Canadian Finance and Investing Thread - Paying More is our National Pastime

The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > Canadian Finance and Investing Thread - Paying More is our National Pastime

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melon cat: Jan 21, 2010; Nap Ghost

rhazes posted:

I have another question of my own, is there any issues with transferring money from one TFSA to one at another institution in terms of procedure, to ensure that you don't lose that money for your contribution limit in that year and have to wait until next January to re-contribute? Or is TFSA -> TFSA money movement very simple?

That depends- are the funds in the TFSA invested in any way? If yes, then you'll need to switch them to a TFSA Savings Deposit (sell the securities they're invested in) or wait for the investments to mature before you can switch the TFSA to a different FI.

If they're not invested, just go to the bank you want to bring the investments over to. There's a form to fill out. Transfer should take a few weeks.

Either way, it won't affect your contribution room.

EDIT: Just saw your 2nd post saying the TFSA is invested in mutual funds. The only way for your parents TFSA investments to stay as-is after being transferred to a different bank is to set up a self-directed investment account at the other bank they're going to. If they're not doing that, they'll have to switch the investments from mutual funds to savings deposit in order to do the transfer. And still- their contribution room wouldn't be impacted.

Zo posted:

I am living overseas for a while but will be back in Canada for a bit over new years, and want to set up an investment account during my visit.

...

Further, I have about 10k in a TFSA and 30k in a chequing account. From the sounds of it I can use my TFSA as my mutual funds account but I will be limited to my TSFA contribution limit. Is this correct?

Hold on, now. You said you're out of the country. Have you been outside of Canada long enough to be considered a non-resident of Canada? Because if you're a non-resident, you won't accumulate any more contribution room for as long as you're a non-resident. Nor can you make additional contributions.

Also, if you're living in the U.S. (and have U.S. citizenship) the U.S. Government can, and probably will, tax your gains in your TFSA. I know. It's hosed. But they can do it.

melon cat fucked around with this message at 05:10 on Sep 29, 2013

# ¿ Sep 29, 2013 05:07

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# ¿ May 3, 2024 05:26

melon cat: Jan 21, 2010; Nap Ghost

Zo posted:

I suppose I will just open a non-TFSA mutual funds account then. No big loss, considering the majority of my Canadian savings is not doing anything at all right now.

Yeah, that's a pretty good alternative. I guess the best thing for you to do is dome some sort of investing, then just switch it over to your TFSA once you're back in Canuck land.

rhazes posted:

They are selling the (terrible, actively managed, 2.70% MER) mutual funds once they're eligible to cash in a large proportion of them in february, so it'll be transferred as cash. Does it really take a few weeks? I'd like to think Questrade would be a bit faster, but they are a discount brokerage, and you can't argue with how pretty much nothing you do has fees with them.

They'll have a taxable investment account already setup at the destination of course.

It can definitely take a few weeks to transfer. I actually had a really difficult experience when I set up my Questrade account. It took them about a month and lots of phonecalls to get their poo poo together and complete my TFSA transfer to them. It was really frustrating. I actually asked some BFC guys about this during the process, and apparently delays while doing external account transfers to Questrade is pretty par the course for them. And I'll be honest- Questrade's cheap, but it takes them a long time to do anything. Even something as simple as a password reset took 24 hours, which screwed me when I was trying to do some time-sensitive trades. I ended up leaving Questrade for these reasons. Just be aware of these possible issues when dealing with them.

# ¿ Sep 29, 2013 16:35

melon cat: Jan 21, 2010; Nap Ghost

slidebite posted:

Lets say someone comes into $100K-$200K... what would you do with it?

My immediate answer was pay off any and all debts, including mortgage if applicable. Other than that though..? Assuming all else is sitting good (no debts, already decent retirement fund, RRSPs, etc) where would you put it to work?

In that scenario, my answer is probably some sort of a dividend fund like I mentioned in an earlier post.

