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Grand Theft Autobot posted:Right, I plan on retiring at a high tax bracket, so I'm making Roth contributions today at a much lower tax bracket. Is a TFSA the Canadian Roth IRA? Close, but there's no precise American analogue. You contribute with post-tax dollars (like a Roth), but subsequent gains, whether capital gains or dividends are tax free. Canadians can contribute $5,500 per year to this, and withdraw anytime - it's not coupled to retirement in any way (though it is a great vehicle for retirement savings).
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# ? Jan 16, 2014 15:21 |
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# ? May 24, 2024 18:16 |
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Grand Theft Autobot posted:Right, I plan on retiring at a high tax bracket, so I'm making Roth contributions today at a much lower tax bracket. Is a TFSA the Canadian Roth IRA? Essentially yes, a better version of a Roth (There is no requirement of income of any kind to contribute, you gain extra space every year after you turn 18 whether you earn income or not, if you withdraw you regain that space the following year)
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# ? Jan 16, 2014 15:46 |
Throatwarbler posted:It's been a while since I've gone to RFD as I don't live in Canada right now, but the title is exactly right? The point of RRSPs is to reduce one's tax liability when one is at a higher income bracket, and move income to a point in life when one's overall income is in a lower tax bracket. Since RRSP contribution room carries forward, it makes little sense for young people to put money into them at earlier, lower wage stages in their life. It's RFD, I guarantee you the thread's about how smart people plan on building multi million dollar businesses before they retire and so have no reason for an RRSP so they can spend all their discretionary money on ipads right now when they're young. Or, since it's RFD, spend it all on buying more property, because it goes up forever.
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# ? Jan 16, 2014 16:15 |
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Lexicon posted:Close, but there's no precise American analogue. You contribute with post-tax dollars (like a Roth), but subsequent gains, whether capital gains or dividends are tax free. Canadians can contribute $5,500 per year to this, and withdraw anytime - it's not coupled to retirement in any way (though it is a great vehicle for retirement savings). I see. The carry-over cap space is great, as in the penalty-free withdrawal. Roth IRA capital gains and dividends are tax free, to my knowledge, if you make qualified withdrawals.
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# ? Jan 16, 2014 17:34 |
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HookShot posted:It's RFD, I guarantee you the thread's about how smart people plan on building multi million dollar businesses before they retire and so have no reason for an RRSP so they can spend all their discretionary money on ipads right now when they're young. Just to be clear, "saving for retirement" and "contributing to an RRSP" are not equivalent statements. It's possible to "have no reason for an RRSP" yet still successfully save for retirement. I'm sure your point about the denizens of RFD stands, however.
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# ? Jan 16, 2014 17:50 |
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Lately I've been thinking about cashing out my IRA and investing in a bitcoin rig. I'll then invest my bitcoin profits into the Vancouver Real Estate market, so that I'm sufficiently diversified. Thoughts?
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# ? Jan 16, 2014 17:57 |
Grand Theft Autobot posted:Lately I've been thinking about cashing out my IRA and investing in a bitcoin rig. I'll then invest my bitcoin profits into the Vancouver Real Estate market, so that I'm sufficiently diversified. Thoughts? The bitcoin rig might be the smarter part of that investment.
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# ? Jan 16, 2014 18:00 |
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Well you're choosing the best city to do it in. If r/vancouver is any indication, Vancouver must have the largest population of bitcoin idiots I've ever seen. edit: largest population of bitcoin idiots per capita namaste friends fucked around with this message at 18:11 on Jan 16, 2014 |
# ? Jan 16, 2014 18:07 |
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https://twitter.com/BenRabidoux/status/423860949494149120quote:Condo months of inventory in QC metros: Montreal: 19, Quebec City: 27, Gatineau: 17. MOI is seasonal and tends to peak in Dec, but still...
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# ? Jan 16, 2014 18:18 |
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This is a good read. http://www2.macleans.ca/2014/01/16/why-canadas-household-debt-problem-could-get-worse/
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# ? Jan 16, 2014 18:32 |
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Cultural Imperial posted:Well you're choosing the best city to do it in. If r/vancouver is any indication, Vancouver must have the largest population of bitcoin idiots I've ever seen. Vancouverites have a cultural-affinity for seeking out get-rich-quick schemes that don't actually create tangible wealth (trading houses, bitcoins, etc).
