|
How do we feel about REIT ETFs?
|
#
?
Aug 26, 2022 14:53
|
|
|
|
| # ? May 17, 2024 02:31 |
|
|
TheCenturion posted:How do we feel about REIT ETFs? I have no knowledge of what an appropriate allocation would be, so I just stick to the default allocation (whatever my exposure is in XAW). I see that it's 3.47% so min maxing this allocation would add a lot of overhead of manual rebalancing for minimal impact.
|
|
#
?
Aug 26, 2022 15:38
|
|
|
REIT ETFs right now? I'm not an economist or a financial advisor, but I don't feel great about them at the moment. Though I guess when people like me are skittish is when there may be money to be made.
|
|
#
?
Aug 26, 2022 17:46
|
|
|
So, no intrinsic issues or gotchas with them, just the standard “do your homework,” sounds like.
|
|
#
?
Aug 27, 2022 13:16
|
|
|
TheCenturion posted:How do we feel about REIT ETFs? Gotcha in taxable accounts, their dividends can mostly be rental income/"other income" which will be taxed as income rather than eligible canadian dividends or capital gains, generally not preferable.
|
|
#
?
Sep 1, 2022 00:18
|
|
|
Asking in here because I doubt very much there's a Canadian real estate thread (I did look). I'm trying to figure something out and I'm hoping that maybe someone here happens to know the solution. I bought a condo this year (to live in, not as an investment, not a landlord, don't pitchfork me please) and it always struck me as unusual that it only came with 1 parking space, since it is slightly larger than the average unit in the tower, yet pretty much all the listings I've found for the other sold units show that they come with 2 parking stalls. I suspect that at some point, a previous owner may have made an agreement to lease one of the stalls to someone else. I pursued this during the purchasing with my agent and their agent and everything on the form B etc indicates one parking space. I've been informed that the source of truth for this is the Developer Disclosure Statement, which I can request at the land title office here in BC. It would apparently list what is 'owned' by my strata lot. I've started the process for getting an online account with the land title office, however from looking at the searchable documents I don't believe this document is available there as I don't see it at all. Googling around, it looks like this document is primarily looked at when new pre-sales or whatever are being sold. My questions are: 1) Anyone familiar with this document? Would that information be contained within it? 2) Where should I be seeking out that form? 3) Wouldn't the Form B information reflect what was on the developer disclosure document? Thanks thread. I know this is an odd one. Bonus joke question: 4) The parking stall I do have is stall #8. How much could I sell this spot for to a superstitious person?
|
|
#
?
Sep 6, 2022 19:25
|
|
|
The building management should know who owns which spots - as they need to know who to While similar units may come with 2 spots, the original unit buyer may well have only purchased 1 spot - often on new builds units are allocated the ability to purchase X number of parking spots, and your unit's owner may have only wanted one spot. Edit: A previous unit own may well have sold one of the parking spots to a 3rd party too. Yes, in some buildings you can buy just a parking spot.
|
|
#
?
Sep 6, 2022 19:54
|
|
|
There was a parking spot in DT Vancouver going for like 50k for a while. So yeah that definitely happens.
|
|
#
?
Sep 6, 2022 20:45
|
|
|
In BC, real estate transactions are under the jurisdiction of the BC Financial Services Authority. Anybody can request to review a copy of a development disclosure statement at the BCFSA superintendent’s office. You can also get a copy of a disclosure statement for a fee.
|
|
#
?