It really depends on what kind of investor you are. Big risk taker? Hate managing your investments? Hands-off type of guy? Do you need access to the money? There's really no simple answer to your question unless we pin down your preferences, time horizon, etc.

Earwig posted:

Just got confirmation of my Permanent Residence here (US citizen
After a few hours of reading around (mainly this thread but also other places to understand all of the terms), what should my priorities be?

Should I just open a simple account with a bank like PC Financial or ING that has decent interest rates and not worry about jumping in with investment portfolios and a TFSA account? Or should I be going with the TD e-series TFSA (and second, non-TFSA) accounts? My goal is a medium-long term, medium risk investment, with my spouse covering most of the short term costs (though if I had the money available for going halfway on bills and rent that'd be ideal.) We'd probably continue to rent out our relatively cheap place and not worry about buying a house or fancy big investments.

Also; is the IRS going to ding me with FATCA for my TFSA account? I assume yes, but if anyone has experience with FATCA in action I'd love to know a little better what the heck is up with it/what to expect.

First off- congrats on the Permanent Residency!

Second, a disclaimer before I say anything else. Everything I'm about to tell you is based on my personal experience and any advice I'm about to give you isn't to be taken as professional advice. So, with that out of the way. You said that your goal is a medium-to-long term, medium risk investment. A regular savings account (such as those provided by PCF, ING, or the other banks) probably isn't what you're looking for. Savings accounts are better for short-term savings because they're easily-accessible, and let's be honest- Canadian savings accounts are currently paying out less than 2% interest, these days. It may not even beat inflation. Look towards other investments.

But, some questions. Will you EVER need access to the funds you're saving up? If you do, what would you be accessing the money for? Are you okay with seeing your investments' value fluctuate? Even if someone told you that you could lose money? Do you want ANY involvement in your investments, or are you a hands-off type guy who'd rather leave that for someone else? And when you say "medium to long term", how many years are you looking at until you'll start using these funds?

And to your last question- if you have a TFSA and you have any sort of permanent residency in the U.S., the IRS can (and probably will) tax your TFSA.

melon cat fucked around with this message at 15:58 on Oct 3, 2013

# ¿ Oct 3, 2013 15:38

melon cat: Jan 21, 2010; Nap Ghost

old info removed

melon cat fucked around with this message at 21:54 on Feb 4, 2024

# ¿ Oct 5, 2013 16:40

melon cat: Jan 21, 2010; Nap Ghost

Lexicon posted:

I'm thinking of opening a trading account at BMO or TD. Does anyone know if they charge additional fees for self-directed registered accounts (RRSP or TFSA)? I'm thinking of opening a non-registered and a TFSA there.

Most Canadian FIs will charge a quarterly fee for self-directed registered accounts if they're below a $threshold. The fee amount and threshold varies from bank-to-bank.

melon cat fucked around with this message at 02:11 on Oct 19, 2013

# ¿ Oct 17, 2013 15:46

melon cat: Jan 21, 2010; Nap Ghost

Demon_Corsair posted:

Can a bank make you a one off personal cheque? Pretty sure TD is loving with me at this point, since my first trip in they gave me a bank draft, and the second trip they gave me the standard direct deposit info sheet.

Banks used to issue a one-time sheet of free cheques, but they don't do this as much as they used to. You'll be hard-pressed to find any banks that still do this. I'm not saying that you're poo poo out of luck, but your chances of getting them is pretty slim, these days.

# ¿ Oct 19, 2013 04:50

melon cat: Jan 21, 2010; Nap Ghost

Tony Montana posted:

Risk and reward go hand in hand

Hold it. You're missing something very important.

High risk means high potential reward. It also means high potential for losses.

DariusLikewise posted:

So I started putting 300 dollars a paycheck into a TFSA, I want to trade stocks eventually, but looking for something short term to dump the money into for some growth until I accumulate a decent amount of cash(5k+). What would be my best bet?

