|
BMan posted:You fill out Questrade's transfer form and they handle the rest. You don't have to do anything with your old institution. Oh my bad, I assumed it was similar to transferring a taxable account. Even easier!
|
#
?
Feb 4, 2019 23:15
|
|
|
|
| # ? Jun 7, 2024 03:50 |
|
|
I have a large mortgage, a large marginal tax rate, and a non-registered account with unrealized 5-figure capital gains. I would like to chuck some of the cash in there towards the mortgage, but have been traditionally resistant because I’ll incur said capital gains. Am I being stupid? Is it sane to incur capital gains, contribute to a RRSP with the proceeds, and apply the refund towards the mortgage?
|
|
#
?
Feb 5, 2019 01:27
|
|
|
Having to pay capital gains taxes is a good problem to have. That said, your plan sounds fine. You will eventually have to pay the capital gains against a similar marginal rate unless your gross income changes significantly. If you are simply trying to switch to tax shelters then there is no bad time to do this. If you have some flexibility with the timing of the sale of your securities?, you can withdraw to certain tax brackets or over multiple years to reduce the total tax obligation. Are you paying down the mortgage to lower your ratios to switch to another lender? If you have kids I highly recommend maxing out your individual RESPs (2500/child/year) after your RRSP to get the 20% ($500) CESG grant. Risky Bisquick fucked around with this message at 16:26 on Feb 5, 2019 |
|
#
?
Feb 5, 2019 16:18
|
|
|
So I opened a Questrade TFSA account today and put in my transfer request from my Holliswealth TFSA account. I assume since I'm moving the funds TFSA->TFSA it doesn't really matter whether I choose to move the contents of the account in cash or 'in kind' since it's not leaving the TFSA package. I chose to have Holliswealth liquidate the investments for me so I don't have the chance of loving that up somehow. Since I'm just under the $25k free transfer via rebate from Questrade I found a promo code I thought I should share - FREE2Q gets you the rebate up to $150 on transfers until March 2019.
|
|
#
?
Feb 5, 2019 20:26
|
|
|
VelociBacon posted:So I opened a Questrade TFSA account today and put in my transfer request from my Holliswealth TFSA account. I assume since I'm moving the funds TFSA->TFSA it doesn't really matter whether I choose to move the contents of the account in cash or 'in kind' since it's not leaving the TFSA package. It very much matters, as you need the same instruments available in both accounts in order to transfer in kind. Unless you're already dealing with external funds or ETFs, this is generally not the case as each financial institution wants to push its own funds and thus their share of management fees. If Holliswealths has a certain mutual fund that is exclusive to them, you won't be able to transfer that in kind to Questrade and it'll have to be liquidated. So yes, it won't be leaving the TFSA package, but it will definitely have to be converted from funds into cash. Where it matters whether you withdraw from the TFSA is for the contribution room. If your funds grew while inside the Holliswealth account, withdrawing them would "confirm" the gains as extra contribution room and you'd get it back, but not before January 1 of 2020. Doing a registered transfer avoids that contribution shuffle, for better or for worse. e: vvvvv Sounds like already have it figured out then! 
Jan fucked around with this message at 21:35 on Feb 5, 2019 |
|
#
?
Feb 5, 2019 20:42
|
|
|
Ya to clarify this is a questrade registered transfer and I did have them transfer "all in cash". Sound like they wouldn't have been able to transfer in kind because it wasn't an ETF I was in.
|
|
#
?
Feb 5, 2019 21:07
|
|
|
VEQT looks mighty tempting. Not like buying and balancing two funds is difficult, but one is even easier!
|
|
#
?
Feb 9, 2019 04:30
|
|
|
I just cleaned out a RRSP from an old employer, liquidated and transferred to my RRSP account at Questrade after filling out one form online. Obviously I didn’t pay taxes on this amount. Do not talk to your existing investment company unless you’re locked in, they have one goal at this point: retain your business by being unhelpful and stalling you.
|
|
#
?
