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I'll wait and see if he held all year instead of just taking the screenshot to troll people
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Jan 3, 2021 15:42
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Rime posted:No I fed the two buy screenshots he posted here into my portfolio app to simulate what he's got if he's still holding. I wonder how many people who make these crazy bets and win actually end up in a long-term strong financial position? My expectation is that, much like some other people who make large amounts of money in a short time (Some actors/celebrities, many professional sportspeople etc) they extrapolate their gains out to infinity and end crashing and burning when their skill/talent/youthful good looks (Read: luck, in the case of the r/wallstreetbets croud) runs out. It is my hope that GhostTTY is able to realize his gains and live a financially worry-free life for the rest of his days. Though, to be in the mindset to make those bets in the first place, I would imagine that the life I propose perhaps is not what they are looking for...
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Jan 3, 2021 17:04
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mellifluous posted:- 2020 RRSP deduction limit is $27K (Is this different from my contribution room? I'm a bit lost on this point and where to find the contribution room if they are different. The $27K figure comes from my 2019 notice of assessment) Deduction limit is the max it could possibly be. Your contribution room is different, you can find it on myCRA account or last year's Notice of Assessment. Re pension - What would be the pension amount be, is it indexed, when would it kick in? How much of it could you shelter in your RRSP?
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Jan 3, 2021 18:14
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pokeyman posted:You're probably right about your advisor getting paid via the funds he invests you in. Feel free to ask him how he gets paid (and how much), it may be a slightly uncomfortable conversation for you but it's your money and you have every right to know. Grab a recent statement and look up the funds, they'll have fact sheets about relevant fees and commissions. If you get stuck or need confirmation on anything just post the funds here and ask away. * I am capable of being assertive when I feel informed. When I was looking for a mortgage, I did my research and found a good broker. Because I had investments at CIBC, they wanted to be my mortgage provider as well. A rep gave me the hard sell, driving out to my place of work and insisting on a meeting, even though I'd told already told him no because I could get a better rate elsewhere. I know I shouldn't even have met with him after I'd already said no several times over the phone, but politeness compelled me to (I know that's what they're preying on), and then he laid it on thick, saying he was an immigrant who had to support his family here and back home, saying he'd be there for me in case of a "mortgage emergency" (no clue what that would be--any actual emergency like a flood or fire would be covered by insurance), unlike some faceless company out west. I told him no yet again, he tried to guilt trip me by saying he'd driven out of his way to see me, but I stayed firm. I didn't call him out for his high-pressure bullshit (again, avoiding conflict), but I also didn't fold. pokeyman posted:You're already doing a better than average job, don't sell yourself short. Personal finance is an overcomplicated and jargon-heavy field, but with a bit of learning you'll feel more confident about it. If we can get you out of those presumably expensive mutual funds, you'll be in great shape! But it's better to internalize why I'm saying that than to blindly follow random advice. (1) Sign up for my GRRSP and benefits, contribute to the GRRSP to get the employer match for 2020, set up automatic contributions going forward (2) Make a decision about my pension (3) Shop around and renew my mortgage (4) Make a will (5) Learn about investing and take control of my accounts My situation isn't complicated, so is the will something I can do on my own, or do I need to involve a lawyer? Life insurance is also offered through my employer, but as an unmarried person with no dependents, I don't think I need it--is that a safe assumption?
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Jan 3, 2021 20:09
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Guest2553 posted:Deduction limit is the max it could possibly be. Your contribution room is different, you can find it on myCRA account or last year's Notice of Assessment. Guest2553 posted:Re pension - What would be the pension amount be, is it indexed, when would it kick in? How much of it could you shelter in your RRSP? For option (3) transferring the pension to a locked-in account or defined contribution pension plan, here are the details: I can transfer the locked in portion of the commuted value (~$50K) to a locked-in retirement account, a defined contribution registered pension plan with my new employer (I'm not sure this is possible: Is a GRRSP different from a DC pension plan, or are the terms equivalent?), or annuity from an insurance provider. The excess funds (~$100K) are considered taxable income and can be deposited (plus interest, less taxes) into my bank account or into my RRSP. If I transfer to my RRSP, it states that I must have enough contribution room to deduct the amount on my tax return, otherwise I will pay penalties. I included my gross income (~$90K in 2020, but projecting ~$75K in 2021) and my 2020 RRSP contribution room (~$27K), but let me know if there are any other details I can provide.
