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pokeyman posted:Skepticism is definitely good when it comes to personal finances. Good links thx. edit: New Page. Pls do your patriotic duty and buy Canadian stocks.
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Mar 16, 2024 21:54
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Femtosecond posted:Pls do your patriotic duty and buy Canadian stocks. Don't do this if you like money.
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Mar 16, 2024 22:26
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tragic_ethos posted:Eh, I'm still generally of the mind that worrying about dividend withholding for US stuff is pretty marginal in terms of total gains. The current average yield of S&P 500 tickers is 1.84% per Google, it sucks to be sub-optimal obviously, but likely not worth much mental expense if we're talking a 0.2 to 0.3% loss each year (ie. taking a 30% withholding hit on US dividends rather than 15%). Here's a cost benefit analysis of a hypothetical $200k portfolio fully invested in XAW (https://www.blackrock.com/ca/investors/en/products/272108/ishares-core-sp-us-total-market-index-etf). Say $100k is in the TFSA and $100k is in the RRSP. Only the $100k in the RRSP can be optimized. Of the $100k of XAW in the RRSP, only 64% ($64k) of that is in US domiciled equities, made up of IVV (54%), ITOT, (4%), IJH (4%) , and IJR (2%). The optimization would be to replace those US domiciled equities with their equivalent funds held in USD. Those $64k in equities currently pay 12m trailing yield of: $729 = $54k * 1.35% (IVV) $54 = $4k * 1.38% (ITOT) $280 = $4k * 7.01% (IJH) $26 = $2k * 1.32% (IJR) Total dividends $1089 Withholding 30% on dividends = $326.7 Potential return 15% of dividends = $163.35 Out of the gross return of $163.35, your net return needs to account for losing money on currency exchange to USD each time you accumulate and from USD each time you drawdown. You also lose money on the spread each time you rebalance, which you are now responsible for doing at the correct time and with the correct holdings. At what point does it even net you positive EV financially, let alone become worth your time? Even if the optimization is to shift all of your US exposure into the RRSP ($128k) and have the remainder in your TFSA ($72k) you still only would have a gross savings of $326 on every $200k of AUM. That's still not worth having to manually manage weightings IMO. If you choose to hold bonds or have less than 64% US exposure your numbers get even worse. Please double check my calculations. Mantle fucked around with this message at 02:40 on Mar 17, 2024 |
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Mar 17, 2024 02:37
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Mantle posted:Here's a cost benefit analysis of a hypothetical $200k portfolio fully invested in XAW (https://www.blackrock.com/ca/investors/en/products/272108/ishares-core-sp-us-total-market-index-etf). Thank you for putting in the work  . When I looked through these calculations a decade ago my mental model was it’s marginal gains until you have 7 figures in savings, and I have never had cause to re-evaluate hahaha.
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Mar 17, 2024 15:33
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Can someone with investment and monetary policy knowledge explain to me, in a non pithy or conspiracy theory way, what the GOC purchasing mortgage backed securities is actually supposed to do? I know they're doing it with the BOC as the actual purchaser, and that it's supposed to do something about making investment in MBS less attractive, but after that my eyes cross.
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Mar 19, 2024 00:28
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But I could be wrong. Edit: I'm wrong. unknown fucked around with this message at 01:14 on Mar 19, 2024 |
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Mar 19, 2024 01:10
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redbrouw posted:Can someone with investment and monetary policy knowledge explain to me, in a non pithy or conspiracy theory way, what the GOC purchasing mortgage backed securities is actually supposed to do? I know they're doing it with the BOC as the actual purchaser, and that it's supposed to do something about making investment in MBS less attractive, but after that my eyes cross. the general concept is that of "quantitative easing": https://en.wikipedia.org/wiki/Quantitative_easing the typical story is that additional (central bank driven) demand for bonds will increase liquidity and support asset prices in those markets, leading to increased stability for banks, increased lending activity, and easier financing of government deficits. typically only government-backed bonds are purchased by respective central banks (and this often includes mortgages). the whole concept is not without some controversy and it's a good topic for broad discussion in the no-tweet econ thread: https://forums.somethingawful.com/showthread.php?threadid=4027219
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Mar 20, 2024 14:16
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I have a question regarding "pension adjustments" and "RPP Contributions" on your T4. Is there a rule of thumb for how much those figures on your T4 impacts your RRSP room? Is it a 1:1 ratio in $$? For example, let's say you have an RRSP limit of $15,000 for 2023, but your pension adjustment is $10,000 and your RPP is $2000 on your 2023 T4. Does that leave you $3K of room to contribute? If not, is there an easy-ish way to ballpark it?
