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The Butcher posted:appears to have bottomed out and is rebounding Just don't. This isn't knowable. As ever, the correct move is to decide on your portfolio asset allocation (measured in CAD), and rebalance according to a set schedule.
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Jan 22, 2015 18:49
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DariusLikewise posted:He might be able to get a Secured Credit Card? That's how I got a credit card when I was 16. He would need cash he can lock up against it though. Thanks! I knew about prepaid cards, but not secured. After some looking around, these seem to be a better option for rebuilding credit.
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Jan 22, 2015 19:12
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So far the banks are holding their prime rate steady and not following the Bank of Canada (yet?). I guess they don't want to reduce their billions of dollars worth of profits by a few pennies. Article discussing this: http://www.theglobeandmail.com/glob...rticle22574714/ Kal Torak fucked around with this message at 19:44 on Jan 22, 2015 |
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Jan 22, 2015 19:22
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Lexicon posted:Just don't. This isn't knowable. Heh fair enough. Thanks Kal as well. Kinda figured with how closely the CAD drop correlated to the oil price drop it should be a pretty sure indicator that CAD should be coming back up after oil shows a few weeks of steady gains. But I guess anytime something like that is looking like a "sure thing" that probably means you should significantly check yourself before wrecking yourself.
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Jan 22, 2015 21:34
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The Butcher posted:Heh fair enough. Thanks Kal as well. You got it 
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Jan 22, 2015 23:01
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Kal Torak posted:So far the banks are holding their prime rate steady and not following the Bank of Canada (yet?). I guess they don't want to reduce their billions of dollars worth of profits by a few pennies. There is certainly a precedent for the banks holding back for themselves, but I would not discount them having been "told" by the fed, who can and do have real influence at the highest levels to keep things cool specifically to address the housing market(s). I remember Flaherty being quite vocal about BMO's cheapy cheapy variable rate (1.99%) a while back and them pulling it toute suite. The Fed won't out and out say the housing market is hosed, but they aren't dumb and the broader economy is too important to them to allow just the housing situation to force their hand - so they lower the overnight rate and tell the banks don't budge on mortgages or else.... Of course the banks are happy to oblige.
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Jan 23, 2015 00:10
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e. oops, this isn't badwithmoney, but still kinda relevant.read your loving contracts, toolbag posted:Hey guys, I would really appreciate some advice. Very simple facts: 1) I signed up for an online trading platform, Questrade; 2) I transferred $10 000 Canadian (CAD) cash to my Questrade trading account; 3) I bought stocks that traded on the New York Stock Exchange. I guess the moral is that you should read the fine print so this isn't you. A few others in the reddit thread thanked this dude for making them aware of their own ineptitude.
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Jan 23, 2015 00:34
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Guest2553 posted:e. oops, this isn't badwithmoney, but still kinda relevant. IDGI, did he try to buy more in stocks than he had in cash? Did he have an options account or something? When I buy USD stuff, it just creates a negative USD amount (which is a short term loan, I guess) and converts an equal amount of CAD to USD to pay for the negative, plus FX. I haven't had this happen to me at all.
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Jan 23, 2015 00:49
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tuyop posted:When I buy USD stuff, it just creates a negative USD amount (which is a short term loan, I guess) and converts an equal amount of CAD to USD to pay for the negative In a non-registered account you're buying the currency and CAD would be used to pay off USD. In margin accounts it's just a straight up short term loan. Since buddy never bothered to check his statements he paid 6.25% interest a month for two years. Double whammy because a) he lost money during a bull run and 2) since the loan is in USD he's buying the currency for 25% higher than it was when he took out the loan. And now he wants to take them to court over it 
Guest2553 fucked around with this message at 01:20 on Jan 23, 2015 |
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Jan 23, 2015 01:18
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Guest2553 posted:In a non-registered account you're buying the currency and CAD would be used to pay off USD. In margin accounts it's just a straight up short term loan. Since buddy never bothered to check his statements he paid 6.25% interest a month for two years. Double whammy because he lost money during a bull run and since the loan is in USD he's buying the currency for 25% higher than it was when he took out the loan. And now he wants to take them to court over it I love that 75% AIR. Good job, Questrade!
