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Could someone provide a link or explanation as to the most efficient way to liquidate/buy new positions to maximize tax advantages in TFSAs?
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Dec 12, 2014 00:20
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Corrupt Cypher posted:Could someone provide a link or explanation as to the most efficient way to liquidate/buy new positions to maximize tax advantages in TFSAs? Sure 1. Buy things which will yield capital gains or dividends 2. Earn those capital gains or dividends 3. Thanks to it being a TFSA, you don't owe tax on the outcome of step (2) What, specifically, are you asking? Absurdly broad question
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Dec 12, 2014 00:26
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Lexicon posted:Sure Also, USD assets that yield dividends held in a TFSA are subject to withholding tax so you probably don't want to put them there if your savings strategy lets you put them in your RRSP.
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Dec 12, 2014 00:48
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Mantle posted:Also, USD assets that yield dividends held in a TFSA are subject to withholding tax so you probably don't want to put them there if your savings strategy lets you put them in your RRSP. This was the sort of thing I was talking about. It seems like there's a few rules with the way the cap space works that can be optimized from some of the things I've read in here. Let's say you buy $5000 worth of a mutual fund January 1st 2014 and it loses $500 of its value that year. You liquidate your loss December 24th 2014 to lock in that loss. Do you get any cap space back? Am I overthinking this? I just see a lot of posts about "harvesting losses" and want to make sure I'm not missing out on any gains. So far my strategy has been to buy ETFs couch potato style and let them sit there, but it seems like strategic rebalancing can be used for tax advantage.
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Dec 12, 2014 07:20
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The flipside to 'no tax on gains' is 'no harvesting of losses'. There's no way to recover lost contribution room if the value of assets decline. If you're at the point where you have multiple investment accounts, keep Guest2553 fucked around with this message at 21:54 on Oct 29, 2018 |
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Dec 12, 2014 10:31
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Let's talk RESPs. I just moved all the money into a self-directed account, and am trying to figure of how to distribute it. The boys are 4 now, so another 13 years and we'll (probably) be withdrawing for education. I'm thinking safer is better? Maybe a 60/40 bond/stock split: 30-40% ETF bond fund 20-30% ETF Corporate bond fund 10% ETF S&P 500 10% ETF international 10% ETF S&P/TSX 5% ETF REIT 5% ETF Energy sector Figure maybe now is a good time to get into energy with the fire sale going on, but if it tanks it's only 5%. Any thoughts?
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Dec 12, 2014 15:42
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Quick question, and sorry if this is the wrong thread (probably is), but it's Canada related; I was recently a victim of credit card fraud, somebody made a $3000 giftcard purchase in Calgary using my credit card. I've never been to Calgary, never had that much debt on my credit card (let alone made a single purchase of that size), and only found out about it 2 days after the purchase was made when I happened to check my balance online. Seems like an oversight by the credit card company, but whatever. I quickly contacted the bank and had the charges removed and my credit card cancelled, so I thought the problem would end there. How ever recently I got a voicemail from a collection agency talking about me repaying that full $3000. My understanding is that I have no legal obligation to pay anything, am I correct in thinking that? And how should I deal with this collection agency?
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Dec 17, 2014 21:45
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Ervin K posted:Quick question, and sorry if this is the wrong thread (probably is), but it's Canada related; I was recently a victim of credit card fraud, somebody made a $3000 giftcard purchase in Calgary using my credit card. I've never been to Calgary, never had that much debt on my credit card (let alone made a single purchase of that size), and only found out about it 2 days after the purchase was made when I happened to check my balance online. Seems like an oversight by the credit card company, but whatever. I quickly contacted the bank and had the charges removed and my credit card cancelled, so I thought the problem would end there. How ever recently I got a voicemail from a collection agency talking about me repaying that full $3000. My understanding is that I have no legal obligation to pay anything, am I correct in thinking that? And how should I deal with this collection agency? How would a collection agency have gotten this debt? Seems odd to me...
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Dec 17, 2014 22:20
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They said they were calling on behalf of the company from which the purchase was made, which is Flight Centre. Also I just listened to the voice mail again and the guy said that the credit card was fraudulent and in the very next sentence he referred to the purchase as a purchase that I made, which makes no sense.