That's great news! But I'll be honest with you. When it comes to building up short-term savings (which is exactly what you want to do, right?) I would not suggested putting it into any sort of volatile investments. Not even mutual funds. Too risky. You could lose money, and since you have a short time horizon for when you intend on using the funds, you won't be able to recoup the losses over time if your investments lose value. Just pop the money into a regular ole' savings account. Yeah, the growth won't be much (1% to 1.5% tops), but if your goal is to have some $5000 worth of trading money, just wait until you've reached your goal before you start investing.

melon cat fucked around with this message at 06:39 on Nov 20, 2013

# ¿ Nov 20, 2013 06:31

melon cat: Jan 21, 2010; Nap Ghost

Tony Montana posted:

Heh, Lexicon already pointed this out with the example of if you let your idiot brother-in-law pick your stocks, you're wearing plenty of risk with a pretty lovely chance of reward.

I'm not sure if you've been in any sort of advisory position, but in case you haven't- I discovered that huge amount of people take bad investment advice from their non-professional family members, co-workers... it's appalling. And to top it off- they're really arrogant about it, and act as if their "buddy who knows his stuff" is some sort of corporate insider.

But of course Joe from HR knows what he's talking about. He's investment guru and only works a day job "for the fun of it", right? :rolleye:

# ¿ Nov 24, 2013 21:28

melon cat: Jan 21, 2010; Nap Ghost

My take on this whole issue you're experiencing- as long as you haven't been issued a tax slip for the RRSP contributions that never happened, it shouldn't be a big deal. It sounds like a credit union employee fell asleep at the helm, and neglected to set up the automatic RRSP contribution process. I don't think it's going to have any tax consequences. It just sucks that you've missed out on the benefits of dollar-cost averaging for your regular contributions. But still- talk to the folks at the CRA to be sure.

melon cat fucked around with this message at 21:57 on Feb 4, 2024

# ¿ Dec 12, 2013 07:19

melon cat: Jan 21, 2010; Nap Ghost

slidebite posted:

Slightly related...

Any of you folks ever use a credit card extended warranty perk?

I am not a believer in paying for extended warranties, HOWEVER I have had real lovely luck with dishwashers. I made an exception last time and it paid for itself.

I'm going to buy a new one today and the wife and I were probably going to get a warranty, but then I thought about the CC protections.

Decent alternative?

That depends- who are you buying the dishwasher from? I'm asking because if you're getting it from a place like Costco (who has the most generous return policy out of all retailers) the warranty discussion really shouldn't be an issue. With those guys, your satisfaction is 100% guaranteed with almost no strings attached.

Otherwise, Squibbles already said it- the credit card will double the existing warranty up to an additional year. You'll need to find out what the existing warranty covers versus what the retailer's extended warranty will cover. Because if it turns out that the existing warranty is crap, the credit card will simply add up to an additional year of... well, crap. But on the flip side, the extended warranty may only offer limited protection.

tl;dr version- it depends on where your buying the dishwasher from, what the existing warranty covers, and what the store's extended warranty covers.

# ¿ Jan 1, 2014 05:36

melon cat: Jan 21, 2010; Nap Ghost

old info removed!

melon cat fucked around with this message at 22:03 on Feb 4, 2024

# ¿ Jan 27, 2014 07:41

melon cat: Jan 21, 2010; Nap Ghost

FrozenVent posted:

Your credit score is not a video game high score, there's no sense in min / maxing it. Close the cards.

Hold on there. Unless the cards are carrying a high balance/non-competitive interest rate, I wouldn't go ahead and just close them. If they're an active, healthy credit account closing them can actually hurt your chances of approval if you apply for credit applications later on.

melon cat fucked around with this message at 22:02 on Feb 4, 2024

# ¿ Jan 28, 2014 21:15

melon cat: Jan 21, 2010; Nap Ghost

The Berzerker posted:

Yeah, I already talked to a guy who said he knew how to handle this type of investment, and then proceeded to try and sign me up for a bunch of investments that aren't actually allowed, so now I'm worried about finding the right person for this. My dad suggested I talk to his guy, who is the Senior Account Manager at his bank, but my dad also doesn't know anything about investments so I have no idea if that guy is any good or just managed to sell my dad on stuff.

