|
Money showed up, yay. Okay 2 more questions - 1) Do I still earn interest on my Questrade-held TFSA (ie.., if I don't actually invest it in anything) 2) How do I actually go about buying ETFs/stocks with my TFSA funds?
|
#
?
Apr 3, 2020 23:25
|
|
|
|
| # ? Jun 7, 2024 04:22 |
|
|
Yeah man you get a great rate without investing in anything, you'd be way up on us for this year.
|
|
#
?
Apr 3, 2020 23:32
|
|
|
Cyril Sneer posted:Money showed up, yay. 1) no, not unless you buy something like PSA 2) Here's a walkthrough for you I personally use market orders and have never had any issues but if you want to be absolutely careful you can use limit orders.
|
|
#
?
Apr 3, 2020 23:33
|
|
|
Cold on a Cob posted:1) no, not unless you buy something like PSA Awesome link, thanks!
|
|
#
?
Apr 4, 2020 00:14
|
|
|
Thoughts on buying Air Canada stock? 
|
|
#
?
Apr 4, 2020 00:18
|
|
|
Cyril Sneer posted:Thoughts on buying Air Canada stock? https://twitter.com/CNBCnow/status/1246177536452767744 https://twitter.com/CNBCnow/status/1246193229546033152 Extrapolate
|
|
#
?
Apr 4, 2020 00:22
|
|
|
I just read that as "wait a bit longer"
|
|
#
?
Apr 4, 2020 00:30
|
|
|
Any single stock is a huge gamble right now.
|
|
#
?
Apr 4, 2020 04:10
|
|
|
Square Peg posted:Any single stock is a huge gamble
|
|
#
?
Apr 4, 2020 04:35
|
|
|
Truth.
|
|
#
?
Apr 4, 2020 05:08
|
|
|
Don't worry I'm not actually going to dump my life savings into AC stock  That being said, I do have a nice pile of cash that I'd like to invest so I am curious what people think of the current situation.
|
|
#
?
Apr 6, 2020 06:04
|
|
|
Unless you think an investment will not be negatively effected by a record level of unemployment and sudden cratering of demand across almost all sectors, it is likely not the time to buy that thing. They are sure as hell not priced into the market right now because literally nobody knows what the results of the current situation will look like. There are a lot of people trading like this is a blip, which is likely holding things steadier than they have any right to be. You'd basically be betting on how you think the government will respond, because without their input the airlines will collapse or be heavily crippled. The same holds true of a lot of things right now. Anyone who tells you that they know what a good investment is right now is a liar.
|
|
#
?
Apr 6, 2020 06:22
|
|
|
Cyril Sneer posted:Don't worry I'm not actually going to dump my life savings into AC stock If I was a Canadian investor just entering the market right now, and didn't need the cash in the next 5 years (in which case I wouldn't enter the market), I would put it into XGRO/VGRO or XBAL/VBAL, probably contributing 1/8 of the total amount every week for the next 2 months so I don't get caught buying on a pump. I'm no expert but I expect NA markets to start consistently trending up around August.
|
|
#
?
Apr 6, 2020 06:37
|
|
|
VelociBacon posted:If I was a Canadian investor just entering the market right now, and didn't need the cash in the next 5 years (in which case I wouldn't enter the market) Not sure I follow here. I don't *have* to enter the market right now. My situation is that I've just been squirreling away money into a "regular" savings account for years and years, and figured I should probably do something better with it. My naive thought is "market down -> invest now". VelociBacon posted:I would put it into XGRO/VGRO or XBAL/VBAL, probably contributing 1/8 of the total amount every week for the next 2 months so I don't get caught buying on a pump. This is kind of what I'm thinking of doing.
|
|
#
?
Apr 6, 2020 23:19
|
|
|
Cyril Sneer posted:Not sure I follow here. I don't *have* to enter the market right now. My situation is that I've just been squirreling away money into a "regular" savings account for years and years, and figured I should probably do something better with it. My naive thought is "market down -> invest now". I think if you invest now, ignore it for 5 years, and then check your account, you'll be just fine.
|
|
#
?
Apr 6, 2020 23:55
|
|
|
I'm having a hard time figuring this out and google isn't being very helpful. I'm trying to add futures for a watchlist in IQ Edge (QT) but I can't find any tickers that work, including ESmini stuff like ESM0. Anyone know if this is possible? I'd find it weird if I can't track futures in this software.
|
|
#
?
Apr 13, 2020 01:21
|
|
|
VelociBacon posted:I'm having a hard time figuring this out and google isn't being very helpful. I'm trying to add futures for a watchlist in IQ Edge (QT) but I can't find any tickers that work, including ESmini stuff like ESM0. Anyone know if this is possible? I'd find it weird if I can't track futures in this software. Questrade doesn't support futures. Futures trade on different exchanges and the data doesn't come from the same place as stocks. Questrade isn't going to foot the bill for that.
|
|
#
?