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Jan 23, 2015 01:21
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Yeah, if you have an RRSP with Questrade and you go negative on a currency, they will convert it overnight since in a registered account, you can't actually be negative like that. In a margin account though, they won't convert it automatically and you have to request the conversion. I think most brokers that offer multiple currencies work in this fashion. I know IB does. That guy's an idiot. He couldn't even check his cash balance periodically? And he didn't want to know exactly how much it cost him to buy these US stocks? Dumbass. edit: The information is in bold right on their website: http://www.questrade.com/pricing/interest_rates Questrade posted:Important notes about currency conversion and interest. Kal Torak fucked around with this message at 01:35 on Jan 23, 2015 |
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Jan 23, 2015 01:22
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Saltin posted:There is certainly a precedent for the banks holding back for themselves, but I would not discount them having been "told" by the fed, who can and do have real influence at the highest levels to keep things cool specifically to address the housing market(s). I remember Flaherty being quite vocal about BMO's cheapy cheapy variable rate (1.99%) a while back and them pulling it toute suite. The Fed won't out and out say the housing market is hosed, but they aren't dumb and the broader economy is too important to them to allow just the housing situation to force their hand - so they lower the overnight rate and tell the banks don't budge on mortgages or else.... But everything is based on the bank's prime rate, not just mortgages. If they don't adjust along with the BoC, doesn't that severely impact what the BoC is trying to do? Admittedly, I'm not an expert in this. But if this cut doesn't work the way the BoC wants it to, they'll have to cut again. It just seems counterintuitive to cut the overnight rate but ask the banks to keep their prime rate as is. It doesn't make sense to me but maybe someone can enlighten me on that.
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Jan 23, 2015 01:26
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Banks will (or can, at least) just adjust spreads on loans where it matters. They can leave the prime rate flat and still offer lower pricing for business loans, for example, by selling the loan at prime + 0.25% instead of prime + 0.5%.
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Jan 23, 2015 12:10
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Man, I hate the banks. Rob Carrick @rcarrick Looks like @TD_Canada has cut the rate on its investment savings account to 1% from 1.25%. Cut rates for borrowers? Nah. Bad for profits.
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Jan 23, 2015 16:11
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Kal Torak posted:Man, I hate the banks.
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Jan 23, 2015 20:11
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So I finished my PhD last year and am starting a full-time job in February. My current situation is as such: Emergency savings account (capped) Unregistered investment account TFSA investment account (2015 capped) RRSP investment account ($15,000 space) Since I have been paying tuition and my stipend was tax-free I have been prioritizing contributions to my TFSA, followed by my unregistered investment account. Now that I will be getting a taxable income I want to verify my savings priorities. I have accumulated ~$35,000 federal and ~$35,000 provincial tuition tax credits. So it looks like I will have a number of years where I can consume my tax credits and not pay any tax. So I assume the priority will be TFSA > Unregistered with no contribution to RRSP. When my tax credits run out I would then go with the priority TFSA > RRSP > Unregistered. Is this correct? Is there some reason to leave my tax credits while contributing to my RRSP that I am missing? -- Secondly, I am getting married this year. As I understand the whole income splitting scheme that has been newly introduced is only for married couples with children and therefore since we don't have children we wouldn't apply. We have been filing separately in the past. My significant other had a taxable income in 2014 while I did not. Does it make sense to file for 2014 joint or should we file separately again for 2014? cowofwar fucked around with this message at 07:08 on Jan 24, 2015 |
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Jan 24, 2015 07:04
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Sassafras fucked around with this message at 18:04 on Jan 28, 2015 |
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Jan 24, 2015 07:27
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cowofwar posted:Is this correct? Is there some reason to leave my tax credits while contributing to my RRSP that I am missing? I'm hoping someone else will jump in and confirm this, but I think what you want to do is still prioritise RRSP contributions ahead of unregistered, until maxed, as you can defer the tax break from your contributions to later years. You don't have to claim the contribution in the year you make it. This way you can still invest in a tax-sheltered account free of capital gains tax, and not lose out on the tax-break from your contributions.
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Jan 24, 2015 13:31
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cowofwar posted:I have accumulated ~$35,000 federal and ~$35,000 provincial tuition tax credits. So it looks like I will have a number of years where I can consume my tax credits and not pay any tax. These credits reduce your taxable income. They are not credits to set off tax owing.
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Jan 24, 2015 14:37
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Mantle posted:These credits reduce your taxable income. They are not credits to set off tax owing. Incorrect. You're thinking of tax deductions. A little knowledge is dangerous 
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Jan 24, 2015 16:56
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cowofwar posted:I think it's been discount mortgage lenders who have made the first move with banks following suit the last few times. Lexicon posted:Just don't. This isn't knowable. melon cat fucked around with this message at 02:09 on Jan 26, 2015 |
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Jan 26, 2015 01:57
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melon cat posted:In recent years, it has been BMO that has been first to cut their rates and offer promotional mortgage rates whenever the BoC cuts rates. They really seem to be trying to acquire new mortgage business. CIBC usually follows suit by offering all sorts of 'Cash Back' offers for switching in your mortgage (and I have a lot of issues with their Cash back offers, but we'll save that discussion for another day!). But this time around, it looks like the Big Five aren't so enthusiastic about cutting their already-low mortgage rates. The BoC hasn't cut rates since 2009. And in 2010 the BoC raised them 3 times and the banks all raised the prime rate the very next day. Assuming the banks refuse to cut now and oil eventually bounces back, what happens when the BoC raises the overnight rate back to 1%? Do the banks raise prime to 3.25%? I'm guessing yes. The Federal Government is losing their mind trying to get a fourth wireless carrier because of those evil Telcos, but nobody cares about the Banks gouging their customers to increase their $30B+ of annual profits.
