BOC Hits 5% | Page 26 | GTAMotorcycle.com

BOC Hits 5%

Mad Mike said:
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.
Click to expand...
One caution with holding your own mortgage in an RRSP is that if you default it could be interpreted as cashing in the plan. The tax man cometh
 
Brian P said:
Grrr.

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.)
Click to expand...
Publicly traded corporations owe their allegiance to the shareholders not the clients.

Someone was complaining about service from a particular company so I asked them if they had investments.

They did and they liked it when they went up

I pointed out that cutting costs makes share values go up. The first cut is usually to service.

BTW CIDC guarantees $100,000 in the event of a bank failure. The USA I’m told guarantees $250,000 USD.
 
mimico_polak said:
32% jump in EI recipients in Ontario...

www.thestar.com

Ontario EI recipients surge by almost one third — the highest jump seen in any province

More than 300,000 full-time jobs in Ontario have disappeared since July, according to data from Statistics Canada.
www.thestar.com www.thestar.com
Click to expand...
I don't see any real causes for concern yet, a lot of this is workforce corrections that are lagging the pandemic. Big banks and tech hired anything with a pulse during the Pandemic, partly because finding people was hard, partly because they needed more staff in the WHF stance than they initially expected -- they've rightsized a lot in the last few months as they bring workers back into the office.

As an employer, I gauge the severity by how anxious potential employees are to start working. Haven't seen any uptick in the number of applications or the quality of applicants -- something I have historically seen when the job market starts souring.

I'd give it another 6 months, I'll bet things settle down a bit by summer.
 
backmarkerducati said:
toronto.ctvnews.ca

New home consumer protection agency in Ontario could face $90M in claims as developers walk away from projects

Ontario's new-home consumer protection organization says it expects to pay home-buyers more than $90 million this year, the “largest claim event” in its history, in the wake of more receiverships and developers failing to deliver on residential projects.
toronto.ctvnews.ca toronto.ctvnews.ca
Click to expand...
I saw that and was shocked by how little they actually pay in claims. Most years $1-2M total. "the largest claim event in history" is $90M. There are townhouse developments and high-rises that could cost that much to fix a single development. I have no idea if the premiums paid to tarion are sufficient to cover the claims or if they are like the Alberta abandoned well situation where premiums are multiple orders of magnitude less than required to accomplish the stated goal.
 
mimico_polak said:
Funny...I'm hearing more doom and gloom for people in the construction industry....yet the economy seems to be going the other way. But I'm not well versed enough to know details.

financialpost.com

Canada's economy grows more than expected, dodging recession

Canada's economy rebounded in the fourth quarter from a mid-year slump. Read more on the GDP data
financialpost.com financialpost.com
Click to expand...
Not so many new residential projects coming on line right now. Construction costs to the moon. High financing costs. Limited ability/desire for buyers to pay enough to make it worthwhile. Focus seems to be on neighbourhood commercial to give fast-food to people.
 
yet two massive high rise condos going up near us and 5 towers under construction in Milton . Money is coming from somewhere .


Sent from my iPhone using GTAMotorcycle.com
 
crankcall said:
yet two massive high rise condos going up near us and 5 towers under construction in Milton . Money is coming from somewhere .


Sent from my iPhone using GTAMotorcycle.com
Click to expand...
Ones that were in the pipeline are proceeding, I just see fewer early in the process. Developers are waiting to see what shakes out prior to committing to a built form. As for the money, I expect more building in Oakville than Barrie in the near future.
 
POWERMAN said:
I thought the next announcement was on March 6th?
If they increase again Ill seriously have to start cutting down on expenses 😰
Click to expand...
Pretty sure it was tongue in cheek
 
POWERMAN said:
I thought the next announcement was on March 6th?
If they increase again Ill seriously have to start cutting down on expenses 😰
Click to expand...
Oh I’m just messing. I don’t know what will happen…but CPI includes transport, fuel and housing. So as those costs keep going up…inflation goes up!
 
Morning news reported 135% increase in mortgage default and nearly 150% increase in missed CC payments . I’m not seeing it in my “direct” circle , but that’s a big number so someone is feeling it .


Sent from my iPhone using GTAMotorcycle.com
 
crankcall said:
Morning news reported 135% increase in mortgage default and nearly 150% increase in missed CC payments . I’m not seeing it in my “direct” circle , but that’s a big number so someone is feeling it .


Sent from my iPhone using GTAMotorcycle.com
Click to expand...
Canadians are now hurting from the inept handling of the pandemic economy and the inflationary impact of new taxes. I don't think this is a surprise, most economists predicted dumping hundreds of millions into a hot economy and piling up the carbon tax would drive inflation, and that taming inflation would require massive increases in interest rates.

It happened. We're here.

The JT/JS government had promised direct program expenses would fall by 8% this year, but they jumped by 6%. Increases in spending continue to fuel inflation, so BOC can't start cutting rates as early or as quickly as Canadians need.

The path to back happiness will be excruciating and drawn out as long as the current regime controls our economy.
 
So I can soon get a deal on toys??
 
You must log in or register to reply here.

Back
Top Bottom