TFSAs….save taxes on the income, no taxes on withdrawals

[NotADcotor]

Spend some time finding a good professional…

Good luck on that, even if you get a reference, doesn't mean the person doing the refering can spot a good one. I know someone who has an advisor, really bad, but her gains are above 0 and so she is happy. She really shouldn't be.

Better off doing your research yourself. Unless you are someone like Canadaman who is attracted to garbage sources of information like a fat kid on candy.

 

[NotADcotor]

....and 15 years later, POOF! All that money is going real fast to more taxes.

Nope.

Canada Tax Revenue: % of GDP, 1996 – 2024 | CEIC Data

Canada Tax revenue: % of GDP was reported at 12.1 % in Dec 2023. This records an increase from the previous number of 11.1 % for Sep 2023.

www.ceicdata.com

Granted the numbers only go back 10 years but still it does cover the entire TrueDooh period.
For all levels of government
https://data.oecd.org/tax/tax-revenue.htm. You can highlight Canada.
Flat.

That would make you, how do you say it, ah yes, wrong. But please keep on with those talking points.

Can you name one SIGNIFICANT tax change recently. Not a percent or two here or there. THe Carbon tax is expected to bring in about 8 billion, in the framework of the entire government revenue or even the federal revenue, it's statistical noise.

 

[Not getting younger]

Good luck on that, even if you get a reference, doesn't mean the person doing the refering can spot a good one. I know someone who has an advisor, really bad, but her gains are above 0 and so she is happy. She really shouldn't be.

Better off doing your research yourself. Unless you are someone like Canadaman who is attracted to garbage sources of information like a fat kid on candy.

they are out there. Just like anything, any profession. Part of the initial process is interviewing them as much as they are feeling you out.
How many hours might you spend searching for your next vacation that last 10 days on a sunny island, and cost a few grand? Or a qualified electrician to wire your house? How much is your future worth?

What I would suggest is walk away from any “kid” that isn’t in their 40s. What do they know about life, divorce, kids you might want to put through post, death of a spouse, major illness, parents you might or need to suddenly care for. And much more

For what it’s worth, the entire thread RSP or TFSA.
No one suggested RSP, TFSA, or Pay down a mortgage at compounded 7% ( possibly higher next fear years) and shave years off the amortization

 

[jeff2]

Good luck on that, even if you get a reference, doesn't mean the person doing the refering can spot a good one. I know someone who has an advisor, really bad, but her gains are above 0 and so she is happy. She really shouldn't be.

Better off doing your research yourself. Unless you are someone like Canadaman who is attracted to garbage sources of information like a fat kid on candy.

I agree
If you have to use one, get a fiduciary such as a fee based or fee only so there is no conflict of interest.
If your situation is pretty straight forward and you don't need something like estate planning, consider a robo advisor.
Or just read things such as the couch potato and moneysense. At the end of the day, you are trying to stay ahead of inflation and taxes.
There are many ways to do that and you need to take into account your tax bracket and risk tolerance.

 

[Jubee]

Nope.

Canada Tax Revenue: % of GDP, 1996 – 2024 | CEIC Data

Canada Tax revenue: % of GDP was reported at 12.1 % in Dec 2023. This records an increase from the previous number of 11.1 % for Sep 2023.

www.ceicdata.com

That would make you, how do you say it, ah yes, wrong.

You like it when you have visitors visit the Greek Islands with you, don't you?

 

[NotADcotor]

You like it when you have visitors visit the Greek Islands with you, don't you?

You made a claim, that claim was wrong. In no way did I indicate what I consider the proper rate of taxation should be. I could be so anarcho capitalist that I'd make Murry Rothbard look like a raging communist or I could be so communist that I;d make Trosky look like Ayn Rand. You are still incorrect.

 

[NotADcotor]

I agree
If you have to use one, get a fiduciary such as a fee based or fee only so there is no conflict of interest.
If your situation is pretty straight forward and you don't need something like estate planning, consider a robo advisor.
Or just read things such as the couch potato and moneysense. At the end of the day, you are trying to stay ahead of inflation and taxes.
There are many ways to do that and you need to take into account your tax bracket and risk tolerance.

I agree. Don't know couch potato but IIRC moneysense are good peeps.

If you must get one, yeah fee based is a better risk, still a risk but better. I mean Doctor Oz and Doctor Jason Fung are actual certified doctors but that doesn't stop them from spouting bullshit. But it is still a good idea.

Self taught is best however in this day and age of research on the Internets, you can easily be lead down the rabbit hole of bad advice. I mean almost everything Canadaman posts is internet researched and most of it is just out to lunch. If someone asks, I could give advice and even books to read but if they need the advice of the likes of me, then they don't know enough to know if I am spouting facts or fallacies.

It's rough out there. Taking in a paper like the globe and mail for a while isn't a bad idea. Not for individual stock information, but they have a lot of more generic financial advice articles and it is a mainstream paper. Some opinion articles are "sus" but that is why you read many issues and not just 1 and then, aha I must do this!.

