|
Yeah I don't know how I feel about the TFSA. I loved it when it first came out but it's getting to the point where it's going to massively benefit those who can easily afford to pay the tax.
|
#
?
Oct 3, 2014 18:42
|
|
|
|
| # ? May 14, 2024 02:44 |
|
|
Kal Torak posted:Yeah I don't know how I feel about the TFSA. I loved it when it first came out but it's getting to the point where it's going to massively benefit those who can easily afford to pay the tax. Yeah. It's justification on a sound policy basis is sort of predicated on most citizens being not only numerate but financially literate – and it's fairly clear that neither of these things are true for vast swaths of the population, as proven by, among other things, the continued existence of Investors Group as not just a going concern, but a vastly profitable organization. I don't imagine it ever being taken away though, nor do I see any increases in the allowance ever being rolled back. These sort of things have a pretty profound 'ratchet-effect'. edit: Christ, they're adding an adult fitness tax credit also. Lexicon fucked around with this message at 20:29 on Oct 3, 2014 |
|
#
?
Oct 3, 2014 19:07
|
|
|
Plus income splitting and reducing marginal rates  As the sole earner in a family that just had my first child all these changes are things that would hugely benefit me. And to echo Lexicon's sentiments, I personally would love the thousands of bucks a year this would save me, but can't help but feel
|
|
#
?
Oct 3, 2014 23:30
|
|
|
My g/f says she'll believe it when she sees it. These tfsa rumours come out every year.
|
|
#
?
Oct 3, 2014 23:41
|
|
|
Cultural Imperial posted:My g/f says she'll believe it when she sees it. These tfsa rumours come out every year. No, that's incorrect. Harper's government has said all along that it will only happen once the budget is balanced and have been targeting this next one from the start as it is an election budget.
|
|
#
?
Oct 4, 2014 00:11
|
|
|
How do RESP withdrawls work? I was talking with a bud about paying for future kid's school, etc. and he had a really good idea of having the kid pay for post-secondary upfront, and then reimbursing the kid upon good grades. Would that be something you can do with RESPs?
|
|
|
#
?
Oct 6, 2014 15:18
|
|
|
reflex posted:How do RESP withdrawls work? I was talking with a bud about paying for future kid's school, etc. and he had a really good idea of having the kid pay for post-secondary upfront, and then reimbursing the kid upon good grades. Would that be something you can do with RESPs? What does your friend intend to do if the kid gets bad grades? If he wanted to withdraw for his own reasons/use and not reimburse his kid he'd only have access to his contributions, not any of the interest or educational grants, which is the whole point of the RESP. An RESP is actually 3 different accounts presented as one - the first is your contributions, the second is any grant contributions the government makes, and the third is interest on either of those. He'd totally lose the second and third piles of money. In essence it means any of his contributions didn't even keep up with inflation, in that scenario. It's a pretty dumb idea financially, but I understand the motivation as a parent. Saltin fucked around with this message at 20:25 on Oct 6, 2014 |
|
#
?
Oct 6, 2014 20:23
|
|
|
reflex posted:How do RESP withdrawls work? I was talking with a bud about paying for future kid's school, etc. and he had a really good idea of having the kid pay for post-secondary upfront, and then reimbursing the kid upon good grades. Would that be something you can do with RESPs? This strikes me as a stupid idea. RESPs are designed for educational expenses period - there's no way to withhold them as an incentive. Even posing this question is rather clear (albeit-anecdotal) evidence of the creeping-high-schoolification of higher-ed.
|
|
#
?
Oct 6, 2014 20:41
|
|
|
He didn't mention RESPs at all--I'm just branching out to see if such a thing would be possible with RESPs because I agree with him in not blindly paying for a kid's post secondary. And clearly it's not.
|
|
|
#
?
Oct 6, 2014 21:02
|
|
|
Lexicon posted:Even posing this question is rather clear (albeit-anecdotal) evidence of the creeping-high-schoolification of higher-ed. Yeah this whole idea is very  to me as well. reflex posted:He didn't mention RESPs at all--I'm just branching out to see if such a thing would be possible with RESPs because I agree with him in not blindly paying for a kid's post secondary. And clearly it's not. You could just pay after their graduation out of a standard account. Or handle the down payment on their house for them.
|
|
#
?
