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Hm I didn’t even think of that, that’s worth a shot. Honestly it’s fine right now I don’t need the cash immediately but it would really suck if I wanted to get it quicker than a month after the whole sale of shares, mailing cheques around etc stacked on top of it.
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Jun 18, 2020 01:15
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They'll be more willing to give you the money right away if you have other accounts with them that they can take the money from if the check bounces
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Jun 18, 2020 01:31
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If I were to put money in an RRSP and needed for some reason to access that money before retirement, is there anything other than just plain ol' income taxes that has to be paid on it? I realize you don't get the contribution room back, but Googling seems to give out quite a few different answers when it comes to the taxes/fees that have to be paid. So far all my retirement money has gone into my TFSA so I never really needed to care about it.
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Jun 30, 2020 00:44
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Other than losing the contribution room, there are no penalties. Note that if you withdraw a lot in a low income year the amount withheld by your bank may be more than necessary, but since it's a pre-payment on taxes owed you'd get any excess paid back as a refund after you file your taxes. This isn't a penalty but it can surprise people.
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Jun 30, 2020 00:50
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HookShot posted:If I were to put money in an RRSP and needed for some reason to access that money before retirement, is there anything other than just plain ol' income taxes that has to be paid on it? I realize you don't get the contribution room back, but Googling seems to give out quite a few different answers when it comes to the taxes/fees that have to be paid. People mistakenly think the withholding tax is a fee when it's simply a prepayment.
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Jun 30, 2020 04:59
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Ahhhh ok awesome so it’s a withholding tax, that makes a lot of sense and you would think loving financial websites would explain it better. Perfect, thanks!!
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Jun 30, 2020 14:13
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I just learned from a friend that Tangerine has had Interac Autodeposit for quite a while but it's hidden away deep in their user profile settings where a person would probably never look. [Setup Instructions]. Just a general FYI! (Since autodeposit was introduced, I've been carrying around a collection of bank-specific email addresses that I use to etransfer money between my accounts at different banks. Instant + no holds, only pesky thing is the daily max dollar limits!)
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Jul 1, 2020 00:33
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What are the go to cards for travel and cash back these days? I have the Fido card and the basic tangerine cashback right now.
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Jul 8, 2020 23:30
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^^I too am on the lookout for a good rewards card, preferably something with lounge access. Noticed that Home Trust has online account info now (when I first signed up they didn't) and they use "EZCardinfo.com" as the URL? Seems sketchy as hell 
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Jul 13, 2020 19:41
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The best card for the past decade (Capital One Aspire Travel, 2% on absolutely everything, great insurance benefits, and some extra stuff) just self-imolated by reducing rewards to 1.5% and everyone with the grandfathered $20 annual fee net of rewards now pays 120 ... That's with an effective date of Aug 5 everywhere but Quebec (Sept 6) and I'd expect similar fallout in the near future for the two or three other cards left that paid 2% with fewer perks due to general industry wide reductions in merchant fees. A few of the other cards that usually don't verify incomes have announced plans to downgrade you if your total annual spend isn't large enough, too. Take that, retired mother and also little sister who were just telling me they had the top tier President's Choice Financial one the other day! Otherwise a combo of Amex Gold/Cobolt and TD/Scotia "Infinite" Visas gets you high rewards (3-5%) on a bunch of categories but no coverage of Loblows/Costco. Apparently after August 1st MasterCard "Muse" cards can start being offered, but only for very high income (they may even verify it!). These may disappoint, may be better than the Visa Infinite Privilege cards - guess we'll see.
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Jul 13, 2020 22:47
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I'm going to see if I can get my $150 annual fee back for the Capital One Aspire based on this change. Fine print may say something else but in my experience companies will often refund to make things go away if a regulator is involved.
