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Speaking of pensions, I have about 12-15k in a union pension fund from my previous employer. I'm quite happy with the way it's being managed (Probably my best returns in 2012); is there any reason I should pull it out and send it somewhere else or can I just leave it there? I don't currently have a pension at my current job although I might get it in the next few weeks.
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Sep 15, 2013 22:04
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cowofwar posted:So getting rid of all the account fees would drop profits from $10 billion a year to $7.5 billion a year. Most companies aren't too keen on a 25% drop in profits though. I think the US has similarly retarded banking fees, especially when it comes to overdraft.
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Sep 25, 2013 20:11
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cowofwar posted:This is where governmental regulations would be expected to be in place. The current fee structures penalize the poor for being poor but they are at a disadvantage without paying for a bank account. Meanwhile rich people have their account fees waived. Sadly the poors have a terrible lobbying budget. Banks, on the other hand...
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Sep 25, 2013 20:59
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Plus the rich have a higher marginal tax rate so... It'd seem to me that TFSA would advantage lower income taxpayers more than RSRP. Unless you mean the rich have a higher risk tolerance and will get more tax free investment return, but even then it's just 5500 a year, which is peanuts for the rich.
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Sep 30, 2013 23:32
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6 to 18 months with a need for rapid liquidity is a saving account, yes. I wouldn't recommend going for any kind of fund with that outlook.
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Oct 28, 2013 17:45
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I'm not a fan of employee share programs. They're usually poo poo, and not only is it not a balanced investment, you're increasing your exposure to a single corporation - If your employer goes under, not only are you out of work, but your retirement savings are worthless. And every company can fail - Remember when Montreal Maine Atlantic was a decent railway? Nobody'd touch their shares with their worst enemy's dick, now. (As an aside, I work in transportation management and I wouldn't invest in Canadian railways right now. The regulatory environment is likely to undergo major upheavals in the next few years, and a lot of people's profit margins are gonna go down the drain.) The RSP can be nice if they match contribution; my employer has a similar plan for permanent employees. I'd look at the funds they're offering and how quickly you can move stuff out, this'd be my preferred option over an employee ownership plan.
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Nov 3, 2013 18:22
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I thought you had to be 55 or something before you could covert RSP to RRIF?
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Nov 3, 2013 23:20
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Anyone here have an opinion of Desjardins' investment division? All my stuff (Except insurance) is with them, I really need to take a good hard look at what I'm doing, but I figured I'd ask if anyone already knew anything about them.
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Nov 5, 2013 02:00
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Tony Montana posted:But, if it's then a supply/demand issue, why would you buy when there is restricted supply? Surely supply will increase with time, because the market demands it and that would result in prices coming down, even if the bubble never bursts Real estate supply isn't that elastic. Eventually, and especially if your premise that desireable city space is limited, you just run out of room. Or you build skyscrappers, but those have a pretty long lead times, especially if you're building in an existing city.
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Nov 7, 2013 00:20
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You said yourself that desirable land -that is, close to the cities on the coast- is limited. There's your absolute limit. As for building, it depends on the actual market and prices. If the banks tighten the screws, there's that much less building happening. Alternatively, if all that's being built is McMansions, because that's where the profit margins are, other segments of the market (say multi-family dwellings and low cost apartments) get neglected. Lead time on a house is about what, a year? So it's not like underwear where you can just order another truckload from Indonesia or whatever; by the time those houses come on the market it might already have crashed.
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Nov 7, 2013 12:56
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What's the income level where the rsrp overtakes the TFSA? I used to max out my RSRP and use the TFSA for my emergency fund as a 20-something making 70k/year and living in Quebec. I got the feeling the priorities got switched around now that I make 12k less, but I don't have the numbers to back it up.
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Nov 8, 2013 04:47
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The vast majority of people aren't aiming toward a financial independence goal of 40 though. I ain't livin in a yourt, sorry - and I like my career way too much to stop at forty. Plus 240k put of 660k is, well, a sizeable chunk of 660k. A sizeable tax free chunk.
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Nov 8, 2013 05:53
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Alright so I was looking for market-indexed funds where I already bank, and I found this one that seems a little weird. Am I understanding this right that if the market goes down 5%, they pay out at an higher rate than if it doesn't? Right now, my RSP have a 2.35% management fee so I'm kind of looking into moving to something with a lower expense; I'd rather not move to a different institution. Their market funds seem pretty good, but I'm a bit iffy about the 5 year term, what if I want to buy a house and all that... Mind you the real estate market is probably going to need at least five years to get over itself, at this rate.
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Nov 13, 2013 15:07
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Tony Montana posted:Aussie banks (I'm sure Canadian and others) are offering 4% on savings accounts as an introductory rate. I got to the end of the six months and just sent an email saying I want to stay with you, but I have to keep competitive, and they just said 'sure, sir' and bumped me back up to the 4% for another six months. I could just keep doing this, and I'm earning about the same returns as having it in bonds anyways.. but it's cash. What do you make of that? If they keep doing it, hey, awesome for you.
