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Do they mean the lower rate due to the federal/provincial small business deduction below $500,000 or whatever in their province? Properly speaking, I don’t believe Canada or the provinces have multiple business tax brackets.
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Sep 20, 2018 14:48
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Professor Shark posted:Someone I know mentioned that dentists often refuse to open on Fridays because the way that they are taxed as a business means they would lose money were they pushed into the next tax bracket and cited business taxes being different than personel when I asked about the first $x being taxed at one rate with the remainder taxed at another. Well, the small business tax deduction on the first $500 000 of income is phased out as total income goes between $10M and $15M. One of the companies I used to work for split itself into like 9 distinct entities to ensure it would keep getting the deduction. It made accounting a nightmare.
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Sep 20, 2018 14:49
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But even so, without the numbers in front of me, I don’t think there’s a circumstance where earning another dollar will net you less in the final result. Taxes are nice to businesses.
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Sep 20, 2018 14:53
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Subjunctive posted:But even so, without the numbers in front of me, I don’t think there’s a circumstance where earning another dollar will net you less in the final result. Taxes are nice to businesses. Yes you're right. Dentists are worse with money than even doctors, and that's saying something.
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Sep 20, 2018 15:06
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Square Peg posted:Well, the small business tax deduction on the first $500 000 of income is phased out as total income goes between $10M and $15M. One of the companies I used to work for split itself into like 9 distinct entities to ensure it would keep getting the deduction. It made accounting a nightmare. I doubt any dentists are making 10-15 million a year though. Socialize the dentists.
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Sep 20, 2018 15:15
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There was some mention of businesses paying money twice a month and that dentists turning down work makes them pay less, followed by advocating for a flat tax.
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Sep 20, 2018 17:13
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Whaaa? Don't most small businesses pay taxes quarterly? From an accounting standpoint, having to have your books cleared and submitted Every. loving. Two. Weeks. is about the most retarded thing that only a not-at-all-smart-with-numbers guy would say. Wait, rewind the conversation here. Are you sure that your source is an unbiased observer of real facts and not a rhetoric fanatic with half-assed anecdotes?
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Sep 21, 2018 01:56
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Small businesses pay taxes quarterly, but you're allowed to just pay what you did the previous year. So unless you're making way less money one year compared to the prior one, it's super easy to just make exactly the same payments. I personally just guesstimate what my taxes are going to be at the end of the year and divide by 4. I've never been off by more than $1000 in taxes owed/to pay.
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Sep 21, 2018 03:47
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Sputnik posted:Wait, rewind the conversation here. Are you sure that your source is an unbiased observer of real facts and not a rhetoric fanatic with half-assed anecdotes? He's played pretty fast and loose with facts in the past and is generally pretty anti-tax, however a lot of it is mixed with truth and while I'm not super knowledgeable about taxes, I'm even less versed in small business taxes. Anyway, from the get go it sounded like it was motivated by his views, I just wanted to confirm that I wasn't missing something.
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Sep 21, 2018 10:08
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What's the best bank in Canada from a UX perspective? I'm through with Tangerine... can't stand their lovely website any longer. Willing to pay a monthly fee or keep a $4k minimum balance or whatever. Oh, and it should have MFA too #BecauseIts2018.
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Oct 1, 2018 03:23
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Lexicon posted:What's the best bank in Canada from a UX perspective? I'm through with Tangerine... can't stand their lovely website any longer. Willing to pay a monthly fee or keep a $4k minimum balance or whatever. Oh, and it should have MFA too #BecauseIts2018. I’m not the only one frustrated with their changes? I’ve been considering looking at BMO, TD, or Scotia just because their banks are around the corner from my house. I’m curious to hear anyone else’s opinions.
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Oct 1, 2018 03:43
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I don't think any bank has a particularly good UX (not that I've seen, anyway) but god drat that Tangerine one is awful on a whole new level. I think of the ones I know of BMO is the best.
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Oct 1, 2018 04:16
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Lexicon posted:What's the best bank in Canada from a UX perspective? I'm through with Tangerine... can't stand their lovely website any longer. Willing to pay a monthly fee or keep a $4k minimum balance or whatever. Oh, and it should have MFA too #BecauseIts2018. I use td, it works I guess. Are you looking for strictly banking or also investing?
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Oct 1, 2018 04:56
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Risky Bisquick posted:I use td, it works I guess. Are you looking for strictly banking or also investing? Investing I already use InvestorLine and I’m happy enough with it. BMO’s stance on authentication is an absolute joke though.
