Search found 1006 matches

by fireseeker
27 Mar 2024 00:58
Forum: Financial Planning and Building Portfolios
Topic: Investing with a Ten Year Horizon under 2024's Market Valuation
Replies: 40
Views: 1237

Re: Investing with a Ten Year Horizon under 2024's Market Valuation

Great topic, agraham! Lots of excellent responses. Norbert's journey to the savanna was a treat. I am three+ years into early retirement; your concerns have been top of mind for me for some time. To ease my concerns about being overexposed to expensive markets, I did two things: 1) Tilted our portfolio to value. (This has been a longstanding feature -- and bug -- of our portfolio.) 2) Followed the advice of Michael Kitces and Wade Pfau to employ a rising equity glide path. The flip side of this was reducing equity exposure in the most vulnerable years -- the five years before and after retirement. Our portfolio has modestly underperformed a 60/40 benchmark over the last decade. Most of the underperformance has come in the last couple of yea...
by fireseeker
18 Mar 2024 12:56
Forum: Taxing Situations
Topic: WFH, T2200 and filing your taxes
Replies: 6
Views: 339

Re: WFH, T2200 and filing your taxes

Would claiming 25% of the house as an office expense be similar to renting a room and result in a partial capital gain when selling ones home? It appears that as long as the home office work is "ancillary" to the dwelling's use as a principal residence, and that you do not claim any Capital Cost Allowance (depreciation) then there would be no partial capital gain owing. From BMO Private Wealth: It is important to note that the deemed disposition rule will only apply where the partial change in use of the property is substantial and of a more permanent nature – such as when a structural change occurs on the conversion of a portion of a house into a duplex or triplex to earn rental income, or alterations to a house to accommodate s...
by fireseeker
08 Mar 2024 12:54
Forum: Taxing Situations
Topic: GIC Taxation
Replies: 27
Views: 1773

Re: GIC Taxation

FWF stalwart DanH has a new piece in the G&M arguing against buying GICs for non-registered accounts.
The nut of the case is that although equivalent bonds (i.e. GoC with a maturity in five years) yield less, they are currently available below par. This means part of the return becomes a capital gain with its far more favourable taxation.
IOW, net of taxation the returns are comparable, and sometimes superior.

Three reasons I’ve never recommended a GIC – and I’m not starting now
by fireseeker
07 Mar 2024 15:04
Forum: Retirement, Pensions and Peace of Mind
Topic: Decumulation? Really?
Replies: 94
Views: 5662

Re: Decumulation? Really?

There is a lot of talk about decumulation strategies on this forum but I am curious as to how many of the regular posters actually have a portfolio that keeps growing during retirement. We are four years into early retirement. Currently withdrawing about 8-10% a year from our RRSPs. They are shrinking in both real and nominal terms. That combined with two small pensions provides the base on our income. Extras are being drawn from cash investments. In sum, our portfolio is about even over the last four years. This is a decline in real terms. But, significantly, we are both delaying CPP and OAS payouts. So there is a good-sized NPV asset not on our brokerage statements that is growing every year. Taken together, I reckon our pot is still gro...
by fireseeker
06 Mar 2024 19:49
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: BMO Investorline
Replies: 1278
Views: 198092

Re: BMO Investorline

mewmew wrote: 04 Mar 2024 20:57 I still haven't received the T5 for the BMO ISAs, e.g. BMT104, etc. Anyone already got his/hers?
Got 'em in the mail today.
by fireseeker
04 Mar 2024 19:14
Forum: Under the Mattress: Protecting Your Money
Topic: Bribes from Discount Brokers
Replies: 301
Views: 24264

Re: Bribes from Discount Brokers

BRIAN5000 wrote: 03 Mar 2024 14:28 Where do people keep their Float - money they need for general monthly bill payments and auto debits etc., different sizes for all.
We recently opened WS accounts, and have new iPhones to show for it.
It is tempting to switch the float over, too. But the regular float -- about $7K -- means about $300-$350 a year in interest if moved from the Big 5 bank. After tax, it'd be about $200.
I am not keen to ignore $200, but I'm also not keen on rebuilding all our bill payment information and changing our current auto payments (both in and out).
For now, lazy is winning.
by fireseeker
16 Feb 2024 01:48
Forum: Financial Planning and Building Portfolios
Topic: I'm about to receive a sizeable gift. Need advice.
Replies: 25
Views: 1884

Re: I'm about to receive a sizeable gift. Need advice.