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Nov 14, 2013 22:59
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melon cat posted: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? I used to have a job where I'd have to spend eight hours a day standing alone in a room with another guy. The same guy every days for months on end (Occasionally there'd be another guy I guess). We could leave to pee or smoke on the balcony, but that was pretty much it. One time I ended up with this loving investment guru. He'd tell me all about penny stock, what he was doing with his retirement fund, how loving awesome he was... "Good going, why are you standing here with your thumbs up your rear end at $24/hr?" After about twenty minutes of silence, he started going on either about how hot Miley Cyrus was (This was in 2008-2009 or so) or about the escort service he was going to start up during his next vacation; those were his other two subjects. Last I heard of him he'd been terminated for alcoholism. Guess it's still better than the guy who kept insisting that slot machines were a better investment than RRSPs... Not sure what my point is right now, maybe "Don't listen to idiot's investments advice and don't underestimate the stupidity of people"?
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Nov 24, 2013 22:10
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Rated PG-34 posted:Cross-post from the other finance thread: how should I be handling my finances as a dirty foreigner in freedomland? Should I funnel my USD back into my TFSA, or open an American brokerage/savings account? Get an accountant. There's gotta be some of them in the border towns (IE, Buffalo, Toronto, Seatle and Vancouver, whatever) that are familiar with the issue. Consider that you could piss off both the CRA and the IRS. At the same time. The potential adverse consequence elevate this beyond the level of acceptable risk that should be mitigated by asking strangers on a comedy internet forum.
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Nov 27, 2013 00:14
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Isn't keeping the dollar low against the USD a good thing for export anyway, since it makes us more attractive to them as suppliers? Or am I misremembering 11th grade econ?
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Dec 5, 2013 16:01
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I have a question. The way my employer does pensions, they just send our bank an RRSP check for 6% of our gross income (Four times a year I think, I'm new.) Long story short, my wonderful credit union hosed up and deposited the check in my checking account instead of the RRSP saving account I'd told them to use. Obviously I can transfer the money from Operations to Saving - RRSP, but I'm just wondering if there's anyway this could gently caress me over come tax time; do I have to declare the retirement contribution or whatever you call it as income?
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Dec 11, 2013 00:31
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The saving account is just a logistical thing so I don't have to phone the bank every time I want to set money aside; it makes it simpler to move it into the actual investment vehicle when it's a sizeable amount. I'm waiting to hear back from the financial person at the credit union, I really hope I don't have to try and talk with the CRA.
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Dec 11, 2013 06:13
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melon cat posted: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. Well it's not automated at all, that's the thing - my employer literally mails them a check. They just ditched it in the wrong account, and if I transfer it I'm going to get a contribution slip. I'm just wondering how I need to report it and how it affects my taxable income and so on; I'll talk to "HR" when she comes in and have her talk to the benefit people and so on. I'll try to give the CRA a call when I have a chance, is there an easy way to contact them? Beside 1-800-O-Canada, I mean.
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Dec 12, 2013 15:22
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It's on top of my income, the employer cuts my I'm not sure if it qualifies as a RPP or what, I haven't gotten around to reading the benefit handbook. It's on my to-do list.
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Dec 12, 2013 15:35
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tuyop posted:In that case, if you don't deposit it by the deadline you'll have to pay tax on that income at your marginal rate. Makes sense. Basically the way I can figure it right now: 1. Money is in my checking account. 2. Transfer money to RRSP. 3. Get RRSP contribution slip. 4. Declare money as income. 5. Declare money as contributed to RRSP. It seems a little counter-intuitive, but then that's taxes I guess? I really need to check how the retirement is reflected on the T-4. Edit: Checked with HR, turns out it is added to the gross income on the T4, they just send the check straight to the bank so that they don't have to withhold. Transferred it to the RRSP, everything's good now I guess. FrozenVent fucked around with this message at 21:08 on Dec 12, 2013 |
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Dec 12, 2013 15:43
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Jolarix posted:I'm not sure the difference. That's from Vanguard's own online comparison table tool. It shows both fees for any fund you can throw at it. That's a great tool. Goddamn I need to get out of Desjardins Mutual Fund: Mngt fee: 1.86% MER: 2.28%
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Jan 2, 2014 02:18
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Lexicon posted:It's not 100% topical for this thread, but may be of interest (pardon the pun) here regardless: Good lord, and I felt bad for financing mine at 1.9%. Could they really not get anything but a brand new 22k car? I get that having bad credit limits your choice, but there had to be a used car somewhere they could have found for a few thousands. FrozenVent fucked around with this message at 17:15 on Jan 6, 2014 |
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Jan 6, 2014 17:12
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Can anyone in BC tell me if it's like in Quebec, where the dealer is required by law to show you the page in the contract where it says in big loving bold letter "THIS IS HOW MUCH THE CAR IS THIS IS HOW MUCH THE INTEREST IS THIS IS HOW MUCH YOU'RE GOING TO PAY TOTAL OVER THE COURSE OF THE LOAN DO YOU UNDERSTAND THIS ARE YOU REALLY REALLY SURE BECAUSE HERE'S HOW MUCH INTEREST YOU ARE GOING TO PAY DO YOU GET IT OK PLEASE SIGN HERE AND INITIAL HERE ON THIS VERY PAGE."? Because when my brother bought his car, that was like the one part of the contract I didn't have to explain to him; they made it extremely loving clear. (4.9% over 7 years, goddamn)
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Jan 6, 2014 18:12
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I'm stuck dealing with an institution that only takes MasterCard, is there one that gives good rewards on sign-up these days?