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Mar 20, 2024 20:49
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slidebite posted:I have a question regarding "pension adjustments" and "RPP Contributions" on your T4. Someone should comment if I'm off base, but checking my return, the hypothetical $2,000 RPP (that shows up on a 2023 T4) acts as a deduction directly to your net income in 2023. It does not impact your 2023 RRSP deduction limit, nor does it factor into calculation of the 2024 RRSP deduction limit. If you mean that the $15,000 is the 2024 deduction limit before pension adjustment (based on 2023 income), then your max 2024 deduction would be $15,000 - $10,000 pension adjustment = $5,000.
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Mar 21, 2024 00:39
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So as long as you are less than $2k over your RRSP contribution limit you are not penalized right, does it affect your limit for next year? Got a late slip that I had totally forgotten about and looks like I will just be under the 2k 
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Mar 21, 2024 19:40
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priznat posted:So as long as you are less than $2k over your RRSP contribution limit you are not penalized right, does it affect your limit for next year? Yeah, less than $2k is okay, although I believe this is a lifetime limit. If this extra $2k contribution was in the first 60 days of 2024 though, you might not technically be in over contribution territory as you are just using up your 2024 contribution room.
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Mar 21, 2024 20:50
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tragic_ethos posted:Yeah, less than $2k is okay, although I believe this is a lifetime limit. If this extra $2k contribution was in the first 60 days of 2024 though, you might not technically be in over contribution territory as you are just using up your 2024 contribution room. Ohhh yeah it was. Ok that’s good to know! I really gotta get more organized with what is getting contributed but last year was a bit of a weird one with changing jobs etc.
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Mar 21, 2024 21:39
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I was wondering about this... like what happens if you mess up and accidentally over contribute but immediately realize it. Is everything ok if you quickly withdraw? lol You'd think maybe, but then what about if there's a few months between when you over contribute and when you find out. I guess you're penalized by paying interest every month so are you only penalized the months you're over the limit? I guess it's worse to over contribute in January and do nothing all year than it is to almost over contribute in January, do nothing all year, and then over contribute just over the line in Dec ?
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Mar 22, 2024 04:29
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Femtosecond posted:I was wondering about this... like what happens if you mess up and accidentally over contribute but immediately realize it. Is everything ok if you quickly withdraw? lol The wording is generally you are charged 1% interest for every month you have over contributed to rrsp or tfsa. This is calculated at end of month, so if you over contribute but pull it out before end of that initial month of contribution, there is no penalty. I understand there are ways to withdraw mistaken rrsp contributions without additional tax complication at least, but never had cause to look too much into that.
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Mar 22, 2024 13:42
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you can sometimes negotiate the fines down if you tell them you got late paperwork or made an error migrating accounts or similar. the people on the CRA hotlines are incredibly helpful, I’ve found
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Mar 22, 2024 18:55
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tragic_ethos posted:Yeah, less than $2k is okay, although I believe this is a lifetime limit. If this extra $2k contribution was in the first 60 days of 2024 though, you might not technically be in over contribution territory as you are just using up your 2024 contribution room.
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Mar 22, 2024 19:08
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tragic_ethos posted:The wording is generally you are charged 1% interest for every month you have over contributed to rrsp or tfsa. This is calculated at end of month, so if you over contribute but pull it out before end of that initial month of contribution, there is no penalty. I understand there are ways to withdraw mistaken rrsp contributions without additional tax complication at least, but never had cause to look too much into that.
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Mar 22, 2024 19:13
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I called in to register for the Quebec Health plan after putting it off and oh my I felt respected and treated like a person and there was basically no wait times.  Lady laughed at me a little for being confused about weekdays vs workdays, but was fine! I had tried to register online but might've been mixed up about whether I was eligible for a private plan or not, I vaguely recall something about my last job's group insurance plan being something I could continue but I'd have to pay for it or something? So I didn't look into it, the lady informed me that if it was offered that I might HAVE to have taken it which seems weird to me, so I wasn't sure but I also thought that that "offer" might've expired and the lady agreed that was probably possible and registered me for the date I guessed at. I'm not about to dig it up to figure/find it out, I just want my no-hassle public plan until I get enrolled in my next job's group plan, sheesh.
