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Ahh, yes, good point. Even if my income isn’t at its theoretical peak, taking the deductions in the year of contributions will allow me more liquidity to put into investments. Which probably has a better expected return than trying to time the deductions for the apex my career salary 10-15 years down the road.
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Dec 20, 2021 23:08
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PoizenJam posted:Ahh, yes, good point. Even if my income isn’t at its theoretical peak, taking the deductions in the year of contributions will allow me more liquidity to put into investments. Which probably has a better expected return than trying to time the deductions for the apex my career salary 10-15 years down the road. Exactly. You might look back and see there was an optimal delay, but that's real hard to foresee at the time.
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Dec 20, 2021 23:16
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Calumanjaro posted:I'm so pissed off at td right now. They refused to process my mutual fund purchases without "updating my investor profile". And now I've been on hold for 2 hours. I'm not an expert but it sounds like a self-directed account with QuestTrade or Wealthsimple would be up your alley?
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Dec 22, 2021 14:37
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My normal portfolio is with questrade in various etfs. I have to open RRSP group account with RBC to get company match. Any tips on easiest route to take with this company linked account? First thought is to plow the whole thing into US generic ETF or whatever the retirement flavour Vanguard is popular now but at 10 bucks a pop per trade this would still suck. Is there some mutual or index fund that has auto reinvest option and comparable MERs? Or is RBC “robo” investment option good enough?
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Dec 24, 2021 23:56
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iv46vi posted:My normal portfolio is with questrade in various etfs. See if there's an option to transfer out to your personal RRSP. There might be a fee involved, you might be limited to transferring e.g. once a year, and make sure to follow any rules to keep your match. But if you can transfer out cheaply then that's likely best. Invest in something with low fees until you can transfer; you might be stuck with some zero-commission RBC (closet) index mutual fund. Failing that, remember you're interested in your overall portfolio and not any individual account, so treat your group RRSP account as part of a whole. If you have a limited and/or expensive selection of funds in your group RRSP, buy whatever's lowest fee and make up the weighting of other assets in your other accounts. Hope that all makes sense, I'm being kinda terse but happy to expand.
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Dec 25, 2021 01:02
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e: wrong Canadian thread. 
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Dec 25, 2021 04:45
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pokeyman posted:See if there's an option to transfer out to your personal RRSP. There might be a fee involved, you might be limited to transferring e.g. once a year, and make sure to follow any rules to keep your match. But if you can transfer out cheaply then that's likely best. Invest in something with low fees until you can transfer; you might be stuck with some zero-commission RBC (closet) index mutual fund. Transfer outs are $50 so it’s easier not to do that. Otherwise yeah, single mutual fund with lowest MER and broad market exposure was my play last time with a similar situation few years back. I was just hoping the market got a little more competitive since then, or there’s now a crowd favourite at RBC similar to TD e-series.
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Dec 25, 2021 05:33
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Calumanjaro posted:I'm so pissed off at td right now. They refused to process my mutual fund purchases without "updating my investor profile". And now I've been on hold for 2 hours. Just a heads up for anyone else, evidently there's a bunch of new KYC (know your client) rules that have kicked in/kicking in this year, so basically everyone has to update their investor profile with any broker they deal with.
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Dec 25, 2021 19:18
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unknown posted:Just a heads up for anyone else, evidently there's a bunch of new KYC (know your client) rules that have kicked in/kicking in this year, so basically everyone has to update their investor profile with any broker they deal with. That's nothing new, though. TD always forced you to go through their investor profile questionnaire, and would outright forbid you from choosing portfolio allocations that don't closely match your profile... Even though the whole point of equity index funds is to mitigate the risk of equity through diversification. I think they have different platforms, and the investor direct one doesn't patronize you, but the eseries that I got by visiting a branch turned me off from their service.
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Dec 25, 2021 20:45
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Being the go-to guy for all things scam and sketchy on the internet, I got a call from my brother a few minutes ago asking about a mystery check for $2200 he and his wife received in the mail. He sent me a photo of it and the letter that accompanied it. For once, I was able to give good news and tell him not to throw it away as it was legit. https://bc.ctvnews.ca/630-000-canadians-surprised-by-big-cheques-it-s-not-a-scam-1.5717597
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Dec 26, 2021 20:22
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slidebite posted:Being the go-to guy for all things scam and sketchy on the internet, I got a call from my brother a few minutes ago asking about a mystery check for $2200 he and his wife received in the mail. He sent me a photo of it and the letter that accompanied it. Is this taxable as capital gains, dividends, or return of capital?
