That part I understand. It's how you then convert money in the account to shares in an index fund. Though I expect it's a fairly straight forward process if buying the TD e-series via thier easy web site.
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Feb 28, 2014 20:23
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Golluk posted:That part I understand. It's how you then convert money in the account to shares in an index fund. Though I expect it's a fairly straight forward process if buying the TD e-series via thier easy web site. Best is to make a TFSA account at Waterhouse. They should transfer the funds for free and you can then buy mutual funds or etfs, or even buy other securities directly if you so choose.
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Feb 28, 2014 22:29
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I've been using PC financial chequing account, so I opened a "high" interest savings account for short term savings/emergency funds. The guy was about to sign me up for a tax free account as well, which I declined. This does bring up the question of can you have multiple TFSA so long as your total contributions to each don't go over your limit? It seems the CIBC index funds would do, but I'm not sure about the fees compared to TD Waterhouse. And the answer is terrible. http://canadiancouchpotato.com/2010/10/08/index-funds-from-pc-financial-no-thanks/
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Mar 1, 2014 20:29
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Golluk posted:This does bring up the question of can you have multiple TFSA so long as your total contributions to each don't go over your limit? Absolutely - not a problem, though it's wise to maintain a spreadsheet record with your contributions.
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Mar 1, 2014 20:43
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Can I ask a Canadian income tax question here? If so - read below please! My employer pays a portion of my tuition, so I will be claiming the difference between the amount I paid, and the amount they reimbursed. Because I was earning money during this time as well, I will also use "0" months so that I don't receive a benefit because I was working/reimbursed (spoke to someone at the CRA who told me to do this) What I'm wondering is this: Will my employer add the reimbursed amount to my 2014 T4 as a taxable benefit or other income? My t2202A was issued for the 2013 tax year, but I was reimbursed in 2014. Is this an issue? Will it also be an issue if my 2014 reimbursement also occurs in 2014? They only reimburse up to a certain amount, and because Fall 2013 was my first term, I wasn't able to get the paperwork in until January 2014. Hope this makes sense! I'd like to get boned as little as possible.
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Mar 1, 2014 22:00
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Shazbot v2.0 posted:Can I ask a Canadian income tax question here? If so - read below please! Wait you don't get the monthly deduction if you're working? Even if you're studying part time?
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Mar 1, 2014 22:20
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FrozenVent posted:Wait you don't get the monthly deduction if you're working? Even if you're studying part time? You don't get it if you were reimbursed for your tuition: You cannot claim the education amount if you: - received a grant or were reimbursed for the cost of your courses by your employer or another person with who you deal at arm's length; - received a benefit as part of a program (such as free meals and lodging from a nursing school); or - received an allowance for a program such as a training allowance.
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Mar 1, 2014 23:30
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Shazbot v2.0 posted:Can I ask a Canadian income tax question here? If so - read below please! Honestly, you should probably ask your employer this question. But generally, provided the courses are directly related to your job, it would not be a taxable benefit. From the CRA website: quote:For example, tuition fees and other associated costs such as books, meals, travel, and accommodation that you pay for courses leading to a degree, diploma, or certificate in a field related to your employee's current or future responsibilities in your business are not a taxable benefit. The timing of your reimbursements is irrelevant.
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Mar 1, 2014 23:36
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Shazbot v2.0 posted:School stuff. I am in a very similar situation myself, but with the added twist of studying in the US. I'm thinking it will be easiest for me to just eat the loss of what works out to maybe a few hundred dollars instead of having my anus probed by the taxman if I did something wrong.
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Mar 2, 2014 00:55
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Thanks for the tax tips. I will wait to see what my employer says, but like you say it shouldn't be a taxable benefit. And the timing being irrelevant is a relief, thanks again!
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Mar 2, 2014 18:02
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tuyop posted:I hope for a Sale day today!!
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Mar 3, 2014 20:34
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Lexicon posted:Sale day today!! Ugh but all my money is tied up in plane tickets. 
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Mar 3, 2014 23:26
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Questions about stock purchase plans and TFSA : I have an employer stock purchase plan and try to maximize my contributions each year. If I put in the maximum $8,000 contribution, my employer puts $1,100 in. After the purchases go through the plan's broker, I immediately withdraw most of my own and employer's contributions and put them back in my savings, leaving a small amount to accumulate tiny dividends over time. This money shuffle takes about a month after all transactions are complete. I was talking with a bank advisor and they mentioned it is possible to transfer my holdings to a TD Waterhouse TFSA account afterwards. Even though it is effectively a transfer, I'd be selling my stocks and re-buying them through TD Waterhouse so I would also have to report capital gains for that year if there were any. I was wondering if this is true and if I should be doing this or something more productive with the money.
