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Millennial looking to start investing asks: Should I go with Wealthsimple?
August 6, 2018
3:56 pm
Norman1
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I've edited my previous text to see if I could make it clearer.

That TaxTips.ca figure includes the 38% gross up on eligible dividends.

$1 of actual eligible dividend received = $1.38 of taxable dividends reported on line 120.

-0.0198% Federal on taxable dividends
-4.9500% Ontario on taxable dividends (+5.05% - 10%)
=====
-4.9698% Combined on taxable dividends
-6.8583% Combined on actual dividends (-4.9698% x 1.38)

That $43,000 window in Ontario is significant, if one has no other income. That window may not really exist if, after retiring, one would have received full GIS, while in the first $17,000 of that window, if it were not for the dividends.

GIS clawback is a hefty 50%. I'm not sure if that is 50% of actual dividend or 50% of taxable dividend. If it is the latter, then 50% x 1.38 = 69% of the actual eligible dividend received! sf-surprised

August 6, 2018
7:50 pm
Loonie
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I haven't looked it up recently, but I have a relative who gets GIS and we do their tax returns. My recollection is that GIS is not included in taxable income. On the other hand, you can't get it if your income is above something-or-other, no more than 25K for a single person. My recollection is that the GIS itself is reduced at 50 cents on the dollar for every additional dollar of taxable income above the minimum for receiving it in the first place, but it could be net income. I have always found that part a bit confusing. I don't see that it has anything to do with the dividend income per se.
Nobody receiving GIS is going to have an income greater than about 25K, so I don't understand what you are saying about the 43K.
It may be that this is all over my head as I am still lost!

August 7, 2018
2:41 pm
Doug
British Columbia, Canada
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I'd love to "chime in" here, as this is a topic that has my name written all over it-so to speak. sf-cool

Before I do, I'd like to know if the OP (original poster) is still soliciting/interested in receiving other thoughts and opinions? 🙂

Cheers,
Doug

August 7, 2018
3:25 pm
Top It Up
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The OP, me, is not the one looking for anything - the post was a repost of a question asked in the Globe and Mail - any comments would be relative to that question, posted in the aforementioned newspaper.

August 7, 2018
8:48 pm
Norman1
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Loonie said
… My recollection is that GIS is not included in taxable income. On the other hand, you can't get it if your income is above something-or-other, no more than 25K for a single person. … I don't see that it has anything to do with the dividend income per se. …

Continue on new thread Capital gains and dividends within and outside RRSP.

August 7, 2018
11:03 pm
Loonie
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Doug said
I'd love to "chime in" here, as this is a topic that has my name written all over it-so to speak. sf-cool

Before I do, I'd like to know if the OP (original poster) is still soliciting/interested in receiving other thoughts and opinions? 🙂

Cheers,
Doug  

Doug, if you have something to add, you should just go ahead. We all knew it was not a real person making this inquiry on this forum, but it's a valid question that will concern a number of readers, I'm sure.
I'm well beyond the millenial's dilemma, but I enjoy sharpening my wits to think things through and maybe help others either here or in my "real" life. There are a lot of people out there who don't know what to do!
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