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Oct 1, 2018 05:21
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TD has two factor authentication. I like their UI both for banking and investing although the majority of my investments are at IB. I have the all-inclusive which of course gives me unlimited transactions, free e-transfers, free cheques and drafts, etc. It also gives me the cash back Visa infinite for free. And it gives you the borderless US bank account at a reduced price and the US dollar visa for free. You get a free safety deposit box as well but good luck finding one.
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Oct 1, 2018 18:48
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I like TD a lot too but TBH their UI kind of sucks compared to other banks.
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Oct 1, 2018 21:04
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I like RBC's slow-as-gently caress-roll-out updated UI look and such. But, yeah, Tangerine's BIG BLOCKS RANDOM INFO POORLY DESIGNED WHAT THE gently caress??? redesign made me quit them hard and switch back to RBC.
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Oct 1, 2018 21:04
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This is slightly off topic, but my partner just got a new job lined up in a month and a half. She is currently collecting EI, but does she have to stop now that she has accepted a job? Or can she continue to collect until the job starts? Does she still have to be applying for other jobs during this next month in case they check that she's doing a job search?
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Oct 4, 2018 16:16
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She should call and ask if the answer isn’t obvious from anything on their website. It takes a while to get through sometimes but I found them to be quite helpful.
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Oct 4, 2018 16:18
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Ccs posted:This is slightly off topic, but my partner just got a new job lined up in a month and a half. She is currently collecting EI, but does she have to stop now that she has accepted a job? Or can she continue to collect until the job starts? Does she still have to be applying for other jobs during this next month in case they check that she's doing a job search? I am not a...EI expert, but it seems very unlikely they are going to check if she's been doing a job search over the next month in a half, though you might want to still say that she is. The question for the report is "have you started a full time job". Answering that honestly is what matters, and since she hasn't started yet the answer is no. I would just tell her to continue to do the reports and answer the questions honestly.
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Oct 4, 2018 18:55
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Yeah, it's just they say that they can contact you at any time in the future and ask to see a record of your job search. I dunno if they then contact those places you applied to and ask the HR at those companies whether you actually applied or not. She could just send off some resumes just in case without the intention of actually taking those jobs if she got an offer, but then its just wasted paperwork for both her and those companies' HR.
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Oct 4, 2018 21:16
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You guys are making pogey sound very high tech and expect it to have a legible audit trail. You will be fine.
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Oct 4, 2018 21:41
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Apparently I've ticked some boxes in my bank's profile of me. Besides an increase in my credit card limit I was offered/pre-approved a line of credit (Prime + ~3% if it matters). I don't have a use for it as I dislike credit and always pay my CC in full, but apparently it could help my credit score by having it even if I don't use it? Is there a downside to it?
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Oct 4, 2018 22:34
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Where would one look to find the MER in a mutual fund? My wife has a tfsa with investors group and going over the balance sheets they provide us doesn't show this information - unlike some of the others.
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Oct 14, 2018 20:43
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Guigui posted:Where would one look to find the MER in a mutual fund? My wife has a tfsa with investors group and going over the balance sheets they provide us doesn't show this information - unlike some of the others. Then select the Fund Facts of the corresponding series and you'll get a PDF where you will find the MER.
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Oct 14, 2018 22:20
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Guigui posted:Where would one look to find the MER in a mutual fund? My wife has a tfsa with investors group and going over the balance sheets they provide us doesn't show this information - unlike some of the others. You can also type the name of the fund or the fund code into something like Morningstar, but from my understanding IG rebrands a lot of other conpany’s funds so it might be safer to look on their own site. Look for a document called Fund Facts. The MER is required to be on there, unless it is a brand new fund.
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Oct 15, 2018 13:10
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If it's Investors Group I can almost guarantee the MER is over 2%. Run from them like your money is on fire.
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Oct 15, 2018 14:26
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Boy I really wish Questrade would stop going down any time there's even a moderately busy trading Monday morning.
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Oct 15, 2018 16:00
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Square Peg posted:If it's Investors Group I can almost guarantee the MER is over 2%. Run from them like your money is on fire. It might as well literally be on fire. In the historically longest bull market my wife's investment with them through her work RRSP managed to lose >1% in one year and her funds had an insultingly high MER. And they charged her $50+ to transfer out to another institution after she changed jobs. Best $50 we spent since she's now holding low MER index funds and more than made up that fee in the last couple years. Transfer out to somewhere else asap, I don't even know if IG offers any sane options.