Feb 9, 2019 17:30
|
|
|
I was getting married in Mexico and needed to pay for everything the day of the wedding. The whole thing is charged in Pesos and I wanted to pay on the HT card to avoid the 2.5% forex fee if I paid any other way. I only got the card with a $1500 limit so I obviously needed more so I called them before the trip and made sure I could overpay on the card and use the excess on the card to make payments like I had a higher limit. They told me everything would be A-OK and just to watch the 10 transaction a day limit. Of course the day of the wedding I go to pay and the card gets declined so I call and they told me I can only spend up to the credit limit and wait for that amount to clear(like 3-4 business days) then I can then spend up to the credit limit again. They tell me the only option I have is to put in a credit limit increase request and wait up to 10 business days to see if it goes through maybe. The supervisor offered to coach the first person I talked to about what they told me but I cancelled the card right then and there because holy gently caress. I hope they don't gently caress me over on refunding the extra amount I put on the card. TLDR; gently caress Home Trust
|
|
#
?
Feb 11, 2019 18:25
|
|
|
Is 2.5% worth this headache? I'd say no. Just use other cards if you have to. You may find that paying for the peace of mind and happiness is well worth it in some cases.
|
|
#
?
Feb 11, 2019 18:49
|
|
|
Risky Bisquick posted:Is 2.5% worth this headache? I'd say no. Just use other cards if you have to. You may find that paying for the peace of mind and happiness is well worth it in some cases. I ended up just paying with my debit and like I said hopefully they don't end up screwing me on the refund cheque. I should have really just brought cash with me but live and learn. I've never dealt with such an inflexible credit card company before though.
|
|
#
?
Feb 11, 2019 18:54
|
|
|
I think the inability to exceed your credit limit in authorizations - even with a credit balance - is universal. I have heard of people running into that at a bunch of issuers. Many places can do a limit increase with immediate effect, though, but it may have to be waiting for you as an offer on your account. Not entirely certain. Sucks that the rep led you astray rather than looking it up/asking around when it was clearly a large transaction in play.
|
|
#
?
Feb 11, 2019 19:16
|
|
|
quote:Tong Zou wasn’t a stereotypical crypto bro bent on accumulating flashy trophies such as Lamborghinis when he deposited his life savings into Quadriga CX’s digital exchange. Okay, so yes that totally blows for the guy, but seriously what the gently caress, who buys into the crypto "better than banks for moving money internationally" bullshit, particularly for Canada/US transfers? Consider this a public service announcement: With a speck of groundwork setting up accounts (maybe an hour or two?), you can do USA <--> Canada 100% for free in USD at RBC, TD, and maybe CIBC, and pay either an effective $2-20 flat fee for FX (Norbert's Gambit trade in brokerage accounts) or ~1-2%, whatever seems more convenient for the amount you're exchanging. You can do this at BMO too but it's slightly less free at last check. (All of those banks' USA accounts can push/pull from other US bank accounts no problem, and you can, of course, link misc CAD accounts too.)
|
|
#
?
Feb 12, 2019 00:37
|
|
|
James Baud posted:you can do USA <--> Canada 100% for free in USD at RBC At least at RBC you need to be moving about a million bucks for them to give you the treasury rate on USD->CAD, rather than the worse retail rate, which latter is definitely not free. IIRC the gap between those rates was about 1.5%.
|
|
#
?
Feb 13, 2019 02:52
|
|
|
Subjunctive posted:At least at RBC you need to be moving about a million bucks for them to give you the treasury rate on USD->CAD, rather than the worse retail rate, which latter is definitely not free. IIRC the gap between those rates was about 1.5%. RBC is a garbage bank that will nickel and dime the gently caress out of you.
|
|
#
?
Feb 13, 2019 03:15
|
|
|
cowofwar posted:RBC is a garbage bank that will nickel and dime the gently caress out of you. Do the other banks listed give you the treasury rate on smaller amounts?
|
|
#
?
Feb 13, 2019 03:16
|
|
|
Subjunctive posted:Do the other banks listed give you the treasury rate on smaller amounts? When I worked at TD there was a premium rate for their "important" customers (who came up with a star next to their name when looking at their accounts, basically code for people who spent a lot of money with the bank). I don't remember exactly what the rate was but it was definitely a lot lower than the standard rate (maybe 0.5%?), and those people could get it on any amount.
|
|
#
?
Feb 13, 2019 04:14
|
|
|
James Baud posted:I think the inability to exceed your credit limit in authorizations - even with a credit balance - is universal. I have heard of people running into that at a bunch of issuers. Many places can do a limit increase with immediate effect, though, but it may have to be waiting for you as an offer on your account. Not entirely certain. I've had the opposite experience with credit cards. I used to overpay on my Scotiabank Visa when I was younger to book trips that exceeded my $700 credit limit, that's how I got the idea originally. I've learned a valuable lesson though and that's with something this important I should have just brought cash and not cheaped out.
|
|
#
?