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Dec 17, 2014 22:30
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Ervin K posted:They said they were calling on behalf of the company from which the purchase was made, which is Flight Centre. Also I just listened to the voice mail again and the guy said that the credit card was fraudulent and in the very next sentence he referred to the purchase as a purchase that I made, which makes no sense. I'd call them back and try to get it sorted out. When my identity was stolen a few years ago I had to go through the process of talking to collectors and dealing with all kinds of crap. Usually I had to provide proof to the credit agency that my identity was stolen (police report, credit card letters, etc.) for them to wipe the debt.
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Dec 17, 2014 22:32
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I'd be really cautious before speaking to the collections agency. If the thieves got your card info it's just as possible they got other personal details and could be trying to hit you again. I'd speak to the credit card issuer first and find out where they are at. Assuming they haven't referred you to collections (why would they), they'll probably want the info of the 'collections agency' to report to the police for fraud. If it is in fact the travel place, the credit card company can deal with them too - it's their fault for not verifying ID, not yours.
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Dec 17, 2014 23:07
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Kalenn Istarion posted:I'd be really cautious before speaking to the collections agency. If the thieves got your card info it's just as possible they got other personal details and could be trying to hit you again. I'd speak to the credit card issuer first and find out where they are at. Assuming they haven't referred you to collections (why would they), they'll probably want the info of the 'collections agency' to report to the police for fraud. If it is in fact the travel place, the credit card company can deal with them too - it's their fault for not verifying ID, not yours. This is almost certainly what is happening. If the bank/credit people told you the charges were removed that's the end of your obligation. They would have dealt with the vendor.
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Dec 18, 2014 15:24
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Aagar posted:Let's talk RESPs. I'd 100/0 stock/bond split this and readjust a few years out from withdrawals.
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Dec 19, 2014 22:57
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Hey all - so I currently have $15,000 I dumped into the CCP model portfolio for e-series with the 20/20/20/40 split, and will have another $10,000 I can invest right at the beginning of the year (I emptied my TFSA to nuke my student loans so I have been unable to invest for 2014). I was thinking of going a bit more heavy on the stock side of things as well as concentrating further on US/international equity since I have been getting somewhat anxious over Canada's situation re: oil & housing. Anyone have any input as to any alternatives they'd consider? I like TD's returns on its small cap funds (strong performance over 20+ years but with a 2.5% MER) and don't seem to have a good way to get that exposure through e-series. I do not really have any major looming financial goals, I intend to keep an $8,000 safety net in case I lose my job (lots of layoffs due to oil freezes, I work in construction but 1/3 of our work is oil & gas related) and need to hang on for a few months. I'm single, 23, and other than rent and maybe a trip to Iceland later this summer I don't have any looming deadlines. Between work matching/free contributions and my own I contribute a full 18% to my RSP in a separate Manulife account (not ideal, but if I contribute 8%, I get 10% from my workplace).
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Dec 31, 2014 05:38
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Happy TFSA expansion day!
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Jan 1, 2015 18:51
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Lexicon posted:Happy TFSA expansion day! 
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Jan 1, 2015 19:04
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Glad to know of this thread. I really need to improve my financial knowledge--just thinking of the annual RRSP contribution deadline gets me hyperventilating.
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Jan 1, 2015 19:41
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Bilirubin posted:Glad to know of this thread. I really need to improve my financial knowledge--just thinking of the annual RRSP contribution deadline gets me hyperventilating. I've never understood this sentiment - what does this arbitrary deadline have to do with anything (unless you are in the subset of people that are already in a high tax bracket and need to defer tax on a certain percentage of your income in the highest bracket)? I'm not even sure my argument in brackets is valid, but it's bandied about a lot. http://www.theglobeandmail.com/glob...rticle17164561/ If you want to hyperventilate, think about how under the current RRIF withdrawal rules there is a good chance you will burn through your savings before you die. Of for that matter how hard they screw you depending on how much earlier you wish to withdraw prior to turning 71. http://www.theglobeandmail.com/glob...rticle21328458/ That said having a healthy amount in other areas (principally a TFSA) should mediate the problem if you plan it right.