Sep 6, 2022 20:51
|
|
|
unknown posted:The building management should know who owns which spots - as they need to know who to The building management is unfortunately extremely unresponsive to these queries and just told me to find the developer disclosure thing. I did review the form B prior to placing any offer etc and yes it did say 1 spot. I'm not sure how a form B would even be changed to reflect 1 spot if it initially had more. I will say I burnt some bridges when I moved in and there was absolutely nothing prepared (elevator etc) for my move-in, with a caretaker offsite on vacation telling his office he was there and helping me, huge headache. I actually pursued recompense and got some of my 'move-in fee' back from the management company because I basically had to pay hundreds more for the movers to individually move items up an elevator that wasn't locked out for us (and no padding up, etc etc). I'm still pissed about it but yeah they aren't providing any kind of help to me beyond what is legally required. Yes I probably should have just ate the cost but I'm one of those super stubborn goons with a ton of free time so... McGavin posted:In BC, real estate transactions are under the jurisdiction of the BC Financial Services Authority. Anybody can request to review a copy of a development disclosure statement at the BCFSA superintendent’s office. You can also get a copy of a disclosure statement for a fee. Thank you - will check this out. Ultimately this is something that just feels right to look into now, when I fairly recently bought the place. I'd hate to find out 10 years from now I was supposed to have another spot and I've been paying for parking for no reason.
|
|
#
?
Sep 6, 2022 21:48
|
|
|
Are we starting to see high interest savings accounts rates start to turn around at all? I just looked at Simplii, it's .4% which I think might be a bit higher but I'm not too sure tbh.
|
|
#
?
Sep 9, 2022 14:41
|
|
|
slidebite posted:Are we starting to see high interest savings accounts rates start to turn around at all? I just looked at Simplii, it's .4% which I think might be a bit higher but I'm not too sure tbh. Saven and Duca are giving the best non-promo rates from what I've read elsewhere. https://www.highinterestsavings.ca/chart/
|
|
#
?
Sep 9, 2022 14:51
|
|
|
slidebite posted:Are we starting to see high interest savings accounts rates start to turn around at all? I just looked at Simplii, it's .4% which I think might be a bit higher but I'm not too sure tbh. EQBank high interest just went to 2% last week.
|
|
#
?
Sep 9, 2022 14:54
|
|
|
Oh wow, Simplii is waaaay behind the curve. That's nuts.
|
|
#
?
Sep 9, 2022 15:09
|
|
|
Tangerine as well. They're both owned by big banks so I'm unsurprised.
|
|
#
?
Sep 9, 2022 15:18
|
|
|
Cold on a Cob posted:Saven and Duca are giving the best non-promo rates from what I've read elsewhere. Cannot imagine trusting my money to what sounds like two Icelandic Christmas elves though...
|
|
#
?
Sep 9, 2022 16:09
|
|
|
VelociBacon posted:Cannot imagine trusting my money to what sounds like two Icelandic Christmas elves though... Saven Del Duca used to be the leader of the Ontario Liberal Party.
|
|
#
?
Sep 9, 2022 16:13
|
|
|
Mantle posted:I know there are anti-money laundering rules about the source of funds account holder having to match the TFSA account holder […] Bringing this over from another thread - I didn’t know this and haven’t been able to easily find out more online. It’s now occurring to me there could be some prerequisite steps in our savings plan, so uh, i guess I’ll make the post I’ve been waffling on. My partner and I have been together for ~8 years. When we started dating he was working toward going back to school, then living primarily off his savings while studying. When we eventually moved in together, I funded the bulk of our joint expenses since I was the sole earner. We’ve been common law and filing taxes together for a while now. He recently landed a job in his new field so this is the first we’re looking to combine and live off two incomes. I make about 2x his salary, since his position is entry level and I’m well established. We have no debt since we paid off the remaining mortgage on our tiny condo when it was up for renewal earlier this year. I withdrew a big chunk of my TFSA (which was maxed) to do this. I also have an RRSP, where I typically just put in enough to take the sting out of the upper tax bracket I’m in. My partner used all of his easily accessed savings for school, so he has plenty of contribution room available in his TFSA and only a small amount saved in an RRSP. We used his education credits against my income. We do not currently have any shared accounts. Housing prices suck, but we’d like to upgrade as soon as we can afford it to something reasonable (a townhouse, a small house, nothing big). Hopefully the condo is enough of a down payment on its own, although I’m leery of a big mortgage so we’ll see. We’d also like to be looking at retirement in 20-30 years, ideally, although that would have us retiring young so it’s flexible. Being able to aggressively save is new and exciting. We’re planning to prioritize like this:
Since he has so much room in his TFSA and I need to wait for mine to come back, I was planning to transfer money to him to put into his account. I never thought about tripping any anti-money laundering alerts. Do we need to take some extra steps with the bank before just… doing that? Or does anything else stick out as really stupid? (Maxing both TFSAs out is going to take us some time, that’s why there’s no fifth bullet point.)