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Oct 15, 2018 16:03
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Help me internet strangers: I am 35 years old, and have spent basically my whole life living paycheque to paycheque, and keeping my head in the sand with respect to saving for the future/retirement. The present has generally been more important, and after bills and expenses there hasn't ever been much left over for investing anyway. About 6 years ago I went to school for a trade (HD mechanic) and last year I finally got my ticket, with which I was immediately able to land a job that pays $100k+, as well as contributes (with no matching on my part) to a defined benefit pension plan. All of a sudden I have more than enough money for day-to-day expenses, and a fair amount of luxuries, even with a wife (not employed) and two kids. So...where do I start? I don't have an RRSP or a TFSA, or really any idea what to do with one. What are some good resources to learn about them, and how do I get started? I assume it's more complicated than just picking a random bank and signing up online, but which one is best? Or credit unions? I've heard they're better, but due to my previously mentioned head-in-the-sand policy I don't actually know why, or even really what the difference is. I live in BC, if that makes a difference.
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Oct 29, 2018 07:51
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EKDS5k posted:So...where do I start? The OP is still pretty good; everything in it is still true. I’m not saying you have to follow in my footsteps, but here’s how I started: by reading this entire thread over the course of a year. Checked out a few books from the library when people recommended them. Then asked some questions that were answered by the fine people in this thread. You might feel like you need to get started now now now, but you're not in so big a rush. Really, it’ll work out fine if you take your time. quote:I assume it's more complicated than just picking a random bank and signing up online Honestly, when it comes down to implementing whatever strategy you choose, it shouldn’t end up much more complicated than that. But it can take some time, some reading, and some asking questions before being convinced of that. Took me some time anyway. edit: oh, and congrats on punching your ticket!
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Oct 29, 2018 12:52
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EKDS5k posted:So...where do I start? I agree with pokeyman, take your time and do your research. canadiancouchpotato.com is a great resource for learning about low-cost investing, and this thread is great for answering any specific questions. Right now the most important thing is that you don't start inflating your lifestyle to match your new income. It's very easy to convince yourself that your new big paycheque means you deserve a new big expensive truck or a larger house or to start going out for food or drinks way more often, but it's important to keep in mind that you have a lot of catching up to do with regards to your savings. Maybe once you've filled up your and your wife's TFSAs and ploughed a couple hundred grand into your RRSPs then you can start to let the dollars fly a bit more, but right now you need to just appreciate the sense of relief that not living paycheck-to-paycheck brings all on its own. Also if you plan to send your kids to post-secondary school, you should start putting money into RESPs for them, but be mindful of the rules regarding contribution matching. You can only "catch up" 1 extra year at a time. https://retirehappy.ca/resp-contribution-rules/ Also, if you don't feel you have time to learn all about DIY investing, then start by learning what the account types you might have available to you are and how they work (TFSA, RRSP, RESP, LIRA) and what is meant by Balanced, Conservative, and Growth investing, and then you can look into a roboadvisor that will take care of the actual investing part for a much lower fee than you'd pay with a bank mutual fund. Check out https://autoinvest.ca/calculator/ for some options. Square Peg fucked around with this message at 16:14 on Oct 29, 2018 |
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Oct 29, 2018 15:45
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Things that jumped out at me as a fellow sole provider for a two-kid family. -Good job! -Don't immediately succumb to lifestyle inflation. Having nice things is good, being an extreme spendthrift/miser is bad. -Develop some financial goals and priorities. Do you want to cover your kids' education? Be able to afford having a stay at home parent forever? Retire at 55 with a reasonable standard of living? This is something you and your spouse will have to figure out together, and includes some measure of your current financial status. -Once you know where you are and where you want to be, it's easier to figure out how to get there. There's no shortage of tools and info goons can point you towards once we know what your goals are, be it budget tools, nest egg calculators, actuary tables or whatever. -You're probably making enough where you should be able to max out RRSPs and TFSAs within a few years. TFSA has more flexibility, but if your spouse isn't going back to work then a Spousal RRSP would be better to save taxes -DB pensions rule, but find out how yours works - is it likely to exist in 50 years? how and when does it pay out? is it indexed? can you make additional contributions? 'Millionaire Teacher' was the book that started it for me - it's a quick read and was even simple enough for my geezer parents to understand and follow. The whole thread has good info, but does take a while to get through.My post history in this thread chronicles my Bonne chance
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Oct 29, 2018 18:52
