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It's time to think about moving funds into position for TFSA contribution
December 15, 2019
11:17 pm
Loonie
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The title should be self-explanatory.
If your funds are in position, you can make your contribution on Jan 2.
Remember that moving funds over the Christmas period can be slow due to 3 statutory holidays plus weekends. You may need to leave time for funds to clear, depending on the FI.
You may also need extra time to set up a new TFSA and submit beneficiary info.
Spouses may contribution to each other's TFSAs, which can help if you need to equalize assets.

December 16, 2019
7:29 am
Nehpets
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Timely reminder, Loonie! It will be quite a difference to renew those TF GIC's of last January to the rates likely to be offered this January.

I received a notification email from Hubert last week advising that unless I called them with alternative instructions, my TF GIC would be renewed at the current rate....I 'm having them deposit into the TFSA so I can weigh my options.

Stephen

December 16, 2019
12:44 pm
Saver-Mom
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Also, time for the December manoeuvre. For newbies, we coined this term for removing funds now from a TFSA and redepositing them elsewhere in January to avoid transfer fees. Only works if funds are in a HISA or if your GIC comes due sometime around now. Hard to know where to invest though, with such low rates and several years of lack of competition for TFSA funds.

December 16, 2019
1:19 pm
Londonguy
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Saver-Mom said
Also, time for the December manoeuvre. For newbies, we coined this term for removing funds now from a TFSA and redepositing them elsewhere in January to avoid transfer fees. Only works if funds are in a HISA or if your GIC comes due sometime around now. Hard to know where to invest though, with such low rates and several years of lack of competition for TFSA funds.  

Best TFSA deal I can find now is Access CU paying 2.80% on straight cash

December 16, 2019
1:30 pm
AltaRed
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I have a push transfer in place for Dec 30 to move $6k in HISA funds from EQ to Scotiabank, after which I will transfer to my brokerage TSFA on Jan 2nd and be invested in my single TFSA holding, MAW104, hopefully that same day.

Same process every year.....

December 16, 2019
3:31 pm
Loonie
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I just received an email from Hubert. The headline says:
"TFSA contribution deadline + 2020 limit".
This is misleading. There is NO contribution deadline, ever, on TFSAs, and no particular advantage in contributing at the end of the year unless you plan to use the December manoeuvre. For best tax advantage, contribute early in the year.

December 16, 2019
5:37 pm
Doug
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AltaRed said
I have a push transfer in place for Dec 30 to move $6k in HISA funds from EQ to Scotiabank, after which I will transfer to my brokerage TSFA on Jan 2nd and be invested in my single TFSA holding, MAW104, hopefully that same day.

Same process every year.....  

Love this. Smart move. Remarkably simple and boring setup, but I like simple and boring. No fuss, no muss. I'm looking to replicate this myself, though may split the difference between MAW104 and XBAL. sf-cool

Cheers,
Doug

December 16, 2019
5:55 pm
Bill
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The rest of the email from Hubert said "If you haven't reached your TFSA limit yet, give yourself the gift of tax-free interest by making a contribution before the end of the year.
The 2020 contribution limit will be $6,000. We hope you consider making your TFSA contributions with Hubert in the new year."

What's misleading?

December 16, 2019
5:57 pm
GICinvestor
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I have $10 in both my and my wife’s TFSA Account in FIE. I can find xbal but not the Maw104 in Morningstar. Can someone send me a link to Maw104 in Morningstar?

December 16, 2019
6:02 pm
GICinvestor
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Bill said
The rest of the email from Hubert said "If you haven't reached your TFSA limit yet, give yourself the gift of tax-free interest by making a contribution before the end of the year.
The 2020 contribution limit will be $6,000. We hope you consider making your TFSA contributions with Hubert in the new year."

What's misleading?  

I agree it is misleading to urge unwary people to invest before some imaginary and untrue deadline.

December 16, 2019
6:32 pm
Doug
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GICinvestor said
I have $10 in both my and my wife’s TFSA Account in FIE. I can find xbal but not the Maw104 in Morningstar. Can someone send me a link to Maw104 in Morningstar?  

https://www.morningstar.ca/ca/report/fund/performance.aspx?t=0P0000714D

MER is ~0.90%, but since the mid 1980s inception, it is outperformed its benchmark by, on average, 1-2% net of fees per year. For an actively managed fund, a series A no less, that is among the lowest MER. sf-cool

Most fund managers post the Morningstar fund profiles as PDFs on their website:

https://www.mawer.com/funds/explore-funds/balanced-fund/

Cheers,
Doug

December 16, 2019
8:02 pm
Vatox
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Bill said
The rest of the email from Hubert said "If you haven't reached your TFSA limit yet, give yourself the gift of tax-free interest by making a contribution before the end of the year.
The 2020 contribution limit will be $6,000. We hope you consider making your TFSA contributions with Hubert in the new year."

What's misleading?  

I don’t have the Hubert message, but Loonie said it contained the word “deadline”. That’s misleading, because you can contribute unused room anytime and the new contribution on Jan 01. There is no such urgent deadline.

December 17, 2019
10:47 am
Bill
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That's true, I agree using "deadline" in the headline is misleading.

December 17, 2019
12:26 pm
Rick
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Already have two scheduled transactions set up on Jan 1. Staying in the same FI, so no transfer delay. And yes...I've done it before and they do actually do it on the 1st.

December 17, 2019
7:48 pm
GICinvestor
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Doug said

https://www.morningstar.ca/ca/report/fund/performance.aspx?t=0P0000714D

MER is ~0.90%, but since the mid 1980s inception, it is outperformed its benchmark by, on average, 1-2% net of fees per year. For an actively managed fund, a series A no less, that is among the lowest MER. sf-cool

Most fund managers post the Morningstar fund profiles as PDFs on their website:

https://www.mawer.com/funds/explore-funds/balanced-fund/

Cheers,
Doug  

Thanks Doug

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