Oct 6, 2014 21:18
|
|
|
Some good news today: Vanguard is lowering Management fees on 11 of their 21 ETFs quote:Management fees on 11 of Vanguard Investments Canada Inc.'s 21 exchange-traded funds, already cheap, have just become cheaper. In announcing the extensive fee cuts effective today, Vanguard threw down the gauntlet to its ETF rivals and to the Canadian fund industry as a whole.
|
|
#
?
Oct 7, 2014 20:22
|
|
|
Took long enough. Damned if that extra 10 bucks a year wasn't putting me in the poor house!
|
|
#
?
Oct 8, 2014 03:40
|
|
|
reflex posted:He didn't mention RESPs at all--I'm just branching out to see if such a thing would be possible with RESPs because I agree with him in not blindly paying for a kid's post secondary. And clearly it's not. If you want to bring a kid into the world you should expect to pay for their post-secondary education (presumably you should also raise them well enough that they care about said post-secondary education as well).
|
|
#
?
Oct 8, 2014 10:34
|
|
|
Here's a question I've been puzzling over that I can't seem to google a straight answer for. If I have $31,000 in a TFSA (using all of my contribution room to date), what happens in the following scenarios: 1. I somehow manage to invest it all in a stock that crashes, ending up with $0. In that case, is that the end of the story (i.e. I have used all of my contribution room and through my own bad investing I have $0 and cannot contribute again until 2015 where I can add another $5,500)? 2. I invest wisely and grow it to $60,000 and withdraw it all in 2014 to buy a boat. In 2015 I win the lottery ($1,000,000). How much can I put into my TFSA in 2015? Just $36,500, or $65,500 (because I had $60,000 in there at time of withdrawal and want to bring it back up to par). Not that my investments will do either of these things - just curious what the ramifications are for contributions with respect to major gains/losses.
|
|
#
?
Oct 8, 2014 13:34
|
|
|
Aagar posted:Here's a question I've been puzzling over that I can't seem to google a straight answer for. If you deposit $31,000 and the value goes to $1 then you withdraw it, then your contribution limit is $1. If you deposit $31,000 and the value goes to $62,000 and you withdraw it, then your contribution limit is $62,000. Mind you that contribution limit will be set the following calendar year and doesn't include that year's space. So basically, don't gamble in your TFSA.
|
|
#
?
Oct 8, 2014 13:51
|
|
|
Aagar posted:Here's a question I've been puzzling over that I can't seem to google a straight answer for. 1) Your total contribution room in 2015 would be $5,500 2) $65,500 There are specific high risk/home run strategies some people use in the TFSA in order to generate higher contribution space. High risk, high reward - probably not for the average investor.
|
|
#
?
Oct 8, 2014 14:48
|
|
|
There's an even worse degenerate case than losing all your room: you way over contribute (50k) say, gamble on a stock, and lose it all. Not only have you lost your room, but you owe the CRA an overcontribution penalty until you withdraw the excess (which you cannot do). If ever there were a place to do vanilla indexing, it's the TFSA, IMO.
|
|
#
?
Oct 8, 2014 15:17
|
|
|
Lexicon posted:There's an even worse degenerate case than losing all your room: you way over contribute (50k) say, gamble on a stock, and lose it all. Not only have you lost your room, but you owe the CRA an overcontribution penalty until you withdraw the excess (which you cannot do). Are you sure they'd even let you keep contribution room that came as a result of growth on over contribution? Seems like a loophole if so - a risky one for sure.
|
|
#
?
Oct 8, 2014 15:59
|
|
|
Saltin posted:Are you sure they'd even let you keep contribution room that came as a result of growth on over contribution? Seems like a loophole if so - a risky one for sure. Yeah, they would unless you deliberately overcontributed with the sole purpose of gaining an advantage. The CRA has specific rules on this if that happens. But for the normal person who does it accidentally, when you overcontribute, you pay a 1% penalty per month at the highest excess amount during that month. You then have two options. Either withdraw the excess amount, or continue to pay the 1% penalty until the new contribution room puts you back on side. Kal Torak fucked around with this message at 16:20 on Oct 8, 2014 |
|
#
?