|
|
#
?
Sep 13, 2022 22:58
|
|
|
kaom posted:contribute to my RRSP enough to lower one tax bracket What exactly do you mean by this?
|
|
#
?
Sep 13, 2022 23:08
|
|
|
The 2022 tax brackets are:quote:
So for example if I made $110,392 where that top 10k would be taxed at 26%, I would put 10k into my RRSP to get that higher rate back (anticipating a lower rate in retirement).
|
|
#
?
Sep 13, 2022 23:15
|
|
|
kaom posted:Since he has so much room in his TFSA and I need to wait for mine to come back, I was planning to transfer money to him to put into his account. I never thought about tripping any anti-money laundering alerts. Do we need to take some extra steps with the bank before just… doing that? Or does anything else stick out as really stupid? (Maxing both TFSAs out is going to take us some time, that’s why there’s no fifth bullet point.) It's not about tripping alerts, my institution will just plainly reject the transfer if the source account holder doesn't match with the destination account holder. The other implication you need to consider is if you give your partner money to put into his TFSA, that money is not "your money in his account", it is his money in his account. My institution had a check box to the effect of "you agree that you are not opening this account on behalf of someone else" when opening the TFSA. You could be ok with this, depending on the state of your relationship with your partner.
|
|
#
?
Sep 13, 2022 23:53
|
|
|
kaom posted:Since he has so much room in his TFSA and I need to wait for mine to come back, I was planning to transfer money to him to put into his account. I never thought about tripping any anti-money laundering alerts. Do we need to take some extra steps with the bank before just… doing that? I'm not aware of any money laundering rules. However, any income from the money that you give him to put into his TFSA gets attributed to you as soon as it's withdrawn. I don't really understand what that means or how that works, but every now and then I re-read https://www.taxtips.ca/personaltax/attribution-rules-re-gifts-transfers-loans-to-spouse-or-related-minor-child.htm and try to figure it out. Like the simplest scenario makes sense to me: 1. You give him $1000. 2. He puts it into his empty TFSA and invests it. 3. He later withdraws his whole TFSA, $X. 4. You declare ($X - $1000) in earned income. But I dunno what happens if he also contributes his own money into his TFSA or withdraws partial amounts. Whose dollar is whose, and when do you declare it? No idea. Other options to even out taxes and savings include: • Pay all the bills as the higher earner so the lower earner can stash more in savings. (You can implement this by gifting him money to cover bills in his name. Or have all the bills in your name, whatever works.) • Contribute to a spousal RRSP. • Loan him money to invest. He actually has to pay you interest, but so long as you keep it up it's not a gift. See https://www.taxtips.ca/personaltax/lend-to-spouse-child.htm kaom posted:Or does anything else stick out as really stupid? I wouldn't call it "really stupid" but stopping RRSP contributions at a tax bracket cutoff seems kinda arbitrary. If you fill up your TFSAs then I'd fill up RRSPs before opening a taxable account. edit: Meant to mention: you get your TFSA room back as of January 1, 2023.
|
|
#
?
Sep 14, 2022 00:43
|
|
|
pokeyman posted:I'm not aware of any money laundering rules. Some more info on this from a secondary source: https://questrade-support.secure.force.com/mylearning/view/h/Account/Third-Party-Deposits//a2E3NWIwMDAwMDBmelYzQUFJ
|
|
#
?