Apr 13, 2020 03:25
|
|
|
Kal Torak posted:Questrade doesn't support futures. Futures trade on different exchanges and the data doesn't come from the same place as stocks. Questrade isn't going to foot the bill for that. Gotcha, thanks.
|
|
#
?
Apr 13, 2020 03:30
|
|
|
how about this: I get paid more than I spend and the surplus currently goes in TFSAs and RRSPs. I guess what I'm saving for is a down payment, as unlikely as that feels in Vancouver. As I understand it, there is a limit of 35k for RRSP withdrawals for a first-time homebuyer. If I wipe out my TFSA on a down payment, though, that contribution room is gone forever. Should I be saving for a down payment in a regular, non-tax-sheltered account instead?
|
|
#
?
Apr 16, 2020 03:16
|
|
|
If you withdraw from your TFSA you get that contribution room back. You lose that room forever when you lose money to, say, a stock market crash. And if you're saving up for a down payment you shouldn't be putting that money in the stock market anyway.
|
|
#
?
Apr 16, 2020 03:38
|
|
|
If you're looking to save to buy a place in the next 5 years I think the general recommendation is no stock market investment. Maybe GIC's but they might not offer much more than a good savings account rate. I understand that the first time homebuyer's thing is pretty useful so I'd be putting money into RRSP if I thought I was going to be buying a place (have to consider other factors like how likely you are to repay into the RRSP after removing the down payment and what your pension might look like etc).
|
|
#
?
Apr 16, 2020 05:10
|
|
|
VelociBacon posted:If you're looking to save to buy a place in the next 5 years I think the general recommendation is no stock market investment. Maybe GIC's but they might not offer much more than a good savings account rate. I understand that the first time homebuyer's thing is pretty useful so I'd be putting money into RRSP if I thought I was going to be buying a place (have to consider other factors like how likely you are to repay into the RRSP after removing the down payment and what your pension might look like etc). The HBP is a medium term loan from yourself. It doesn't really confer any real benefits beyond getting at the money that you've been putting away for retirement because you need that extra cash for the down payment right now, or you want to top up the down payment to get to 20%. While it's gone from your RRSP you won't be earning interest, so whatever your estimated rate of return was there is what you're paying in opportunity cost for the loan. I'd avoid using it if possible, but it might work for you.
|
|
#
?
Apr 16, 2020 05:46
|
|
|
yippee cahier posted:The HBP is a medium term loan from yourself. It doesn't really confer any real benefits beyond getting at the money that you've been putting away for retirement because you need that extra cash for the down payment right now, or you want to top up the down payment to get to 20%. While it's gone from your RRSP you won't be earning interest, so whatever your estimated rate of return was there is what you're paying in opportunity cost for the loan. I'd avoid using it if possible, but it might work for you. Nah it's great. You don't have to pay the tax on that RRSP money you take out, and the interest you earn is the lack of interest you would be paying on the larger mortgage, and there's no tax on that! Penny saved is a penny earned. Obviously don't buy more house than you need because of it, but using the HBP is pretty much objectively better than not using it. I'm kicking myself for not dumping my down payment into my RRSP, taking the giant tax return, waiting a year, and then pulling it back out tax free. Square Peg fucked around with this message at 05:59 on Apr 16, 2020 |
|
#
?
Apr 16, 2020 05:56
|
|
|
You pay taxes on that money when you repay the HBP loan. Your future RRSP contributions get diverted into reducing the outstanding balance instead of reducing your taxable income.
|
|
#
?
Apr 16, 2020 17:11
|
|
|
Yeah, maybe I'm crazy, but I thought I remember reading an assessment that HBP is, at best, net zero.
|
|
#
?
Apr 16, 2020 18:49
|
|
|
Dollar for dollar borrowing from your RRSP is better, assuming you reinvested your refund. To be more explicit: 25k into a TFSA minus 25k to buy a house = 0. 25k into an RRSP plus invested refund (let's say 5k for shits and giggles) - 25k = 5k still invested and making sick gains (or suffering covid losses these days). Edit: this also assumes you would be paying back the amount into your TFSA if you withdraw from it instead. All that said the main thing is to try to get 20% down by any means necessary. Last time I bought property I withdrew from both my RRSPs and TFSAs to achieve this. Cold on a Cob fucked around with this message at 19:20 on Apr 16, 2020 |
|
#
?
Apr 16, 2020 19:13
|
|
|
Maybe I'm drinking the koolaid, but this guy seems smarter than me and I've read this paper twice: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3240046 (free download, no login required) (edit: HBP starts on page 13, although its all gold) Sputnik fucked around with this message at 19:27 on Apr 16, 2020 |
|
#
?
Apr 16, 2020 19:21
|
|
|
Sputnik posted:Maybe I'm drinking the koolaid, but this guy seems smarter than me and I've read this paper twice: I can't really afford to dig in too much and from scanning I'm even sure much of it I agree with, but this part is very questionable:  Someone's never had to struggle to buy a home in a hot market. When $500 can cost you over 10k on a 500k property (pretty reasonable these days) I think dipping into your RRSPs in that case would be worth it.
|
|
#
?
