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Cold on a Cob posted:Thankfully all of mine match my records. Having used the HBP and then paid it back made it complicated too. I don't want to outright dismiss this but my understanding is that the degree to which an RRSP is a good option for you depends heavily on your retirement income planning. I work in healthcare and will have a very generous pension so I have been maxing out my TFSA instead of worrying about RRSP for the most part. If someone had their own business or something I would expect they would favor RRSP more heavily in their portfolio.
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Apr 29, 2021 18:02
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VelociBacon posted:I don't want to outright dismiss this but my understanding is that the degree to which an RRSP is a good option for you depends heavily on your retirement income planning. I work in healthcare and will have a very generous pension so I have been maxing out my TFSA instead of worrying about RRSP for the most part. If someone had their own business or something I would expect they would favor RRSP more heavily in their portfolio. Absolutely, but it's actually more questioning whether tax deferral really buys you much. Despite this there are definitely situations where it can help, and I'm in one - I make significantly more than my spouse so spousal RRSP definitely makes sense to leverage. We've maxed out our TFSAs so it's either RRSP or taxable investments for us at this point. Anyhow, found it: Nofeed posted:If you want to understand how unfortunately complex the RRSP investment decision is, feel free to take a gander over to Retail Investor. Buddy has a nice spreadsheet you can use to model your planned contributions with.
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Apr 29, 2021 18:36
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xtal posted:If you did your math right and are working on accurate numbers from your employers etc, actual reality will reflect what you see there. But it's based on the information you tell them and not verified unless you're audited, so it may be wrong and you don't know until later. At least, that's the case with RRSPs. With TFSAs this is unlikely/impossible to happen because (a) contribution room is a known value and not an equation (b) contributions and withdrawals are reported directly to the CRA automatically. I mean sure if you provide inaccurate or incomplete info to cra then you get wrong contribution room calcs. That’s garbage in/garbage out problem. And if you get audited surely there are bigger potential problems then rrsp contribution room in that case. The original post said that there is some god given “true number”(tm) that should be somehow known to cra but is not shown to you automagically.
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Apr 29, 2021 18:51
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I'm a bit wary of additional significant tax increases. Top bracket has gone up around 10% nominal in the last 7-8 years and is absolutely going to go higher as boomer healthcare costs spiral, to say nothing of Covid spending. Still contribute to RRSPs hoping to take advantage of smoothing/splitting benefits and because I like the big refunds now from a cashflow point of view, but ugh. ("Top" won't be a useful comparison if they add "millions a year" brackets, but I'm comfortably into today's and will remain there for a long time.)
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Apr 29, 2021 18:51
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iv46vi posted:What’s actual reality? You have to look at the letter of assessment you get after completing your previous years taxes and it will tell you what your real amount is.
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Apr 29, 2021 21:59
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Demon_Corsair posted:You have to look at the letter of assessment you get after completing your previous years taxes and it will tell you what your real amount is. Thats the same amount as cra shows to you on my account. So are you saying it’s wrong on website but right on NoA at the same time?
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Apr 29, 2021 23:14
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iv46vi posted:Thats the same amount as cra shows to you on my account. So are you saying it’s wrong on website but right on NoA at the same time? Exactly. Which lead to me over contributing and then having to scramble to fix it. Always check your notice of assessment!
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Apr 30, 2021 02:25
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Cold on a Cob posted:Speaking of RRSPs someone posted a really good article (with plenty of calculations) explaining why RRSPs are barely better than a taxable account, can someone repost it? I didn't bookmark it and forget the author. It might have been me. edit: This? Sputnik posted:Maybe I'm drinking the koolaid, but this guy seems smarter than me and I've read this paper twice:
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Apr 30, 2021 16:55
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This probably goes without saying to those here RE RRSP limits, but also keep in mind if your employer has a RRSP program that also impacts your limit, and you need to pay extra attention if you get matching (or some variation thereof) contributions. I always undershoot a bit and do my top-up the next year so I can carry it over into the following year if I gently caress up and over contribute.