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Dec 26, 2021 21:00
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Mantle posted:Is this taxable as capital gains, dividends, or return of capital? Revenue Canada says dividend https://www.canada.ca/en/revenue-ag...ualization.html "If you receive a share, there is no immediate tax consequence. The adjusted cost base of the share is zero. However, when you sell or dispose of the share, you may have a capital gain. If you receive a benefit other than a share (for example, cash), it will be taxed as a dividend. "
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Dec 26, 2021 21:46
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Thanks for that, I never even considered the tax implications and I'm sure they didn't either.
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Dec 27, 2021 01:21
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pokeyman posted:Exactly. You might look back and see there was an optimal delay, but that's real hard to foresee at the time. So this exchange got me thinking over the past week... if you really believe 'time in' the market is a bigger priority than timing the deductions wouldn't you be better off contributing to the RRSP before the TFSA if you plan on reinvesting the deductions/refund? This is the extreme opposite end of what we discussed, but it seems this strategy would maximize your expected return in the long run, unless I am really missing something. I imagine it's situational and depends on how large your future promotion prospects are. In my case, I live in Ontario, gross ~92k and the top end of my career progression will fall somewhere between130-155k in today's dollars (salary indexed to inflation) after 15-20 years. I'm starting to think I may have shot myself in the foot by not investing in my RRSP with myfirst lump sum investment earlier this year (which would have been enough to almost max out the RRSP in one go I think). And if this is the case... How crazy would it be to correct this by closing my positions, withdrawing my maximum RRSP contribution from the TFSA, and contributing that amount to my RRSP? I want to stress that I am likely to max out both of these within 5 years anyway, The trick here is that the realized gains from a TFSA aren't taxed, so I'm having trouble working out that piece of the puzzle vs. expected returns of RRSP contribution + reinvest. Edit: Upon investigating, it seems I'm literally just about to get hit by the biggest tax hikes of my career. My first promotion, likely within a couple of months, will push me from the top of my current bracket (33.89%) to the bottom of the 43.41% bracket, a jump of two brackets. So I think the math ironically swings back in favor of 'delay those RRSP deductions a few years' in general for me, so that I can extract the most benefit from deducting during my time in that 43.41% bracket. That's a guaranteed 5-10% increased return vs deductions today. PoizenJam fucked around with this message at 20:50 on Dec 29, 2021 |
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Dec 29, 2021 19:10
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I don't see much utility in moving money between registered accounts. Especially if you have to close out existing positions. I also wouldn't start tinkering with already invested money rather than sticking to one's investment plan, as second guessing may lead to further tinkering down the road and now you've lost investment gains through frequently changing rather than letting it grow.
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Dec 29, 2021 20:11
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AegisP posted:I don't see much utility in moving money between registered accounts. Especially if you have to close out existing positions. The only tinkering I've done with my profile was sell XGRO for XEQT when I decided my risk tolerance and horizon allowed for it. I favor low cognitive load strategies*. and would view this merely as a course correction/mulligan if the advantages were obvious. But my edit above clarifies that no, the math clearly favors delaying deductions in my case as I am, in fact, about to get hit by a big rate hike. *Heck, I'm a data scientist, and thought the Rational Reminder portfolio would be too much effort.