 

[jeff2]

I agree. Don't know couch potato but IIRC moneysense are good peeps.

If you must get one, yeah fee based is a better risk, still a risk but better. I mean Doctor Oz and Doctor Jason Fung are actual certified doctors but that doesn't stop them from spouting bullshit. But it is still a good idea.

Self taught is best however in this day and age of research on the Internets, you can easily be lead down the rabbit hole of bad advice. I mean almost everything Canadaman posts is internet researched and most of it is just out to lunch. If someone asks, I could give advice and even books to read but if they need the advice of the likes of me, then they don't know enough to know if I am spouting facts or fallacies.

It's rough out there. Taking in a paper like the globe and mail for a while isn't a bad idea. Not for individual stock information, but they have a lot of more generic financial advice articles and it is a mainstream paper. Some opinion articles are "sus" but that is why you read many issues and not just 1 and then, aha I must do this!.

Yeah. I have a Globe subscription. I often read the National Post also. Even Toronto Star has the odd good article. Especially on mondays.
On the weekends I read Wall Street Journal and FT Weekend. Some of the non financial stuff in these papers is also good.

 

[NotADcotor]

Yeah. I have a Globe subscription. I often read the National Post also. Even Toronto Star has the odd good article. Especially on mondays.
On the weekends I read Wall Street Journal and FT Weekend. Some of the non financial stuff in these papers is also good.

We don't get the G&M in our little berg and I don't like reading stuff on line, I hates it about as much as Gollum hates those nasty hobbits he does. Been meaning to get the National but I am how do you say, lazy.
But back in the day... Good times.

 

[K Douglas]

TFSA limit Officially Set at $7,000 for 2024. TFSA Contribution Limit for 2024 has been made official. The Canada Revenue Agency (CRA) confirmed that limit is $7,000 in 2024, up from $6,500 in 2023 and $6,000 in 2022. Lifetime contribution limit is $95000 in 2024. Good way to shelter your income and never pay taxes on the income….unlike the rrsps there are no taxes when you withdraw money from your TFSA.

RRSP's are not as attractive as they once were. Yes you get tax deferral on the contribution and it makes sense if you're in the higher tax brackets +40%. But when you withdraw that money its full income inclusion at whatever income tax bracket you're in. Including all the gains (capital gains, reinvested dividends) that would typically be taxed at lower rates. Spouses get special treatment because you can use a spousal RRSP to split income upon retirement. But if you're like my dad and had a significant balance in your RRIF when you pass away and no spousal beneficiary you have to pay tax on the full amount in the year of death. A good portion of his RRIF was taxed in the highest tax bracket of 53.5%. Just a criminal rate of tax.

 

[NotADcotor]

RRSP's are not as attractive as they once were. Yes you get tax deferral on the contribution and it makes sense if you're in the higher tax brackets +40%. But when you withdraw that money its full income inclusion at whatever income tax bracket you're in. Including all the gains (capital gains, reinvested dividends) that would typically be taxed at lower rates. Spouses get special treatment because you can use a spousal RRSP to split income upon retirement. But if you're like my dad and had a significant balance in your RRIF when you pass away and no spousal beneficiary you have to pay tax on the full amount in the year of death. A good portion of his RRIF was taxed in the highest tax bracket of 53.5%. Just a criminal rate of tax.

You know, I never once even considered this. I've thought interest should be in a RRSP but not, just not bothering putting capital gain and dividend income in a RRSP at all. Although even in a RRSP you do get growth without taxes, outside of an RRSP every time you sell and buy something else you lose a bit in taxes so it impacts on your growth rate. Getting 8% vs say 6% can be a big deal, unless you are a buy and hold long term bruv.

Another thing that can be an issue is OAS clawbacks, 53.5 percent? try effectively 68.5% on the margin. Granted it doesn't apply if you are dead but it was a concern for the male parental unit. He withdrew to get to the edge but not beyond it.

It seems obvious when you point it out, as the kids these days say, once you see it, you can't unsee it.

 

[Mencken]

Probably get whacked like mad with conversion fees unless you start playing around with Norbert's Gambit.
The joys of being an investor in Canada.

Norbert's gambit - finiki

www.finiki.org

Don't think you could do that in a TFSA or RRIF.

 

[jeff2]

Don't think you could do that in a TFSA or RRIF.

Not sure why it would be a problem. It mentions TFSA and RRSP here.

Norbert’s Gambit Explained - How It Saves Your Money From Foreign Exchange Fees - Loans Canada

Norbert's Gambit is a legal way to avoid paying currency conversion fees. It stretches your dollar whether for investing or spending in USD.

loanscanada.ca

Can I complete Norbert’s Gambit in non-registered and registered accounts?
Yes, Norbert’s Gambit works in both non-registered and registered accounts, including margin, RRSP, and TFSA accounts.

 

[bver_hunter]

If your employer is matching a certain amount of your contribution to a RRSP, then take it. It is at least some free money that you should maximize.

 

[NotADcotor]

It is at least some free money that you should maximize.

I like money

Not making fun, it's just a Pavlovian response with me.