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Jan 3, 2021 20:39
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mellifluous posted:I've definitely been avoiding it because I don't want to want to have that awkward conversation and because I don't want to find out how stupid/inefficient I've been. Part of it is being a woman who was socialized to be pleasant and avoid conflict. I know that's silly, but it's still hard for me to be as assertive as I want sometimes*, especially in a realm where I know I'm not an expert. But like you said, it's my money, and I should know what's going on, especially because I have no interest in being married or in any kind of long-term relationship, so no deferring to a better-informed partner for me. 
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Jan 3, 2021 20:44
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Awesome job standing up to that mortgage salesman's pitch. There's a lot of people like that around personal finance and they're costly assholes.mellifluous posted:My worry was that I'd read the wrong things since there's so much noise and grifting out there, so thank you again for the links to get me started. My goals, in order of priority: Getting the match is a winner for sure, since it presumably disappears if you don't take advantage. I've been procrastinating on making a will. As a fellow uncomplicated situation haver, my first stop would be something like Willful, because I listened to a podcast episode with their founder and it seemed legit. This is approximately all I know about wills, so take with a large grain of salt. Speaking of podcasts, there's a bunch of good personal finance podcasts out there if that's your jam. Canadian Couch Potato Podcast and Rational Reminder are both great. A cohost of the latter also does Common Sense Investing, and he's good at citing the papers he's talking about if you want to read further. I know nothing about insurance except that, while life insurance doesn't make sense for everyone (I don't have any because I have savings and no dependants), there's other kinds that might be more relevant, like disability insurance.
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Jan 3, 2021 21:03
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Disclaimer: this is all back of toilet paper math for rough order of magnitude calculation. Also past results don't indicate future return etcmellifluous posted:I think I'm confused because my deduction limit and contribution room are the same if I'm reading my Notice of Assessment correctly. Is that possible? Gonna check my last NOI and see what it says, I think I might be using some of the wrong terms... quote:For option (1) deferring my pension, here are the details: I will receive a lifetime monthly pension of ~$480 starting July 1, 2045 (when I'm 60) and a monthly bridge benefit of ~$100 until I'm 65. I can also start the pension at 55, but it would be reduced. Reading about HOOPP's inflation protection, they decide each year whether to provide a cost-of-living adjustment based on the change in CPI. So, it's not guaranteed, but it has been made 100% every year since 2002. I'd personally take the money and self-invest. Assuming the company's pension fund still exists then, 7k/yr that won't be inflation adjusted for almost 25 years isn't a whole lot. Assuming an above average life expectancy of 90 years, you'd be getting about $200k over 30 years. In 25 years, 50k in a LIRA turns into $200k+ (real not nominal) so you could self-fund that same amount. That money is also part of your estate so it can be willed, transferred, cashed out and gifted /blown on drugs etc where pension payments would stop. Since interest rates are stupid low, the commuted value of the pension is a lot higher than it would be otherwise. so you're making more money even if 100k of it is taxable. Some of it can be sheltered in an RRSP to reduce overall tax liability, but even if it's all taxed you'll still be keeping ~60k of it which can in turn grow to another $200k in 25 years (mortgage rates are low enough that I'd keep it in an open account before paying this down, if I weren't a dirty renter  ). It'll also be taxed as capital gains which means you can control when it's taxed, and pay less tax overall since capital gains are preferentially treated under the current tax structure. Between that, GRRSP, and existing savings it seems like you'll be in a decent spot as long as civilization and the international monetary system don't collapse. If you don't mind paying a bit out of pocket for a fee-only planner or hitting the books hard over the next few months, coming up with an investment strategy will help cage what you need to accomplish to meet whatever financial and life goals. If you're dealing with banks (or police, or doctors, or lawyers, or...), I subscribe to the Bring a White Male Friend school of thought if you don't live in someplace like Vancouver, GTA or NE Calgary. e. The counterpoint to everything I said is that without dependents or a burning impetus to pass along wealth, that 7k could be considered part of your 'safe' investment allocation which reduces the risk you need to take to meet your requirements. ie, if you're aiming for a 50k after tax lifestyle in 2020 dollars, you're ~12% of the way there with no risk to yourself from this pension alone. Guest2553 fucked around with this message at 23:09 on Jan 4, 2021 |