"Senior Account Manager", eh. Let me guess- RBC?

melon cat fucked around with this message at 22:08 on Feb 4, 2024

# ¿ Feb 1, 2014 15:25

melon cat: Jan 21, 2010; Nap Ghost

tuyop posted:

That's really weird. Have you tried contacting them?

Sadly, it's not weird for Questrade to take a painfully long time to get anything done. It has been my experience, as well. But it wouldn't hurt to get in touch with them.

# ¿ Feb 3, 2014 03:00

melon cat: Jan 21, 2010; Nap Ghost

Old Fart posted:

My wife and I are recent immigrants, been here a couple of years, still on work visas, processing PR applications. We want to set up RRSPs and TFSAs.

1) We want the ability to access to our TFSA in a year. It seems a GIC is the best route for this, correct? What's a good target return on this? What are other options? We won't necessarily need to access it, but we need it to be available in relatively short notice. Is a GIC basically the same thing as a CD in the States?

First off, yes! GICs = U.S. CDs.

To answer your other, more important question, no. GICs are not the best route in your scenario. Let me explain why. First, look at the interest rates being offered by a TFSA. If you put money into a TFSA and don't even put it into any sort of investment, most banks will pay out about 1% interest. Now, look at what's being offered for most 1-3 year term locked-in GICs: 1.4% to 1.5%. That isn't much of an increase, especially considering that you can't touch your money until the term expires.

By the way, I used the 1-3 year term rates because rates are so low now that locking into a longer term given the current market would be a dumb thing to do.

If you think you'll need access to the money within a year (or within "relatively short notice" as you said), avoid GICs altogether. Pop the money into a regular 'ole high interest savings account (the rates are similar), or if you really, really want to to- put it into your TFSA Savings Deposit. The interest rate would be very similar to that of a GIC, and the money would (usually) be accessible within 24 business hours.

Food for thought: If you really want to reap the benefits of the TFSA, put the money in for the long term.

quote:

2) For RRSP, we're planning to follow the couch potato's basic advice and set up a model portfolio with TD online. She makes far more than I do, so she'll make a spousal contribution for me. Is she allowed to go over my personal investment limit, as long as the aggregate doesn't exceed her own limit?

No, she is not allowed to go over your personal investment limit. If she does, she'll pay a hefty tax. Remember- if you set up a Spousal RRSP in your name, she is using her contribution room and putting it the funds towards your name. She gets the tax deduction, and in the end, the money she contributes legally becomes yours (but let's not get into that, just yet!).

quote:

And what do we need to do to specify that she's contributing for me? Is it simply a matter of setting up an account in my name and deducting it from her tax return on the appropriate lines?

What you need to do is go to your financial institution (you and your spouse), and tell them that you want to set up a Spousal RRSP. It's a very routine process, to be honest.

In order to specify that she's contributing for you, it's simple. Any $$ she contributes towards the Spousal RRSP goes to your name. And she gets the tax deduction slip. Then she'd file her taxes, like usual, and indicate on the appropriate lines. Key things you need to know:

With an RRSP, you contribute $$, you get the tax deduction, and the money's yours
With a Spousal RRSP, your spouse contributes, she gets the tax deduction, and the money's yours.
An RRSP and a Spousal RRSP will have different account numbers.

I really hope I answered your questions. Let me know if I haven't. And welcome to :canada:

melon cat fucked around with this message at 17:05 on Feb 11, 2014

# ¿ Feb 11, 2014 02:53

melon cat: Jan 21, 2010; Nap Ghost

I just wanted to add-on to the previous conversation we had about how bad financial "advisors" can be at Canadian FIs: CBC Marketplace just did an undercover investigation on them. Just watching it made me angry because I've had to work with people like them.

Summary: There are plenty of advisors who talk straight out of their asses.