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Jan 1, 2015 20:25
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Aagar posted:I've never understood this sentiment - what does this arbitrary deadline have to do with anything (unless you are in the subset of people that are already in a high tax bracket and need to defer tax on a certain percentage of your income in the highest bracket)? I'm not even sure my argument in brackets is valid, but it's bandied about a lot. The arbitrary deadline is just a reminder I have put off learning this poo poo (which is an endless series of acronyms it seems--like for example RRIF) for another year (but your brackets statement also rings true). No longer. I am a perfectly capable, intelligent, individual and can get a handle on all of this investment stuff.
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Jan 1, 2015 20:33
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Bilirubin posted:The arbitrary deadline is just a reminder I have put off learning this poo poo (which is an endless series of acronyms it seems--like for example RRIF) for another year (but your brackets statement also rings true). No longer. I am a perfectly capable, intelligent, individual and can get a handle on all of this investment stuff. Ahhh - I follow you now. I just know a lot of people who get worked up about the deadline when there's really no reason to. Ultimately the contribution room does not disappear, so you can make it up (that said, the longer you leave it the less gains you will realize in the long term and the harder it will be to fill all of the contribution room). Oh, and RRIF (Registered Retirement Income Fund) is what your RRSP transforms into when you want to use it for retirement. If you do it before 71 you pay more tax, if you do it after 71 you pay less. Of the top of my head it's 0.6%/mo. before and 0.7%/mo. after. That said, if you read through this thread you'll have a better understanding and be on better footing to deal with finances than most Canadians. I'd also recommend The Four Pillars of Investing and Rob Carrick’s Guide to What’s Good, Bad and Downright Awful in Canadian Investments Today, the latter because it's more geared to Canadians and Canadian investing products.
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Jan 1, 2015 20:42
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Thank you, its very much appreciated. A couple of years ago I did a retirement calculator and thought at the time I was positioned well, but I am now thinking I am probably depending too heavily on my defined benefits pension plan and should build much larger additional savings. Right now I also have a TFSA, which gets monthly contributions, and an additional managed portfolio mutual fund which has been doing pretty well but the fees irk me. I should be able to do this myself.
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Jan 1, 2015 20:46
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Bilirubin posted:Thank you, its very much appreciated. 
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Jan 1, 2015 23:31
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Bilirubin posted:Thank you, its very much appreciated. There's tons of people here that can help you figure stuff out. Feel free to PM me if you need a hand, I taught myself everything (haha no, the basics) in the last few years.
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Jan 2, 2015 02:37
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Yeah I have already gathered that managed funds are not the best. I guess that is what you are suggesting in your reply? I'm going to be sure I go in well educated and start doing better from here on in. C... posted:There's tons of people here that can help you figure stuff out. Feel free to PM me if you need a hand, I taught myself everything (haha no, the basics) in the last few years. Thanks, appreciated! (aside: whoa I can quote multiple posts in a row instead of editing in replies?  )
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Jan 2, 2015 02:44
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Bilirubin posted:Yeah I have already gathered that managed funds are not the best. I guess that is what you are suggesting in your reply? I'm going to be sure I go in well educated and start doing better from here on in. My post history in this thread has some hot tips and even a tutorial for e series with images!
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Jan 2, 2015 03:37
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On page 23, learning a ton about how I have been doing it really wrong up till now. I'll refrain from asking any questions until I get the entire damned thing read. but ouch. My RRSP mutual fund has an MER of 2.07%
Bilirubin fucked around with this message at 20:28 on Jan 3, 2015 |
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Jan 3, 2015 20:02
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Bilirubin posted:On page 23, learning a ton about how I have been doing it really wrong up till now. I'll refrain from asking any questions until I get the entire damned thing read. but ouch. My RRSP mutual fund has an MER of 2.07% http://canadiancouchpotato.com/recommended-funds/
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Jan 3, 2015 23:36
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Bilirubin posted:On page 23, learning a ton about how I have been doing it really wrong up till now. I'll refrain from asking any questions until I get the entire damned thing read. but ouch. My RRSP mutual fund has an MER of 2.07% You're me, about 6 months ago. I also resolved to read this entire thread, and I am quite grateful for it. Some of the many basic things I learned (that I absolutely should have known before): - you can use a TFSA for investments - you can withdraw from a TFSA and re-contribute that amount in the next calendar year - MER is how funds get their money, and 2.80 (which is what I'm paying with Investors Group) is an absolute rip off - I really shouldn't keep $30,000 + in a savings account This is now the year to get my financial house in order.
