A PSA regarding Wingboy's question on taxes. A while backed they introduced the TSFA. Tax Free Savings Account. As mentioned above everything in it grows tax free. You can salt away up 5K each year. I also believe you can make up for years you missed. If you have not maxed out your available TFSA space you should - It's rare for government to give a break on taxes so take it when you can.
I realize the limits arn't enough to allow all of your investments in, but tax free it's foolish not max out this space first.
A PSA regarding Wingboy's question on taxes. A while backed they introduced the TSFA. Tax Free Savings Account. As mentioned above everything in it grows tax free. You can salt away up 5K each year. I also believe you can make up for years you missed. If you have not maxed out your available TFSA space you should - It's rare for government to give a break on taxes so take it when you can.
I realize the limits arn't enough to allow all of your investments in, but tax free it's foolish not max out this space first.
A quick check of your CRA My Account will indicate your limit. At one point, I thought it was going to be impossible to reach but, here I am topped up and looking at alternatives to avoid the tax man. lol.
A quick check of your CRA My Account will indicate your limit. At one point, I thought it was going to be impossible to reach but, here I am topped up and looking at alternatives to avoid the tax man. lol.
A PSA regarding Wingboy's question on taxes. A while backed they introduced the TSFA. Tax Free Savings Account. As mentioned above everything in it grows tax free. You can salt away up 5K each year. I also believe you can make up for years you missed. If you have not maxed out your available TFSA space you should - It's rare for government to give a break on taxes so take it when you can.
I realize the limits arn't enough to allow all of your investments in, but tax free it's foolish not max out this space first.
You can salt up to $7K this year(this changes from time to time), plus any unused contributions from prior years. If you can't max out a year, it carries over -- born before 1992 and your lifetime contribution limit is now at $95K.
TFSA strategy is a must if you are an investor. Here are a few things you can do for yourself and for others.
1) Put your medium to higher-risk investments into these accounts as they are typically held for longer and make more money. Many people think TFSA's are for cash only, you can hold all kinds of investments (cash, securities, mortgages etc) inside the account.
2) If you max out your account, do the same for your spouses's account. If you have adult children or parents who cannot have unused headroom on their TFSA's work a deal to use your cash/investments to max their accounts.
3) You can hold a mortgage inside a TFSA, it can even be on your own house. Writing a mortgage for 12% interest to yourself is an easy way to build the base value of a TFSA.
You can salt up to $7K this year(this changes from time to time), plus any unused contributions from prior years. If you can't max out a year, it carries over -- born before 1992 and your lifetime contribution limit is now at $95K.
TFSA strategy is a must if you are an investor. Here are a few things you can do for yourself and for others.
1) Put your medium to higher-risk investments into these accounts as they are typically held for longer and make more money. Many people think TFSA's are for cash only, you can hold all kinds of investments (cash, securities, mortgages etc) inside the account.
2) If you max out your account, do the same for your spouses's account. If you have adult children or parents who cannot have unused headroom on their TFSA's work a deal to use your cash/investments to max their accounts.
3) You can hold a mortgage inside a TFSA, it can even be on your own house. Writing a mortgage for 12% interest to yourself is an easy way to build the base value of a TFSA.
4 months ago I had a ****** rsp account with some junk GIC cash in that I naively bought from my bank years and years ago following their advice. The GICs did nothing and I told them not to renew them a while ago and just held the cash doing nothing in the account as a **** you to the bank.
Fast forward to now and I have 8 investing accounts total covering US and Canadian and have sorted out a plan to salt away cash into RRSP and TFSA self directed accounts. Some of the accounts are “deposit X and get free cash” ones. Not to be sniffed at, $300 is $300! It took some friendly advice to do all this from a good friend and now I’m happy with my financial plan but I cannot imagine the average Joe doing this without some help. Most are left buying ****** GICs and mutual funds with healthy management fees for the banks. The approach towards retirement and financial security in old age is poor here. It’s heavily weighted towards enriching banks and not the general public.
Also, I never thought I’d be reading “the idiots guide to investing” but here we are and it’s actually a decent read!