Kal Torak posted:

Only 48% of Canadians have a TFSA according to the globe & mail. That actually isn't bad...I would have thought it was less than that considering the price of real estate and amount of consumer debt. I imagine the percentage of those who have actually maxed it out is pretty drat low.

Most of the people I've spoke to don't even come close to maxing it out. And on top of that, most people seem to treat it like a regular savings account, and just withdraw most of the savings around Christmas.

melon cat fucked around with this message at 17:36 on Feb 28, 2014

# ¿ Feb 28, 2014 17:33

melon cat: Jan 21, 2010; Nap Ghost

tuyop posted:

I don't know what a GIC ladder or any of that stuff is

GIC "laddering" just means that you're investing in a bunch of GICs with different maturity dates. An example- you invest in a 1-year GIC, a 1.5 Year GIC, a 2 Year GIC, and 2.5 Year GIC. By staggering them out this way, you always have one that's coming up for renewal. So if interest rates change go up, you can reinvest and get the higher interest rates the market's offering. And if interest rates drop, you still have a handful of other GICs that are still locked in at the older, better rates.

melon cat fucked around with this message at 22:06 on Feb 4, 2024

# ¿ Mar 31, 2014 04:32

melon cat: Jan 21, 2010; Nap Ghost

tuyop posted:

Someone posted this here or somewhere else:

That's a great snippet. A lot of Canadians still see real estate as a "guaranteed" investment, despite the fact that housing crashes happen. You still need to be smart about investing in real estate, and people do get screwed when they don't do their homework. And let's be honest- you can't use your house to buy groceries. If you ever want to cash in on your house you'll either have to downsize significantly, or move to a less populated area (which most people don't want to do). Or you'll have to take out a home equity credit line, which ends up costing you in the long run.

# ¿ Apr 4, 2014 16:56

melon cat: Jan 21, 2010; Nap Ghost

Kalenn Istarion posted:

Companies don't 'make' money when you buy shares

This isn't correct at all. One of the main reasons why publicly-traded companies have IPOs happen is to raise capital. I really don't see what you're reasoning is behind "Companies don't 'make' money when you buy shares", but it's not true at all.

# ¿ Apr 8, 2014 15:47

melon cat: Jan 21, 2010; Nap Ghost

Kal Torak posted:

At that point the company is not involved at all and you are simply buying from another investor selling those shares.

FrozenVent posted:

If the share changes hand 100 times after the IPO, it makes absolutely no difference in the company's cashflow. They get a big lump of cash at the IPO, after that the only reason to give a crap about the stock is because you have to keep the shareholders happy.

I know that. And that's why I specifically mentioned the IPO, and not any other exchanges that happen afterwards. Read my post again. You're both just hopping onto your soapbox and repeating what I'm trying to tell you.

melon cat fucked around with this message at 17:16 on Apr 8, 2014

# ¿ Apr 8, 2014 17:14

melon cat: Jan 21, 2010; Nap Ghost

Kal Torak posted:

Personally, I hate all forced retirement or savings plans. People should be responsible for making sure they aren't broke in retirement. I wish even the CPP were optional.

Therein lies the problem, though. Canadians are notoriously bad at saving money for the long-term. Most people I've spoken with all rely on CPP/OAS as their main source of retirement income. This is really bad because it's intended to supplement retirement income, not replace it. And if you have the audacity to suggest long term savings they roll their eyes at you and tell you that the equity in their primary residence will (somehow) fund their retirement. It gets even more ridiculous- a recent poll suggests that ~30% of Canadians consider winning the lottery for their retirement plans.

