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I’ve never bothered transferring in kind and just sold/withdraw/deposit/buy over December/January. Too much of a hassle.
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Apr 21, 2020 16:57
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cowofwar posted:I’ve never bothered transferring in kind and just sold/withdraw/deposit/buy over December/January. Too much of a hassle. Questrade handles pretty much the entire transfer and covers much/all of the fee for closing the former TFSA account so I think it's worthwhile to go that route instead of doing what you describe. But I guess it's whatever makes you happy.
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Apr 21, 2020 17:34
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VelociBacon posted:Questrade handles pretty much the entire transfer and covers much/all of the fee for closing the former TFSA account so I think it's worthwhile to go that route instead of doing what you describe. But I guess it's whatever makes you happy.
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Apr 21, 2020 17:39
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cowofwar posted:I’ve never bothered transferring in kind and just sold/withdraw/deposit/buy over December/January. Too much of a hassle. It's not about hassle, it's about having the assets out of market during the time you're holding cash to do the transfer.
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Apr 21, 2020 17:43
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VelociBacon posted:Questrade handles pretty much the entire transfer and covers much/all of the fee for closing the former TFSA account so I think it's worthwhile to go that route instead of doing what you describe. But I guess it's whatever makes you happy. Questrade will ask you to provide a screenshot of your broker fees and then they'll reimburse you.
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Apr 22, 2020 14:39
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I'm not sure if this is the right thread to ask in (and please tell me if it isn't). I'm finding more and more, in my social circle, people asking about whether our economy can handle these ongoing COVID relief packages (in regards to overall debt, or hyperinflation). I'd like to be able to counter with arguments about the money we spend subsidizing big business or providing tax relief for the wealthy and I'm wondering if anyone has a good source for that?
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Apr 23, 2020 01:19
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Bucswabe posted:I'm not sure if this is the right thread to ask in (and please tell me if it isn't). The economy is driven by consumers, without relief there are no consumers and without consumers there is no economy. That’s why even the US is bailing people out. It’s a dumb hand wringing concern, what is the alternative? Bailing people out for a couple months is expensive and pauses the economy and likely will result in a recession, but not doing anything and hanging all the people out to dry would trigger a massive depression.
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Apr 23, 2020 02:19
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I've maxed out my RRSP and want to contribute to a TFSA so I'm looking for a decent one. I found one at AlternaBank that's CDIC insured and has 2% interest rate. Does anyone know much about this - is there a catch/downside? Can you buy and hold securities in it like you could in a Questrade TFSA?
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Apr 23, 2020 04:09
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mila kunis posted:I've maxed out my RRSP and want to contribute to a TFSA so I'm looking for a decent one. I found one at AlternaBank that's CDIC insured and has 2% interest rate. Is this not just a high interest savings account that happens to be a TFSA? I don't think you'd be able to buy/hold securities in it. Who would be the broker?
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Apr 23, 2020 04:20
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Bucswabe posted:I'm not sure if this is the right thread to ask in (and please tell me if it isn't). Canada currently pays 7c per dollar of tax servicing debt. We’ve been as high as 38c before. We can afford this.
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Apr 23, 2020 12:42
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So I'll likely be moving for work in a year or so, and would be open to buying if the numbers make sense. Prettymuch everything I own is held in XGRO for long term investment, so I'd have to switch things up a bit. I'm thinking of converting 35k in a spousal RRSP into something like PSA.TO, and redirecting the next years' worth of savings to a HISA/PSA to hit 20% down payment. My spouse isn't working for the foreseeable future and I'm on track for a pension that can be immediately income split, so I'm trying to figure out if it would make sense in our case to not pay back the HBP and put the money in an open account instead. As long as spouse income remains zero otherwise, I'm thinking that the "0% tax rate on 35k in their hands" plus "ability to use up last bit of tuition credits" plus "flexibility of when to trigger capital gains rates" will outweigh the imputed value on gains inside the RRSP when counted as ordinary income. Is there anything I might be missing, or alternatives to consider? I won't find out if/where I'm going for another few months, but would rather lead turn the planning instead of being blindsided. Simplicity is one of the reasons I'd like to remain a dirty tenant, but rental stock in potential locations is rare and expensive enough that buying may be the least bad option. Guest2553 fucked around with this message at 18:25 on Apr 23, 2020 |
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Apr 23, 2020 18:22
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cowofwar posted:The economy is driven by consumers, without relief there are no consumers and without consumers there is no economy. That's why even the US is bailing people out. Cold on a Cob posted:Canada currently pays 7c per dollar of tax servicing debt. We’ve been as high as 38c before. We can afford this. Also aren't government rates really low right now? There's nothing really wrong with borrowing money if you expect an ROI, especially if that debt is really cheap. At one point, US government T-bills were lower than inflation, meaning US government debt was paying negative real interest.
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Apr 25, 2020 16:23
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cowofwar posted:It’s a dumb hand wringing concern, what is the alternative? Bailing people out for a couple months is expensive and pauses the economy and likely will result in a recession, but not doing anything and hanging all the people out to dry would trigger a massive depression. I don't think that's dumb at all, I think it's an absolutely reasonable question for those unfamiliar with the economy in general. Sure the alternative is horrible, but it's not dumb to ask.
