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If you’re worried about the interpretation, I’d phone the CRA and ask them directly, they would be the ones bringing any case against you anyway.
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Apr 4, 2023 15:10
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does it really matter as long as you are under 56 or whatever the rrif age threshhold minus 15 years is? you can hold the same instruments in a fhsa as you can in an rrsp. transferring prior to 15 years just lets you consolidate some accounts it has zero impact on your income or taxes no?
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Apr 4, 2023 17:34
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mojo1701a posted:It's possible they might be writing it out generically until people actually try to pull it out and then will rewrite it with examples. That's the kinda thing I had in mind. CRA seems to try very hard not to explicitly say anything until forced to, so they give themselves maximal leeway. (Which I get, it just makes me a bit paranoid.) the talent deficit posted:does it really matter as long as you are under 56 or whatever the rrif age threshhold minus 15 years is? you can hold the same instruments in a fhsa as you can in an rrsp. transferring prior to 15 years just lets you consolidate some accounts it has zero impact on your income or taxes no? That's my understanding.
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Apr 4, 2023 20:31
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pokeyman posted:That's the kinda thing I had in mind. CRA seems to try very hard not to explicitly say anything until forced to, so they give themselves maximal leeway. (Which I get, it just makes me a bit paranoid.) They are actually very helpful. I’ve phoned them numerous times to ask about grey area tax stuff (more grey than this, this actually seems pretty clear cut to me anyway) and they have laid it down in no uncertain terms what’s okay and what isn’t.
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Apr 4, 2023 20:51
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qhat posted:They are actually very helpful. I’ve phoned them numerous times to ask about grey area tax stuff (more grey than this, this actually seems pretty clear cut to me anyway) and they have laid it down in no uncertain terms what’s okay and what isn’t. The worst part about calling the CRA phonelines is honestly the wait. They've been underfunded since the Harper years and it takes a long while to get through to their personal line (business line is a lot smoother  ), but most people are helpful. Just make sure that if you're dealing with anything of consequence, get it in writing somehow.Hell, I found out last week that one of the auditors I'm dealing with is in the same CPA Capstone 2 module. Might even end up writing the CFE in the same room in two months.
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Apr 4, 2023 21:09
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Questrade on the ball with the FHSA accounts. Opened and funded! Have to say it’s a pretty terrible policy overall. I mean, great if you have an extra eight thousand bucks a year to invest with, but lol if anyone with half a brain thinks this makes housing more affordable generally.
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Apr 4, 2023 22:27
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TrueChaos posted:I'm with TD, and daily limit is 10k weekly 30k. It's an individual thing, my daily is 3k and weekly is 10k. But with TD it's literally a selection from a drop-down menu from the program in the back-end, it's a security feature that you can change at any time.
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Apr 5, 2023 00:01
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Nofeed posted:Questrade on the ball with the FHSA accounts. Opened and funded! It’s pretty hair brained that’s for sure. I’m not sure whether it was a cheap way to get votes from clueless poor millennials, or a dogwhistle to the rich. Probably both.
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Apr 5, 2023 00:07
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Killingyouguy! posted:If I have a tfsa already is there any good reason to get a First Home account? I can't afford a home in my city even with the world's best investment returns The $8k/year in contribution room doesn't begin accumulating until you open the account so even if you're not making contributions today it's a good idea to open one now. The extra space could always come in handy at a future date 
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Apr 5, 2023 01:47
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Nofeed posted:Have to say it’s a pretty terrible policy overall. I mean, great if you have an extra eight thousand bucks a year to invest with, but lol if anyone with half a brain thinks this makes housing more affordable generally. It's like a TFSA, it only helps people who can actually afford to save money and have the mental wherewithal to actually know how to use it which just so happens to skew higher income. But damned if I'm not going to take advantage of it.
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Apr 6, 2023 16:17
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i opened a FHSA with Questrade and deposited my first lump, now I'm trying to decide what to invest it in. I already have most of my RRSPs and TFSA in risky ETFs so was thinking something more chill like a GIC but QT doesn't have those. Is there an ETF or other security I can buy on Questrade that gives guaranteed income over 1-2 years like a GIC?