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Mar 3, 2014 23:44
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rt_hat posted:Questions about stock purchase plans and TFSA : Yes, that is true. Anytime you transfer from non-registered to registered (TFSA or RRSP) you would have to declare any capital gain. The only issue here is that if you transfer the holdings at a loss, the loss is actually a superficial loss and denied. So don't transfer any equities into a TFSA at a loss.
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Mar 3, 2014 23:54
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^ Possibly, but sounds to me like it could be fraught with fuckup opportunities. In general, you want to be careful with TFSA contributions in case you exceed the limit. In your position, I'd: 1) Keep accepting the free money, and then withdrawing it (because you want to diversify your wealth away from your employment - stupid to own a large amount of your own employer's shares) 2) Separately, with those funds if necessary, work towards a goal of getting your TFSA fully-funded. Contribution room is potentially as high as $31,000 this year (so long as you meet various criteria). Keep track of your contributions.
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Mar 3, 2014 23:56
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tuyop posted:Ugh but all my money is tied up in plane tickets. So ... you're hoping for a stock crash but you don't have significant assets to invest if that were to happen? It doesn't really sound like you've thought this through very well.
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Mar 4, 2014 00:08
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blah_blah posted:So ... you're hoping for a stock crash but you don't have significant assets to invest if that were to happen? It doesn't really sound like you've thought this through very well. I do, but my pension fund is dragging their feet on transferring my money so it's not liquid yet. My liquid assets are, basically, savings for plane tickets and expense buffers at this point. Not really investable poo poo, you know? I'm not going to try to time the market like that anyway, it was a joke. But not really.
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Mar 4, 2014 00:19
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blah_blah posted:So ... you're hoping for a stock crash but you don't have significant assets to invest if that were to happen? It doesn't really sound like you've thought this through very well. I think you're taking the remark way more seriously than it should sensibly be interpreted.
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Mar 4, 2014 00:36
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So I literally bought at the worst possible time when everything was within a few cents of the 52 week high but since everything's going down it just means it's time to buy more  I'm starting to sound like a gambling addict I used to work with...Anyways, my spending is pretty controlled so I think I might be able to max out my TFSA in the next couple of months (I started the year with 500 in it  ) I'm now crunching the numbers on whether I should start to contribute to an RRSP or max out my wife's TFSA. I'm half considering retiring early (between 40-45) and living simply so RRSP contributions might be worth it again.Decisions! fakedit: also pimco is forecasting a 20% correction in housing guess that might be a realistic option for me in the next decade.
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Mar 4, 2014 00:49
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Guest2553 posted:So I literally bought at the worst possible time when everything was within a few cents of the 52 week high but since everything's going down it just means it's time to buy more Retiring at 40 means you would need sufficient funds for like 50 years. That's a lot of $$.
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Mar 4, 2014 01:06
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Kal Torak posted:Retiring at 40 means you would need sufficient funds for like 50 years. That's a lot of $$. Now you've done it. You've summoned the FI spergs.
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Mar 4, 2014 01:09
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I know there are a lot of people in this thread who dislike market timing approaches to investment, and mostly they are correct to do so because this thread is an AT, but I find with index funds it is completely possible to use Value Averaging as a technique and for me it works more effectively than Dollar Cost Averaging. I say I only apply it to big index ETFs because broadly speaking it is more reasonable to estimate your expected return over a long timespan, and that is a variable you need to be comfortable plugging in to value average properly. Saltin fucked around with this message at 01:24 on Mar 4, 2014 |
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Mar 4, 2014 01:18
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What sort of brokerage are you working through to not be getting destroyed by transaction fees? re: early retirement - it really depends on if the defined benefit pension still exists by the time I sign the contract. If so, between that and investments and other pet projects I should be alright. If not, I'll need to start selling a lot of bodily fluids to make up the difference!
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Mar 4, 2014 01:26
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Guest2553 posted:What sort of brokerage are you working through to not be getting destroyed by transaction fees? Well if you can do it, good for you. But to go 50 years...wow...you'd need a couple mil at least I think.
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Mar 4, 2014 01:58
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Kal Torak posted:Well if you can do it, good for you. But to go 50 years...wow...you'd need a couple mil at least I think. With my spending it could be done on half to 3/4 of a million. I'll run some numbers and throw it in the FI megathread to keep derails to a minimum here.
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Mar 4, 2014 02:06
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Kal Torak posted:Well if you can do it, good for you. But to go 50 years...wow...you'd need a couple mil at least I think. Just multiply annual spending by 20. Assume a 5% safe withdrawal rate. Market returns across that 50 years will make it work. No additional derail necessary, nothing to see here!
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Mar 4, 2014 03:55
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Lexicon posted:I think you're taking the remark way more seriously than it should sensibly be interpreted. I dunno, maybe I'm projecting but I've definitely heard lots of people complain about missing out on the bull market of the last few years and who are basically hoping for another market crash so that they can get in on the rebound.
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Mar 4, 2014 05:05
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