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# ? Jan 16, 2014 18:43 |
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Lexicon posted:Vancouverites have a cultural-affinity for seeking out get-rich-quick schemes that don't actually create tangible wealth (trading houses, bitcoins, etc). Oh man. Remember when Murray Pezim was the toast of the town? And Arthur Griffiths? I can't wait to see Francesco Aquilini go bankrupt.
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# ? Jan 16, 2014 18:56 |
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Lexicon posted:Vancouverites have a cultural-affinity for seeking out get-rich-quick schemes that don't actually create tangible wealth (trading houses, bitcoins, etc). This isn't the most beautiful place on the planet because of all our industries. Get rich quick schemes also leave you more time to enjoy nature's bounty, or to patronize one of our many coffee houses staffed by ridiculously over educated baristas.
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# ? Jan 16, 2014 18:59 |
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On that subject, is Vancouver really that 'smart'? Amongst my personal circle of friends in Vancouver, the most educated lament that they live here out of obligation rather than choice.
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# ? Jan 16, 2014 19:17 |
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From what I can tell Vancouver has quite a brain-drain. So many of my friends got fancy and in-demand degrees here in Victoria then moved to Vancouver to get a job and realized there just aren't actual jobs in vancouver outside of construction, service, and real-estate. So they all had to gently caress off to Calgary or the US for actual tech/science jobs. You hear that story over and over, it's just a poo poo place for most careers. Vancouver has a very simple and fragile economy, the whole town is just sort of held together with the absolute bare minimum of productive jobs needed to keep the realestate/construction industry going and I have no clue what the hell they are going to do if/when things crash. Oddly enough Victoria's "tech sector" is doing pretty well and a few people who tried Vancouver then had to go farther afield for jobs are finding them selves back home as they grow their careers. Apparently as of a couple years ago tech just surpassed tourism in the city. But Victoria still has most all the same problems that Vancouver has, just on a smaller scale. But then again we never try to sell our selves as some global city, just as a quaint little tourism and retirement village. I'm sure filthy rich old people will keep our market going, they are our *CHINESE INVESTORS* and why it's different here. Baronjutter fucked around with this message at 19:54 on Jan 16, 2014 |
# ? Jan 16, 2014 19:50 |
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Wall Street Journal is convinced the Canadian economy is bumfucked: http://blogs.wsj.com/moneybeat/2014/01/14/canadas-skidding/
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# ? Jan 16, 2014 19:56 |
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Baronjutter posted:From what I can tell Vancouver has quite a brain-drain. So many of my friends got fancy and in-demand degrees here in Victoria then moved to Vancouver to get a job and realized there just aren't actual jobs in vancouver outside of construction, service, and real-estate. So they all had to gently caress off to Calgary or the US for actual tech/science jobs. You hear that story over and over, it's just a poo poo place for most careers. Vancouver has a very simple and fragile economy, the whole town is just sort of held together with the absolute bare minimum of productive jobs needed to keep the realestate/construction industry going and I have no clue what the hell they are going to do if/when things crash. There was also a post about 10-20 pages back from a guy who works in tech about how hard it was for him to hire good talent because the salaries in tech in Vancouver are so lovely, which, coupled with the high cost of living, also promotes brain drain. There are jobs available in research (especially medical), since that's basically all government (and charity) funded, but you don't do that kind of work for the salary, and there are only so many jobs.
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# ? Jan 16, 2014 21:14 |
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Rime posted:Wall Street Journal is convinced the Canadian economy is bumfucked: Similar piece in the FT: http://www.ft.com/intl/cms/s/0/5999161a-7ea1-11e3-8642-00144feabdc0.html#axzz2qb9CU5zK (Google "Canada housing: on short notice" to get around the registration wall).
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# ? Jan 16, 2014 22:14 |
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It's like those bros have never even seen the picturesque mountains.
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# ? Jan 16, 2014 22:26 |
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Lead out in cuffs posted:There was also a post about 10-20 pages back from a guy who works in tech about how hard it was for him to hire good talent because the salaries in tech in Vancouver are so lovely, which, coupled with the high cost of living, also promotes brain drain. I had the fortune of working for a US based company in Burnaby. When they shut down our office to outsource it to India several of my co-workers basically got laughed out of the room when they told potential employers in Vancouver what they were making at their previous job. And on top of that, I know for a fact that at my old company the Canadian pay scale was significantly lower than the exact same jobs at US based offices. A friend of mine managed to get transferred to a US office and work from home in Canada and he saw an instant 20-30% raise. Oh Vancouver.