4 months ago I had a ****** rsp account with some junk GIC cash in that I naively bought from my bank years and years ago following their advice. The GICs did nothing and I told them not to renew them an while ago and just held the cash doing nothing in the account as a **** you to the bank.
Fast forward to now and I have 8 investing accounts total covering US and Canadian and have sorted out a plan to salt away cash into RRSP and TFSA self directed accounts. Some of the accounts are “deposit X and get free cash” ones. Not to be sniffed at, $300 is $300! It took some friendly advice to do all this from a good friend and now I’m happy with my financial plan but I cannot imagine the average Joe doing this without some help. Most are left buying ****** GICs and mutual funds with healthy management fees for the banks. The approach towards retirement and financial security in old age is poor here. It’s heavily weighted towards enriching banks and not the general public.
Also, I never thought I’d be reading “the idiots guide to investing” but here we are and it’s actually a decent read!
Years ago I watched a teller at scotia rake a poor guy over the coals. He was in to do some routine banking and they told him his 5k GIC was coming up. You could tell that was all the savings he had in the world. His bank account had well under $100. The teller laid it on thick about protecting his money and keeping it safe and got him to renew for another five years at something like 0.5% at a time when Tangerine (also owned by scotia) was paying over 1% on a savings account. He thanked her for keeping his money safe. He didn't realize he just got bent over and his money was deflating away.
You can salt up to $7K this year(this changes from time to time), plus any unused contributions from prior years. If you can't max out a year, it carries over -- born before 1992 and your lifetime contribution limit is now at $95K.
TFSA strategy is a must if you are an investor. Here are a few things you can do for yourself and for others.
1) Put your medium to higher-risk investments into these accounts as they are typically held for longer and make more money. Many people think TFSA's are for cash only, you can hold all kinds of investments (cash, securities, mortgages etc) inside the account.
2) If you max out your account, do the same for your spouses's account. If you have adult children or parents who cannot have unused headroom on their TFSA's work a deal to use your cash/investments to max their accounts.
3) You can hold a mortgage inside a TFSA, it can even be on your own house. Writing a mortgage for 12% interest to yourself is an easy way to build the base value of a TFSA.
Years ago I watched a teller at scotia rake a poor guy over the coals. He was in to do some routine banking and they told him his 5k GIC was coming up. You could tell that was all the savings he had in the world. His bank account had well under $100. The teller laid it on thick about protecting his money and keeping it safe and got him to renew for another five years at something like 0.5% at a time when Tangerine (also owned by scotia) was paying over 1% on a savings account. He thanked her for keeping his money safe. He didn't realize he just got bent over and his money was deflating away.
This makes me pretty mad to be honest. I’m a very very late starter in terms of savings but I have the luck to have a decent pension plan so shouldn’t be in too bad of a position. Banks should be obligated to point out just how much these financial products cost the consumer and what alternatives would be.
I think I’ve typed it 200 times . Banks are not your friend , banks work for banks . That whole , we will hold your hand , it fine. The other hand is on your wallet .
It was initially dreamed up by Jim Flaherty under the Harper Gov. It was somewhat modelled after the US Roth IRA plan, but without a withdrawal limit. Where RRSPs are primarily for retirement savings, the TFSA is a savings plan that's useful anytime -- save for the dream car, vacation, ...or retirement. There is no incentive to hold TFSA's until retirement.
As initially outlined, there was a $5K annual limit that was to be indexed to the CPI. After 5 years Flahety recognized that increasing the limit to 10K a year would help more people become wealthy, particularly as they got older... so that's what they did. \
Then in 2015, our current gov saw TFSAs as a quick and easy tax grab, so they rolled back contribution limits by half. During the pandemic, the Libs recognized how TFSA's helped many thru those tough years, they also realized how important they are to the middle class and the economy. Since the 2018 election, they have raised contribution limits by 30%.
Then in 2015, our current gov saw TFSAs as a quick and easy tax grab, so they rolled back contribution limits by half. During the pandemic, the Libs recognized how TFSA's helped many thru those tough years, they also realized how important they are to the middle class and the economy. Since the 2018 election, they have raised contribution limits by 30%.