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Dec 29, 2021 20:30
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PoizenJam posted:So this exchange got me thinking over the past week... if you really believe 'time in' the market is a bigger priority than timing the deductions wouldn't you be better off contributing to the RRSP before the TFSA if you plan on reinvesting the deductions/refund? This is the extreme opposite end of what we discussed, but it seems this strategy would maximize your expected return in the long run, unless I am really missing something. You need to reinvest the deductions from RRSP contributions to make a fair dollar amount comparison with a TFSA. Otherwise you need to contribute more to an RRSP than you would an equivalent TFSA contribution. Assuming a fair comparison (e.g. you always re-contribute your RRSP deduction), if your tax rate is the same at withdrawal time as it was at contribution time, then RRSP and TFSA are identical. That should simplify your calculations a bit? (Identical modulo foreign withholding taxes blah blah not super important at the moment.) quote:Edit: Upon investigating, it seems I'm literally just about to get hit by the biggest tax hikes of my career. My first promotion, likely within a couple of months, will push me from the top of my current bracket (33.89%) to the bottom of the 43.41% bracket, a jump of two brackets. So I think the math ironically swings back in favor of 'delay those RRSP deductions a few years' in general for me, so that I can extract the most benefit from deducting during my time in that 43.41% bracket. That's a guaranteed 5-10% increased return vs deductions today. Don't forget that marginal tax rates work in both directions. If your RRSP deduction pushes you out of your top bracket then you're not seeing the same deduction on every dollar. And don't forget to consider the cost of not investing the deduction right away. You'll miss out on a few years' expected return on that chunk. If you've taken all that into account and still come out ahead, yeah maybe delaying deductions is the way to go. I'm not at all convinced it makes sense to withdraw from your TFSA to fill up your RRSP sooner, either before or after your investigating. But if you're considering it, make sure you don't withdraw from your TFSA on a down day or you'll permanently lose the contribution room. Finally, poo poo can happen in the next couple years. If you don't get that promotion then you can take the deduction whenever, but if you end up without income for a year you'll lose the deduction game pretty bad. Maybe that's a small risk but it's there.
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Dec 30, 2021 08:29
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pokeyman posted:Don't forget that marginal tax rates work in both directions. If your RRSP deduction pushes you out of your top bracket then you're not seeing the same deduction on every dollar. Of course, I'm taking that into account.The top marginal rate increases 10-12% between what I make now (~92k; top rate 31.48%) and what I should be making a year from now (~102k) if my scheduled promotion, seniority, and inflation adjustments occur as planned. at 92,454 it increases to 33.89% at 95,906 it increases to 37.91% at 100,392 it increases to 43.41% Total increase of 11.93%. And I'm likely to remain in that 43.41% top bracket until retirement, barring change of career or other income sources. If I'm understanding this right, if I make an RRSP deduction right now, I'll get a refund of 31.48% of what I contributed (down to $81,411 where the refund would be reduced to 29.65 of contribution, and so on) which I can reinvest. If I instead fill up my TFSA first (this will take me another year or two), and then start in on the RRSP I'll be able to extract a lot more benefit from deducting from my higher marginal rates- most of which will be taxed between 33.89-43.41%. What I take from this is that withdrawing my TFSA to max out my RRSP contribution, even if I reinvest the money, comes out worse than simply sticking to the standard 'max out TFSA then RRSP' advice, it's probably not in my best interest given the impending tax hike. I will probably still take the full deduction in the same year as contribution, for the reasons you have stated, but the order appears to favor TFSA first *assuming the promotions/tax hike happen on schedule.
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Dec 30, 2021 19:44
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PoizenJam posted:What I take from this is that withdrawing my TFSA to max out my RRSP contribution, even if I reinvest the money, comes out worse than simply sticking to the standard 'max out TFSA then RRSP' advice, it's probably not in my best interest given the impending tax hike. I will probably still take the full deduction in the same year as contribution, for the reasons you have stated, but the order appears to favor TFSA first *assuming the promotions/tax hike happen on schedule. I haven't checked the math closely but this all makes sense to me. The only thing I might add is some kind of deadline to take the deduction if your promotions are delayed. But that might not be necessary if you'll have it in mind come tax time.