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# ? Jan 16, 2014 22:39 |
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rhazes posted:This is a derail, but... you realize that regardless of the order you multiple and divide a number, you come up with the same end result, right? And that you're converting what would be capital gains (taxed less) into income, so you're generally being less efficient and paying MORE taxes, indeed ironic if your objective is to just "compound returns". Your math makes sense, but wouldn't you be charged capital gains tax on the appreciation of your regular investment account in addition to the initial income tax? You can also borrow interest free from your RRSP to contribute to a down payment on a home - also potentially reducing your interest rate on your mortgage. If you only borrow the 35% you got as your income tax refund, you seem to be coming out ahead. Is my view horribly naive in some way?
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# ? Jan 16, 2014 23:39 |
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PhilippAchtel posted:Your math makes sense, but wouldn't you be charged capital gains tax on the appreciation of your regular investment account in addition to the initial income tax? Outside of an RRSP, capital gains and [Canadian] dividends are taxed far more favourably. You forego this favourable tax treatment when you put them into an RRSP - withdrawals come back out again as regular income, not capital gain/dividend income. So for an RRSP to make sense, there better be a drat well significant difference in your marginal rate at time of contribution vs marginal rate at withdrawal time to make up for it. Also, drawing on an RRSP is an implicit long-term bet on marginal tax rates not rising substantially in the next few decades. Given demographics, it strikes me as a bit of a foolish bet.
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# ? Jan 16, 2014 23:48 |
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Lexicon posted:Outside of an RRSP, capital gains and [Canadian] dividends are taxed far more favourably. You forego this favourable tax treatment when you put them into an RRSP - withdrawals come back out again as regular income, not capital gain/dividend income. So for an RRSP to make sense, there better be a drat well significant difference in your marginal rate at time of contribution vs marginal rate at withdrawal time to make up for it. But the math submitted above took that tax difference into account. What I'm asking is if regular investments are subject to both income tax on the input and capital gains on the output, while RRSPs are only subject to income tax on the output. This would slightly put thing is their favor, in addition to any other benefits.
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# ? Jan 16, 2014 23:58 |
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Lexicon posted:Similar piece in the FT: http://www.ft.com/intl/cms/s/0/5999161a-7ea1-11e3-8642-00144feabdc0.html#axzz2qb9CU5zK quote:Ben Rabidoux was teaching at Georgian College, a small university an hour’s drive from Toronto, when he started writing a blog about the Canadian housing market. His job teaching economics and finance gave him access to reams of real estate data, which he used to back up his contrarian – and unpopular – case that Canada was in the midst of a housing bubble.
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# ? Jan 17, 2014 00:03 |
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PhilippAchtel posted:But the math submitted above took that tax difference into account. What I'm asking is if regular investments are subject to both income tax on the input and capital gains on the output, while RRSPs are only subject to income tax on the output. This would slightly put thing is their favor, in addition to any other benefits. You've given me interesting food for thought. Posted a response in the Canadian Finance thread: http://forums.somethingawful.com/showthread.php?threadid=3569987&pagenumber=19#firstpost
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# ? Jan 17, 2014 00:49 |
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http://www.ottawacitizen.com/touch/story.html?id=9391434 Special assessments lol
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# ? Jan 17, 2014 04:56 |
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Musqueam band getting into the development game. http://www.theprovince.com/business/Musqueam+development+University+Endowment+Lands+moving/9396397/story.html A little late don't you think?
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# ? Jan 17, 2014 05:45 |
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Cultural Imperial posted:http://www.ottawacitizen.com/touch/story.html?id=9391434 It's pretty much par for condos since they known if assessments are too high then they will scare away potential buyers. It's why condo owners often see their monthly fee spike after a few years of ownership. Also many of the condo boom type buildings contain features like rooftop pools and massive windows which have the potential to cause big problems down the road especially if installed by dubious subcontractors.
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# ? Jan 17, 2014 05:46 |
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I refuse to link zerohedge so you all can just google this. The Shanghai composite is diving on concerns that the first shadow bank is about to default. Whoops.
