|
RRSP question: I'm in a low tax bracket right now, and if it ever moves in any direction it can really only go up. My TFSA is maxed. Does it make any sense for me to contribute to an RRSP with excess money or should I just open an unregistered account? Is it possible to like, contribute to an RRSP but defer the deduction indefinitely until my income goes up, and would that even be smart?
|
#
?
Feb 23, 2017 23:55
|
|
|
|
| # ? May 10, 2024 22:12 |
|
|
Arrinien posted:RRSP question: You can carry it forward indefinitely. Whether you choose to or not depends on your circumstances and where you think you'll be in the near future. Might be no point deferring it for multiple years as you're losing gains you could have made reinvesting your return.
|
|
#
?
Feb 24, 2017 00:58
|
|
|
Kalenn Istarion posted:Having a low risk tolerance isn't necessarily irrational - she just has a different values system than you do. Does it mean she's making lower returns? Yes, but if "no loss, ever" is part of her criteria then she is meeting that criteria with her current strategy. Having a low risk tolerance is fine but she's refusing to consider any other alternatives out of fear, not for any reason related to her personal (or son's) situation. That is, in fact, irrational. Arrinien posted:RRSP question: Contribute to an RRSP as soon as you have deduction room. You can defer the deduction for as long as you want. You want to be taking advantage of that sweet, sweet tax-deferred compounded interest as soon as possible. Cold on a Cob posted:Might be no point deferring it for multiple years as you're losing gains you could have made reinvesting your return. I have no idea what you're talking about here, re-investments from gains held within an RRSP don't count towards contribution limits. grack fucked around with this message at 01:17 on Feb 24, 2017 |
|
#
?
Feb 24, 2017 01:07
|
|
|
grack posted:Contribute to an RRSP as soon as you have deduction room. You can defer the deduction for as long as you want. You want to be taking advantage of that sweet, sweet tax-deferred compounded interest as soon as possible. Sorry I meant investing the smaller tax refund now rather than deferring and investing a potentially larger one five years later, not sure why I wrote "reinvesting".
|
|
#
?
Feb 24, 2017 01:11
|
|
|
grack posted:Having a low risk tolerance is fine but she's refusing to consider any other alternatives out of fear, not for any reason related to her personal (or son's) situation. That is, in fact, irrational. Yeah, that's basically it. She set up an account for him in trust (he's now 18), but has no idea when she's going to tell him, no idea what else to do with the money... it was just frustrating to explain that you're not going to get better than a GIC if you're incredibly risk-averse, and yet was still afraid that her very conservative mutual fund had lost 1% in the last quarter. Meanwhile mine just broke 10% over the past year (if you assume I put all my money in at the beginning of March instead of sporadically investing it a few grand at a time over the year). Still, I've had better luck explaining things to her other son (he's just a few months younger than I am, working overtime like crazy, and spends very little money).
|
|
#
?
Feb 24, 2017 02:57
|
|
|
Arrinien posted:RRSP question: I used to advocate for unregistered in situations like these, but they're honestly not worth the headache (extra tax forms, computing ACB on your own, etc) if you can possibly avoid it. Go RRSP, but defer the deduction.
|
|
#
?
Feb 24, 2017 03:59
|
|
|
Lexicon posted:I used to advocate for unregistered in situations like these, but they're honestly not worth the headache (extra tax forms, computing ACB on your own, etc) if you can possibly avoid it. Go RRSP, but defer the deduction. Wow, I totally didn't know you could do this. If you can take money out as regular income at any time, what's the difference in paperwork all about?
|
|
#
?
Feb 24, 2017 08:27
|
|
|
I did this calculation recently and decided that it doesn't make sense to defer the deduction unless the marginal difference in taxes is over 10% or so. In my case it was something like 1) defer 30% tax on $5000 this year or 2) defer 33% tax on $5000 next year, but miss out on 1 year of gains on $1500, which would be roughly equal to deferral of 33% next year. 33/30 is roughly a return of 10%. If for example your choice was 1) defer 15% on $1000 this year or 2) 22% on $1000 next year, your expected return on the $150 you got back from option 1 would have to exceed 22/15.
|
|
#
?
Feb 24, 2017 08:39
|
|
|
Reply is not edit
|
|
#
?