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Mar 27, 2024 20:12
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yeah they want you to take the employer-subsidized group plan whenever possible because it reduces the financial load on the provincial system. I think it makes some sense, and afaik companies don’t really game it?
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Mar 27, 2024 21:01
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I'm finally getting around to filing my taxes, having moved back late last year, and using Wealthsimple because gently caress TurboTax. Anyway, I'm getting a sizeable refund based off a lot of credits that aren't being prorated. Checking the CRA site, this seems to be correct:quote:You can claim the following federal non-refundable tax credits (if applicable to you) for the part of the year that you were a resident of Canada: The biggest one on the list is "Canada employment amount" of $1368. After that, it says: quote:In addition, you can claim the other remaining federal non-refundable tax credits (if applicable to you) based on the number of days you were a resident of Canada in the year. ... and it is pro-rating basic personal amounts correctly. Well, I'm not complaining since all of those credits are nearly halving my tax bill but that seems like an oddly generous oversight.
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Apr 22, 2024 03:51
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My mom is going on a trip to Europe but doesn't have a debit or credit card and is being told that Sweden is mostly cashless and she'll need a card of some sort. Regardless of if this is true or not, I'd rather not just have her out there with a wad of cash, so I'm looking for a prepaid card but I'm getting conflicting reports on what's available. Can I get a card in my name and have her use it, or does it need to be in her name? Does anyone have any suggestions for what cards to get? Anything else I should look out for or be aware of?
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Apr 25, 2024 04:04
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Check some of the card aggregator sites like creditcardgenius or nerdwallet. It looks like you have a grand total of three choices for regular credit cards with no foreign exchange fees, and some prepaid options too (I've heard not-bad things about Wealthsimple but have no personal experience).
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Apr 25, 2024 04:15
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I've used my EQ Bank card abroad as a credit card and it worked great. It's a prepaid card, gotta load it up. Nobody looked at it to see what name was in it.
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Apr 25, 2024 05:12
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Lone Goat posted:My mom is going on a trip to Europe but doesn't have a debit or credit card and is being told that Sweden is mostly cashless and she'll need a card of some sort. Regardless of if this is true or not, I'd rather not just have her out there with a wad of cash, so I'm looking for a prepaid card but I'm getting conflicting reports on what's available. Does she have a bank account? Wise is very nice and handy and can be managed through an app on your phone that you can load the card up from using your bank account. Fees are good too.
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Apr 25, 2024 05:40
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Oh sorry forgot to mention, she also does not have a smartphone
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Apr 25, 2024 05:42
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Lone Goat posted:Oh sorry forgot to mention, she also does not have a smartphone Then probably not EQ Bank. Maybe they can do it all over the plain old phone but I dunno.
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Apr 25, 2024 13:27
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How's Desjardens compared to Turbotax? I like the idea of maybe paying someone to double check everything and try to get me deductions that I otherwise might have missed.
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Apr 25, 2024 14:15
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Raenir Salazar posted:How's Desjardens compared to Turbotax? I like the idea of maybe paying someone to double check everything and try to get me deductions that I otherwise might have missed. Honestly, find a local accountant that does tax prep.
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Apr 25, 2024 14:31
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Lone Goat posted:My mom is going on a trip to Europe but doesn't have a debit or credit card and is being told that Sweden is mostly cashless and she'll need a card of some sort. Regardless of if this is true or not, I'd rather not just have her out there with a wad of cash, so I'm looking for a prepaid card but I'm getting conflicting reports on what's available. Some banks allow getting another card that's tied to the same debit or credit account. Feels like the easiest thing would be to get another card for her that's tied to one of your accounts and just have her use that and pay you back when she's returned from Europe. I think Wise is a prepaid card that somehow is better for foreign currency stuff, you could look into that also.
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Apr 25, 2024 15:11
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I've been misled! I was told on the phone that even when I get a fulltime job, I can keep doing reports in case it doesn't work out for my EI, but it immediately told me that I don't need to and to refile for benefits the next time I lose my job; christ.TheCenturion posted:Honestly, find a local accountant that does tax prep. I'll consider it next time.
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Apr 25, 2024 19:04
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Any good ways to find accountants in the area? I think I should get one. Wondering if there are some good ways to find out that suits my needs, would want to have some stuff dealing with capital gains from espp/rsus, kid stuff like resps etc..