Also, reposting this question to get a response: Follow up question: When making an in-kind transfer from a non-registered account into a registered account, how do I determine how much I can transfer? For instance, if I have $8000 of contribution room in my FHSA, does that mean I can transfer $8000 worth of stock based on its current market value? In-kind transfers are valued at the current price at the time of transfer. It's either the last trade price or the current bid, I can't remember which. It is highly unlikely you will have a whole number of shares that precisely match your contribution room. So you will almost certainly have to contribute a number of shares that leaves you below the contribution threshold. You can contribute cash...
by fireseeker
16 Feb 2024 01:21
Forum: Taxing Situations
Topic: Tax Instalments
Replies: 940
Views: 103718

Re: Tax Instalments

scorpionman wrote: 14 Feb 2024 14:41 can't you put it on Visa? I think there was a service like that, not sure if it can auto-debit though.
You can pay by Visa, but only through third-party services. And they charge 2.5% for the service.
by fireseeker
16 Feb 2024 01:07
Forum: Financial Planning and Building Portfolios
Topic: Is XAW withering on the vine?
Replies: 12
Views: 834

Re: Is XAW withering on the vine?

Today, while trying to rebalance my portfolio, I encountered difficulties placing a limit buy order for XAW. Curious about the cause, I checked its trading volume and found it to be only 4.1k, significantly lower compared to 43k for XEQT and even XEF. This made me wonder if XAW is losing its appeal among investors. Be careful looking at volume. Many investors search a symbol -- say XAW -- and assume they are seeing all trades. They aren't. Search instead for XAW:CC. The suffix stands for "consolidated Canadian." This shows trades completed through all exchanges, not just the TSX. On Thursday, 11,690 shares trades across the TSX. This is the number you will see if your search XAW. But look for the consolidated Canadian data and yo...
by fireseeker
11 Feb 2024 14:02
Forum: Financial News, Policy and Economics
Topic: Clippings 2024
Replies: 129
Views: 10331

Re: Clippings 2024

Let's try a simple example: Contribution: 10,000 Tax rate: 50% Gain after 30 years: 20 (about 10.5% compounded annually) Option 1: Contribute 10,000 + 5,000 tax refund to RRSP. After 30 years the value of the investment is 300,000. Tax on withdrawal @ 50% is 150,000. Net proceeds is 150,000. Option 2: Invest the 10,000 in BRK.B for 30 years. Value before cashing is 200,000. Gain: 190,000. Capital gain tax @ 25%: 47,500. Net proceeds is 152,500. It seems that in this case contributing to an RRSP was not the best choice. I think this example is misleading because of its extreme tax rates. Very, very, very few people will pay a 50% average tax rate on withdrawals from an RRSP, even at death. It takes about $1 million in annual income to appro...
by fireseeker
11 Feb 2024 12:44
Forum: Community Centre
Topic: Induction stove
Replies: 5
Views: 355

Re: Induction stove

tedster wrote: 11 Feb 2024 00:41 The flat at which I am staying in Penang has an induction counter top stove. I bought a very small sauce pot clearly marked for induction use. However when I try to use it, the burner does not respond. It does for larger pans and pots. Is this normal?
On our induction stove, the size of the pot does matter.
If the pot/pan is much smaller than the diameter of the element, the element turns itself off. Presumably this is for safety reasons.
It sounds like this is what is happening for you. Matching the size of the pot/pan to the element should eliminate the problem.
by fireseeker
05 Feb 2024 13:17
Forum: Financial Planning and Building Portfolios
Topic: Prioritize TFSA over RRSP?
Replies: 17
Views: 1398

Re: Prioritize TFSA over RRSP?

phaseshift wrote: 05 Feb 2024 13:11 Spouse was working full time until she had to go disability leave in the mid 2000's. Prior to that she had very little RRSP room due to payments into her DB pension plan.
Her DB entitlement will affect your TFSA vs. RRSP decision. What is its present value, or future income?
by fireseeker
05 Feb 2024 12:52
Forum: Financial Planning and Building Portfolios
Topic: Prioritize TFSA over RRSP?
Replies: 17
Views: 1398

Re: Prioritize TFSA over RRSP?

phaseshift wrote: 05 Feb 2024 11:58 With such a large amount of TFSA contribution room, does it make more sense to only contribute to the TFSA until both are maxed out for maximum tax savings in retirement instead of focusing on using RRSP room to reduce my marginal tax rate?
When I look at your list of assets and income, two things jump out:
1. Your spouse has almost no assets in her name.
2. Your current marginal tax rate is in the 44% range.