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Thanks all for the advice. We have RESPs set up through Canadian Scholarship Trust. I know they're maybe not the best way to do it, but most of the negative stuff I could find about them was from people who pulled out early and lost all the bonuses, sales fees, etc. I'm super torn on it, too, because I don't want to see my kids go to university just for the sake of it, and wind up with an unmarketable degree and no job prospects. I've started reading the couch potato blog, and most of that seems to make sense. Even most of the model portfolios are like 0.5% out from each other when compared over 20 years, so I guess the lesson is "invest in the market, and don't think too hard about it." Guest2553 posted:Things that jumped out at me as a fellow sole provider for a two-kid family. We haven't really inflated our lifestyle. Our spending has increased somewhat, but it's mostly been for the kids: sports, and dance lessons, and summer camps. Plus my wife's Japanese so we've taken a few trips back so they can see their grandparents, go to school there, etc. Definitely it costs, but it's not something you can put a price on missing out when they're young. Including all that, and blowing through our cash on hand to completely pay off a car loan at the beginning of this year, we've still managed to save up $30k. I'd like to do something with that to get back some of what's been deducted in taxes, so I opened an RRSP online with the TD Web Broker. At the moment it seems my online account with CRA is locked out, but a crayon and napkin estimate leaves me with probably $50-60k of contribution room accumulated over my lifetime (and she'll have a few thousand, maybe). If we focus more on saving from here on out we should be able to hit that by this time next year (or 2020 I guess if you account for the room I'll earn next year). Just to make sure I understand spousal RRSPs: The idea is that I should contribute equally to both of them, so we have two smaller RRSPs, so ideally we get taxed less when we start withdrawing? Is that the gist of it? My pension is through the IUOE, and it's been around for 50 years, with over $1B in the fund. I don't see why it shouldn't be around for another 50 years, barring legislation that kills unions. I will have to find out the exact details of how and how much it pays out. I'll try to remember to swing by the library tomorrow for this Millionaire Teacher book. Any other good recommendations? I tried to start reading this thread, but I also stumbled on the zaurg thread from like 2009 and so I think we all know which is more important to read through. Seriously it's like a goddamn trainwreck, it just keeps getting worse.
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Nov 1, 2018 08:53
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EKDS5k posted:Thanks all for the advice. We have RESPs set up through Canadian Scholarship Trust. I know they're maybe not the best way to do it, but most of the negative stuff I could find about them was from people who pulled out early and lost all the bonuses, sales fees, etc. I'm super torn on it, too, because I don't want to see my kids go to university just for the sake of it, and wind up with an unmarketable degree and no job prospects. You can spend RESP money on more than university tuition. It’s fine for colleges, professional education, equipment for self-teaching, etc. Spousal RRSPs are a way to split your income in retirement, basically.
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Nov 1, 2018 12:41
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Subjunctive posted:You can spend RESP money on more than university tuition. It’s fine for colleges, professional education, equipment for self-teaching, etc. Not with CST you can't. It's heavily restricted on what you can take money out for. I think you get penalized if your kid does anything other than a 4 year degree. Combined with the astronomical fees (I read something like 20% of contributions go to fees) and braindead low-return investments (almost all bonds), CST is dogshit. They only thing they're good at is marketing. Depending on how old your kids are EKDS and how much you've invested you would likely be better off cutting your losses and switching to a regular low-fee index-based RESP. EKDS5k posted:Just to make sure I understand spousal RRSPs: The idea is that I should contribute equally to both of them, so we have two smaller RRSPs, so ideally we get taxed less when we start withdrawing? Is that the gist of it? You can spread your RRSP contributon limit over as many RRSP accounts as you want, regular or spousal, and the total contributions get deducted from your gross income for tax purposes. However, if you contribute to a spousal plan, and then don't contribute to it (or any other spousal plan) for 3 years, that money can then be withdrawn by your spouse at their tax rate. So a common practice is to dump a bunch into the spousal RRSP to lower your taxes and then pull it back out 3 years later at a lower tax rate.
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Nov 1, 2018 15:43
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EKDS5k posted:Thanks all for the advice. We have RESPs set up through Canadian Scholarship Trust. I know they're maybe not the best way to do it, but most of the negative stuff I could find about them was from people who pulled out early and lost all the bonuses, sales fees, etc. I'm super torn on it, too, because I don't want to see my kids go to university just for the sake of it, and wind up with an unmarketable degree and no job prospects. You've signed up for a 20 year schedule into bonds. This is before the fee structure and early redemption mess.  quote:Our Investment approach Square Peg posted:CST is dogshit. 
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Nov 1, 2018 19:09
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Square Peg posted:Not with CST you can't. Holy crap.
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Nov 1, 2018 19:14
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Give a read to section 4 of A Review of Registered Education Savings Plan Industry Practices conducted by Human Resources and Social Development Canada(2008) (nice, catchy title) for all the fun and horrifying details, as of 2008. I don't imagine they've gotten much better.
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Nov 2, 2018 00:00
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EKDS5k posted:Any other good recommendations? I followed the lil reading list known as If You Can and it felt beneficial.
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Nov 2, 2018 01:14
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