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Apr 25, 2024 19:59
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Lone Goat posted:My mom is going on a trip to Europe but doesn't have a debit or credit card and is being told that Sweden is mostly cashless and she'll need a card of some sort. Regardless of if this is true or not, I'd rather not just have her out there with a wad of cash, so I'm looking for a prepaid card but I'm getting conflicting reports on what's available. You can generally add people as secondary card holders to your credit account. They will normally issue a card to that person with their name on it but it will show up on your statement and you are responsible for their charges
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Apr 25, 2024 20:10
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priznat posted:Any good ways to find accountants in the area? I think I should get one. The best thing to do is ask competent people that you know. It's not a thing people generally treat as private so you can bring it up in conversation even with random acquaintances
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Apr 25, 2024 20:14
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T.C. posted:The best thing to do is ask competent people that you know. It's not a thing people generally treat as private so you can bring it up in conversation even with random acquaintances Yup, this. Can be as easy as posting 'hey, anybody have an accountant they recommend for personal taxes' to facebook or whatever. Bonus points if the accountant used to work for CRA.
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Apr 25, 2024 20:17
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T.C. posted:You can generally add people as secondary card holders to your credit account. They will normally issue a card to that person with their name on it but it will show up on your statement and you are responsible for their charges Another consideration is that sometimes the card issuer charges a fee of around $100 to issue a secondary card. I have no idea why they would do this, as a secondary card increases the amount of spending that goes through an account. Personally I would never subscribe to an issuer that charged a fee for secondary card.
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Apr 25, 2024 20:24
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priznat posted:Any good ways to find accountants in the area? I think I should get one. What area? I'm in Toronto and have a good one who handles all my weird poo poo (spousal support, weird investments, medical expenses, equity in various forms, US investments I can't get rid of). He's not especially cheap, about a grand a year depending on how much I need him to argue with CRA, but he and his staff are quite good. I don't think I've ever met him in person, so even if you're outside the GTA (but probably in Ontario) he might work out. https://www.cgc-cpa.ca/ My RSUs just show up as income in my T4, though, so they're pretty easy. ninja: it's definitely too late to get him for this year's taxes though, we had to have our stuff in by March 31
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Apr 25, 2024 20:28
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I’m in Vancouver area, RSUs do show up on taxes (withheld to cover tax too) so it’s nothing too freaky. I have been using Wealthsimple tax and probably leaving money on the table due to deductions I don’t know about.
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Apr 25, 2024 20:34
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T.C. posted:You can generally add people as secondary card holders to your credit account. They will normally issue a card to that person with their name on it but it will show up on your statement and you are responsible for their charges Oh lol that's absolutely not going to work. She is very irresponsible with money (there's a REASON why she doesn't have a credit or debit card) and there's no loving chance I'm going to let her on my accounts. That's why I'm looking for a prepaid card, so I can fill it up and say "you get this many dollars, and if you need more for an emergency you can contact me with a good reason and we can add to it" and then let her do whatever she wants with that much. I could fill an entire BWM thread with some of the poo poo she's gotten into up to but the stories end up intermingling too much with my own finances and I'm not willing to divulge that much info here.
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Apr 25, 2024 20:46
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Lone Goat posted:Oh lol that's absolutely not going to work. She is very irresponsible with money (there's a REASON why she doesn't have a credit or debit card) and there's no loving chance I'm going to let her on my accounts. Secondary cards often let you set spending limits on them (per month, typically). You could probably have her limit set to a few hundred dollars or whatever you'd like. It's quite common for people who get a card for their child.
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Apr 25, 2024 20:52
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Lone Goat posted:Oh lol that's absolutely not going to work. She is very irresponsible with money (there's a REASON why she doesn't have a credit or debit card) and there's no loving chance I'm going to let her on my accounts. Yeah, you want a card in her name specifically then, even if it's a prepaid card. In theory you shouldn't be able to overspend a prepaid card but I wouldn't trust that internationally. Then just get her login info if you are going to administer it for her. Koho.ca does fast signups for prepaid cards and will send you a physical one if you ask (not always a given with the online prepaid card sites). You can fill the card using e-transfer from a bank account. I use them for ordering from sketchy online stores and they've generally been fine. Don't know what happens if you try to put down something with a hold on a prepaid card, like for car rentals or hotels, though.
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Apr 25, 2024 21:04
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