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Jul 13, 2020 23:18
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Demon_Corsair posted:What are the go to cards for travel and cash back these days? I have the Fido card and the basic tangerine cashback right now. I've been using the Scotia gold Amex for as long as I can remember and even with recent changes I still feel like I get good value. It went from
- 1pt/$ on everything else
- 3pts/$ on transit (gas, bus, parking) and streaming subs - 1pt/$ on everything else 100 points get you a dollar credit if you apply them to a travel-related purchase done in the last year, so long as you made the purchase with the Amex. They also got rid of FOREX fees, which is a nice bonus. Insurance benefits I don't follow since I get what I need from work. The card costs $120 a year, probably has first year free and/or a sign-up bonus. Scotia also offers a no-fee Visa that gives 0.5 pt/$ on everything and you can pool the points together, so I use it as a backup. For Costco I just use my debit card since I'm not keen on having more than 2 credit cards.
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Jul 14, 2020 15:07
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If I'm an American with PR in Canada can I open a High Interest Savings account in Canada without incurring a bunch of extra paperwork? I had a PFIC scare a couple years ago which I had my accountant deal with, so I don't want to run into any more situations where I might suddenly get stuck with an impossible IRS form just because I want to make more than .01% interest.
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Jul 15, 2020 18:11
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You’ll have to report it on the FBAR, and interest income isn’t covered by the foreign income exemption so it might complicate your filing a bit (tax treaty should avoid double taxation on it in the end), but I don’t think the amount of interest matters.
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Jul 15, 2020 18:48
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Run-of-the-mill bank accounts aren't PFICs.
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Jul 17, 2020 14:21
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I just want to make a bit of a celebratory post. I have had issues with credit and debt my whole life (I'm 29). My parents both claimed bankruptcy and have had horrible credits scores their entire life. They would regularly get taken advantage of by sub-prime car loans, pay day loan places, etc. We had to move often and would have utilities and cut off regularly due to missing rent and bill payments. They still work today past retirement age due to their horrible financial decisions. This in part assisted in me creating my own debt hell by having credit cards at 18 and not making monthly payments while in my first year of university. This then got worse as I took out a line of credit during university and accumulated student debt. I left university with two degrees and almost $50,000 in debt split between student loans (36,000), my line of credit (5,000) and credit cards (5,000) with interest accumulating on everything. This reached a crescendo a few years ago when my entire tax return was directly paid to my student loan by the government because I had so many missed payments. They told me I was lucky I had such a tax return as otherwise they would have started to directly garnish my wages. From that point onward, I decided to take control of my debt. I talked to a credit counselling company (maybe not the best way to do it) to consolidate my credit card loans (which at that point were both in collections) and my line of credit (also in collections). We did not negotiate for anything but fully closed accounts in good standing. I also figured out a payment schedule with the NSLC. All this happened around the same time that my car died and I had to buy a replacement (loaned at 14.9% interest). I was making $700 in monthly payments just to minimum debt payments split now between collections, my car and student loans. As this was happening, I was slowly making more money, while working two jobs and making smart choices. Then the pandemic happened, and I was thankfully one of the ones that benefited financially as I still received my regular income while having student loan interest forgiveness. I also worked through my holiday this past month. This year I paid off in full my remaining collections debt (3,500) and now today the remaining 2.5 years of my car loan (5,200). I now have only 29,000 of my student loan left, and last I checked it was at a floating 5.45% interest rate. This may not seem like much success to others who have had worst case scenarios of a large student loan debt. But coming from me, who had a sub 500 credit score, interest accumulating across many different debts at out of control rates. I'm happy that that my credit score has gone up over 140 points and I now fully own my car and just have student loans left to tackle.  Thank you for listening to my Ted Talk. P.S. With having no investments and just one debt now. Is my only option still to just pay off debt? Or is there any potential for investment since some portfolios apparently do better than 5% returns? Also I'm a teacher, so my pension plan is looking buff.