Feb 24, 2017 08:40
|
|
|
yippee cahier posted:Wow, I totally didn't know you could do this. If you can take money out as regular income at any time, what's the difference in paperwork all about? I don't understand what you mean? Non-registered accounts have a tax compliance burden that is not present for registered accounts. And you can defer your RRSP deduction until a time of higher income so there's no real downside to contributing, even in a low income year.
|
|
#
?
Feb 24, 2017 17:14
|
|
|
Bit confused with taxes. I moved to the US in April so I was considered a non-resident in Canada for the tax year. I then got a job and worked in the US for 6 months for 2016. Every where I read, it says you are only taxed on income you earned while you were a resident in Canada. (So Jan to April) When I fill my "Income from sources outside of Canada" section. Am I suppose to put in the 6 months I worked in the US here? The thing is when I fill it out, I am taxed on it or is this section just referring to foreign income during the 4 months (Jan to April) I was in Canada. lol internet. fucked around with this message at 19:55 on Feb 26, 2017 |
|
#
?
Feb 26, 2017 19:44
|
|
|
Edit: Nevermind.
Zettace fucked around with this message at 21:04 on Feb 26, 2017 |
|
#
?
Feb 26, 2017 21:02
|
|
|
lol internet. posted:Bit confused with taxes. I moved to the US in April so I was considered a non-resident in Canada for the tax year. I then got a job and worked in the US for 6 months for 2016. I would say you should ask an accountant for precise technical issues, not an Internet forum
|
|
#
?
Feb 26, 2017 21:05
|
|
|
lol internet. posted:Bit confused with taxes. I moved to the US in April so I was considered a non-resident in Canada for the tax year. I then got a job and worked in the US for 6 months for 2016. Yes, that's where you would put your income earned in the US. You have to declare that income but if you're deemed a non-resident you won't have to pay taxes on it in Canada.
|
|
#
?
Feb 27, 2017 03:21
|
|
|
Dumb basic question: is there any reason (e.g. fees) to not switch my payroll deposit and recurring bills to my savings account, and then transfer out my budgeted spending money to my chequing account?
|
|
#
?
Feb 28, 2017 07:27
|
|
|
Refer to your financial institution and your specific products
|
|
#
?
Feb 28, 2017 15:55
|
|
|
Lazyhound posted:Dumb basic question: is there any reason (e.g. fees) to not switch my payroll deposit and recurring bills to my savings account, and then transfer out my budgeted spending money to my chequing account? I don't know if you suffer from the same confusion that I once did, so this may be an insulting explanation, but: I had a bank account for ages until I realized that the difference between "chequing" and "savings" accounts is pretty arbitrary and depends on the institution and other things. For example, I assumed I couldn't get cheques printed for my CIBC savings account because there's this other thing called a chequing account and surely that's where cheques have to come from? I was wrong. Tangerine actually has a little web page in their settings where you can specify which account gets hit when you press the CHQ or SAV button on a point-of-sale machine. It's completely arbitrary at that point. But I can't pay my bills directly from the savings account for whatever reason. Whatever. If you share what institution and what account types are involved then someone might have more specific advice.
|
|
#
?
Feb 28, 2017 19:59
|
|
|
I may have shared this before, but I use my CIBC line of credit for any cheques I write. The cheques are free, and I just transfer the money over either automatically (recurring cheques) or on demand. I usually run a positive balance of $100 or so on my LOC anyway to cover random cheques or if I want to withdraw money from it from an ATM. My mortgage and power also comes out of my LOC. No chance of NSF.
|
|
#
?
Feb 28, 2017 22:49
|
|
|
Rick Rickshaw posted:I may have shared this before, but I use my CIBC line of credit for any cheques I write. The cheques are free, and I just transfer the money over either automatically (recurring cheques) or on demand. I usually run a positive balance of $100 or so on my LOC anyway to cover random cheques or if I want to withdraw money from it from an ATM. I thought the banks clamped down on this practice 10 years ago when people on RFD were ramping up their use of HELOC as a chequing account with free overdraft.
|
|
#
?
Mar 1, 2017 16:29
|
|
|
pokeyman posted:I don't know if you suffer from the same confusion that I once did, so this may be an insulting explanation, but: I don't know if this is still the case, but way back in the day I used to get charged a $40 dollar fee for withdrawing from my savings account if it wasn't at a Scotiabank bank ATM.
|
|
#
?