Oct 8, 2014 16:18
|
|
|
Saltin posted:Are you sure they'd even let you keep contribution room that came as a result of growth on over contribution? Seems like a loophole if so - a risky one for sure. I imagine the CRA would balk at letting you keep the room if you happened to over-contribute deliberately and hit it big on a risky stock. It may well be an actual loophole though - a lot of the rules around TFSA, hell even the name of the vehicle, don't seem particularly well thought through.
|
|
#
?
Oct 8, 2014 16:31
|
|
|
The CRA has very specific rules on gaining an advantage through deliberate overcontribution. It could result in 100% tax on the full amount of the benefit: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/tfsa-celi/txtn/vntg-eng.html
|
|
#
?
Oct 8, 2014 16:36
|
|
|
Kal Torak posted:The CRA has very specific rules on gaining an advantage through deliberate overcontribution. My lawyerese is very poor, but my reading from that is that they do indeed balk at extending TFSA room for deliberate overcontribution?
|
|
#
?
Oct 8, 2014 16:39
|
|
|
Lexicon posted:My lawyerese is very poor, but my reading from that is that they do indeed balk at extending TFSA room for deliberate overcontribution? I'm not really sure what you are asking? If you overcontribute deliberately and gain an advantage, they are going to make you withdraw the full amount of the overcontribution and benefit as well as charge you 100% tax on the benefit. In this specific case, you would not be eligible to add these withdrawals to your contribution room.
|
|
#
?
Oct 8, 2014 16:52
|
|
|
Kal Torak posted:I'm not really sure what you are asking? If you overcontribute deliberately and gain an advantage, they are going to make you withdraw the full amount of the overcontribution and benefit as well as charge you 100% tax on the benefit. In this specific case, you would not be eligible to add these withdrawals to your contribution room. Ok, thanks.
|
|
#
?
Oct 8, 2014 17:01
|
|
|
I'm in a position in my portfolio where I'm up $X across several ETFs, and down roughly $X in one ETF. Would it make sense to harvest the loss in the down ETF, rebuy a correlated asset (but one that doesn't track the same index to stay clear of the superficial loss rule), and also sell and then rebuy the gain ETFs (no need to worry about superficial gain/loss in these scenario)? The effect would be that my position stays the same, but I manage to wipe out any capital gain liability in the positive ETFs. In effect, I 'start from scratch' as far as my basis is concerned. Thoughts? Does this strategy make sense in a high income year versus a low income year? (This is a non-registered account by the way)
|
|
#
?
Oct 9, 2014 23:55
|
|
|
reflex posted:National Post is reporting Harper is going to jack up the TFSA limit to $10g/year. Party time! Well, there goes my budget. I'll have to really get my points together come review and raise time. Also whats sending the markets down the last few days? I've actually hit negative returns.
|
|
#
?
Oct 10, 2014 19:17
|
|
|
Golluk posted:Well, there goes my budget. I'll have to really get my points together come review and raise time. For the markets in general, it's probably just a healthy pullback. For energy, it's due to the oil price getting crushed.
|
|
#
?
Oct 10, 2014 19:31
|
|
|
So I finally got a letter from TD saying they can't make my e-fund account because of missing info. The bank lady forgot to put my email in, so I had to write my email address down and put it in their provided return envelope and mail it off all the way back to Toronto. Why this signup isn't online is far far beyond my comprehension.
|
|
#
?
Oct 10, 2014 19:37
|
|
|
Baronjutter posted:So I finally got a letter from TD saying they can't make my e-fund account because of missing info. The bank lady forgot to put my email in, so I had to write my email address down and put it in their provided return envelope and mail it off all the way back to Toronto. Why this signup isn't online is far far beyond my comprehension. Because banks be banks! They are going to get eaten alive in the decade to come if they don't get with the times. The boomers might be willing to deal with paper, but no one under 35 is. You can already see outfits like Square, Wealthfront, etc starting to move into what really should be their territory.
|
|
#
?
Oct 10, 2014 19:40
|
|
|
Golluk posted:Also whats sending the markets down the last few days? I've actually hit negative returns. Here's your occasional thread reminder that you should be overjoyed about down markets unless you're retired 
|
|
#
?
