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Golluk posted:I still see it as being somewhat useful since you can save the money up pre tax, and make use of any employer contributions as well without reducing your contribution room. Well that's fine if you accept the premise that a legitimate use of the RRSP is robbing it to buy property, and not exclusively for one's retirement. Even property mad Australia doesn't allow that. I suppose if you're determined to do that, and if you have employer contributions, then yeah - you can use that to your advantage, but otherwise you're only really compromising your retirement and giving yourself an extra annual bill to take care of for as much as 15 years.
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Nov 5, 2015 01:46
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rhazes posted:Technically yes you are "losing" capital gains, but in practice, it doesn't work that way at all! See here for an explanation. Yes, good point. I was not attempting to criticize the RRSP. Anyone who follows this thread and/or my posts know that I've tried several times here to pump up the RRSP when compared with the TFSA.
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Nov 5, 2015 03:49
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rhazes posted:Technically yes you are "losing" capital gains, but in practice, it doesn't work that way at all! See here for an explanation. Great article. I just commented on it to see if that wizard has an answer to my question: RRSP HBP Quandary posted:I have a different scenario. I raided my RRSP via the Home Buyer's Plan (HBP) to buy a house two years ago. I have to repay 25,000 over the next 15 years, starting this year. I will be repaying the minimum this year, but - and this is key - next year I will have my TFSA & RRSP contribution room maxed, with money still left over to invest. I think this is an interesting problem, because doesn't it call into question the standard advice to not raid your RRSP? I mean, that advice is generally given in the context that the person doesn't have enough saved up outside of their RRSP to pay for the down payment on their home. In which case, fair enough - that person shouldn't raid their RRSP to afford the down payment. But what if they did have enough? Should they not raid their RRSP anyway and invest the money in a non-registered account to pay less eventual capital gains tax? Rick Rickshaw fucked around with this message at 14:28 on Nov 5, 2015 |
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Nov 5, 2015 14:25
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Am I correct in thinking that the unused contribution room in an RRSP carries forward year to year, but only from the time you've actually had an RRSP opened? This would be in contrast to the TFSA where everyone has the same max contribution room regardless of when they actually opened an account?
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Nov 6, 2015 01:14
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The Butcher posted:Am I correct in thinking that the unused contribution room in an RRSP carries forward year to year, but only from the time you've actually had an RRSP opened? This would be in contrast to the TFSA where everyone has the same max contribution room regardless of when they actually opened an account? No, you are not correct. RRSP Contribution room is based on your prior year earned income and carries forward from year to year. It's not based on when you first opened one, it is based on when you first had earned income. The CRA tracks this for you so if you are unsure what your contribution room, they will let you know. It will also be on your prior year Notice of Assessment.
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Nov 6, 2015 01:20
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Kal Torak posted:No, you are not correct. RRSP Contribution room is based on your prior year earned income and carries forward from year to year. It's not based on when you first opened one, it is based on when you first had earned income. The CRA tracks this for you so if you are unsure what your contribution room, they will let you know. It will also be on your prior year Notice of Assessment.
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Nov 6, 2015 04:38
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Kal Torak posted:No, you are not correct. RRSP Contribution room is based on your prior year earned income and carries forward from year to year. It's not based on when you first opened one, it is based on when you first had earned income. The CRA tracks this for you so if you are unsure what your contribution room, they will let you know. It will also be on your prior year Notice of Assessment. Thanks Kal. My Google-fu was weak on this one.
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Nov 6, 2015 19:04
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Let me also add you don't need to wait for a notice of assessment to determine RRSP contribution room; the CRA-Personal site can show you the amount at any time.
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Nov 6, 2015 19:08
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jm20 posted:Let me also add you don't need to wait for a notice of assessment to determine RRSP contribution room; the CRA-Personal site can show you the amount at any time. 18% of earned income to a max number that I forget.
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Nov 6, 2015 19:27
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cowofwar posted:18% of earned income to a max number that I forget. That's because just like CPP and EI, the max changes every year. 
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Nov 6, 2015 20:40
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Is there a way to check how much TFSA room you have?
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Nov 6, 2015 22:36
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spoof posted:Is there a way to check how much TFSA room you have? On the CRA's website. 
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Nov 6, 2015 22:45
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Just learned that Coast Capital Savings will be discontinuing their on demand temporary cheques at the end of this year. Stock up on $2/12 cheques while you can, afterwards the cheapest will be about $45/100.
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Nov 6, 2015 22:50
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Mantle posted:Just learned that Coast Capital Savings will be discontinuing their on demand temporary cheques at the end of this year. Stock up on $2/12 cheques while you can, afterwards the cheapest will be about $45/100. Yeah I buy 12 cheques a year to pay my rent, and I go to my branch to get them like a week before I renew my lease. They warned me this time though. Cheques and paying for cheques is dumb.