Mar 1, 2017 17:08
|
|
|
Risky Bisquick posted:I thought the banks clamped down on this practice 10 years ago when people on RFD were ramping up their use of HELOC as a chequing account with free overdraft. TD and CIBC are pretty well known for allowing positive balances on lines of credit, effectively yielding a no-fee chequing account with free cheques and no overdraft fees. I believe they're the only ones among the majors though.
|
|
#
?
Mar 1, 2017 21:17
|
|
|
James Baud posted:TD and CIBC are pretty well known for allowing positive balances on lines of credit, effectively yielding a no-fee chequing account with free cheques and no overdraft fees. I believe they're the only ones among the majors though. I gotta say, it's pretty nice. I hate paying for cheques. It's an irrational hatred, but oh well.
|
|
#
?
Mar 3, 2017 13:51
|
|
|
Dumb RRSP question: I've got some cash I just want to throw in an index fund RRSP. Is there any recommendations? Not huge into investing but I'm basically not keen on paying a big maintenance fee.
|
|
#
?
Mar 6, 2017 20:51
|
|
|
Edit: wrong thread
|
|
#
?
Mar 6, 2017 21:19
|
|
|
Can someone explain to me why the TD e-funds are so much better than the high-MER alternatives from the banks and financial advisors? I'm inexperienced with investment and my wife and I are currently caught in a tug-of-war between a financial advisor for IA Clarington (the husband of one of her co-workers) and TD bank, where most of our money is. We've been trying to compare the funds being offered based on the calendar performance, but it seems like the performance of the low-MER e-funds are comparable to the 2-3% MER funds that TD pushes (I'm under the impression that calendar performance numbers are calculated after MER is deducted, but maybe I'm wrong on that one). For example, TD's "Dividend Growth" fund with an MER of 2.02 had a calendar performance of 11.47, -7.3, 21.39 in the past 3 years, and the "TD Canadian Index" e-fund was 10.23, -8.53, 20.63. Is this a reasonable way to compare mutual funds?
|
|
#
?
Mar 6, 2017 21:36
|
|
|
Foodship9 posted:Can someone explain to me why the TD e-funds are so much better than the high-MER alternatives from the banks and financial advisors? I'm inexperienced with investment and my wife and I are currently caught in a tug-of-war between a financial advisor for IA Clarington (the husband of one of her co-workers) and TD bank, where most of our money is. We've been trying to compare the funds being offered based on the calendar performance, but it seems like the performance of the low-MER e-funds are comparable to the 2-3% MER funds that TD pushes (I'm under the impression that calendar performance numbers are calculated after MER is deducted, but maybe I'm wrong on that one). Different funds can hold different underlyings. You aren't comparing apples to apples.
|
|
#
?
Mar 6, 2017 21:46
|
|
|
Foodship9 posted:Can someone explain to me why the TD e-funds are so much better than the high-MER alternatives from the banks and financial advisors? I'm inexperienced with investment and my wife and I are currently caught in a tug-of-war between a financial advisor for IA Clarington (the husband of one of her co-workers) and TD bank, where most of our money is. We've been trying to compare the funds being offered based on the calendar performance, but it seems like the performance of the low-MER e-funds are comparable to the 2-3% MER funds that TD pushes (I'm under the impression that calendar performance numbers are calculated after MER is deducted, but maybe I'm wrong on that one). There exists a low MER comparable fund for any higher MER fund.
|
|
#
?
Mar 6, 2017 23:03
|
|
|
1500quidporsche posted:Dumb RRSP question: I'd look at http://canadiancouchpotato.com/model-portfolios-2/ and see what sounds good for you. Foodship9 posted:Can someone explain to me why the TD e-funds are so much better than the high-MER alternatives from the banks and financial advisors? The general argument behind indexing is that whatever portfolio you end up with will, at best, equal market returns in the long term (decades). Given that, your best hope is to invest broadly in the market (lower volatility) at the cheapest possible cost (e-Series, among TD funds). And a percentage point here and there does matter. There's many explanations and clumsy metaphors to explain why, but I found this post particularly compelling. (Hopefully someone will drive by shortly and correct all the glaring errors I've inadvertently dumped here. I'm still new at this.)
|
|
#
?