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Jan 3, 2015 23:50
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My investments are with MD Management which charges $10 per trade or nothing for purchasing or selling funds. My accounts are currently held over four individual funds. So it would cost me $40 a year to purchase ETFs instead. the current MER of all my funds is 0.8%. I contribute approximately $6,000 a year to each account, so buying $6,000 of ETFs would be a total expense of 0.667%. So it looks to me that it would be cheaper for me to sell $6,000 of funds each year and buy the equivalent ETFs, correct?
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Jan 4, 2015 00:18
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Yeah. All of my banking is with CIBC at this point out of loyalty to them for going way out of the way for us a few times in the past. However, I am seeing that they are definitely not the best for my long term financial well being--even their AAA premium indexed funds have an MER of around 0.75%. which is leaving too much cash on the table given the lower cost options via say TD. I'm continuing my reading to be sure I'm not missing answers to my obvious questions, like is the TD Waterhouse account for the e funds still the recommended route to go? I assume that TD would help me transfer my existing CIBC RRSP/TFSA and eat the fees for me. I'm not really keen on some of the discount brokers given some of the stories of difficulties with signup, month long transfer waits, etc. but I am only to page 27 or so now  Also wonder if I can use the lower rates I can get elsewhere as a bargaining chip with CIBC for better rates.Bucswabe posted:You're me, about 6 months ago. I also resolved to read this entire thread, and I am quite grateful for it. Some of the many basic things I learned (that I absolutely should have known before): Yeah I have to admit that I hadn't given the TFSA account I set up and set automatic deposits to last year much thought since then, but further reading shows that CIBC offers the full range of services for the TFSA side so once their bonus interest deal expires in march I'll be converting the savings to a fund of some sort. My wife was a little horrified I wasn't aware the TFSA worked like the RRSP, and so is already really happy with my project to get this poo poo in better order. And whereas the defined benefits pension plan will set us up pretty well for our retirement, we have the complication of her having a chronic illness that is only going to get worse and I had better damned well start doubling or tripling my rate of personal savings. Fortunately we have no children and fairly modest tastes, but we have been investing in life, travelling while she is still able to go and enjoy it. Its hard to put a monetary value on that but we are at this point unwilling to give a lot of that up considering what the future holds. We're both working class kids now benefiting from the social mobility that comes with advanced education so whereas we are smart enough to not get into consumer debt, pay cash when we can, buy used cars instead of new, etc., investing isn't something we grew up with. Consider me chastised. Bilirubin fucked around with this message at 00:28 on Jan 4, 2015 |
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Jan 4, 2015 00:22
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Don't be loyal to banks. Banks are not your friends. gently caress banks forever.
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Jan 4, 2015 00:31
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Really great to hear folks have found this interesting and useful. I certainly have also.
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Jan 4, 2015 00:32
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tuyop posted:Don't be loyal to banks. Banks are not your friends. gently caress banks forever.
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Jan 4, 2015 00:42
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tuyop posted:Don't be loyal to banks. Banks are not your friends. gently caress banks forever. Agreed. Guy who handled my mortgage renewal, either through incompetence or fraud (he has since been fired, and the manager has no qualms about saying that to me so it must be a good story), spectacularly messed up the paperwork and it has taken me nearly 2 years to get that back in order. This is making it much easier to consider hopping ships.