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Jul 17, 2020 17:42
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Alizee posted:I just want to make a bit of a celebratory post. I have had issues with credit and debt my whole life (I'm 29). My parents both claimed bankruptcy and have had horrible credits scores their entire life. They would regularly get taken advantage of by sub-prime car loans, pay day loan places, etc. We had to move often and would have utilities and cut off regularly due to missing rent and bill payments. They still work today past retirement age due to their horrible financial decisions. Good work! That sounds like a nightmare to me and I'm certain I could never do dual degrees while having that stuff occurring in the background of my life so I'm very impressed. It's also clear to me how the privilege of having very responsible parents has benefited me because I absolutely would have had issues with CC debt if I had parents who made poor decisions financially. Going forward, I expect that a 5.45% interest rate means that your best course of action on the 29k student loan is to aggressively pay it off. I'm not a financial professional in any way but my understanding is that if the rate was lower it becomes a better idea to invest. The risk free rate is significantly less than 5% currently and the last thing you can afford is to start investing, see another covid wave and corresponding market crash, and then be that much more behind. There might be some fuzzy math to do related to what your retirement looks like, IE maybe it's better to contribute to RRSP to some degree (this would be investing in something, but from an RRSP account), but use the amount you get back from RRSP tax deductions towards your student loan debt. Whether or not you'll be purchasing real estate (and when) also plays into this. Your situation is unique enough it's really worth meeting with an advisor/planner to figure out the best approach. e: If your pension plan is looking buff (I'm in the same pension :highfive:) I'd be thinking less about an RRSP and maybe more towards TFSA if you go the investing route but even then I think you'll end up learning it's better to just pay off the student loan.
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Jul 17, 2020 17:59
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Alizee posted:I just want to make a bit of a celebratory post. I have had issues with credit and debt my whole life (I'm 29). My parents both claimed bankruptcy and have had horrible credits scores their entire life. They would regularly get taken advantage of by sub-prime car loans, pay day loan places, etc. We had to move often and would have utilities and cut off regularly due to missing rent and bill payments. They still work today past retirement age due to their horrible financial decisions. It depends a bit on what income bracket you're in and how much TFSA room you have, but personally at that rate I'd split extra money between my TFSA and the loan. A guaranteed tax-free 5.45% "return" is pretty good, so I'd put the lion's share into that.
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Jul 17, 2020 18:00
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Alizee posted:I just want to make a bit of a celebratory post. I have had issues with credit and debt my whole life (I'm 29). My parents both claimed bankruptcy and have had horrible credits scores their entire life. They would regularly get taken advantage of by sub-prime car loans, pay day loan places, etc. We had to move often and would have utilities and cut off regularly due to missing rent and bill payments. They still work today past retirement age due to their horrible financial decisions. Hey this is awesome, and congratulations! It takes so much to break learned behaviour and it's rad that you've managed to do it. I hope you keep it up and that one day we'll read about you being fully debt free. Like others have mentioned, a 5.45% interest rate is hard to beat. I would echo mostly paying off your student loans, but squirreling away a little bit into a TFSA passive investment fund. The best thing you can do right now is keep up your good habits, and to get a new habit rolling by saving bit by bit into a TFSA.
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Jul 17, 2020 18:46
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Thanks for the replies my dudes. To give more info. This next year I'll make somewhere between 62-70k. I have $8,000 remaining in my bank accounts after paying off my car today. My only savings goals are to #1 pay off student debt #2 increase my savings and #3 save and spend money on trips (if when/it's safe to do so). I want to maintain a balance of increasing my financial stability & credit score with having fun and living my life. I have a pipe dream of building significant wealth. I haven't done a full budget evaluation myself. I've been pretty content with paying attention to if my account is going up or down and adjusting to make sure it's always going up. Really basic, I know. For the TFSA, would that be better than my High Interest Savings Account? I just have a simplii account for chequing, savings and credit card. I keep it at a zero balance and put everything on it for the variable 0.5-4% cash back rate.