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Nov 6, 2015 22:53
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gently caress financial services in this loving country. It's a loving travesty that you can't electronically transfer money for free.
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Nov 6, 2015 22:58
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Cultural Imperial posted:gently caress financial services in this loving country. It's a loving travesty that you can't electronically transfer money for free. Well obviously the solution is to not transfer money at all, and to invest in real estate instead. When your family pays for your dinner, you are supposed to give them shares of your real estate holding company in lieu of cash. The next obvious step is to dilute their share value and never speak to them again.
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Nov 6, 2015 23:13
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jm20 posted:Well obviously the solution is to not transfer money at all, and to invest in real estate instead. When your family pays for your dinner, you are supposed to give them shares of your real estate holding company in lieu of cash. The next obvious step is to dilute their share value and never speak to them again. Plot twist: you co-house with said family
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Nov 6, 2015 23:45
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Uh, dumb question. My e-series conversion request went through and now I want to transfer my Tangerine RRSP and TFSA savings accounts. But as far as I can tell, the only way to transfer between registered accounts is to use a paper form. Surely sending that in won't void my ~e-series~ agreement?
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Nov 7, 2015 02:11
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Cultural Imperial posted:Plot twist: you co-house with said family In that case tell them to hold onto the shares as real estate investments until they develop dementia whereby you can fleece them by power of attorney. And by that I mean give them photocopies of Canadian tire money instead.
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Nov 7, 2015 02:33
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Jan posted:Uh, dumb question. My e-series conversion request went through and now I want to transfer my Tangerine RRSP and TFSA savings accounts. But as far as I can tell, the only way to transfer between registered accounts is to use a paper form. Surely sending that in won't void my ~e-series~ agreement? Can't get around the paper transfer for the RRSP.
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Nov 7, 2015 02:42
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I still have a book of cheques that I got when I worked at TD bank in university. I moved out of the address still written on the cheques in 2007. I've finally used 21 of them, I'm almost halfway through the book of 50!
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Nov 7, 2015 07:26
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Hey goons, two quick questions regarding saving and investing after maxing contributions. First, I don't have six months of living expenses saved up yet because of my pathological need to max out contributions and get that sweet compounding interest ASAP. I've read that the advice is to buy certificates of deposit, treasury bills, or put the money in a money market account, but I'm not sure how to do that through Questrade, if it's even possible to do that with them. Leaving my money in my Tangerine savings account (it's me, I'm the bad with money) seems like a losing proposition because it pays so dang little. Second, after saving up six months of emergency money and maxing out 2016, what do I start doing with my money? One of my Questrade accounts is my "margin" account that I've already opened in anticipation for the taxable stuff. Should I just keep buying total market stock funds (like Vanguard's VXC) and stick them in the margin account?
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Nov 11, 2015 15:40
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Olive Branch posted:Hey goons, two quick questions regarding saving and investing after maxing contributions. I have three accounts with my broker: TFSA, RRSP, and unregistered with contributions in that priority. RRSP gets maxed through monthly contributions, on Jan 1 of each year I transfer funds in-kind from my unregistered to my TFSA to max it out. Right now I hold the same funds with the same distributions in all three accounts because I don't care enough about min/maxxing my tax exposure at the moment.
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Nov 11, 2015 17:19
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cowofwar posted:I have a chequing and savings account (emergency savings) with tangerine. When my emergency account is over my threshold I transfer the excess to my unregistered account with my broker.
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Nov 11, 2015 18:05
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Olive Branch posted:So do you not keep CDs or T-bills in your emergency funds at all? You keep it as easily accessible cash that you can transfer in an instant to your checking account? If that's the case, aren't you worried about long-term inflation eating away at that emergency fund? I guess it depends on what you think your emergency funds are for. To me, they are for being easily accessible and cash you can transfer at an instant...and NOT for making income. It's like stuffing it under a mattress or in a safe. Plus you can usually transfer bank to bank for various interest rate promos that will (hopefully) keep up with inflation. Right now I have 3% promo at Tangerine until Dec 20 and then maybe I can get them to give me a loyalty bonus or look at Zag or PC Financial or something.
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Nov 11, 2015 18:12
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True, I guess if they're there for super easy access that's one thing, it's just that I've seen arguments for investing that money in something higher yielding than a pure savings account but that is still easily accessible. Out of curiosity how did you swing that 3% promotion with Tangerine? Their low yield on savings is pathetically low and I'm considering opening an account elsewhere to park my money the moment I max out contributions.