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Jan 4, 2021 23:01
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I had funds in a TD mutual fund that I sent a request to withdraw. Records show that the sale was completed on 30 Dec 20, but the deposit to my bank was only recognized on 5 Jan 21. Is there reason to be concerned that CRA will treat the withdrawal as 2021 rather than 2020? I understand my CRA account doesn't update the contribution room until end February at the earliest. I was looking to transfer the funds immediately to my WealthSimple TFSA, but I'm nervous it might constitute an over contribution (TD Asset Management did say it would be treated as 2020 when I called, so I'm not sure if my paranoia is warranted.)
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Jan 5, 2021 18:41
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M. Propagandalf posted:I had funds in a TD mutual fund that I sent a request to withdraw. Records show that the sale was completed on 30 Dec 20, but the deposit to my bank was only recognized on 5 Jan 21. My guess is that will be a 2021 withdrawal. Don't know why you would have left it so late.
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Jan 5, 2021 19:10
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HookShot posted:Good for you! It is hard for us because we are conditioned to avoid conflict, completely. It's not silly, we've been conditioned to do it from birth and it takes a lot of practice to both recognize it and also stamp it out when instinctively that's what we were "trained" to do, and I'm glad you stuck firm. And just think of all the money you saved by going for the lower rate. pokeyman posted:Awesome job standing up to that mortgage salesman's pitch. There's a lot of people like that around personal finance and they're costly assholes.  It's hard to shake the feeling that you're being unjustly disagreeable, but logically I know I'm not actually the difference between his kids being fed/clothed and not. I don't think I have it in me to try to manipulate people so brazenly, so it caught me off-guard, but I'm glad I didn't cave.pokeyman posted:Getting the match is a winner for sure, since it presumably disappears if you don't take advantage.
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Jan 5, 2021 19:47
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Willful is fantastic. I used its precursor, WillowBee, which was free and just as awesome.
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Jan 5, 2021 21:06
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Sputnik posted:Willful is fantastic. I used its precursor, WillowBee, which was free and just as awesome. Does that apply to common-law couples also?
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Jan 5, 2021 21:13
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Speaking of wills, this is a weird request but if any of you has used a lawyer for real estate in Toronto I would love it if you could PM me their name! My partner and I are in the process of buying a house and turned down one based on a failing home inspection report... and the realtor is not returning our deposit (and is ghosting me).
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Jan 5, 2021 23:23
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VelociBacon posted:Does that apply to common-law couples also? Yep.
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Jan 5, 2021 23:24
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Is this a nice plan once you have maxed out your RRSP and TFSA? 1. Hold a one-stop ETF in both registered accounts 2. In the margin account, use mutual funds with the same allocation 3. Make monthly deposits and purchases in the margin account which have no commission fees (rebalance portfolio with every purchase since you can buy dollar units) 4. At tax season, combine RRSP refund and sell mutual funds to put them toward TFSA and RRSP room 5. Make one annual ETF purchase for each registered account The benefit to me of accumulating mutual funds in the margin over the year, then transferring them to ETFs in registered accounts once a year, is that ETFs suck for taxes in margin accounts, and I don't pay commission fees. Or are the taxes easier for ETFs if you do a contribution in kind rather than selling them? xtal fucked around with this message at 02:17 on Jan 6, 2021 |
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Jan 6, 2021 01:59
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xtal posted:Is this a nice plan once you have maxed out your RRSP and TFSA? I agree with everything except point 5 - I think you should never make 1 annual ETF purchase regardless of your strategy. Makes more sense to dollar cost average by splitting that up and doing several smaller contributions so you don't accidentally buy at the top.