Given that, it looks like you could save to a spousal RRSP and not pay 44% in tax.
In retirement, it looks your spouse could remove that money and pay an average tax of less than 10%. Perhaps much less.
by fireseeker
04 Feb 2024 20:48
Forum: Community Centre
Topic: Tipping
Replies: 38
Views: 1652

Re: Tipping

Bylo Selhi wrote: 04 Feb 2024 20:40 Also is there any extra service provided in uncorking a $120 bottle of wine compared to a $60 bottle, let alone so much more as to merit a $24 tip?
Basil Fawlty might say so.
by fireseeker
03 Feb 2024 00:56
Forum: Under the Mattress: Protecting Your Money
Topic: Bribes from Discount Brokers
Replies: 301
Views: 24264

Re: Bribes from Discount Brokers

<r><QUOTE author="rigger1" post_id="761357" time="1706929040" user_id="16117"><s>[quote=rigger1 post_id=761357 time=1706929040 user_id=16117]</s> <QUOTE author="BRIAN5000" post_id="761354" time="1706924644" user_id="1915"><s>[quote=BRIAN5000 post_id=761354 time=1706924644 user_id=1915]</s> Dec 11 we set up new account for WS for wife, new Iphone arrived today and up and running <E>:thumbsup:</E> <E>:beer:</E> <br/> New screen protector, new charger and new mag charger. <e>[/quote]</e></QUOTE> Congratulation!<br/> My iPhone 15 pro is scheduled to arrive on Monday via FedEx, Wife’s iPhone 15 is suppose to arrive on Thursday. Also was able to stack bonus boost of $225. <e>[/quote]</e></QUOTE> Rigger1, on what date did you first open your WS ac...
by fireseeker
02 Feb 2024 18:14
Forum: Under the Mattress: Protecting Your Money
Topic: Best Way to Send Money to the US
Replies: 34
Views: 1974

Re: Best Way to Send Money to the US

Bylo Selhi wrote: 02 Feb 2024 14:09 With Wise this works as you posted. It also works the other way. Lufthansa owed me some compensation for delayed baggage. I gave them my Wise IBAN number and the money showed up in my Euro sub-account. A month or so ago I used those €s to pay an EU merchant using my Wise CC. They then needed to refund me some of that payment. That too went smoothly into the Euro account. I couldn't be happier with the way Wise handles all this.
To clarify, is this a credit card, or a debit card?
I thought Wise only offered the latter.
by fireseeker
02 Feb 2024 00:58
Forum: Under the Mattress: Protecting Your Money
Topic: Best Way to Send Money to the US
Replies: 34
Views: 1974

Re: Best Way to Send Money to the US

heckler wrote: 01 Feb 2024 22:35 Ebay? How bad are its fees? The US recipient posts a handwritten limerick for sale for $5k (for example).
There once was a man from Peterborough
Who was inclined to over-borrow.
He was pained to admit
That he didn't know how to remit
To a new bank in in Chicago.

I'll settle for $4K.
by fireseeker
31 Jan 2024 11:43
Forum: Retirement, Pensions and Peace of Mind
Topic: Delay unlocking LIRA to age 71?
Replies: 38
Views: 2685

Re: Delay unlocking LIRA to age 71?

GreatLaker wrote: 30 Jan 2024 19:55 [*]What's the benefit of a deferred annuity? The money compounds in the annuity, but it would also compound in a RRIF or LIRA so what's the benefit?
I don't think I answered this question well.
The difference between the money compounding in a deferred annuity vs. in a RIF is that the RIF monies will be subject to mandatory annual withdrawals after age 71.

I can see from Optsy's link that there are nuances to the ALDA program (such as transfer limits) that I have yet to digest. I have several years to complete this homework ...
by fireseeker
30 Jan 2024 23:39
Forum: Retirement, Pensions and Peace of Mind
Topic: Delay unlocking LIRA to age 71?
Replies: 38
Views: 2685

Re: Delay unlocking LIRA to age 71?