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Nov 11, 2015 18:51
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Olive Branch posted:True, I guess if they're there for super easy access that's one thing, it's just that I've seen arguments for investing that money in something higher yielding than a pure savings account but that is still easily accessible. If you want something higher yielding through a broker, you could consider the HISA they offer: http://www.canadiancapitalist.com/high-interest-savings-accounts-at-discount-brokers/ But the interest isn't that much higher. And I think you can get better just maximizing the promos that online banks offer from time to time. As for the 3% through Tangerine, a thread popped up back in June at RFD that they were sending out emails to targeted customers offering 3% for 6 months if the savings account had greater than 10K. So everyone in the thread was calling Tangerine and asking for the deal. And they were giving it out to those who called if you were persistent enough. Here's the thread: http://forums.redflagdeals.com/tangerine-targeted-offer-3-6-months-saving-account-1757731/ edit: And since we are on the topic, I should mention Zag bank is currently offering 2.5% until March 20th as long as you get 1K in there by November 15th. Kal Torak fucked around with this message at 19:33 on Nov 11, 2015 |
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Nov 11, 2015 19:29
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Kal Torak posted:If you want something higher yielding through a broker, you could consider the HISA they offer:
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Nov 11, 2015 23:05
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Anyone with an account have any thoughts to share about Zag? Haven't heard it mentioned much here.
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Nov 11, 2015 23:34
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Lexicon posted:Anyone with an account have any thoughts to share about Zag? Haven't heard it mentioned much here. The website works, money transfers in and out quickly enough. Their account linking process requires paper cheques (written to Zag rather than yourself, but the money ends up in your account) and they have mobile cheque deposit except it really hates some people's phones and, depending on ambient lighting, may work better for you some days than others. I have the bulk of my non-"3.0 at Tangerine" savings there because micromanaging the PCF 2.6% for a few weeks wasn't worth the hassle and have no complaints.
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Nov 12, 2015 05:52
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Zag's non-promotion rate is 0.8%. I can't really see it worth the effort to sign up just for their promotion rate for three months.
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Nov 12, 2015 13:30
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cowofwar posted:Zag's non-promotion rate is 0.8%. I can't really see it worth the effort to sign up just for their promotion rate for three months. It's actually 4 months, but are you getting more than a non-promo rate of 0.8% now? Tangerine, PCF and Zag are all at 0.8. Unless you are with a credit union, it's pretty tough to find a higher rate. Plus, the idea is to continually find these promos. Zag ran that exact same promo in the summer which was valid until Dec 31. So had you jumped on that, you'd be through to March and have 9 months at 2.5%. And I bet for December, or the New Year, they run the same promo again as they are trying to gain traction in the Canadian market. Like Olive Branch said, this is the new credit card churning.
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Nov 12, 2015 16:01
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Kal Torak posted:It's actually 4 months, but are you getting more than a non-promo rate of 0.8% now? Tangerine, PCF and Zag are all at 0.8. Unless you are with a credit union, it's pretty tough to find a higher rate.
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Nov 12, 2015 18:12
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cowofwar posted:I think one would be better off just spending their time getting a free line of credit to use in emergencies rather than trying to protect a couple grand from inflation. Well that goes completely against the 6 month emergency fund idea. And if that's your prerogative, so be it. I wouldn't say that's a bad idea at all. But if 6 months for you is a couple grand, I guess there's no point arguing. Kal Torak fucked around with this message at 19:16 on Nov 12, 2015 |
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Nov 12, 2015 18:20
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Plus some of us are self employed and have to save all our money for taxes. Between that and my emergency fund a 2% interest rate difference can be worth over 1k a year to me.
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Nov 12, 2015 18:48
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cowofwar posted:I think one would be better off just spending their time getting a free line of credit to use in emergencies rather than trying to protect a couple grand from inflation. Kal Torak posted:Well that goes completely against the 6 month emergency fund idea. And if that's your prerogative, so be it. I wouldn't say that's a bad idea at all. You can have both a heloc and 6 months of cash on hand.
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Nov 12, 2015 19:44
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The emergency fund thing is a more pressing issue for young people and/or financial newbies. Once you've started accumulating substantial assets and have access to secured credit, it seems a bit silly to have 15 or 18 grand or whatever just sitting rotting away because the internet said so.
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Nov 12, 2015 21:26
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Bah, another wave of invites for the Tangerine mastercard went out today but I didn't get one. Wish it wasn't random, I've been a ING/tangerine client for a long time.
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Nov 13, 2015 02:48
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How many of you actually use questrade? Since they aren't backed/owned by a bank I'm a little hesitant to give them all my life savings.
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Nov 13, 2015 05:10
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cowofwar posted:Bah, another wave of invites for the Tangerine mastercard went out today but I didn't get one. Same. I've had my account since 2006. They can get hosed. Also I have a TD Direct Investing TFSA account. Can I theoretically buy stocks from individual companies with it, or does it have to be index funds/mutual funds?
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Nov 13, 2015 06:27
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