Sep 14, 2022 01:33
|
|
|
Okay wait, apparently I know nothing about spousal finances. We need to track and report on gifts? Don’t old school couples just dump everything into one account? How does this work?  The generation above me is the first in my family to have any money to speak of and they’re very conservative (being retired or close to it) so they mostly just give me advice that isn’t right for me at all. I find financial stuff overwhelming, I can crunch numbers but my fancy STEM degree didn’t include studying legislation. Mantle posted:You could be ok with this, depending on the state of your relationship with your partner. Thank you for bringing this up, I appreciate the lookout. We’re planning for the long term so we’ve been thinking about this all as “our money” - maybe it’s not so simple though. Breaking up would suck and we obviously don’t plan on it, but I could afford to lose the investment if it came to that. We’re not dipping into my emergency fund or anything. Being financially independent (particularly of my parents) is important to me. pokeyman posted:I wouldn't call it "really stupid" but stopping RRSP contributions at a tax bracket cutoff seems kinda arbitrary. If you fill up your TFSAs then I'd fill up RRSPs before opening a taxable account. I guess it does look arbitrary doesn’t it lol. With my TFSA maxed out I was just striking a balance between paying down debt and keeping some amount flowing into my RRSP. The “extra” went to the car loan and then to the mortgage until this year. When I reach the point where I have more money to set aside than the TFSA can accommodate, it will go to my RRSP for sure. Also thanks everyone for the replies.
|
|
#
?
Sep 14, 2022 01:49
|
|
|
Mantle posted:Some more info on this from a secondary source: Oh I see, yeah. Only you can move holdings/money into your TFSA. kaom posted:Okay wait, apparently I know nothing about spousal finances. We need to track and report on gifts? Don’t old school couples just dump everything into one account? How does this work? Not in general, sorry to alarm you! CRA only cares if the gift is something that produces income. If you give your spouse money to buy stocks, even in their TFSA, it's considered your money and your stocks at tax time. If you have a joint (taxable) investment account, the income and gains are split by the partners weighted by their contributions. So if you put in 80% and your spouse 20%, then you're assessed 80% of the income/gains and your spouse 20%. I guess this would apply to a joint bank account too, now that I think about it. Wonder how many people attribute their savings account interest proportionally. Does the bank keep track? There's also a spousal RRSP, which let you contribute to an RRSP from which your spouse would eventually withdraw. You get the tax deduction now, and your spouse pays the taxes on withdrawal. It's a separate account type though, you can't just give your spouse some cash and have them contribute it to their own RRSP. This is all confusing and complicated, hopefully if I got anything wrong someone will correct me. And remember, there's no big rush, you don’t have to get it all sorted out right this second!
|
|
#
?
Sep 14, 2022 06:48
|
|
|
The attribution rules for the TFSA only really matter if you give money to your partner and they overcontribute or later withdraw the money from their TFSA to invest in a taxable account. The gains and withdrawals from the TFSA are untaxed so it effectively doesn't matter if they are later withdrawn and spent on anything that doesn't in turn generate income directly that isn't tax exempt (so if you withdraw to buy a principal residence, you're fine). The contribution attribution weirdness is one reason why we have a joint bank and visa account. As long as my partner doesn't invest more than her income into her TFSA there's no way to attribute it to me. It's perfectly legal for me to pay all her bills (and even her taxes!) so she can do this.
|
|
#
?