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May 3, 2021 16:12
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Sputnik posted:It might have been me. It was this one: Nofeed posted:If you want to understand how unfortunately complex the RRSP investment decision is, feel free to take a gander over to Retail Investor. Buddy has a nice spreadsheet you can use to model your planned contributions with. But I'll check your link too. Edit: Ok the paper you link actually references the resources on Retail Investor website.  This really makes me want to hurry up and get back into owning my primary residence again. TFSA + primary residence exemption sure seem like good priorities over RRSPs. Cold on a Cob fucked around with this message at 17:22 on May 3, 2021 |
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May 3, 2021 16:16
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I've read what I can find about attribution rules for a gift to a spouse for a TFSA contribution and I still don't understand. taxtips.ca seems clearest (which does not mean clear) when it saysquote:You can gift or lend money to your spouse or common-law partner to contribute to their TFSA, and there will be no attribution back to you Let's say this happens: Today: I e-transfer my spouse $1000. She contributes it to her TFSA (with room to do so) and invests it. 20 years later: My spouse sells whatever that $1000 grew to, moves it out of her TFSA, and buys some GICs. Am I about to be on the hook for taxes because I gave that gift 20 years previous? On the original amount? Including gains while in the TFSA? Gains from the GICs? How would we know whether the dollars withdrawn from her TFSA were my gifted dollars or some other dollars? Am I supposed to write a note to future-me or future-her that some portion of the otherwise undifferentiated holdings in her TFSA has weird taxes even though it's nominally a tax-free savings account? I understand that it's kinda BS to launder money through a spouse's TFSA to dodge the attribution rule, but at some point it crosses over into bizarroland. Maybe it's another thing in the pile of "yeah that's technically uncool but nobody cares".
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May 12, 2021 06:56
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I think the unofficial rule (technically the wrong answer / not the law, but a lot of people in the business will tell you this) is that if you just make joint accounts and split gains/income 50/50 nobody will ever come after you re: attribution ... Maybe there are rare exceptions for non-working spouses of pro athletes and public company C-levels, but it's pretty much unheard of. A bit more frequent is a review on investment income being claimed 100% by a spouse when they haven't ever/recently earned enough themselves to justify it. In that case, better have proof of an inheritance, arms length gift, or your spousal loan papertrail in order. Re: attribution on TFSA funds decades later? I wouldn't expect any enforcement at all, especially if they earned enough to argue "I paid all living expenses, spouse invested their income/savings". This isn't too hard given low annual limit. I suspect the reason it's in the rules at all is to allow the spousal gift at all while still stopping people from massively overcontributing on the first-year 5k limit, withdrawing immediately, and arguing funds are free and clear. The original TFSA overcontribution penalties were pretty mild - many people were doing it deliberately since it was 1% per month, much less than people were capable of earning on their invested funds.
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May 12, 2021 10:46
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Specifically, I believe the gains on the GICs would be taxable but not the gains while it was in the TFSA. I agree that in practice it's probably just to prevent dodging attribution rules in the short term and the CRA is not going to care in this GIC scenario. Even without over-contributing, over a few years you could use it to build up a taxable account held solely by the lower-income spouse if this rule didn't exist. Yet another complicated (and arguably impossible) rule to deal with because we don't file jointly in Canada.
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May 12, 2021 13:17
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My employer has recently decided to remove the pension matching from my benefits package (it’s bullshit, but it was 100$/month) now my options are to move it from the current account to a new RPP set up by them (lol, no) or move it elsewhere. Do I have to set up a new rrsp for this? From the sounds of it, the funds are locked until I retire or I have to give up the matched funds (over my dead body) But I’d rather just bring it under my regular RRSP so everything is under one roof. Thanks!
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May 13, 2021 04:24
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Frank Dillinger posted:My employer has recently decided to remove the pension matching from my benefits package (it’s bullshit, but it was 100$/month) now my options are to move it from the current account to a new RPP set up by them (lol, no) or move it elsewhere. I have absolutely no idea what I'm talking about, but if the funds are locked then that doesn't sound like you can put them in an RRSP. Based mostly on the name, you might end up with a LIRA? So you'd control what you invest in and where you keep the account, but it is a separate account with different rules.
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May 13, 2021 07:12
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That absolutely sounds like a LIRA to me. I’ve got one that I’ve transferred two small RPP amounts to in the past. You can control what it is invested in and keep it at your brokerage alongside your RRSP but no withdrawals or contributions allowed (outside of transferring future RPPs to it).
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May 13, 2021 12:20
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Edit: Disregard, I just needed to learn how to read.