Oct 10, 2014 19:41
|
|
|
Has anyone tried cashing in Airmiles recently? Holy gently caress that place has become a graveyard of awful poo poo that you wouldn't take for free. I couldn't find a single thing worth ordering (my usual strategy is to order gift cards, e.g. Costco, that I'd be spending anyway). There's not even skiing tickets anymore.
|
|
#
?
Oct 10, 2014 19:45
|
|
|
Lexicon posted:Here's your occasional thread reminder that you should be overjoyed about down markets unless you're retired I'd definitely be overjoyed if I had some cash on the sidelines. In the mean time, watching my portfolio go down is a good lesson in "stay the course."
|
|
#
?
Oct 10, 2014 19:47
|
|
|
Lexicon posted:Has anyone tried cashing in Airmiles recently? Holy gently caress that place has become a graveyard of awful poo poo that you wouldn't take for free. I couldn't find a single thing worth ordering (my usual strategy is to order gift cards, e.g. Costco, that I'd be spending anyway). There's not even skiing tickets anymore. Airmiles and aeroplan both suck royally. Hate both of them with a passion.
|
|
#
?
Oct 10, 2014 19:55
|
|
|
Kal Torak posted:Airmiles and aeroplan both suck royally. Hate both of them with a passion. Yeah, booking travel with aeroplan is comically awful. A few months ago I actually cashed all mine out for an Air Canada gift card - at least then I might get to use them.
|
|
#
?
Oct 10, 2014 20:08
|
|
|
Grouco posted:I'd definitely be overjoyed if I had some cash on the sidelines. In the mean time, watching my portfolio go down is a good lesson in "stay the course." I know it's usually not recommended to hold cash, but I've been hesitant to put more into my RRSP until I get firm details on my employer matching. I only want to put in what they'll match to my RRSP, the rest into my TFSA. Which leaves me with 2:1 ratio of cash to index funds. 2% drop isn't giving me regrets so far.
|
|
#
?
Oct 10, 2014 23:34
|
|
|
Something I ran into this month - Questrade doesn't accept transfers unless the name on the recipient account matches the name of the donor account. Apparently it's some sort of anti fraud measure, or at least that's what they're telling me. I've had a few grand in limbo the past couple weeks trying to make a spousal TFSA contribution, and the bank is saying it'll be another 2-3 weeks to investigate and reverse the transfer. I can't be too miffed because they effectively saved me a couple hundred bucks with the down markets, but its something I'll definitely watch for next time.
|
|
#
?
Oct 11, 2014 01:55
|
|
|
.
melon cat fucked around with this message at 04:25 on Mar 16, 2019 |
|
#
?
Oct 11, 2014 02:21
|
|
|
Guest2553 posted:Something I ran into this month - Questrade doesn't accept transfers unless the name on the recipient account matches the name of the donor account. Apparently it's some sort of anti fraud measure, or at least that's what they're telling me. I've had a few grand in limbo the past couple weeks trying to make a spousal TFSA contribution, and the bank is saying it'll be another 2-3 weeks to investigate and reverse the transfer. That sucks. I use questrade as an intermediary to transfer money for free from my crappy bank accounts to the glory that is Tangerine via bill-pays. (Interac E-transfers cost money and I'm cheap!) (My direct deposit has been going to other banks for their sign up promos for the last few months now)
|
|
#
?
Oct 11, 2014 02:42
|
|
|
rhazes posted:That sucks. I use questrade as an intermediary to transfer money for free from my crappy bank accounts to the glory that is Tangerine via bill-pays. (Interac E-transfers cost money and I'm cheap!) (My direct deposit has been going to other banks for their sign up promos for the last few months now) It's a new thing according to them, which is why I never had a problem before. Not sure how I'm gonna get around it yet since the bank I use has no local branches within 1500km of me.
|
|
#
?
Oct 11, 2014 03:14
|
|
|
|
| # ? May 14, 2024 02:44 |
|
|
Guest2553 posted:It's a new thing according to them, which is why I never had a problem before. Not sure how I'm gonna get around it yet since the bank I use has no local branches within 1500km of me. It's not too new, actually. My dad had this issue when he gave my brother some money to invest in his TFSA last december.
|
|
#
?
Oct 11, 2014 17:00
|
|