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A Good Article For TFSA 'Newbies'
June 19, 2023
11:44 am
Loonie
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There isn't a lot of room or tolerance for conspiracy theorists on this forum, and that's as it should be.
One learns over time who can be trusted and what is their expertise and bias.

June 19, 2023
1:49 pm
mordko
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RetirEd said
The preferential tax treatment of equities and dividends is still not as good as the zero-tax treatment in a tax-free portfolio. It only gets attractive if one has fully taxable investments to put in the tax-free accounts and then still has equities and dividends that won't fit. For example:

If one has $10K in TFSA room
$5K in fully taxable assets (GICs and savings accounts, etc.)
$5K in equities and dividends

THEN put it all in the tax-free pile. No tax.

BUT -

If one has $10K in TFSA room
$7500 in fully taxable assets (GICs and savings accounts, etc.)
$7500 in equities and dividends

THEN put the GICs into the tax-fee and then use the remaining $2500 of TFSA room for the best-earning equities and dividends.

The remaining $5K of equities and dividends will get its tax advantage outside the TFSA, but the $2500 that went into the TFSA will do even better.

If one has only fully-taxable (such as GIC) assets, put them all in the tax-free pile.

If one has only tax-advantaged assets, put them all in the tax-free pile.

CAVEAT: you can't take a tax loss in a tax-free investment! Keep things low-risk.
RetirEd
(high assets, low income, big TFSA holdings; I don't worry about income tax.)  

I know what you mean but equities don’t get “preferential treatment” in a taxable account. CRA gets a huge cut in corporate taxes even before it taxes your dividends and cap gains.

With regards to locating different types of assets in reg vs non-reg, you can see the maths presented here (as well as subsequent parts)m https://www.canadianportfoliomanagerblog.com/asset-location-part-1-key-concepts/

You can pick different levels of complexity and use different strategies. The approach of putting fixed income preferentially into tax free accounts is never the best on after tax basis for a given level of risk.

June 19, 2023
1:56 pm
fat_dog
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oh their are conspiracy theory here ?

"They say that if you are not paying for some thing on the internet you are the product "

that is not true ?

it not fair to ask how the owner of this site makes his money from it and what biases their may be ?

it not fair to ask if some one can have more than one Handel ?

to me this is not a conspiracy theory but due diligent to ask question

you needed to check thing out
before assuming every thing on the internet is true

June 19, 2023
2:13 pm
Wrayzor
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Agree that not everything is true on the internet. But you're in a forum with opinions, so accept that not all are going to align with yours.

Not sure what a "Handel" is.

You suggested a conspiracy of multiple people disguised (or advertisers) contributing so don't complain about being called out about it.

June 19, 2023
4:51 pm
fat_dog
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You suggested a conspiracy of multiple people disguised (or advertisers) contributing so don't complain about being called out about it.

That not a conspiracy happen on face book twitter . Bot trying to influence election and then their is AI . these things are facts . and company and government employ them . to do their bidding

June 19, 2023
6:06 pm
mordko
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fat_dog said
You suggested a conspiracy of multiple people disguised (or advertisers) contributing so don't complain about being called out about it.

That not a conspiracy happen on face book twitter . Bot trying to influence election and then their is AI . these things are facts . and company and government employ them . to do their bidding  

We should probably ignore you but one last attempt… How exactly would this nefarious AI adverser with multiple handles benefit from you putting your $10 in investable assets in a TFSA rather than a non-registered account?

June 19, 2023
9:59 pm
Loonie
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mordko said

We should probably ignore you…   

There is no arguing with conspiracy theorists and their ilk; it only encourages them.

June 20, 2023
9:13 am
Dean
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.
In addition to what Loonie said (Posts 21 & 27), there's also this . . .

      "Only A Fool Argues With A Fool"

And of course, what we have here is one of the most Derailed, Hijacked threads we've had in a Looong Time.

Sadly, it happens ... time to move on.

    Dean

sf-cool " Live Long, Healthy ... And Prosper! " sf-cool

June 20, 2023
11:06 am
RetirEd
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mordko:

I know what you mean but equities don’t get “preferential treatment” in a taxable account. CRA gets a huge cut in corporate taxes even before it taxes your dividends and cap gains.

No argument. But this conversation only involves income to an individual, and the question of whether to put income into a TFSA can't affect what happens before the income leaves the taxable source. They get better treatment than most other income, but not as good as if they are in a TFSA.

The dividend tax credits exist to partially offset taxation at the corporate level. The other offset is that almost everything a corporate entity spends is tax-deductible, whereas "personal consumption) by individuals gets no break.

The approach of putting fixed income preferentially into tax free accounts is never the best on after tax basis for a given level of risk.

One always has to do the math, but I wouldn't say "never."
RetirEd

RetirEd

June 20, 2023
11:40 am
savemoresaveoften
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Dean said
.
In addition to what Loonie said (Posts 21 & 27), there's also this . . .

      "Only A Fool Argues With A Fool"

And of course, what we have here is one of the most Derailed, Hijacked threads we've had in a Looong Time.

Sadly, it happens ... time to move on.

    Dean

  

A wise man says ‘the fool that argues with a fool is the bigger fool.’
Like chicken vs egg, who is the first fool

sf-smile

June 22, 2023
10:57 am
Oscar
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This video sheds some light on the investment world and it might help with TFSA decision making.
https://rumble.com/vn7lf5-monopoly-who-owns-the-world-must-see.html

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