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Jan 6, 2021 02:37
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Effectively they’re doing that while accumulating funds in the other account. Liquidating that on Jan 1 and buying the ETF inside registered accounts on Jan 3 is more of a lateral move. There’s risk that something crazy happens between selling and buying, but likely not much.
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Jan 6, 2021 02:53
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Most brokerages let you transfer the shares directly between accounts but then you risk over-contributing (which can be a pain).
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Jan 6, 2021 02:58
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xtal posted:Is this a nice plan once you have maxed out your RRSP and TFSA? Depending on what precisely you mean by mutual funds with the same allocation, there might technically be some superficial loss issues here. Eg) SPY/V00 are functionally the same investment, pretty confident an index fund on the SP500 like (I believe) TD's 902 - US Equity Index, is, too.
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Jan 6, 2021 04:26
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Less Fat Luke posted:Speaking of wills, this is a weird request but if any of you has used a lawyer for real estate in Toronto I would love it if you could PM me their name! My partner and I are in the process of buying a house and turned down one based on a failing home inspection report... and the realtor is not returning our deposit (and is ghosting me). Crosspost this in the debt bubble thread in D&D.
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Jan 6, 2021 04:53
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HookShot posted:Crosspost this in the debt bubble thread in D&D. Eh it's probably fine, they replied like an hour after that post. Wish me luck!
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Jan 6, 2021 05:03
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xtal posted:Is this a nice plan once you have maxed out your RRSP and TFSA? I'm not sure how ETFs and mutual funds differ for tax purposes in this plan? I've only ever bought ETFs though so I'm probably missing something. Avoiding commission fees makes sense. There are discount brokerages that don't charge commission on buying ETFs, but I assume you'd rather stay where you're at.
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Jan 6, 2021 05:29
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Not sure if I asked before but is there an ETF made up of ladder GICs or something like that? Something with minimal volatility potential but with a return better than a high interest savings acct?
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Jan 6, 2021 06:11
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Yep CLF.TO
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Jan 6, 2021 06:22
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Less Fat Luke posted:Eh it's probably fine, they replied like an hour after that post. Wish me luck! Oh nice, good luck!!
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Jan 6, 2021 06:36
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pokeyman posted:I'm not sure how ETFs and mutual funds differ for tax purposes in this plan? I've only ever bought ETFs though so I'm probably missing something. When you sell an ETF in an unregistered account you pay taxes based on the adjusted cost base, a formula that considers the price each time you purchased it. When you sell a mutual fund (at least, the TD E-Series ones I use) they send you a tax slip that has everything handled already. It doesn't matter much if you are only going to sell ETFs once at retirement, but I would say any year you sell an ETF is a year you need to hire an accountant, whereas mutual funds are much easier to buy and sell without tax complications.
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Jan 6, 2021 14:48
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drat. Studio Tax going pay to use. Still, $15 bucks is not bad. Might just pay up, especially given the free filings I've had in the past. Is there a free alternative that anyone uses?
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Jan 6, 2021 16:04
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GenuTax
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Jan 6, 2021 16:06
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HookShot posted:Oh nice, good luck!! Thanks. We honestly went into this expecting bidding wars or whatever bullshit but the end of the year is super quiet which was nice, however we didn't expect our first offer to blow up from a guy lying about his divorce and the second offer to blow up from a brand new house that already had water leaking into the basement. Goddamn. Third time's the charm it seems!
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Jan 6, 2021 16:14
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Jenkl posted:drat. Studio Tax going pay to use. Simpletax.