Mar 6, 2017 23:29
|
|
|
I've got a cash emergency fund sitting in a Tangerine savings account. They're giving me 2.59% interest until the end of March, then it goes back to 0.8%. Is there a no brainer option for keeping my emergency account with Questrade that offers me something ahead of inflation but avoid volatility? This would be for having to move somewhere to get a new job or some "emergency" like that, so a couple days to get the cash back in my bank account wouldn't be a problem.
|
|
#
?
Mar 8, 2017 22:22
|
|
|
yippee cahier posted:I've got a cash emergency fund sitting in a Tangerine savings account. They're giving me 2.59% interest until the end of March, then it goes back to 0.8%. Is there a no brainer option for keeping my emergency account with Questrade that offers me something ahead of inflation but avoid volatility? This would be for having to move somewhere to get a new job or some "emergency" like that, so a couple days to get the cash back in my bank account wouldn't be a problem. I would leave it in cash. The point of an emergency fund isn't to generate returns, it's to be immediately available for an emergency. There's a few lovely scenarios that could arise if you have it in the market: 1. You need the money and the TSX is closed. 2. You need the money and you are forced to close your position at a loss. 3. You need the money and you close your position at a gain, incurring unplanned tax expenses. On top of that, low-volatility options that maintain liquidity are gonna be bond ETFs which are terrible choices to hold in a taxable account. Vatek fucked around with this message at 22:55 on Mar 8, 2017 |
|
#
?
Mar 8, 2017 22:44
|
|
|
Since interest rates are so terrible anyway I just keep my emergency fund as cash in my chequing account to avoid bank fees. It's only enough to cover expenses for a few months but if I exhaust that I'll just suck it up if the market is down and raid my TFSA.
|
|
#
?
Mar 8, 2017 23:15
|
|
|
I just opened an account with EQ Bank. Planning on moving my savings over to them from Tangerine on April 1st. Apparently 2% interest. I've heard it's surprisingly easy to get your money back out.
|
|
#
?
Mar 9, 2017 02:53
|
|
|
yippee cahier posted:I've got a cash emergency fund sitting in a Tangerine savings account. They're giving me 2.59% interest until the end of March, then it goes back to 0.8%. Is there a no brainer option for keeping my emergency account with Questrade that offers me something ahead of inflation but avoid volatility? This would be for having to move somewhere to get a new job or some "emergency" like that, so a couple days to get the cash back in my bank account wouldn't be a problem. Seconding EQ Bank, not that I have any personal experience since it's Not Available In Quebec™.  Just be aware that they used to offer 3%, down to 2% -- that's likely to go down again in the future. But in the meantime...This list of HISAs is updated regularly, I believe.
|
|
#
?
Mar 9, 2017 03:02
|
|
|
Cool, thanks everyone. I think I would almost certainly be able to rely on my family in the event of an emergency. Do any of you factor that sort of thing or a HELOC you never use into the amount you've set aside?
|
|
#
?
Mar 9, 2017 04:25
|
|
|
yippee cahier posted:Cool, thanks everyone. Not unless absolutely necessary, no.
|
|
#
?
Mar 9, 2017 04:28
|
|
|
yippee cahier posted:Cool, thanks everyone. Not an option for me to borrow from family; they're far more likely to need my help. I don't believe in treating a HELOC like an emergency fund - you can lose access to credit in a financial emergency if the bank decides you are suddenly a credit risk. It doesn't happen often but it can happen.
|
|
#
?
Mar 9, 2017 04:40
|
|
|
I didn't factor it in but I definitely used my line of credit to bridge between jobs when I was recovering from surgery longer than planned. It meant we didn't have to sell the property we owned in a fire sale just to bridge the gap and now that I'm working again we're paying it off.
|
|
#
?
Mar 9, 2017 04:42
|
|
|
Yeah I'd use my LOC too if I had to. I'm just doing my best to have a good amount of emergency money on hand to use before I have to.
|
|
#
?
Mar 9, 2017 04:46
|
|
|
Holy moly, how long does it take Questrade to process a pre-auth deposit request? I submitted it first of February.
|
|
#
?
Mar 9, 2017 05:43
|
|
|
|
| # ? May 10, 2024 22:12 |
|
|
Yeast Confection posted:Holy moly, how long does it take Questrade to process a pre-auth deposit request? I submitted it first of February. That seems way too long. Maybe ask them?
|
|
#
?
Mar 9, 2017 06:45
|
|