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Apr 12, 2023 20:15
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Juul-Whip posted:i opened a FHSA with Questrade and deposited my first lump, now I'm trying to decide what to invest it in. I already have most of my RRSPs and TFSA in risky ETFs so was thinking something more chill like a GIC but QT doesn't have those. Is there an ETF or other security I can buy on Questrade that gives guaranteed income over 1-2 years like a GIC? Have you looked through this? It seems to imply you can buy those on QT.
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Apr 12, 2023 21:01
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oh, neat. I read somewhere they don't have it but I guess whoever wrote that was mistaken
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Apr 12, 2023 21:28
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Also consider the fixed income ETFs from the usual suspects, vanguard and blackrock.
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Apr 12, 2023 23:00
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VelociBacon posted:Also consider the fixed income ETFs from the usual suspects, vanguard and blackrock. The problem with this is that they aren’t guaranteed income, since they float on the open market and have to be rebalanced periodically, which can drastically alter the yields. Certainly they are more stable than an equity ETF, but if you are looking for income that you can predict down to the penny for the next X number of years, directly owning the underlying bonds or GICs until maturity is the way to go.
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Apr 13, 2023 17:26
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I’ve got it all in CASH.TO until I figure out if this is going to be for short-term-want-to-spend-it-on-actual housing in the near future, or just an extra 40k in RRSP room for later in life. What a problem to have.
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Apr 13, 2023 18:42
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yes, it's a "maybe a condo in a year, maybe save until I get tired of working" fund
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Apr 15, 2023 19:50
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Just stumbled on this thread thanks to a recommendation. Definitely going to spend some time catching up. In the meantime, if anyone wants to know more about Registered Disability Savings Plans or the requisite Disability Tax Credit, hit me up.
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Apr 24, 2023 02:58
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Anyone know if the interest paid on student loans is a significant deduction? I Dont think I've ever claimed it before.
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Apr 26, 2023 17:32
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Raenir Salazar posted:Anyone know if the interest paid on student loans is a significant deduction? I Dont think I've ever claimed it before. It has to be a loan from a qualifying institution, so it can't just be like, your line of credit or mortgage. Has to be a loan like OSAP. You don't get a deduction (unlike interest paid for investment income) but you get a federal credit of 15% and whatever your applicable provincial credit is (in Ontario it's 5.05%). You can also choose to claim less in a given year and that amount can be carried forward.
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Apr 26, 2023 19:28
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Or be my former gf that graduated just in time for the GFC and is still carrying forward the deduction 15 years later because labor is so undervalued that they're financially better off staying home with kids instead of being economically productive 
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Apr 27, 2023 00:39
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Guest2553 posted:Or be my former gf that graduated just in time for the GFC and is still carrying forward the deduction 15 years later because labor is so undervalued that they're financially better off staying home with kids instead of being economically productive I think I've said this before, but I ended up carrying my student loan for longer than I needed to because of the credit. Instead of paying off the loan I ended up just filling up my TFSA. Was paying 5.25% or something, but with the credit it's equivalent to 4.2%. Can't deduct interest expense against registered accounts, so this was the best thing to do when the market was returning over 6-7% anyway.
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Apr 27, 2023 01:08
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mojo1701a posted:It has to be a loan from a qualifying institution, so it can't just be like, your line of credit or mortgage. Has to be a loan like OSAP. Oh yeah to be clear its definitely from a qualifying institution, its from AFE, the only thing I'm not sure of if its been "consolidated" or whatever, its been there slowly being paid off automatically for a very long time now. 
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Apr 27, 2023 01:11
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thoughts on whether to transfer stocks into longer term stable investments to weather the current political story in the States or is this just the usual market variance to be endured with the longer term eye view?