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Jan 6, 2021 16:52
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Kal Torak posted:Simpletax. This is the best option for now but Wealth Simple acquired it and is going to monetize it somehow.
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Jan 6, 2021 17:00
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xtal posted:When you sell an ETF in an unregistered account you pay taxes based on the adjusted cost base, a formula that considers the price each time you purchased it. When you sell a mutual fund (at least, the TD E-Series ones I use) they send you a tax slip that has everything handled already. Got it. adjustedcostbase.ca is easy enough to use, but I totally understand bypassing the whole thing. Jenkl posted:drat. Studio Tax going pay to use. SimpleTax. xtal posted:This is the best option for now but Wealth Simple acquired it and is going to monetize it somehow. I think I've sent them money for the last time. Now I'm patiently waiting for their fall from grace.
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Jan 6, 2021 17:45
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Jenkl posted:drat. Studio Tax going pay to use. Excuse me mister. 2020 was the year of bad news, kindly take back that horrible sentence immediately.
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Jan 6, 2021 20:06
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Hi thread, I was raised to be afraid to do anything. I want to switch banks (or rather, switch from a bank to a credit union). Is there any particular way I should go about it? Is it even possible without going in to sign papers? Will it ruin any secret reputation I have (credit score, other mysteries)? I do not have any investments or special accounts
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Jan 7, 2021 22:39
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Killingyouguy! posted:Hi thread, I was raised to be afraid to do anything. I want to switch banks (or rather, switch from a bank to a credit union). Is there any particular way I should go about it? Is it even possible without going in to sign papers? Will it ruin any secret reputation I have (credit score, other mysteries)? I do not have any investments or special accounts Have no fear! Bank loyalty is rarely rewarded. I changed banks a couple months ago and had no trouble closing the old accounts over the phone. My process was: 1. Open new account. 2. Look over my last few months' worth of statements and update all pre-authorized debit agreements. 3. Start using new account day-to-day (use card, add bill payees, deposit paycheque here, update CRA direct deposit, etc.). 4. Shift money between accounts as needed to cover expenses. 5. Wait for a month or two of zero activity in old account. 6. Call and close old account. They asked where to transfer the remaining balance. The most stressful bit for me was not knowing when PAD would move over, so I had to guess which account needed to have the cash to pay those bills. Probably could've timed it better to avoid some ambiguity (like maybe don't try to change your rent over on the 30th when it comes out on the 1st). I temporarily paused contributing to my savings so I had some extra cash on hand just to make sure I didn't overdraw either account. Though you can always send an Interac e-transfer to yourself if you're in a pinch and need money moved within a couple hours. No idea about credit score. I assume no change, and if there was one it would be temporary? Also, remember: there's no rush, it's ok to take it slow.
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Jan 7, 2021 23:38
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In addition to the CRA, the other thing to make sure you don't overlook on the preauthorized deposit side is any extended health benefit plan you might have - sometimes people go quite a while between submissions that result in getting some money back so it's easy to forget. My employer also has separate preauthorized deposit accounts for payroll and for expense reimbursement so, if relevant, that's another potential gotcha. They might pull credit to establish ATM limits, cheque hold policy, etc, along with overdraft limit if you opt into that... but I wouldn't be concerned about the credit inquiry either way. The only people that stuff really matters for are the ones applying for new credit cards twice a month as they churn through every promotion under the sun, and even they usually get approved.
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Jan 7, 2021 23:46
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Hi, I have a silly question. I have maxed out my TFSA and have some cash left over. I'm not sure what to do with it, so I guess I might buy ETFs in a taxable account. Next year when I get more contribution room is there a mechanism to move the securities from my taxable account to my TFSA without selling them?
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Jan 8, 2021 15:53
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Yeah most brokerages and banks let you do that but it's also a taxable event each time you move it to registered account so keep that in mind (also you may over-contribute if the value increases during the transfer but that's a good problem to deal with).
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Jan 8, 2021 16:08
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There's some relevant discussion about that higher on the page
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Jan 8, 2021 16:09
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