Feb 13, 2019 16:59
|
|
|
If I could empty my TFSA to max out my last bit of my 2018 RRSP, and put the whole tax refund back into my TFSA (approximately the same amount) is that a clever way to reduce my taxed income, or does it mathematically end up equal or worse? Withdrawing it now would give me back contributions next fiscal year, right? Meaning that I end up with about the same cash and contribution room in the TFSA after the refund?
xtal fucked around with this message at 22:27 on Feb 14, 2019 |
|
#
?
Feb 14, 2019 22:16
|
|
|
See: https://www.cibc.com/content/dam/personal_banking/advice_centre/tax-savings/rrsp-versus-tfsa-report-en.pdfquote:But what is this tax refund anyway?
|
|
#
?
Feb 14, 2019 22:29
|
|
|
Right, but I'm hoping that my tax rate will be drastically lower after I've decided to give up on life.
|
|
#
?
Feb 14, 2019 22:34
|
|
|
I say you should keep a mix of TFSA and RRSP.
|
|
#
?
Feb 14, 2019 22:40
|
|
|
So its valid to do, the end result is you defer the tax burden from today to the future and lock the money up in a restrictive RRSP. If you have the expectation of having no taxable retirement income and have a low marginal rate it makes sense. See chart 5, middle column, and read that blurb. That is the scenario you are alluding to with a lower marginal rate. e: keep in mind that if you have retirement income from say dividends, pension, rental income, whatever, that will impact your marginal rate and the outcome of your situation. Risky Bisquick fucked around with this message at 22:52 on Feb 14, 2019 |
|
#
?
Feb 14, 2019 22:49
|
|
|
Thanks, that's very helpful! Apparently I missed my chance because TFSA contributions already rolled over. I thought it was the same time as RRSPs. Good to know for next year.
|
|
#
?
Feb 14, 2019 22:53
|
|
|
xtal posted:If I could empty my TFSA to max out my last bit of my 2018 RRSP, and put the whole tax refund back into my TFSA (approximately the same amount) is that a clever way to reduce my taxed income, or does it mathematically end up equal or worse? Withdrawing it now would give me back contributions next fiscal year, right? Meaning that I end up with about the same cash and contribution room in the TFSA after the refund? The normal way to do this is to get an RRSP loan. If you borrow from the same institution they usually give you pretty good rates, but you can just borrow from a line of credit (mine is at about prime+2.3% unsecured). Then when your tax refund comes, you use it to pay off the loan. This way you don't pay buying and selling commissions or lose money on the spread or time out of market. I believe the interest you pay is even tax deductible.
|
|
#
?
Feb 14, 2019 23:05
|
|
|
I want to say you can reduce your taxes in retirement by withdrawing from both RRSP and TFSA, so that a greater proportion of your RRSP withdrawals are in a lower / zero tax bracket, but I don't know how to do the math on that. But it sounds true???
|
|
#
?
Feb 14, 2019 23:08
|
|
|
Mantle posted:The normal way to do this is to get an RRSP loan. If you borrow from the same institution they usually give you pretty good rates, but you can just borrow from a line of credit (mine is at about prime+2.3% unsecured). Then when your tax refund comes, you use it to pay off the loan. Oh, what a great idea. This is a nice thread.
|
|
#
?
Feb 14, 2019 23:36
|
|
|
Mantle posted:I believe the interest you pay is even tax deductible. Interest on investment loans is only deductible if the investment is “primarily” to generate interest or dividends, not capital appreciation. So make sure you pick stuff that generates one of those!
|
|
#
?
Feb 14, 2019 23:39
|
|
|
Mantle posted:The normal way to do this is to get an RRSP loan. If you borrow from the same institution they usually give you pretty good rates, but you can just borrow from a line of credit (mine is at about prime+2.3% unsecured). Then when your tax refund comes, you use it to pay off the loan. Interest is only deductible for non-registered investments (so, not for RRSP loan) ... which conceivably will pay interest/dividends, as mentioned above - no deducting interest on your loan for a $10m painting. xtal: If you're maxed out or close enough on TFSA, the Dec 31st deadline definitely matters, but if you're in a position where you have a bunch of contribution room remaining, you could conceivably do something like pull 5k today, deposit it back in a couple months / over the rest of the year, and then get back the 5k contribution space (due to the withdrawal) in addition to next year's 6,000 on Jan 1, 2020. I think RRSPs are still pretty useful for income smoothing even if you don't do the "traditional" withdrawals over the course of a decade or three of retirement - if you're an aggressive saver one tends to want to draw them down prior to retirement age since they'll affect other benefits and you lose discretionary timing control.
|
|
#
?