Apr 16, 2020 19:49
|
|
|
yippee cahier posted:You pay taxes on that money when you repay the HBP loan. Your future RRSP contributions get diverted into reducing the outstanding balance instead of reducing your taxable income. https://www.canada.ca/en/revenue-ag...uyers-plan.html "Repayments do not affect your RRSP deduction limit." Obviously you can't double dip on the money you repay, you already go the tax back on that once, but you don't lose RRSP contribution room due to repayments. Ideally this leaves a bunch of RRSP room to use later in life when income rates are higher. Also, if the option is HBP vs wiping out TFSA, HBP wins hands down. Leave that money in the TFSA to grow tax-free.
|
|
#
?
Apr 16, 2020 21:34
|
|
|
Square Peg posted:"Repayments do not affect your RRSP deduction limit." That is not what he said. He said that if you earn $1000 and earmark it for long term savings, you are instead rebuilding your old nest egg, not building it bigger.
|
|
#
?
Apr 16, 2020 22:09
|
|
|
Sputnik posted:That is not what he said. He said that if you earn $1000 and earmark it for long term savings, you are instead rebuilding your old nest egg, not building it bigger. Ok, but I'd argue a house (or portion of a house) qualifies as long term savings anyway. And regardless: Square Peg posted:if the option is HBP vs wiping out TFSA, HBP wins hands down. Leave that money in the TFSA to grow tax-free.
|
|
#
?
Apr 16, 2020 22:19
|
|
|
Yeah, there are places for it and the benefits are more on the margins. For me it was helpful in clearing out a small "hard sell" mutual fund and a locked in RRSP with a former employer without any hassles or fees. I just wanted to make clear that you're not getting one over on the CRA, you are going to be paying back your loan from your RRSP with after tax money and getting no tax breaks while you're doing it.
|
|
#
?
Apr 16, 2020 22:44
|
|
|
well, my initial question about whether it's bad to use a TFSA for this is quite conclusively answered, and I'm many years off from getting together 20% of a vancouver property with anything built on it, so I guess I'll continue to split my savings 50/50 between TFSA and RRSP until I run out of room on one of them. Thanks, folks.
|
|
#
?
Apr 17, 2020 01:41
|
|
|
Do you all use Questrade for stocks and options? I have an automated purchase set up for TD e-series funds but I wouldn't mind playing around with some individual stocks.
|
|
#
?
Apr 20, 2020 21:02
|
|
|
Mr. Apollo posted:Do you all use Questrade for stocks and options? I have an automated purchase set up for TD e-series funds but I wouldn't mind playing around with some individual stocks. Yes but if you have access to ThinkorSwim via TD it's regarded as having better tools. Also more people use it in the states than IQ Edge so you can import watchlists, get more help with the software, etc.
|
|
#
?
Apr 20, 2020 21:04
|
|
|
VelociBacon posted:Yes but if you have access to ThinkorSwim via TD it's regarded as having better tools. Also more people use it in the states than IQ Edge so you can import watchlists, get more help with the software, etc.
|
|
#
?
Apr 21, 2020 04:51
|
|
|
Mr. Apollo posted:OK thanks. One other question. I have a TFSA with my current financial institution. If I set up an account with Questrade, do I set up another TFSA or what should I do? Entirely depends on what you want to use the account for. You're allowed to have as many TFSA accounts as you like, they just care about the total contributions (they're cumulative between accounts). You can't day trade in a TFSA or the CRA will audit you.
|
|
#
?
Apr 21, 2020 04:58
|
|
|
You normally open a new TFSA with them and then have them move the funds over without it counting as a withdrawal or contribution and then close the first account. Nothing says you have to do that though and you can just have the old TFSA and new TFSA forever. Like ^^^, the contribution room is all that matters. In practice having multiple accounts is harder to track and keep balanced though. One use case for this might be if you have one TFSA for ETFs and another that's high interest savings.
|
|
#
?
Apr 21, 2020 05:21
|
|
|
VelociBacon posted:Entirely depends on what you want to use the account for. You're allowed to have as many TFSA accounts as you like, they just care about the total contributions (they're cumulative between accounts). You can't day trade in a TFSA or the CRA will audit you. xtal posted:You normally open a new TFSA with them and then have them move the funds over without it counting as a withdrawal or contribution and then close the first account. Nothing says you have to do that though and you can just have the old TFSA and new TFSA forever. Like ^^^, the contribution room is all that matters. In practice having multiple accounts is harder to track and keep balanced though. One use case for this might be if you have one TFSA for ETFs and another that's high interest savings.
|
|
#
?
Apr 21, 2020 16:06
|
|
|
|
| # ? Jun 7, 2024 04:22 |
|
|
Unsurprisingly transfers are going WAY slower than usual, so expect that. Also FYI you can buy $PSA if you want to just hold "savings" in your investment account for simplicity. It may not be paying interest comparable to your HISA though.
|
|
#
?
Apr 21, 2020 16:11
|
|