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Jul 17, 2020 21:56
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Alizee posted:Thanks for the replies my dudes. To give more info. This next year I'll make somewhere between 62-70k. I have $8,000 remaining in my bank accounts after paying off my car today. My only savings goals are to #1 pay off student debt #2 increase my savings and #3 save and spend money on trips (if when/it's safe to do so). I want to maintain a balance of increasing my financial stability & credit score with having fun and living my life. I have a pipe dream of building significant wealth. I haven't done a full budget evaluation myself. I've been pretty content with paying attention to if my account is going up or down and adjusting to make sure it's always going up. Really basic, I know. Think of TFSA or RRSP as just labels on accounts that applies certain conditions, usually related to taxation modification. If you open an account with a broker like TD or Questrade, you can stipulate that you'd like the account to be labelled as TFSA, RRSP, or just a cash account (ignoring margin accounts for the purposes of this). You can hold cash in the account, you can invest with it, it's just an account. There are considerations to be made - you wouldn't want to use a TFSA as anything other than a long term investment account because you can only contribute so much into it per year and in total. You also shouldn't really be taking money out of the TFSA frequently because it will complicate your contribution room stuff (you gain whatever amount you took out as extra contribution room in the following year). So if you wanted to start long term investing I'd consider opening a TFSA account with whoever you like (I use Questrade and find it very easy to use, plus no-fee ETF purchases), and figure out what your risk tolerance is and what your short and long term goals are and pick some investments that make sense for you. Common recommendations to look into from this thread are VGRO/XGRO and VBAL/XBAL, which are very google-able to learn more about. This is also where meeting with a financial advisor would be useful. Knowing only what you've mentioned about your situation, in your position I would just pay off those student loans first and worry about investing later. I'd use as much of the $8k as you feel comfortable with using against it. There is some consideration once the loan is paid down to around 5k or so to start slowly incrementing into long term investments but personally I'd rather push it and be debt free and then start putting all that money into investments. VelociBacon fucked around with this message at 22:44 on Jul 17, 2020 |
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Jul 17, 2020 22:10
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Alizee posted:For the TFSA, would that be better than my High Interest Savings Account? I just have a simplii account for chequing, savings and credit card. I keep it at a zero balance and put everything on it for the variable 0.5-4% cash back rate. Simplii's savings account has a pretty poo poo interest rate. Check out the table at https://www.highinterestsavings.ca/chart/ for superior options if you're curious. You'll see on that table that many banks offer high interest savings accounts that are also a TFSA, which means you won't owe taxes on the interest. If you aren't using your TFSA room for anything else then sure, might as well use it here. But if/when you get to long-term investing, you'll want to use your TFSA room for those investments instead of bank account interest. And congrats on paying all that off!
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Jul 18, 2020 00:28
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Alizee posted:Ted Talk Congrats on taking a huge chunk off of your debt!
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Jul 18, 2020 02:43
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Is there any reason to be shopping around for a standard line of credit? I've heard there's rarely much difference between banks.
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Aug 2, 2020 13:20
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Can someone help me understand the Primary Residence Exemption? If someone owned a house and a cottage could they not sell the cottage under the primary residence exemption and avoid capital gains? Would that automatically accelerate capital gains on the house even if they don't sell it in the same year?
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Aug 5, 2020 20:15
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DariusLikewise posted:Can someone help me understand the Primary Residence Exemption? If someone owned a house and a cottage could they not sell the cottage under the primary residence exemption and avoid capital gains? Would that automatically accelerate capital gains on the house even if they don't sell it in the same year? You can only designate it for one property that you ordinarily inhabit for each year. So if you use it on the Cottage, you are exposing your house to capital gains for the years you have designated the cottage. It might not be a bad thing...you shoudl run the numbers and determine which is the better outcome.
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Aug 5, 2020 20:43
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Kal Torak posted:You can only designate it for one property that you ordinarily inhabit for each year. So if you use it on the Cottage, you are exposing your house to capital gains for the years you have designated the cottage. It might not be a bad thing...you shoudl run the numbers and determine which is the better outcome. Ah that's the part I was missing, so if you own a house and cottage for 30 years and you sell the cottage and designate it your primary residence you would need to pay 30 years of capital gains on the house if you sell it 10 years later?
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Aug 5, 2020 22:24
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DariusLikewise posted:Ah that's the part I was missing, so if you own a house and cottage for 30 years and you sell the cottage and designate it your primary residence you would need to pay 30 years of capital gains on the house if you sell it 10 years later? Yes. Even more fun: If you rent out part of your house you lose the exemption for that portion for the time you rented it out as well, fun math.