SHAQ4PREZ fucked around with this message at 08:35 on May 14, 2021 |
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May 14, 2021 07:40
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What the gently caress do I do with the 10k sitting in my TD TFSA doing absolutely nothing for me? GICs seem poo poo, TD Mutual Funds from what I've seen have god awful MERs...
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May 18, 2021 20:48
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Do you need the money in the short term? For that I just keep it in CSAV since that's what I can hold easily with Questrade. For my long term stuff I've just yeeted everything into XGRO for now but I'm thinking about reducing my exposure to Canadian equities. Edit: CSAV not PSAV
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May 18, 2021 20:50
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That's the thing. Maybe? I guess that's how I got here - I've always "maybe" needed to touch that money in the short term and it's just ballooned up into 10k - I've basically turned off the tap and now just lump leftover from paycheques into my EQBank 1.25% account. All the options afforded through the TFSA seem poo poo though... Like how does this even work for Canadians?
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May 18, 2021 20:55
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Whatever you do, don't hold bonds, you [probably] don't have the cashflow requirements of a pension fund, rates are at/near all-time lows (& thus bond prices are at a max) and they have had negative real return for probably more than a decade now I'm never going to stop beating this drum until they actually make sense. (XGRO is ~20% bonds) Here was a recent argument to that effect by Ray Dalio, but it's nothing new (I think, I got bored and stopped reading pretty early since preaching to the choir, etc): https://www.linkedin.com/pulse/why-world-would-you-own-bonds-when-ray-dalio/
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May 18, 2021 21:02
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Slotducks posted:All the options afforded through the TFSA seem poo poo though... Like how does this even work for Canadians? You can move the funds out of your TD TFSA into a non-poo poo one. A low-cost brokerage like Questrade has TFSA investing accounts and will pay your transfer-out costs, if any. However you can also open a TD Direct Investing account and transfer your TFSA there, but most people will advocate for holding ETFs and Questrade doesn't charge anything for ETF purchases.
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May 18, 2021 21:19
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Slotducks posted:What the gently caress do I do with the 10k sitting in my TD TFSA doing absolutely nothing for me? GICs seem poo poo, TD Mutual Funds from what I've seen have god awful MERs... e-Series is probably what you want: https://www.tdcanadatrust.com/products-services/investing/mutual-funds/mer-diff.jsp bit of a pain to enable those in your TD Mutual Funds account, but once you do you're golden. Pick an allocation and forget about it for a couple years. If you're over the threshold for waiving the quarterly maintenance fee at TD Direct Investing (I think it's $25k across all household accounts?), you can transfer it there for free and buy whatever you want. Easiest would be an asset allocation fund like XGRO or XEQT. Or, bit more effort, you can transfer to some other brokerage. They'll probably cover the transfer-out fee, but check their maintenance fees.
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May 19, 2021 02:38
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Is XEQT still the way to go for long term savings growth?
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May 22, 2021 21:44
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Kraftwerk posted:Is XEQT still the way to go for long term savings growth? Yep. If you're up for making some spreadsheets, you can do a little better, but in effort:reward ratio it can't be beat.
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May 22, 2021 21:54
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And if you do want to do something a bit more complex than just buying XEQT, Passiv makes it nearly as simple. The elite tier with all the cool wiz-bang features is free for Questrade users.
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May 24, 2021 03:08
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pokeyman posted:Yep. What makes it better than XSP? I guess just exposure to the NYSE side?
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May 24, 2021 05:19
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VelociBacon posted:What makes it better than XSP? I guess just exposure to the NYSE side? I'd choose it for diversification. Not sure I understand what "the NYSE side" means. I also don't have a preference for currency hedging, but Canada-domiciled S&P 500 funds don't seem to charge extra for it, so that's ok.
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May 24, 2021 06:11
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pokeyman posted:I'd choose it for diversification. Not sure I understand what "the NYSE side" means. Ah sorry yeah I misunderstood something about the inclusion between XSP and XEQT.
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May 24, 2021 06:58
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VelociBacon posted:Ah sorry yeah I misunderstood something about the inclusion between XSP and XEQT. I hear ya, this poo poo's incredibly confusing. And I should say, holding an S&P 500 fund for one's stock allocation is certainly not a bad choice. OP was looking to confirm a one fund plan while giving no context, and for me the diversification is worth a few bps higher fees. Both good choices, I think one's just a bit better.