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# ? Jan 17, 2014 05:59 |
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We've seen this kind of thing a couple of times lately in Fort McMurray where a Condo building was condemned or the fees jumped to thousands of dollars a month because of major structural issues and neglected repairs. In those cases the issues with the building were publically known for many years before the impact was felt. You had people buying them up for 60% of what other condo properties would achieve and then renting out the units for the same as any other older building in town was getting. These were the same people who went crying to council and the newspapers about losing their homes when the poo poo hit the fan. In summary I don't know why anyone would buy a condo. Starsfan fucked around with this message at 06:35 on Jan 17, 2014 |
# ? Jan 17, 2014 06:31 |
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Starsfan posted:
because it combines the satisfaction of home ownership with the joys of apartment life.
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# ? Jan 17, 2014 06:41 |
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Ostensibly? To live in it, property ladder, etc. Realistically? TO THE MOOOOOOOON
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# ? Jan 17, 2014 14:35 |
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I thought a condo was the only way to live somewhere not horrible because all my friends lived in sort of junky bottom-barrel apartments which make up 90% of the rental stock here. Then I found a slightly nicer apartment run by a super fussy soup-nazi type with a huge list of rules that would make most american HOA's blush (ps thanks for rapidly responding to the tenant that had a Canadian flag and Sports flag in his window rather than the mandated plain white curtain, what the gently caress is this a frat house?) and excellent sound proofing as well as being pretty choosy with his tenants. Strict no pets either and actually enforced 10pm quiet time. The common spaces are absolutely immaculate and any problems are usually addressed same-day by the owner him self. All for only about $100 more than the usual 70's poo poo-box with broken fixtures and a drug addict super working for a massive faceless property management company. And I'm right downtown now too so I can walk to work. A condo in this area would have been around 250k for something old and needing lots of work at 300-400k for something as nice as this apartment. No contest, renting owns. The only downsides are no in-suite laundry and I can't paint or remodel anything but everything is already pretty much perfect so it's no problem.
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# ? Jan 17, 2014 17:26 |
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You're in Victoria, right? May I inquire what the rent on such a place is?
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# ? Jan 17, 2014 18:00 |
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A typical 2br place is around 1100-1200 in Victoria, that will mostly likely be in a dumpy slightly run down 70's wood-frame apartment with very thin walls and a suspicious elevator that smells like pee and indian food. Your unit will have wall to wall carpets that haven't been changed in 20 years. That's like 90% of our city's rental stock, all built within 10 years of each other due to government subsidies which were then pulled resulting in NO rental buildings built for like 30 years. My place is about 1350 a month, it's in a gorgeous 1940's building with thick walls and all the original hardware and details. We also opted to get a private garage because the alternative is very unreliable street parking. We could probably go car-free and save $70 a month for the garage but it also makes great storage space and having a car is still pretty nice even when you live downtown. Financially it seems a bit too expensive for us, but doing the math it's still not even 1/3 of our income and they say that's the max you should spend. A lot of people seem to be spending 1/2 their income on their rents these days. We're still managing to save each month but it's obviously not as good as when our rent was $200. My wife still thinks we can go to europe every year or so but I think after the dust settles over the next year and our new financial reality sinks in she'll realize it's europe every year or retirement.
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# ? Jan 17, 2014 19:04 |
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Baronjutter, you are now every personal banker/mortgage broker's worst nightmare.
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# ? Jan 17, 2014 19:08 |
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Jesus, the hits just keep coming: http://business.time.com/2014/01/17/canada-has-its-own-housing-bubble-and-its-about-to-burst/quote:Ever since the real estate bubble burst in the United States in 2007, observers have pointed to Canada as an example of a well-regulated financial system that has avoided many of the regulatory mistakes that helped lead to an American crash. But Canadians weren’t able to perch on their high horse for very long, as a bubble of their own has been inflating for the past couple years. And now many analysts are watching for that bubble to burst, and soon. We must be pretty close to the point that no credible financial news source has not expressed concern about Canada.
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# ? Jan 17, 2014 21:14 |
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What is the exposure of the Canadian government at this point to a housing crisis?
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# ? Jan 17, 2014 21:18 |
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Legally, the CMHC has a $600 billion cap on debt it can insure, which they tend to stay pretty close to (560 bil in Q3). More practically, if the banks start to detonate from a default crisis, the government will step in for considerably more than that to shore them up, just like the '08 crash.
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# ? Jan 17, 2014 21:32 |
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# ? May 24, 2024 18:16 |
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http://comoxvalley.en.craigslist.ca/apa/4290747090.html
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# ? Jan 17, 2014 22:42 |