Sep 14, 2022 11:33
|
|
|
That makes sense to me and agrees with https://www.taxtips.ca/personaltax/attribution-rules-re-gifts-transfers-loans-to-spouse-or-related-minor-child.htm The part I'm confused about is that page says clearly and emphatically quote:Once funds are withdrawn from the TFSA income from the withdrawn funds will be attributed back to you. I get confused because later on it says quote:It would be helpful if CRA's information also indicated that once the funds are withdrawn, the amount gifted to the spouse would then be subject to attribution rules. Here's a hypothetical I'm still confused about : 1. I give spouse $1000. 2. Spouse contributes it to their TFSA and invests it. 3. Spouse withdraws $1500 (gift plus its gains). Before step 3 nobody owes any taxes. Where I get lost is these hypothetical steps 4: 4. Spouse buys $500 in stocks in a taxable account. 4. Spouse buys $1000 in stocks in a taxable account. 4. Spouse buys $1500 in stocks in a taxable account. In any of those, is any subsequent income attributed to me? How much? (I realize I may be overthinking this and it probably has no relevance to what anyone in this thread is doing. It just bugs me not to know. I've given my partner money that she contributed to a TFSA and invested, so I wrote down when and how much. I think we can avoid attribution dickery but I'm still curious.)
|
|
#
?
Sep 14, 2022 16:48
|
|
|
pokeyman posted:That makes sense to me and agrees with https://www.taxtips.ca/personaltax/attribution-rules-re-gifts-transfers-loans-to-spouse-or-related-minor-child.htm My reading is that in all your step 4s all the income from the bought stocks would be attributed to you and count against your income at tax time. One way to get around this is to do a spousal loan, charging the minimum prescribed interest rate which is currently 2% but will increase to 3% in October, not that it really matters because it'll just be your wife paying you. You'd loan her the money with a promissory note, claim the interest she pays you each year as income, and she would deduct the interest each year from her income, but the income from any investments in a taxable account would count against her income, rather than yours. It's a common method of spousal income splitting when one spouse makes significantly more than the other.
|
|
#
?
Sep 14, 2022 17:27
|
|
|
I think it's all attributed back to you - both the original amount and the gains. My interpretation is that they are preventing abuses where person A gives their spouse B the max amount for their TFSA, the spouse immediately withdraws it and invests it in a taxable account, and they repeat this every year to slowly build a portfolio with all taxes attributed to the spouse. This rule prevents that.
|
|
#
?
Sep 14, 2022 22:02
|
|
|
Cold on a Cob posted:I think it's all attributed back to you - both the original amount and the gains. Does this imply that there is already an attribution rule where if A gives B $x, and B invests it in a taxable account, the gains are attributable to A?
|
|
#
?
Sep 14, 2022 22:09
|
|
|
Mantle posted:Does this imply that there is already an attribution rule where if A gives B $x, and B invests it in a taxable account, the gains are attributable to A? Yep, it's a big deal
|
|
#
?
Sep 14, 2022 22:25
|
|
|
Postess with the Mostest posted:Yep, it's a big deal This seems like a very strange rule to me given that money is fungible. What’s stopping the giftee living off the gift, and putting their rent money etc into the taxable account?
|
|
#
?
Sep 14, 2022 22:45
|
|
|
Lexicon posted:What’s stopping the giftee living off the gift, and putting their rent money etc into the taxable account? Nothing really, other than the documentation headache of showing that is what happened. It does require the spouse to have fairly significant income if they’re going to build up a large portfolio quickly though.🤷🏻♂️ This isn’t targeting dual income families (though they’re still captured by it). This is targeting high net worth/very high income individuals who loan large sums to their low income/stay at home spouse.
|
|
#
?