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Jan 4, 2015 00:44
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Bilirubin posted:I'm continuing my reading to be sure I'm not missing answers to my obvious questions, like is the TD Waterhouse account for the e funds still the recommended route to go? I assume that TD would help me transfer my existing CIBC RRSP/TFSA and eat the fees for me. Just to chime in with my personal experience. I had no prior accounts with TD. I called their easy line, told them exactly what type of account I wanted to open. They set me up with an appointment, and the rep took care of all the conversion paper work for e-series. Within less than two weeks I was able to start contributing. No fees, or any hassle. I, myself, need to look into what is involved in the process of transferring one RRSP account to another.
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Jan 4, 2015 00:54
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It's amazing how many people think TFSAs are exclusively savings accounts. Trying to get people to understand otherwise is extremely difficult sometimes. They get really hung up on that SA part.
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Jan 4, 2015 01:25
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Bilirubin posted:Yeah. All of my banking is with CIBC at this point out of loyalty to them for going way out of the way for us a few times in the past. However, I am seeing that they are definitely not the best for my long term financial well being--even their AAA premium indexed funds have an MER of around 0.75%. which is leaving too much cash on the table given the lower cost options via say TD. I'm continuing my reading to be sure I'm not missing answers to my obvious questions, like is the TD Waterhouse account for the e funds still the recommended route to go? I assume that TD would help me transfer my existing CIBC RRSP/TFSA and eat the fees for me. I'm not really keen on some of the discount brokers given some of the stories of difficulties with signup, month long transfer waits, etc. but I am only to page 27 or so now Hey CIBC buddy. I considered jumping ship too, but right at that time I had decided to cash out all my crappy mutual fund wrap CIBC products for ETFs, CIBC Investor's Edge dropped trade fees to $6.95 flat. So I simply moved all my funds over to IE, cashed out, and bought ETFs. As you keep reading the thread TD e-series is considered the best in index funds, but still have MERs that are higher than ETFs. So, if your intent is to go ETFs, I wouldn't say that you absolutely have to ditch CIBC. With your portfolio numbers I think all IE account fees are waived and you just pay transaction fees. That said, as another dumb-rear end "loyal" CIBC client I could come up with numerous reasons to do so. cowofwar posted:My investments are with MD Management which charges $10 per trade or nothing for purchasing or selling funds. My accounts are currently held over four individual funds. So it would cost me $40 a year to purchase ETFs instead. the current MER of all my funds is 0.8%. I contribute approximately $6,000 a year to each account, so buying $6,000 of ETFs would be a total expense of 0.667%. So it looks to me that it would be cheaper for me to sell $6,000 of funds each year and buy the equivalent ETFs, correct? I may be missing something obvious, but your 0.667% is based on $40 fees/$6,000 contribution per year, which only takes into account the transaction fee and not the MER of the ETF you are buying. If the MER for said ETFs is much above 0.1% your trading fees and yearly ETF MER will be higher than no trading fees and a 0.8% MER.
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Jan 4, 2015 01:26
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Aagar posted:I may be missing something obvious, but your 0.667% is based on $40 fees/$6,000 contribution per year, which only takes into account the transaction fee and not the MER of the ETF you are buying. If the MER for said ETFs is much above 0.1% your trading fees and yearly ETF MER will be higher than no trading fees and a 0.8% MER.
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Jan 4, 2015 01:30
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Aagar posted:Hey CIBC buddy. I considered jumping ship too, but right at that time I had decided to cash out all my crappy mutual fund wrap CIBC products for ETFs, CIBC Investor's Edge dropped trade fees to $6.95 flat. So I simply moved all my funds over to IE, cashed out, and bought ETFs. As you keep reading the thread TD e-series is considered the best in index funds, but still have MERs that are higher than ETFs. Thank you for this really helpful post. I actually wasn't aware this service existed (hadn't gotten to that point in my research yet)--I had assumed something like that must. As my mutual fund is at 5 digits its probably time to convert to an EFT anyway. Lots to think about.
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Jan 4, 2015 01:42
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It's great to hear of more people that were like the me of 8 months ago and are now also beginning to turn the tables on their respective financial institution(s). Also: tuyop posted:Don't be loyal to banks. Banks are not your friends. gently caress banks forever.
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Jan 4, 2015 01:53
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