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Aug 5, 2020 22:42
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I'm a Canadian who now lives in the US. I have a RRSP with Great West Life / Canada West Life which I put into a S&P500 Mutual Fund. It's expense ratio is 2%. Is there any cheaper options out there? I can't get a brokerage I don't think because I am not a Canadian resident.
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Aug 7, 2020 06:39
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Cold on a Cob posted:Yes. That is a fun thing to learn, the primary residence thing could probably use a massive overhaul After some research it would seem the best thing to do is to have the cottage gifted and then spread the capital gains spread over five years
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Aug 7, 2020 20:18
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DariusLikewise posted:That is a fun thing to learn, the primary residence thing could probably use a massive overhaul Huh? That's not a thing. You can take a cap gain reserve if the actual money is paid over the 5 years, but that wouldn't be the case in a gifting scenario.
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Aug 7, 2020 20:21
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Kal Torak posted:Huh? That's not a thing. You can take a cap gain reserve if the actual money is paid over the 5 years, but that wouldn't be the case in a gifting scenario. I guess gifting if the wrong word but I found this in an old Globe and Mail article quote:5. Claim a capital gains reserve. Fair market value but you do it on a loan that never gets repaid
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Aug 7, 2020 20:27
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DariusLikewise posted:I guess gifting if the wrong word but I found this in an old Globe and Mail article Yeah, okay I guess the whole promissory notes thing would work. Kind of sketchy.
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Aug 7, 2020 20:39
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I had a lawyer suggest the promissory note trick when we wanted to put some property in my girlfriend’s name, but it seemed too gross to actually do. I hadn’t heard of it before, but I guess it’s a thing. I wonder why forgiven promissory notes don’t count as income.
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Aug 8, 2020 01:25
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Subjunctive posted:I had a lawyer suggest the promissory note trick when we wanted to put some property in my girlfriend’s name, but it seemed too gross to actually do. I hadn’t heard of it before, but I guess it’s a thing. It looks like they *are*, it's just that you're spreading out the income over five years rather than getting it all as one lump sum. https://www.canada.ca/en/revenue-ag...ns-reserve.html And now I'll file this info under 'things I'll never have a chance to use in this lifetime'
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Aug 8, 2020 02:24
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edit: nevermind
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Aug 12, 2020 06:34
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Demon_Corsair posted:What are the go to cards for travel and cash back these days? I have the Fido card and the basic tangerine cashback right now. I have the BMO World Elite MasterCard, I believe you get ~$400 dollars in rewards points upon $1000 in purchases plus you acquire at a decent rate. And 4 airport lounge passes per year. It does have a $150 annual fee but you can always cancel after 11 months like I occasionally do. E: although make sure to watch the application site as the have a promo bonus several times per year for additional points on approval. slidebite posted:^^I too am on the lookout for a good rewards card, preferably something with lounge access. I've had the HT Preferred Visa for about 2 years now and have had to replace it 3 times for fraudulent activity. Perhaps I'm partly to blame, I do use the card mostly for AliExpress purchases. The HT site address is indeed sketchy but it is serviceable if not basic. e: I only make a few trades per year. I just use TD WebBroker for these. Should I be using a different platform? DeadMansSuspenders fucked around with this message at 19:55 on Aug 19, 2020 |
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Aug 19, 2020 19:44
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I have a Tangerine mastercard (the ~better~ one) and had an issue with some merchant and Tangerine told me they straight up reject some merchants by default unless the cardholder calls in because they get so many fraudulent transactions.
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Aug 19, 2020 20:58
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cowofwar posted:I have a Tangerine mastercard (the ~better~ one) and had an issue with some merchant and Tangerine told me they straight up reject some merchants by default unless the cardholder calls in because they get so many fraudulent transactions. Something you'd want to know before the transaction and not after but I guess it's problematic to publish a list of merchants to watch out for.
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Aug 19, 2020 21:15
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That and how slow they were to get on free e-transfers makes them look like a trash option.
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Aug 20, 2020 00:44
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