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May 23, 2023 05:20
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Bilirubin posted:thoughts on whether to transfer stocks into longer term stable investments to weather the current political story in the States or is this just the usual market variance to be endured with the longer term eye view? What's your risk tolerance, when do you need the money, etc? Always best to trust the long term returns but if you need a down payment in a year's time this will factor into your decision. What are you in now? I wouldn't want to have a lot in leveraged ETFs for example but a SPY-like index ETF I would just ride out if you don't need the money on the short term. Lots to consider.
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May 23, 2023 06:45
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On a short enough timeframe that "the current political story" could have any effect, you probably want the stock picking thread. This here is the long-term thread. But for fun, and assuming you're talking about the debt ceiling made-up issue, you could go find the last few times they played this game and see if you can notice any meaningful blip in the total returns chart?
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May 23, 2023 07:06
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You should be invested in a strategy that you can stick to in good times as well as bad, and rebalancing occasionally to return your portfolio to its original allocation. If you find yourself getting nervous about what’s going on in the world at any one time, you need to evaluate whether you were taking too much risk to begin with and make a permanent adjustment to your strategy. Doing this thing where you sell equities during a downturn and buy them when things recover is a top tier way to sabotage your returns in the long term.
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May 23, 2023 07:38
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Any rec’s on the best hisa? I just started to put money aside for an emergency fund but the 1% offered by tangerine seems a little low
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May 26, 2023 22:06
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virinvictus posted:Any rec’s on the best hisa? I just started to put money aside for an emergency fund but the 1% offered by tangerine seems a little low Your best bet for top rate is a combination of https://www.highinterestsavings.ca/chart/ and chasing offers ("x% interest for six months on new deposits!"). Tangerine is ok if you always get an offer and then move everything out when the offer's done. Can schlep it back when they have a new offer. I wanted off that carousel so I chose one that was consistently high on the list and stayed put. That was EQ Bank, and they haven't been consistently high for a couple years, oops. But I'm tired, and now they're my everyday bank that happens to have a less lovely interest rate.
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May 27, 2023 00:40
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Yeah I'm with EQ as well. Easy to use. The rates haven't been the best for some time, but still good, and still dwarfing the big banks. Never wanted to chase deals too annoying. I actually bank with tangerine and just don't care enough to take advantage of the offers. Feels like a hassle.
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May 27, 2023 15:12
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Right now I’m using Wealthsimple Cash as my primary holdings but have been looking for a proper bank to pay bills through as they still don’t have bill payment systems. I have been using Tangerine for years but EQ Bank has been looking good, not just for emergency fund.
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May 28, 2023 21:09
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I've had a savings account with Motive for several years. Their customer service is kind of dumb and I sure wouldn't want my chequing/spending account there but their rate is consistently high enough that I don't feel like a sucker for being too lazy to shop it around.
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Jun 2, 2023 09:04
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Anyone have any experience with an account like this "Flex Notice" account from CWB? https://www.cwbank.com/en/personal/accounts/savings/flex-notice-account I'm curious what their rates would be. That 4.1% with Motive is attractive too.