If Canadians are made responsible for saving for their own retirement, you'll have millions of broke, impoverished retirees who'll be on social assistance. I know how cynical this sounds, but most people simply can't be trusted to save their money in any sort of structured, disciplined way. It's either forced savings, or we watch millions of Canadians go on welfare.

melon cat fucked around with this message at 18:23 on Aug 2, 2014

# ¿ Aug 2, 2014 18:15

melon cat: Jan 21, 2010; Nap Ghost

Golluk posted:

A couple I know wanted to start saving for a down payment on a house, so they went to TD and asked for advice. They were set up with an RSP account, holding shares of the "TD Comfort Balanced Income Portfolio" mutual fund. Aside from the fact the MER is 1.5%, what really seems odd to me is that it requires regular contributions. The rep apparently said if it came down to paying your cell phone bill, or the contribution, you pay the contribution.

As far as I'm aware, the only time you're forced to put money into an RSP, is if you borrowed money out with the home buying plan, or the education plan.

Here's my take on it. Most mutual funds have a minimum "start-up" dollar amount. Usually it's a $500 initial investment. However, if a client doesn't have that much from the start, the Account Manager can set up pre-authorized contributions (PACs). They might be bi-weekly, weekly, or monthly. But, as long as those PACs long as they add up to $500 per year, they can get them into the mutual fund. That's the only reason I can think of for doing that.

If they stop the PACs before it accumulates $500, the contributed funds will probably be moved into a Cash Savings Deposit instead of the mutual fund.

# ¿ Sep 1, 2014 17:40

melon cat: Jan 21, 2010; Nap Ghost

Olive Branch posted:

Cross posting from the newbie thread per a poster's suggestion...

I recently opened an account with Questrade and have maxed out my contributions to the TFSA and RRSP accounts I have with them. However, because I was an idiot about investing and never did it until now, I had about $18,000 sitting in my checking account with RBC, taking up space and gathering dust. I transferred about $15,000 of that cash into Questrade, opening an individual margin account with it and buying Canadian Couch Potato approved ETFs.

What I want to know is:

1) Was opening the margin account to invest some of that checking account money a good call? If not, what can I do with my checking account money, preferably investment-wise?

2) Can I open more than one TFSA and RRSP account? If not with Questrade, then maybe with TD? Or is that illegal / will cost too much tax / etc.?

1) It's always better to have your money doing something, instead of nothing. Otherwise, inflation chips away at your savings. But, one thing to keep in mind is the tax consequences of investing in a non-registered account. How familiar are you with the tax treatment of capital gains vs. interest income vs. dividend income? Also, do you have a spouse? Because if you do (and if you're focused on minimizing taxes), consider looking into a Spousal RSP, which lets you contribute to his/her RSP, while giving you the tax deduction.

2) You can open up as many TFSA/RSPs as you like, but that doesn't mean you can contribute over and above the maximum allowable amounts without consequence. Remember- your TFSA/RSP contributions are tracked by your Social Insurance Number. Not your RSP/TSFA account number. Opening up several TFSAs/RSPs while thinking you can bypass the government's contribution limits will gently caress you.

(Sorry if my post came off as condescending in any way. I'm just not sure what you're investment knowledge/experience is).

melon cat fucked around with this message at 23:58 on Sep 1, 2014

# ¿ Sep 1, 2014 23:53

melon cat: Jan 21, 2010; Nap Ghost

Olive Branch posted:

Don't worry about the tone of the post, it was educational and not at all condescending. To answer your questions:

1) I am entirely unfamiliar with the tax treatment of those three mentioned forms of income. My expertise regarding investment is "read Mr. Money Moustache, realized the power of investments, invested in recommended mutual index funds and ETFs with low MERs". I have absolutely no idea how to report any income made in my individual margin, RRSP, and TFSA accounts. I am also single, and if it's of any importance, am a Brazilian-American living as a permanent resident in Quebec. I did read about getting dinged twice because I'm an American citizen investing in Canada on Canadian Couch Potato, but I didn't grasp the why and what to do about that.

2) Ah, so the contribution limit is permanently tied to your SIN, I get you. Well, since I've maxed contributions for the year I guess there's nothing to be done with them but wait until 2015. Opening and contributing more is a no-no.

So now that I've got money in a margin account (which I'm not borrowing on to avoid any mishaps with Questrade), what should I look out for regarding taxation?