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Jan 26, 2015 04:09
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Mantle posted:These credits reduce your taxable income. They are not credits to set off tax owing. Lexicon posted:Incorrect. You're thinking of tax deductions. A little knowledge is dangerous I didn't fully understand how these worked until I did my sister's taxes the other year (I also have tons of them saved up, though). For the federal tax credits, applying X of your credits will reduce your taxes owed by 0.15*X (here, 0.15 is the rate of the lowest tax bracket). So if you have paid 5k of federal income tax in the year, you can apply 5000/0.15 = 33333 of federal tax credits to reduce your taxes owed to 0, and the government will send you a refund check for $5000. Note that this means that there is no incentive to save them up until you are in a higher marginal tax bracket, because they do not reduce your taxable income.
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Jan 26, 2015 06:38
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Yeah, to be fair to Mantle, they are indeed confusing. I pretty much have to relearn the definition every time tax season rolls around.
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Jan 26, 2015 07:06
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Great article from Rob Carrick: Banks fail ethics test by not lowering prime rates http://www.theglobeandmail.com/glob...rticle22642899/
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Jan 27, 2015 02:36
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Kal Torak posted:Great article from Rob Carrick: quote:But putting shareholders so clearly ahead of customers was an ethical fail. It tells customers they’re just meat to feed the shareholders, and that fine print is more important than integrity.
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Jan 27, 2015 03:00
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cowofwar posted:Duh
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Jan 27, 2015 03:04
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cowofwar posted:Duh
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Jan 27, 2015 04:32
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And seeing as my Canadian Index fund is heavy on Banks.... I guess they are looking out for me?
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Jan 27, 2015 09:48
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Got set up with Tangerine, which was surprisingly easy, especially with the "take a picture of the cheque" feature on the app. I've already been in contact with TD and the banker I spoke with is quite aware of the e-series conversion process so this should be a snap too. And 4 Pillars just arrived yesterday. New Year's resolution working out great so far
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Jan 27, 2015 15:38
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Bilirubin posted:Got set up with Tangerine, which was surprisingly easy, especially with the "take a picture of the cheque" feature on the app. I've already been in contact with TD and the banker I spoke with is quite aware of the e-series conversion process so this should be a snap too. Why tangerine over PCFinancial?
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Jan 27, 2015 15:50
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Past dealings with PC leave us with a bad taste in our mouths still. Plus we have a Tangerine cafe 8 blocks from our place
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Jan 27, 2015 16:16
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RBC the first to cut prime: http://www.rbc.com/newsroom/news/2015/20150127-primerate.html They cut by 0.15 instead of 0.25 but it's a start. It will be interesting to see which banks play follow the leader. edit: BMO follows and cuts to 2.85%. That didn't take long. Kal Torak fucked around with this message at 22:44 on Jan 27, 2015 |
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Jan 27, 2015 22:17
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Bilirubin posted:Past dealings with PC leave us with a bad taste in our mouths still. Plus we have a Tangerine cafe 8 blocks from our place I know it shouldn't reflect the bank as a whole, but I wasn't very impressed by a PC pavilion guy setting me up with a PC TFSA account when I was getting a regular savings account, and only telling me after. He almost seemed shocked that I didn't want it. Sorry I wasn't in the mood to pad your sign up numbers for the month.
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Jan 27, 2015 22:33
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I need to put some money in an investment that will hopefully generate more return than a savings account but preserve the principal as much as possible in case I need to pay it back (it's a bursary with a service requirement that I might not want to fulfill). What are the risks of losing my contribution room if I put the money in my TFSA and buy a bond ETF? I mean, other than "not 0". I may never need to touch the money until we take like a mini retirement or FI or something (best case), or I might need to return it intact by September (worst case).
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Jan 28, 2015 15:29
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Does RBC offer anything comparable to the TD E-Series that people like? I have accounts with RBC and it would be easier to keep it all together
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Jan 28, 2015 15:49
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triplexpac posted:Does RBC offer anything comparable to the TD E-Series that people like? I have accounts with RBC and it would be easier to keep it all together Sign up for Direct Investing and buy ETFs.
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Jan 28, 2015 15:52
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triplexpac posted:Does RBC offer anything comparable to the TD E-Series that people like? I have accounts with RBC and it would be easier to keep it all together I used to be this way (CIBC), but it's really not worth it. Don't look at the bank when choosing the best service - pick the best service and go with it, regardless of the institution. I have various investments, credit accounts/cards, a mortgage and a chequing account across 9 different institutions now. Part of this is because I'm a credit card churner, but even without all the churned credit cards, I deal with four institutions. Use Mint to track everything, and the Pay Bills section of Online Banking to transfer money. It's really easy.
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Jan 28, 2015 16:24
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So, Canadian equities are the majority class of my RRSP (38%) should I be calling to move these now?
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Jan 28, 2015 16:40
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peter banana posted:So, Canadian equities are the majority class of my RRSP (38%) should I be calling to move these now?
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Jan 28, 2015 17:48
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