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Dec 30, 2021 20:33
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I posted about a week ago about TD being a pain in the rear end. It seems I have managed to figure out the issue with the e-series funds I am invested in. It seems like TD has completely discontinued support for e-series funds on the mutual funds side. They aren't allowing any new trades (maybe you can still use a pre-authorized purchase plan, I'm not sure). I think you can still buy them using direct investing. Goddamn I hate Canadian banks, guess they weren't sucking enough fees out of us. As a follow-up to this, has anyone used Q-trade for ETF investing? They look like a low-fee brokerage and are offering $2,000 cash back until March (edit: nvm, $2,000 cash back is for accounts worth over $2M, so lol). So I'm thinking of transferring my TFSA to them. Calumanjaro fucked around with this message at 20:30 on Jan 1, 2022 |
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Jan 1, 2022 20:26
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Calumanjaro posted:I posted about a week ago about TD being a pain in the rear end. It seems I have managed to figure out the issue with the e-series funds I am invested in. I completely missed in your earlier post that this was a mutual funds account, sorry! My wife went through this last year. You can indeed buy e-Series funds in a Direct Investing account, and it’s not difficult to move from a mutual funds account to DI. DI waives fees if you have enough assets ($25k I think? Don’t quote me on that) and your first six months (again don’t quote me, going from memory) are free, if that helps. But the usual ETF suggestions have lower expenses than e-Series, so I’m not gonna try to convince you to stay with TD 
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Jan 1, 2022 20:47
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i use qtrade and it's fine. the ux is more targeted at semi sophisticated investors but it's pretty straightforward if you are just buying and holding etfs
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Jan 1, 2022 21:53
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pokeyman posted:I completely missed in your earlier post that this was a mutual funds account, sorry! My wife went through this last year. You can indeed buy e-Series funds in a Direct Investing account, and it’s not difficult to move from a mutual funds account to DI. I wonder why your wife went through it so much earlier than me. I could make purchases in early December.
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Jan 1, 2022 23:59
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Calumanjaro posted:I wonder why your wife went through it so much earlier than me. I could make purchases in early December. She had a mutual fund TFSA and wanted to open an RRSP, but they had already stopped opening new mutual funds accounts in anticipation of transferring everything over to DI. Naturally nothing on the various TD websites indicated this. So she opened the RRSP in DI and then transferred the TFSA over a couple months later to get over the asset minimum for waiving fees.
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Jan 2, 2022 06:47
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It's that wonderful time of year again to contribute to my registered accounts and then ignore them for the rest of the year. Yay.
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Jan 4, 2022 21:40
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AegisP posted:It's that wonderful time of year again to contribute to my registered accounts and then ignore them for the rest of the year. Yay. You should probably dollar cost average and not do yearly lump sum contributions so you don't end up accidentally buying when stuff is up. Assuming you're using some kind of market product.
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Jan 4, 2022 21:51
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VelociBacon posted:You should probably dollar cost average and not do yearly lump sum contributions so you don't end up accidentally buying when stuff is up. Assuming you're using some kind of market product. You probably shouldn't dollar cost average unless it gives you the psychological calm you need to invest in the first place, e.g.: https://www.pwlcapital.com/wp-content/uploads/2020/07/Dollar-Cost-Averaging-vs-Lump-Sum-Investing.pdf quote:Dollar-cost averaging is the decision to gradually deploy a lump sum of cash into the stock market in order to avoid ex-post regretful timing. We have shown that, on average, dollar-cost averaging consistently trails lump sum investing about two-thirds of the time.
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Jan 4, 2022 22:05
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I'm not sure if you folks knew this but I thought I would share in case you didn't. I used to get my credit report/equifax score every few years just to see how it was make sure there was nothing fishy on my record. I believe by law the credit report itself was free, and a little bit of a pain to get, but the equifax "score"-power thing always costed $$. ($50 sounds about right?) Well, I had a CC# get compromised last month (somewhow.. zero idea... but according to my CC I was in Vegas last month!) and thought I should see my report since it's been a few years. Went to the equifax website and now see they try to get you onto a subscription based product and no longer offered their "score power" report that I used to get. HOWEVER I saw this in their website: https://www.consumer.equifax.ca/personal/products/credit-score-report/ It's their new, totally free offering. Your full credit report and score, and it's basically immediate. You need to prove who you are and they email you an access code but it works just fine. Like I said, not sure if that was common knowledge around here or not, but I didn't know about it. Just thought I'd share. Zero problems on mine so not an ID theft thing, just must have been the # getting vacuumed somewhere.
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Jan 4, 2022 22:15
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slidebite posted:I'm not sure if you folks knew this but I thought I would share in case you didn't. Thank you for this. I have been dealing with an identity theft situation since August and at first experienced the same "why can't I get a free report" issue to the point I was impatient and just paid for the subscription for a few months to deal with the identity theft issue before cancelling. Going forward I was going to start looking into how to get the free report to work, so this helps.