Ah, I see. So, first- about getting taxed in the U.S. If you have a TFSA and you're a non-resident of the U.S. (and it sounds like you are), the U.S. government can, and probably will, tax any gains you make in it. I know, it's weird. It's a "Canadian :canada:

Tax Free Savings Account". But Uncle Sam wants his share, and unfortunately U.S. non-residents aren't immune from his long-rear end reach. I wish I had better news for you, but there is nothing you can do about that.

As for reporting your income...
For your TFSA- you don't have to report any investment income you made from money held in this account. Period. Remember- the money you tossed into your TFSA was after-tax income. You didn't get a tax deduction for your TFSA contribution, and you never will. But as far as reporting this to the IRS because of the U.S. tax rules concerning TFSA-owning non-residents- I don't know the process. Sorry.

For your RSP- any investment income you make is tax deferred, so you won't be taxed on it until you retire. So don't worry about reporting any investment income made your RSP, for now. You only need to care about that when you retire and start pulling money out of your RSP. Come tax time in the Spring, you'll start getting all sorts of pretty slips in the mail telling you how much money you contributed to your RSPs. You'll need those for your tax return so you can get your tax deduction. Tax deduction means lower income tax bracket. Lower income tax bracket (hopefully) means better tax return.

For your margin account- since it's a non-registered (ie. not tax sheltered, not tax-deferred. Fair game as far as the CRA goes) you can bet that you'll pay all sorts of taxes on your gains. Heck, if your investments do really well in one particular year, it can put you in a very high tax bracket. But as far as reporting them, I can't give you any advice on that because I'm not as familiar with it. It's best to consult an accountant or tax professional if you'd like some detailed information on minimizing your taxes.

I'll give the most simple break-down as far as taxes go when you're investing here in Canada. Bear in mind that I'm not a tax professional or accountant of any sort. But here are the basics. When you invest and you (hopefully) make money, you'll get your investment income in three possible ways:

Interest income. This is taxed at your marginal tax rate, ie. whatever tax rate that applies to your annual income. Interest income pays the highest tax.
Capital gains. Here in Canada, you get taxed based on 50% of the capital gain. Your taxation rate is your marginal tax rate. Capital gains pay the second-highest level of tax.
Dividend income. Out of the three types of investment income you could possibly get, dividend income received from Canadian companies has most preferential tax treatment.

So, you're invested in ETFs, right? Every ETF differs on what kind of investment income it earns you. Some focus on dividends. Some try to avoid capital gains for tax reasons. This is where your research comes into play.

melon cat fucked around with this message at 06:36 on Sep 2, 2014

# ¿ Sep 2, 2014 01:11

melon cat: Jan 21, 2010; Nap Ghost

Lexicon posted:

Just as a point of clarity: you only go into a high tax bracket in a particular year with successful (i.e. substantial capital gains) investments if and only if you lock in those gains by selling the securities.

That is definitely correct (as far as capital gains), so thanks for bringing that up.

Guest2553 posted:

https://www.canadiancouchpotato.com is a good resource for ETF investing and some tax implications. Canadian specific information is out there in bits and pieces but not really consolidated, unfortunately.

Which actually has me thinking...I have a year of goonhosting I haven't really done anything with and I'm sorely tempted to make a Canadian Finances 101 website. What think you guys?

Do it! A lot of 'Finance 101' type sites I've seen really only apply to the U.S., which is worlds apart from Canada's financial services industry.

melon cat fucked around with this message at 22:12 on Feb 4, 2024

# ¿ Sep 2, 2014 03:16

melon cat: Jan 21, 2010; Nap Ghost

slidebite posted:

This is a little disheartening.
CPP costs triple due to investment fees: Fraser Institute
https://ca.finance.yahoo.com/blogs/balance-sheet/canadian-investors-are-often-warned-about-154004366.html

This is exactly why you can't plan for retirement with the hopes that CPP will still exist. It's paltry as it is, and what's to stop the government from completely dismantling CPP in the future? Always plan as if CPP won't be there.