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Jun 3, 2023 15:11
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Came across this as a suggestion while looking at SHOP prices on the Apple stocks app and posting because I thought it was wild how lousy this advice is. quote:Help! I’m drowning in Shopify shares I mean nothing that wrong here I guess, but the author basically just reassures the person that the tax hit ain't so bad, while not offering them that many actionable ideas. The reminder that the gain can be used to offset a loss is the best suggestion here. I don't think I'm a genius about this stuff at all, but I have plenty of ideas! The absolute biggest, bizarre omission here is to neglect to mention the RRSP! This could reduce this person's taxable income, which leaves more room to sell their SHOP stock. If this person has no saved up RRSP room, with their $130k salary they'll have $23,400 of RRSP room a year to play with. What they could do is transfer $23,400 of SHOP stock into their RRSP each year as a contribution, which will net them a refund of $10,158. They will pay a capital gain on that SHOP stock move, so assuming that 20% tax rate, they'll be taxed about $4680. That leaves $5478 of available credit they can use before they pay anything in tax. Working backward this means that they can sell an additional $27,390 of SHOP stock and still pay $0 in taxes. Only after this point will selling any equities yield a tax hit. Now that $23.4k of SHOP stock sitting in the RRSP can be sold with no further tax hit and different more diversified equities can be bought and that will grow tax free. So in summary by leveraging the RRSP this person can liquidate ~$50,000 SHOP stock each year and pay $0 tax. (I made an assumption here that their tax rate is at 20% but it probably would creep up higher as they sold some of this stock, but still) So if this person wanted to get down to 5% SHOP and pay $0 in tax it will take them 5 years of doing this to get there. Maybe it's obvious but you'd think the columnist would say so, but not selling everything at once is a good way to limit the tax you pay! Additionally, if you did want to sell a bunch at once, well you can use the RRSP deadline to your advantage here. You can do all this in February, and then after the March deadline everything resets and you can do it all again. So within a few months at the beginning of the year the person could unload $100,000 of SHOP stock and pay $0 tax. It's wild to me that the Globe didn't mention any of this. Femtosecond fucked around with this message at 08:07 on Jun 8, 2023 |
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Jun 8, 2023 08:03
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I just like the part where the writer starts out by chiding the asker for not having known the stock would tank and selling beforehand. “Step 1: using your Time Machine…….”
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Jun 8, 2023 11:25
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He's losing the RRSP tax reduction he's currently getting doing that plus 5 years is a long time to not be diversified if that's something he does care about now. I do hate the tone of that article. I say sell all the SHOP, put it into VFV, swap it into VUN when the market drops, no 30 day wait. ETF tax loss harvesting is much nicer than individual stock tax loss harvesting. Future losses can offset old capital gains for I think 3 years.
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Jun 8, 2023 13:53
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In my professional experience (wrote the CPA CFE a week ago  , hope I pass so I never have to sit in a cold convention hall for 3 days again), most people really forget tax planning with tax-advantaged accounts. It's astounding. Most just contribute a set amount for a deduction and that's about it.In a way I'm not surprised. Most tax planning is paid for by people who have corporations and pay us to tell them when the best time to declare a dividend or salary is, and not personal finance stuff like that.
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Jun 8, 2023 17:06
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I'd be a bit surprised if this person was already maxing out their RRSP as 130k isn't that much, and they'd be saving 17.6% of their income, which is very good and aggressive savings! If this person has any other debts, such as say a brand new condo, it's more likely to me that they're barely saving anything into RRSP at all. But yea at least this person can make some choices knowing that they have the potential to save ~$10k every year. They can do the math and figure out how much SHOP would have to drop for waiting to have not been worth it and they can make a choice around whether they think that's likely or not.
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Jun 8, 2023 18:17
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So as someone who woke up this January and said "I'm going to buy a house this year!", then got smacked the gently caress down by the market, then said "welp I guess I might as well put some of my DP in one of those new FHSA things if it isn't happening this year" how awful an idea is keeping say 20-40% in something like VRE or a local REIT along with my regular ETF mix? I figure if Calgary follows Van/TO into insane bubble land like it looks like its starting to at least a REIT will track with it, and if the boom goes bust and the value drops like this city always does well, I have less to worry about cause housing will be cheap and I've still got the bulk of my savings in big index funds. Like the logic seems sound but I'm still green enough with this stuff that it feels like one of those things where 'yeah this superficially logical thing will actually gently caress you over because x' (to say nothing of the fact that it feels lovely investing in the lovely REITs that are a significant part of the reason the housing market is so hosed in the first place but )
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Jun 9, 2023 06:15
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If you’re using a REIT to hedge against local house prices then you should make sure that the REIT is specific to your region and also isn’t exposed to RE that isn’t the type you’re looking for (like commercial), and also isn’t extremely expensive in fees. As usual, the best advice is probably just to keep the money in a stable fixed income investment if you’re going to actually need the cash some time in the next few years.
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Jun 9, 2023 09:06
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