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Apr 28, 2020 06:33
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I was just offered a $10k line of credit from my bank (HSBC) at prime + 3.90%. I don't really think I'll need it but I only have one CC (also through HSBC) with a similar cap and I wonder if it might be a good thing to have just in case of emergencies since it's less interest than a CC. I've never in my life had issues with overspending and I pay my CC off every two weeks. I have a reasonable amount in long term investments that are relatively liquid (within a week). I don't own a home. What else should I consider when accepting a LOC? Will it affect my credit to have an empty LOC? Are there generally annual fees for LOC (I didn't see any in the offer)? Thanks.
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Apr 29, 2020 21:45
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It's better to have for emergencies because the rate is typically lower than cc. If you have good credit you should be able to get a better rate, I think ours is prime + 2. Like any credit it may affect your score if it seems like you have too much available in relation to your income but I'd say go for it. There shouldn't be any fees, you just pay interest on whatever amount your account is in the negative, if you ever use it. large hands fucked around with this message at 22:01 on Apr 29, 2020 |
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Apr 29, 2020 21:58
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The other nice thing about having a LOC available is that (depending on the bank) you will occasionally get a low interest rate offer. The rate on my LOC with Scotia is prime +2 so I never use it. But in March, I got an offer for 6 months at 1.99%. That's a pretty good price.
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Apr 29, 2020 22:06
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Thanks for the information. I accepted the LOC.Kal Torak posted:The other nice thing about having a LOC available is that (depending on the bank) you will occasionally get a low interest rate offer. The rate on my LOC with Scotia is prime +2 so I never use it. But in March, I got an offer for 6 months at 1.99%. That's a pretty good price. In that situation do you leverage it against outstanding debt you might have if you were carrying a CC balance? Like pay off the CC with the lower rate LOC? Do you somehow use it against your mortgage?
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Apr 29, 2020 22:12
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I'm assuming he means use it for something like building an extension on your house or something where you're going to borrow anyway. New car?
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Apr 29, 2020 22:15
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VelociBacon posted:Thanks for the information. I accepted the LOC. I don't have outstanding debt so for me, with the market down 30%, I invested it. I was comfortable with the risk based on where the market was. I use margin often at IB anyway. If the market was at all-time highs, I probably wouldn't have taken it.
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Apr 29, 2020 22:24
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Same. I was looking to take out an investment loan a month ago but TD had stopped offering them. If I had access to money at prime + 2% I would have all gone in the market with the interest claimed as a deduction to boot.
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Apr 29, 2020 22:36
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Are the rules similar to CC when it comes to withdrawing cash from an LOC (like sending money to your IB)? IE if I withdraw $100 from my CC at an ATM I'm paying the full interest on that immediately.
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Apr 29, 2020 22:40
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My credit card has dumb fees if I want to withdraw cash from it and my LOC doesn't so I always use the LOC for that, but I think the way the interest works on both of them from date of transaction is identical. It's never really come up for me.
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Apr 29, 2020 23:05
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With a LoC typically interest is calculated daily on the closing balance and is charged at months end to your account. There's no interest free grace period on any LoC that I've seen. There should be no fee for transfers out or using the account for payments but that'll be detailed in the agreement when you open the LoC. There is typically a small minimum payment due monthly (mine is 1% or $10 whichever is greater) but you can pay off anytime and save the interest. Contrast to a credit card, with regular purchases you have an interest free grace period, usually ~15 days or so after your statement date before any interest is calculated. With credit card cash advances interest is calculated daily immediately after the withdrawal is made and most have a fee associated with using a cash advance on the card. LoC is much better as a source of inexpensive borrowing, the interest rates will be much lower and the funds can be used for anything you like vs getting penalized with fees and high interest on a credit card if you want to use it for anything other than retail purchases.
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Apr 30, 2020 00:02
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Another thing to consider is that an unused LOC amount adds to your unused debt and lower your Total Debt Service ratio. This can have a positive effect on your credit score, all things being equal. And in turn, the improved credit score can make debt cheaper next time it's time to borrow, or negotiate that LOC.
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Apr 30, 2020 02:19
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Guest2553 posted:Same. I was looking to take out an investment loan a month ago but TD had stopped offering them. Just to be clear, my rate is always prime +2% which I don't see as very attractive. My 6 month offer was 1.99% total. That's why I used it.
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Apr 30, 2020 02:53
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Kal Torak posted:Just to be clear, my rate is always prime +2% which I don't see as very attractive. My 6 month offer was 1.99% total. That's why I used it. Mistype on my part, scrolled down to your post and grabbed the wrong number from it. I know what I meant at least 
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Apr 30, 2020 19:46
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Does anyone know why the application for Maternity/Paternity benefits asks if you are in a Union?