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May 24, 2021 08:03
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Any general advice on mortgages at the moment? Broker quoted me a five-year variable 1.45% and a five-year fixed @ 2.09%.
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May 26, 2021 00:03
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Inflation was 3.4% last week. The target is 2%, but BOC is keeping its rate at 0.25% until the pandemic ends. I'd expect rates to go up as the pandemic wanes, so I'd go for the fixed rate.
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May 26, 2021 02:03
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just another posted:Any general advice on mortgages at the moment? Broker quoted me a five-year variable 1.45% and a five-year fixed @ 2.09%. EQ Bank sent me an email on May 17th that offered: quote:Hi [Me], As far as "no BS" rates go, that's not too bad - they're not the only ones in that ballpark but my experience with "very cheapest" is extremely slow and overall fairly garbage service.  0.2% better for five years works out to a difference in total interest of about 1% of starting mortgage balance. Sassafras fucked around with this message at 03:25 on May 26, 2021 |
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May 26, 2021 03:21
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I’ve been working in canada for a while while still maintaining a US address so that I could continue to hold assets in a US brokerage account. Recently the brokerage has decided that they’d rather not work with clients who spend large amounts of time in Canada due to FACTA requirements and Canadian securities laws. Is there an easy way to transfer all the assets in an American brokerage to Canada without selling any of the stocks? I understand I might have to sell the mutual funds but hopefully the ETFs can transfer over even though they’re listed on the NYSE and denominated in USD.
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May 26, 2021 03:31
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Might be worth looking into American brokerages that do business in Canada as well, such as IBKR, but this is definitely far beyond my knowledge.
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May 26, 2021 12:31
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just another posted:Any general advice on mortgages at the moment? Broker quoted me a five-year variable 1.45% and a five-year fixed @ 2.09%. When I was a kid, mortgage rates were around 21%.
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May 26, 2021 13:52
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TheCenturion posted:When I was a kid, mortgage rates were around 21%. Now do savings account interest rates
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May 26, 2021 17:13
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Ccs posted:I’ve been working in canada for a while while still maintaining a US address so that I could continue to hold assets in a US brokerage account. Recently the brokerage has decided that they’d rather not work with clients who spend large amounts of time in Canada due to FACTA requirements and Canadian securities laws. Is there an easy way to transfer all the assets in an American brokerage to Canada without selling any of the stocks? I understand I might have to sell the mutual funds but hopefully the ETFs can transfer over even though they’re listed on the NYSE and denominated in USD. What is the issue with selling the securities? If you’re worried about tax, I don’t think you’d be allowed to transfer securities between jurisdictions without it being treated as a taxable event. If you’re worried about leaving your seat, you can sell and use a margin/line of credit to immediately repurchase the securities until your cash transfers over.
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May 27, 2021 06:04
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Nearly twenty years ago - post 9/11 anti-terrorist financing rules - all the US online brokers fired all their Canadian customers at once... quite a few of that era's very online people including folks who worked a few years in the US in tech, oil, etc had up until then been using them quite happily through the late 90s dot com boom and bust since they were so much cheaper than Canadian alternatives. It ought to be possible to find message board discussions online that go that far back in some places to find out what people ended up doing to transfer assets. Forced liquidation/crystallization is hard to believe, but maybe. The forum at "financialwebring.org" (hint at how old the group is right there) in particular probably still has a bunch of living posters who experienced it and may have even inherited the discussion threads from its original/older "wealthyboomer" domain. I remember reading about it at the time but wasn't personally affected so haven't retained details.
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May 27, 2021 06:32
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"Living posters" - gosh 20 years ago wasn't that long ago that you'd need to qualify. People who were even in their 30s & 40s, already well established at the time, are not even retired yet. I don't think you need to go digging through cobwebs on webrings to find people like that. Just ask people who are currently in their mid-40s or older - you could try making a post or inquiry to any broadly consumed financial forum, even some of the ones on reddit. Always boomers with a 'back in my day' story there. Unless you are looking for contemporaneous dialogue specifically ("No wireless. Less space than a Nomad. Lame."), in which case that becomes more difficult. "The cloud" wasn't really a thing so you can't largely set-it-and-forget-it & just pay the bills; keeping a forum & its database intact and query-able all these years later would have required someone actually maintain it and the associated infrastructure. So, that might be tougher than just asking some middle age person "what happened back then"
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May 29, 2021 19:49
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