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Jan 9, 2014 15:38
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If my employer refunds part of my cell phone plan, is that taxable?
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Jan 10, 2014 04:02
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Thanks - I'll check what other people at work do. It's a separate expense check, not on the stub. Before I showed up they just handed out blackberries, so I don't know if this is an issue that's been addressed in the past. The phone is required, I'll check if they'd do the paperwork. FrozenVent fucked around with this message at 06:21 on Jan 10, 2014 |
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Jan 10, 2014 06:18
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I don't know that I'd call it a perk, I'm using the phone I had before with a bunch of stuff tacked onto the plan (calls within Canada are no longer long distances! A whole TEN voicemail messages!). I'm coming out maybe $30 ahead of where I was before, but now I get emails at all hours of the day.
FrozenVent fucked around with this message at 06:27 on Jan 10, 2014 |
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Jan 10, 2014 06:24
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There's a part of me - the part that laughs at people falling on their asses and getting kicked in the balls - that can't wait for the real estate market to finally Honestly, thought, the TFSA is much more advantageous than the RRSP for "poor" people, who don't pay much taxes anyway. The issue is that we've reached a point where culturally people seem to think that only the rich ever save.
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Jan 18, 2014 20:37
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I could save about $1400 in taxes by shoving $4000 in an RRSP. My marginal rate is 38.37% ( ) and my total tax comes out to about 23%. What do you guys think? Am I better off paying the tax man and sticking to TFSA, or using the RRSP to lower the tax bill?It's going to be my first year without a refund 
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Jan 24, 2014 05:07
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Corrupt Cypher posted:I appreciate the forewarning guys, truly I think you guys are pros and I love these threads. I've read this thread in its entirety, the housing bubble thread in its entirety, and whatever analysis I can get my hands on regarding Canada's economic situation. The truth is I am 100% positive doomsday is coming and I'm willing to take the risk for the opportunity of reward. I intend on placing a small bet on the situation with the understanding it is a high risk investment, and really more analogous to gambling than anything else. If you bet $5 on roulette, the most you can lose is $5. If you bet $5 on shorting stocks, the most you can lose is infinity + $5. If you want to gamble, go play roulette. As for your doomsday prediction, people have been predicting doomsday since 3000 BCE... I'm still waiting.
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Jan 24, 2014 15:49
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Why do you think the economy is going down the shitter? As to your comparison to the housing market, you do realize that even if the market collapses, you still have a house, which is perfectly good for its intended purpose - to live in. If you're using it as a saving or investment vehicle, you're a fool or playing a bubble. If you gently caress up a short, all you're left with is a debt. You don't even have a security to sell.
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Jan 24, 2014 16:08
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You're looking at a single segment of the economy in a vacuum, though. Be careful. What do you mean by "Shorting with collaterals"?
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Jan 24, 2014 16:36
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Get a copy of Rail Road Tycoon III (It's cheap on Steam) and try shorting stocks, see how well it works out. (Granted you can do amazingly hilarious poo poo in multiplayer by shorting stocks if your other positions are solid, but that's for the more advanced players who don't mind bankrupting their fake train company owner.)
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Jan 24, 2014 20:00
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Buying a house to live in, when you know you won't be moving for 10+ years, and you can afford it, is absolutely a sound move. Buying a house as an investment that you can live in when you're in your twenties, unmarried with no kids and stretching to afford it (Because obviously your income is going to increase soon) is absolutely loving stupid. Buying a second single-family home as a rental property / investment is also pretty dumb (Unless you can pay cash, I guess, but even then I can think of better investments.)
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Jan 26, 2014 23:38
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slidebite posted:I'm not planing on applying for credit anytime soon so practically it's probably not a big deal but I don't want to keep them forever just "because" unless it's a good idea. Your credit score is not a video game high score, there's no sense in min / maxing it. Close the cards.
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Jan 28, 2014 18:19
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Had a beer with a guy last night who's pretty convinced the Canadian housing market has already crashed, and it's smooth sailing from here on out as log as the rates stay low. Thank god he can't afford a house.
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Jan 30, 2014 13:46
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Your emergency fund should bring in returns like seatbelts should make your car go faster. Leave it in a saving account, ideally unregistered (You wanna keep that contribution space for something that'll yield a return) and just think of any return you do get as a nice bonus.
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Feb 9, 2014 18:45
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Lexicon posted:True, though I'd insist on preservation of purchasing power at the very least. You can get a saving account at 1 - 1.5% pretty easily these days, I'd say the liquidity is worth the minute difference between that and purchasing power changes. I'd be extremely leery of anything involving market fluctuation and an emergency fund, but if you have any other high-liquidity guaranteed capital vehicles, go for it.
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Feb 9, 2014 19:04
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