# ¿ Sep 4, 2014 06:32

melon cat: Jan 21, 2010; Nap Ghost

melon cat fucked around with this message at 04:11 on Mar 16, 2019

# ¿ Sep 4, 2014 17:17

melon cat: Jan 21, 2010; Nap Ghost

Old info removed.

melon cat fucked around with this message at 22:13 on Feb 4, 2024

# ¿ Sep 6, 2014 22:53

melon cat: Jan 21, 2010; Nap Ghost

FrozenVent posted:

That reminds me, I have a significant sum of money in a pension fund of a previous employer (well it's managed by the union, but I'm not in that union anymore).

It's getting a pretty good rate of return, but what do I do with it?

There's a high likelihood that they'll start charging you a monthly/quarterly fee simply for having the investment there, so I'd recommend transferring it out to whichever financial institution you currently bank with.

You MIGHT be able to transfer it in-kind (as in, your chosen investment won't be cashed out or switched in any way), but it depends on what you're currently invested in.

# ¿ Sep 6, 2014 23:13

melon cat: Jan 21, 2010; Nap Ghost

Edit!

melon cat fucked around with this message at 04:10 on Mar 16, 2019

# ¿ Sep 6, 2014 23:34

melon cat: Jan 21, 2010; Nap Ghost

Edited!

melon cat fucked around with this message at 04:09 on Mar 16, 2019

# ¿ Sep 9, 2014 06:08

melon cat: Jan 21, 2010; Nap Ghost

Edit!

melon cat fucked around with this message at 04:09 on Mar 16, 2019

# ¿ Sep 9, 2014 17:24

melon cat: Jan 21, 2010; Nap Ghost

melon cat fucked around with this message at 04:13 on Mar 16, 2019

# ¿ Sep 11, 2014 16:48

melon cat: Jan 21, 2010; Nap Ghost

melon cat fucked around with this message at 04:18 on Mar 16, 2019

# ¿ Sep 21, 2014 17:49

melon cat: Jan 21, 2010; Nap Ghost

melon cat fucked around with this message at 04:17 on Mar 16, 2019

# ¿ Sep 21, 2014 19:40

melon cat: Jan 21, 2010; Nap Ghost

melon cat fucked around with this message at 04:25 on Mar 16, 2019

# ¿ Oct 11, 2014 02:21

melon cat: Jan 21, 2010; Nap Ghost

Wilhelm posted:

Went in to get a TD TFSA Mutual Funds account, my rep kept insisting that TFSA contribution room starts building the year after you turn 19, instead of the year you turn 18. Where do they hire these people?

Ugh... I've run into many of these types and it's really frustrating.

melon cat fucked around with this message at 22:16 on Feb 4, 2024

# ¿ Oct 17, 2014 05:16

melon cat: Jan 21, 2010; Nap Ghost

melon cat fucked around with this message at 04:26 on Mar 16, 2019

# ¿ Oct 17, 2014 08:32

melon cat: Jan 21, 2010; Nap Ghost

A question for the guys here who have a TD E-Series Account: is it possible to set it up under a TFSA? or is it restricted to either RSP or Non-Registered only? I tried calling TD, but the people I spoke to didn't seem to give me an answer that I could be confident about.

# ¿ Nov 7, 2014 20:04

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# ¿ May 3, 2024 05:26

melon cat: Jan 21, 2010; Nap Ghost

Lexicon posted:

I can 100% guarantee it's possible. Helped my sister set one up earlier in the year. There's no option on the signup form, but it works if you do the whole dance of "go to the branch to open a TFSA mutual fund account" then convert to e-series later.

Good to know. I do my investing through Waterhouse- any idea if you can convert a TD Waterhouse mutual fund account to an e-series TFSA?

# ¿ Nov 7, 2014 20:25

The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > Canadian Finance and Investing Thread - Paying More is our National Pastime

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