Sep 14, 2022 22:52
|
|
|
Lexicon posted:This seems like a very strange rule to me given that money is fungible. Yeah, I don't think that rule cares about rent money amounts or basically anything up to the spouse's entire salary. Let's say someone medium net worth got like 4m from selling their company, after tax. They find some canadian dividend etf paying 5% for the sake of even numbers, 50k per million invested. If that one person buys 4m of it, they're paying 40k taxes on 200k dividend income, in Ontario anyways. If they gave 2m to their spouse and each bought it, they'd be paying 5.6k each on 100k, 11k total tax on 200k combined income. It'd be super great income splitting if it worked. The spousal loan thing lets you do that but spouse has to pay you 2% or 40,000 which bumps your tax from 6k to 26k cause it's income, not dividends or capital gains. Same idea for rich people starting a trust for their kids, they can't just put the money in then dividend it out to them when they're older, they need to loan money to the trust, it needs to pay interest and income tax needs to be paid on it etc. I guess the idea is married people have enough tax advantages and really don't need one more huge one or something, I dunno. It kind of doesn't seem fair cause the other spouse was probably holding down the fort while the other person built the company but I don't think you'll get far protesting on capital hill for better high net worth couples tax treatment. e; this rbc thing goes over it pretty well https://ca.rbcwealthmanagement.com/documents/1435520/1844148/Navigator+-+The+Spousal+Loan+Strategy.pdf/49efdf41-0b5b-46f7-a700-3b97757d9786 Postess with the Mostest fucked around with this message at 00:41 on Sep 15, 2022 |
|
#
?
Sep 15, 2022 00:38
|
|
|
MrAmazing posted:This isn’t targeting dual income families (though they’re still captured by it). This is targeting high net worth/very high income individuals who loan large sums to their low income/stay at home spouse. I got an incredible lecture about this from my accountant, and I don’t remember any of it.
|
|
#
?
Sep 15, 2022 00:45
|
|
|
Yeah I skipped caveats like this but no one pour one out for me, obviously we’re doing well to have a condo paid off (even if it is tiny). I’m not trying to dodge my tax burden at all. The goal is really saving for retirement and all I know is “max out your TFSA first, your RRSP defers tax to when your income is lower.” But also, Postess with the Mostest posted:married people have enough tax advantages and really don't need one more huge one I’ve always heard this but since filing common law I literally don’t understand what these advantages are. The only benefit we got was transferring education credits. Did we mess up big time and miss out on something? Or is it more about two incomes means overall lower income taxes, as compared to what we’d pay if it were a single income? But that seems unrelated to marriage… Anyway I feel like I have some serious reading to do, so thank you all.  Turns out I knew even less than I thought!
|
|
#
?
Sep 15, 2022 01:04
|
|
|
kaom posted:I’ve always heard this but since filing common law I literally don’t understand what these advantages are. Spousal RRSP is basically income-splitting at retirement time, which is nice.
|
|
#
?
Sep 15, 2022 01:09
|
|
|
kaom posted:I’ve always heard this but since filing common law I literally don’t understand what these advantages are. I should've just said couples I guess. Food and housing is cheaper when you're splitting it with another person, lets you save more in your registered accounts every year.
|
|
#
?
Sep 15, 2022 01:16
|
|
|
kaom posted:I’ve always heard this but since filing common law I literally don’t understand what these advantages are. The only benefit we got was transferring education credits. tax specific advantages: - Spousal RRSPs - Pooled medical expenses - Pooled charitable donation tax credits - Transfers of certain tax credits (such as education as you did) - If one spouse earns less than the basic tax amount, the higher income spouse can use the unused credits - Pension splitting - Deferred/minimizing required RRIF withdrawal based on the younger spouse's age - Double the first time home buyer's plan withdrawal potential - Direct transfer of many assets on death to defer taxation tax specific disadvantages: - cra can go after you for your spouses taxes owed - only one principal residence exemption (i've heard of people lying about cohabitating to get around this) - reduced benefits (stuff like gst/hst credits) Subjunctive posted:Spousal RRSP is basically income-splitting at retirement time, which is nice. True but you only have to wait 3 years before the attribution switches to the receiving spouse from the contributing spouse. Obviously the usual caveats about withdrawing from your RRSP early still apply. Cold on a Cob fucked around with this message at 03:32 on Sep 15, 2022 |
|
#
?
Sep 15, 2022 03:30
|
|
|
|
| # ? May 17, 2024 02:31 |
|
|
How bad of idea is life insurance? Does anyone have any good recommendations for a good life insurance plan?
|
|
#
?
Sep 21, 2022 14:40
|
|