Some questions though, if you don't mind: Doesn't an annuity place even greater handcuffs on locked dough? There's no flexibility, although with the benefit of lifetime income. What's the benefit of a deferred annuity? The money compounds in the annuity, but it would also compound in a RRIF or LIRA so what's the benefit? 1. Yes, I suppose it does. For instance, buying an annuity eliminates the potential to collapse the remaining LIF under the small balance exception. But AFAIK that's the only additional cash-access flexibility a LIF has over an annuity. (Ignoring bequests.) In practice, the regular annuity payments should mimic the mandatory LIF withdrawals. What the annuity option leaves you with, then, is simplicity (a plus), longevity i...
by fireseeker
30 Jan 2024 17:20
Forum: Retirement, Pensions and Peace of Mind
Topic: Delay unlocking LIRA to age 71?
Replies: 38
Views: 2685

Re: Delay unlocking LIRA to age 71?

Thoughts on the above strategy regarding delaying moving funds from a LIRA to LIF and whether to unlock 50% of it from an asset and income protection perspective? With 5 years until mandatory conversion it won't make a huge difference either way but it seems to be low cost insurance. GL, I am in a similar situation to you, albeit a few years behind. It seems you are proposing trading the flexibility of the 50% unlock for the greater security of the full value LIRA. Given that your non-reg assets exceed your registered savings, it is hard to see how the greater security will be meaningful for you. An unscrupulous POA (or your own addled self) could still drain the non-reg and RIF. By the same token, the additional flexibility of the unlock ...
by fireseeker
22 Jan 2024 19:39
Forum: Taxing Situations
Topic: turbotax - web-based vs local install ?
Replies: 47
Views: 4060

Re: turbotax - web-based vs local install ?

AltaRed wrote: 22 Jan 2024 19:25 Individuals don't use EFILE though to the best of my knowledge. They only use Netfile approved software, do they not?
Thank you for that fix. Yes, efile is only for professionals.
Here is the list of CRA-approved Netfile software.
by fireseeker
22 Jan 2024 19:21
Forum: Taxing Situations
Topic: turbotax - web-based vs local install ?
Replies: 47
Views: 4060

Re: turbotax - web-based vs local install ?

Snowhite wrote: 20 Jan 2024 11:21 Can TT be a local instal/ download on a Mac? If not what is a recommended product for Mac local instal.
It looks like TT cannot be downloaded on a Mac.
I have not used it, but it looks like Taxtron can.
Here is the full list of CRA-approved efile software.
by fireseeker
16 Jan 2024 19:08
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: First Home Savings Account (FHSA)
Replies: 116
Views: 12865

Re: First Home Savings Account (FHSA)

johnny cash wrote: 14 Jan 2024 15:17 Do any of these PSA, CASH, etc qualify for dividend income?
No.
by fireseeker
18 Dec 2023 13:52
Forum: Retirement, Pensions and Peace of Mind
Topic: Annuities
Replies: 134
Views: 11113

Re: Annuities

ghariton wrote: 17 Dec 2023 10:23 I have never seen of a pension with guarantee. Survivor benefits, yes. But that is not a guarantee.
Pensions with guarantees do exist, likely for the psychological reasons identified upthread.
For instance, my DB pension offered 11 different payout options at retirement.
The "normal," or default, option was a lifetime pension with a guaranteed 10-year payout. It offered a higher monthly stipend than any of the survivor benefit options.
This is the choice an unmarried pensioner would presumably select.
by fireseeker
13 Dec 2023 21:20
Forum: Under the Mattress: Protecting Your Money
Topic: Bribes from Discount Brokers
Replies: 301
Views: 24264

Re: Bribes from Discount Brokers

Supposingly in the fine print not shown on the WS website if you get the Iphone offer only one person gets the referral bonus not both. You get the iPhone offer but not the cash. Not stackable according to our Rep. When we signed in on a iPad and Iphone we have no referral code generated on either account anyone else have this issue? I'm not sure your referral info is correct. I've seen lots of anecdotes at RFD from people who are qualified for the iPhone and have received the referral bonus. The wording in the bonus (in app) clearly says both referrer and referee qualify for the bonus. Additionally, the email I received confirming my eligibility for the iPhone offered a $100 referral bonus for bringing in other people who also qualify for...