Indexed to inflation. Went to $6500 last year and to $7000 this year. No inflation = no increase.
I wish we had the ability to mix our contributions between RRSP's and TFSA's as we see fit. So an overall limit instead of the government deciding limits for each.
Indexed to inflation. Went to $6500 last year and to $7000 this year. No inflation = no increase.
I wish we had the ability to mix our contributions between RRSP's and TFSA's as we see fit. So an overall limit instead of the government deciding limits for each.
It is rare for RRSP to be a better idea if you have TFSA room. While your income may be higher now than in retirement, I have very little faith that government won't increase tax rates with time to cover their ineptitude.
It is rare for RRSP to be a better idea if you have TFSA room. While your income may be higher now than in retirement, I have very little faith that government won't increase tax rates with time to cover their ineptitude.
Agreed. The longer you work, the worse RRSP's are. Less time to draw down = increase taxation. Even worse if you die earlier than the norm. You can have too much in your RRSP. Cant have too much in your TSFA.
I think the TFSA is a great program for those that are well off. Very few middle class people will have an extra 5k/year in after tax dollars to put away considering the cost of living. I know I don’t. Even less of the younger generation will have any spare money laying around.
There’s RESP, RRSP, TFSA, mortgages, cars, life etc. The 10k raise would only help those that are already well off. Very few have 5k laying around. Even less have 10k laying around with nothing to do.
I am forced to contribute 14.7% of my salary to OMERS. My employer matches it dollar for dollar. And I’m struggling to put away money after renovations and life takes the bulk of my paycheque.
Years ago I watched a teller at scotia rake a poor guy over the coals. He was in to do some routine banking and they told him his 5k GIC was coming up. You could tell that was all the savings he had in the world. His bank account had well under $100. The teller laid it on thick about protecting his money and keeping it safe and got him to renew for another five years at something like 0.5% at a time when Tangerine (also owned by scotia) was paying over 1% on a savings account. He thanked her for keeping his money safe. He didn't realize he just got bent over and his money was deflating away.
But ... A lot of people are not investment savvy, and freak out at the thought of anything they've put money into, going down in value. The thought of something ever losing (let's say) 1% in value compared to what they've put in, freaks them out even if it's something that can be expected to return (let's say) 5% on average if they ride out the peaks and valleys. GICs are low risk, but low reward. They are for those risk-averse people. And yes, the risk is that the guaranteed interest rate is less than the rate of inflation, in which case your investment withers away in real terms.
I am of the view that it's better to own the bank than to put money in the bank. There are good dividend-payers among the Canadian banks, and thanks to our regulatory environment, they are unlikely to go bankrupt any time soon. But ... they are represented by common shares, and those fluctuate up and down. Ignore that, and collect the dividends. (In your TFSA, to the extent possible.)
I think the TFSA is a great program for those that are well off. Very few middle class people will have an extra 5k/year in after tax dollars to put away considering the cost of living. I know I don’t. Even less of the younger generation will have any spare money laying around.
There’s RESP, RRSP, TFSA, mortgages, cars, life etc. The 10k raise would only help those that are already well off. Very few have 5k laying around. Even less have 10k laying around with nothing to do.
I am forced to contribute 14.7% of my salary to OMERS. My employer matches it dollar for dollar. And I’m struggling to put away money after renovations and life takes the bulk of my paycheque.
If you have a defined pension (rare these days) then you have less concern to save a lot for retirement. While you say very few have 5k/year to save, fewer can put away 14.7% of their salary. Neither my wife or I have that (like most) so we have no choice (forced) to save as much as possible.
If you have a defined pension (rare these days) then you have less concern to save a lot for retirement. While you say very few have 5k/year to save, fewer can put away 14.7% of their salary. Neither my wife or I have that (like most) so we have no choice (forced) to save as much as possible.
Agreed. I'm very fortunate, and while it sucks having less cashflow now...it's a good plus considering the company adds 14.7% atop my contribution.
Literally just finished another interview for the next step in my career...chance of getting the job is 0.5%...but will know in a week or two. Should come with a nice 30-50k bump.
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