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Jan 4, 2022 22:19
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pokeyman posted:You probably shouldn't dollar cost average unless it gives you the psychological calm you need to invest in the first place, e.g.: https://www.pwlcapital.com/wp-content/uploads/2020/07/Dollar-Cost-Averaging-vs-Lump-Sum-Investing.pdf Dollar cost averaging can give you psychological calm when you have a $0 TFSA and are contributing your first $6000 ever. It shouldn't make a difference when we're 13 years after the start of the TFSA and you're adding another $6000 to a pile of $75,500 (or more) in your TFSA that's already fully invested. i.e. don't worry about min-maxing a 5% swing on your marginal contribution because it's nothing compared to 5% on your already invested capital.
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Jan 4, 2022 23:19
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Dollar cost averaging is _not_ for newbie investors, it's the same thing as market timing. Sure you might mitigate losses if you buy when the market is up, but what if the market is actually down? Well then you just lost money by not investing everything at the start. The best and most optimal way for the average person to invest is to just invest everything in a diversified low-cost index fund like VGRO and forget about it. Dollar cost averaging adds complexity where there doesn't need to be any and arguably generates more anxiety in the process, not less.
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Jan 4, 2022 23:36
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Assuming the money doesn't come out of the blue now to be invested as a lump sum, then we're not comparing the correct things, right? The analysis posted above was when you already have a lump sum to invest and I'm guessing AegisP accumulates that money over the year. Is there analysis somewhere about investing as you earn, vs. saving it all up to invest once a year? That doesn't apply to the money to be invested now, of course.
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Jan 4, 2022 23:48
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Yeah what I'm really against and what I suspect is the case is that OP is sitting on cash instead of having it in the market all year, and then dumping it in every January. I agree that time in market is the most important thing, if someone is just given a bunch of cash it's different from accumulating it over 12 months and then putting it in, IMO.
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Jan 5, 2022 00:23
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VelociBacon posted:Yeah what I'm really against and what I suspect is the case is that OP is sitting on cash instead of having it in the market all year, and then dumping it in every January. I agree that time in market is the most important thing, if someone is just given a bunch of cash it's different from accumulating it over 12 months and then putting it in, IMO. It's really up to people to figure out how much of a cash buffer they need for their monthly expenses and how much they can afford to invest monthly over that base amount. Everybody has their own personal preference, some people invest a fixed amount each month and some allow it to build up 'just in case', but that's not the same discussions as lump sum vs DCA. DCA is when you already have that lump sum that you can invest right now and explicitly making a decision to spread that investment over time to mitigate future volatility in the market.
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Jan 5, 2022 00:48
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Alright, sounds like I used the incorrect nomenclature. Sorry op!
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Jan 5, 2022 01:11
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odiv posted:Assuming the money doesn't come out of the blue now to be invested as a lump sum, then we're not comparing the correct things, right? The analysis posted above was when you already have a lump sum to invest and I'm guessing AegisP accumulates that money over the year. Is there analysis somewhere about investing as you earn, vs. saving it all up to invest once a year? Yea, I accumulate the money over the year. And specifically with registered accounts, you don't gain the opportunity to put in more money (assuming maxed out already) until the following year when you gain more contribution room, so you couldn't invest as you get it anyway.
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Jan 5, 2022 01:33
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Figured this might be the best thread for this. I've been procrastinating on getting tenant insurance for a very long time and finally feel like dealing with it. I've never owned a car or a home so this is basically my first time dealing with this sort of thing. I'm really not sure what I'm looking for when it comes to choosing an insurance provider and plan. Do I go through a broker? Do I just choose whoever seems sufficiently not sketchy from a Google search? Any particular companies to avoid?
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Jan 5, 2022 17:25
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We used bcaa because they were the cheapest to satisfy the landlord's requirements and it came with Evo membership (and of course discounted BCAA membership)
Mantle fucked around with this message at 19:47 on Jan 5, 2022 |
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Jan 5, 2022 17:27
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Broker sounds like a good plan if you don't spot perks like above. Should be super routine and painless.
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Jan 5, 2022 17:43
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I've used HUB before to get a good quote, but you could also try going through your bank to see if they will give a bundle discount.
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Jan 5, 2022 18:03
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