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May 4, 2020 23:35
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DariusLikewise posted:Does anyone know why the application for Maternity/Paternity benefits asks if you are in a Union? I suppose some unions may offer it to their members and/or spouses so they'll want you to use that benefit first before applying. Kinda like how EI wants to know how much severance you got and when you got it before they pay you. No sense paying a guy next week when he just got a 5k package. It prevents "double dipping"
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May 5, 2020 00:18
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Deciding between wealthsimple trade and Questrade for my TFSA. From my understanding, it seems like wealthsimple trade is strictly worse if you want to buy US assets, especially ETFs (which are free to buy on Questrade)? No commission, but you get bit by foreign exchange fees on both buying and selling, since you're forced to keep cash in CAD on that platform. In addition, if I go with Questrade does it make sense to do a Norbert's Gambit to initially convert all my cash from CAD to USD, and only start buying assets after doing so? Or is that risky/not worth doing for low value accounts?
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May 7, 2020 01:40
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Looks that way (though ETF buys are commission-free at Wealthsimple Trade too). Why do you hope to hold US$ assets? Wealthsimple Trade's foreign exchange fee is pretty lovely. Norbert's Gambit will be meaningfully cheaper if you're converting at least a couple thousand dollars. There's also in between options like Knightsbridge. edit: Forgot the last part of your post. Cost it out and see how much you stand to save with the gambit, then decide whether that's worth the extra effort and 2-4 business days. General rule of thumb is that a gambit is worth it at $10,000 and up. pokeyman fucked around with this message at 02:18 on May 7, 2020 |
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May 7, 2020 02:10
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mila kunis posted:Deciding between wealthsimple trade and Questrade for my TFSA. Congrats on your timely RSUs? I wouldn't gently caress with USD in your TFSA at all due to foreign withholding tax. You should probably gambit that toward CAD. The only reason to invest in USD is if you're planning to cash out in USD and want to save the exchange rate. But with TFSAs, that's trumped by far by the withholding tax.
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May 7, 2020 03:19
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xtal posted:Congrats on your timely RSUs? The withholding tax is only on dividends and it's 15% so it's important to quantify it if you are just going to blatantly swear it off. If the yield on your portfolio is 3% and it's all US dividends, the withholding tax is only 0.45%. So on a 100K portfolio, you are talking about $450. Some people might consider that a rounding error.
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May 7, 2020 03:24
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mila kunis posted:Deciding between wealthsimple trade and Questrade for my TFSA. ? I have USD cash in my Questrade accounts. You can choose the settlement currency as an option.
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May 7, 2020 09:11
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Kal Torak posted:The withholding tax is only on dividends and it's 15% so it's important to quantify it if you are just going to blatantly swear it off. If the yield on your portfolio is 3% and it's all US dividends, the withholding tax is only 0.45%. So on a 100K portfolio, you are talking about $450. Some people might consider that a rounding error. Then the compound interest and so on. I admittedly don't know what I'm talking about, but I can parrot the best practice, and I've been told what I said. It might be the case that that can really add up over time, and minimizing fees is important to passive investing.
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May 7, 2020 15:07
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xtal posted:Then the compound interest and so on. I admittedly don't know what I'm talking about, but I can parrot the best practice, and I've been told what I said. Right, but it's still only 0.045%. And most portfolios don't actually yield 3% in US dividends so it's probably even less for the average person. If you are restricting yourself from investing in the biggest and best market in the world over a measly 0.045%, you are missing the forest for the trees or whatever that saying is. Utlimately, it depends on what you want to invest in. But I think it's wrong to swear off US stocks in a TFSA because of withholding tax without actually quantifying what the amount costs you in real dollars.
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May 7, 2020 15:23
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Especially for a self described "low value account".
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May 7, 2020 15:31
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Who does withholding tax and doesn’t honour a W-8BEN? Sounds pretty sketch.
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May 11, 2020 03:48
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Hello all, I have a $30,000 term deposit with my bank coming up that I made this time-is last year because I wanted to do something with my money more than keep it in a savings account, but didn't really have the time or capacity to research investing at that point. I certainly don't need the money right now, nor will I in the near/medium future as I have a good chunk of cash liquid in savings. Reading through the thread and Canadian Couch Potato, it seems to me that an ETF is definitely the way to go for my goals. Is it a crazy idea to open a QTrade account and shove all that money into XBAL or XGRO? It feels weird to go "All in" but I guess the nature of these funds is that they are, by definition, decidedly NOT "all in." Does the COVID world change anything in any of your eyes when it comes to this subject? My TFSA pot is currently unused. e. the rate is 1.3%, which now that I've done a bit of research, doesn't look so hot... Nofeed fucked around with this message at 14:40 on May 12, 2020 |
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May 12, 2020 14:35
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If you have a long way to retirement then XGRO is probably slightly better but if you want to be a little more safe then XBAL is fine too. Also what is the 1.3% rate referring to?
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May 12, 2020 14:46
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Less Fat Luke posted:If you have a long way to retirement then XGRO is probably slightly better but if you want to be a little more safe then XBAL is fine too. Also what is the 1.3% rate referring to? Sorry, that's referring to the rate the bank gave me on the term deposit. That's great, thanks for the advice, I'm still debating between the two but I definitely prefer less uncertainty when it comes to money/investments so perhaps the XBAL is the way to go.
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May 12, 2020 15:12
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