Feb 14, 2019 23:52
|
|
|
Risky Bisquick posted:So its valid to do, the end result is you defer the tax burden from today to the future and lock the money up in a restrictive RRSP. If you have the expectation of having no taxable retirement income and have a low marginal rate it makes sense. You mean high, right? I have a high marginal rate and am considering the same maneuver; simply because the tax savings are so huge. I figure my income will be lower in retirement, and I can always draw down a RRSP slowly.
|
|
#
?
Feb 15, 2019 02:58
|
|
|
James Baud posted:Okay, so yes that totally blows for the guy, but seriously what the gently caress, who buys into the crypto "better than banks for moving money internationally" bullshit, particularly for Canada/US transfers? I use transferwise when transferring large amounts between Canada and the UK, it can come out to <0.5% commission and you get the midmarket exchange rate.
|
|
#
?
Feb 15, 2019 06:32
|
|
|
Lexicon posted:You mean high, right? *lower, missed some letters In that chart example, they spell out a current 40% rate and future 20% rate in retirement. You will need to project your future retirement income to determine if this will save you money (which I think you have already) vs simply defer the tax obligation to the future. This comes at the cost of flexibility and accessibility of the money, and there are ways around that as mentioned above.
|
|
#
?
Feb 15, 2019 08:37
|
|
|
Did anyone else finally get an invite to wealthsimple trading yesterday?
|
|
#
?
Feb 15, 2019 10:45
|
|
|
zapplez posted:Did anyone else finally get an invite to wealthsimple trading yesterday? They're going out in waves - I don't use them at all but a friend mentioned getting invited a few weeks ago. He had noticed a loophole in the way the "spam your friends to move up the invitation queue" worked and sent emails to a bunch of bogus addresses, or ones he controlled, or something.
|
|
#
?
Feb 15, 2019 10:59
|
|
|
James Baud posted:Interest is only deductible for non-registered investments (so, not for RRSP loan) ... which conceivably will pay interest/dividends, as mentioned above - no deducting interest on your loan for a $10m painting. Yeah, the rule of thumb we use is you can only deduct interest if the loan is against taxable income. The only way around it would be to do something like I was doing: throw money into a TFSA that would've otherwise be used to pay down a student loan.
|
|
#
?
Feb 15, 2019 16:24
|
|
|
What kind of tax software are you folks all using?DariusLikewise posted:TLDR; gently caress Home Trust I really haven't heard anything good about HT and think I'll probably end up cancelling my card. I mean, what credit card company in TYOL2019 will not allow you to change a PIN?  e: Is there anyone else with less suckage that doesn't do a forex surcharge? That's literally the only reason I got it. slidebite fucked around with this message at 17:55 on Feb 16, 2019 |
|
#
?
Feb 16, 2019 17:44
|
|
|
You can change your PIN now. Call 1-833-217-8090 to do it over the phone (no online option). Next time you pay at a terminal, use your old pin first, and the next time use the new one (I know). See the thread on RFD for details.
|
|
#
?
Feb 16, 2019 18:46
|
|
|
slidebite posted:What kind of tax software are you folks all using? SimpleTax, though my needs are indeed simple. quote:I really haven't heard anything good about HT and think I'll probably end up cancelling my card. I mean, what credit card company in TYOL2019 will not allow you to change a PIN? The Rogers card paid back forex plus some extra last year without much fuss, but they’re changing how they pay back this year so I have no idea how that’ll work.
|
|
#
?
Feb 16, 2019 19:00
|
|
|
slidebite posted:e: Is there anyone else with less suckage that doesn't do a forex surcharge? That's literally the only reason I got it. There's a good list here, but the short version is that there are 3 no-annual/monthly fee options: Rogers/Fido, Hometrust, or Brim. edit: And Stack, I guess, if you're looking for a cash-like option.
|
|
#
?
Feb 16, 2019 19:46
|
|
|
|
| # ? Jun 7, 2024 03:50 |
|
|
Thanks for the link
|
|
#
?
Feb 17, 2019 08:29
|
|