Search found 466 matches

by couponstrip
21 Jul 2017 21:00
Forum: Financial News, Policy and Economics
Topic: Clippings 2017
Replies: 148
Views: 7951

Re: Clippings 2017

I think rebalancing is a useful tool for portfolio risk management, but that's not how it's often portrayed in financial articles and books. It's mentioned in the context of forced selling high and buying low. Doing better by taking the emotion out of it. If this is why you rebalance, then this bogl...
by couponstrip
19 Jul 2017 18:28
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 620
Views: 62878

Re: Investment income in a CCPC

in the document my interpretation is that they want tax invested in the corp passively to end up being equal to personal tax on passive investment, hence eliminating any rate benefit to the deferral (ie before capital gains inside CCPC did better than personal/RRSP/TFSA) but i do not see the possib...
by couponstrip
19 Jul 2017 11:18
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 620
Views: 62878

Re: Investment income in a CCPC

Note that when it comes to income sprinkling and converting income into capital gains, both sections are subdivided into background, proposed measures and next steps. However, the section on holding passive investments inside a private corporation is subdivided into background, possible approaches ...
by couponstrip
19 Jul 2017 00:08
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 620
Views: 62878

Re: Investment income in a CCPC

Well that's the end of that. Dividend sprinkling gone. Retaining income in the CCPC to invest over decades and defer tax gone. It sounds like business income earned prior to these changes will not be affected apart from the passive income generated from the investments which may be taxed differently...
by couponstrip
06 Jun 2017 17:41
Forum: Retirement, Pensions and Peace of Mind
Topic: Strategy for stock market correction
Replies: 29
Views: 1098

Re: Strategy for stock market correction

"But historically waiting for the market to fall has been an abysmal strategy, far worse than buying and holding in both absolute and risk-adjusted terms." And a corollary to this is the notion that one will actually buy loads as the market is reaching new lows. In 2008-9, there was a lot of gloom ...
by couponstrip
29 May 2017 15:03
Forum: Financial Planning and Building Portfolios
Topic: Investment Books
Replies: 69
Views: 7394

Re: Investment Books

Here's a list of recommended books from a finance blog audience. It looks like stock picking is still alive and well in retail with 3 of the first 4 recommended books relating to that subject. I was surprised to find my second favourite book Winning the Loser's Game by Ellis down with the likes of R...
by couponstrip
26 May 2017 17:42
Forum: Retirement, Pensions and Peace of Mind
Topic: The Mental Mistakes We Make With Retirement Spending
Replies: 26
Views: 1406

Re: The Mental Mistakes We Make With Retirement Spending

I can't find it now, but the "spend only dividends/fixed income" vs sell assets debate took place on a dividend thread some years ago. Many, right here on this board, indicated that it had always been their goal to save enough so that dividends/fixed income could fund their lifestyle in retirement a...
by couponstrip
25 Apr 2017 15:24
Forum: Financial News, Policy and Economics
Topic: Has your Investment Policy Changed After the US Election
Replies: 88
Views: 4367

Re: Has your Investment Policy Changed After the US Election

The US market is absolutely on fire right now, in spite of Trump. Since the crash in 2009 (dividends excluded): EAFE is up ~85% Canada is up ~90% USA is up ~340% Since April 2011: EAFE ~3% Canada ~ 15% USA ~85% Since the US election in November: EAFE ~ 11% Canada ~8% USA ~ 16% Some day, the USA arma...
by couponstrip
26 Mar 2017 22:28
Forum: Financial Planning and Building Portfolios
Topic: The Implications of Behavioral Finance
Replies: 141
Views: 41937

Re: The Implications of Behavioral Finance

I've read all these books and they are all good. I read many books. Khaneman's Thinking Fast and Slow is just about the best book I've ever read, and even better the second time. I'm looking forward to a third read some day soon.
by couponstrip
16 Feb 2017 18:08
Forum: Financial Planning and Building Portfolios
Topic: Asset Allocation during retirement?
Replies: 72
Views: 2239

Re: Asset Allocation during retirement?

If one's portfolio is large enough that 4% is sufficient income for one's needs, then an income-oriented portfolio is viable. Not a recommendation, but at the simplest level, BCE, the banks, and a couple of pipelines would meet those objectives ... IMO, this is where a "keep it simple" approach is ...
by couponstrip
16 Feb 2017 17:21
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 620
Views: 62878

Re: Investment income in a CCPC

How can one decrease dividends, but not increase turnover rate? That's a good question, which I don't have an answer to. For me, the lesson from this article is to reaffirm the advantage of a index portfolio in a taxable account. There is HXT. Dividends are converted to capital gain via swaps. Some...
by couponstrip
03 Feb 2017 11:56
Forum: Financial Planning and Building Portfolios
Topic: Reacting to the Trump markets
Replies: 22
Views: 1008

Re: Reacting to the Trump markets

After the US election one of my colleagues who likes to talk about his personal finances sold all US investments and put it in cash. Another sold all US investments and put the proceeds into VCN. So far, neither of those were the correct course of action, though as the former tells us at work just a...
by couponstrip
26 Jun 2016 21:40
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Vanguard Canada ETF changes
Replies: 66
Views: 6555

Re: Vanguard Canada ETF changes

For those wanting to simplify their portfolio from VEA + VWO to VXUS, or switch VEA to VPL/VGK due to Canada contamination, it looks like brexit may provide just such an opportunity without the CG tax concern. Check your ACB on VEA vs current market price. It may bring tears to your eyes, but some f...
by couponstrip
04 Apr 2016 11:40
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 620
Views: 62878

Re: Investment income in a CCPC

Thank you both. Very helpful.
by couponstrip
03 Apr 2016 22:11
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 620
Views: 62878

Re: Investment income in a CCPC

A simple question I should probably know: When paying out an ineligible dividend from the corp, would the entire dividend be subject to ineligible dividend tax rates, or only the portion that was originally taxed at the small business rate (with SBD)? I'm thinking of a situation where the corporatio...
by couponstrip
19 Dec 2015 11:54
Forum: Financial Planning and Building Portfolios
Topic: Philosophy of dividend investing?
Replies: 344
Views: 14684

Re: Philosophy of dividend investing?

Yes, a CCPC will pay more tax on eligible div flowed through to the shareholders in 2016 than those same eligible dividends earned personally without a PC. However, if you have other sources of income to fund living expenses, the eligible dividends can be retained in the CCPC for now until the integ...
by couponstrip
17 Dec 2015 16:25
Forum: Financial Planning and Building Portfolios
Topic: Philosophy of dividend investing?
Replies: 344
Views: 14684

Re: Philosophy of dividend investing?

For those earning more than 200k from various sources in Alberta, the new tax changes drastically change the dividend vs CG landscape. There is still considerable eligible dividend advantage from 0-90k, but after 200k, there is substantial CG advantage. HXT is suddenly looking more interesting. Mayb...
by couponstrip
17 Nov 2015 02:15
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 620
Views: 62878

Re: Investment income in a CCPC

Agreed. Also, I can't see them going after all the engineers, lawyers, doctors and accountants and reassessing previous years' income. That sounds like a logistical nightmare. Though possibly not pragmatic, it's not beyond their power. There is a CRA published case I can't find right now where CRA d...
by couponstrip
15 Nov 2015 22:13
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 620
Views: 62878

Re: Investment income in a CCPC

I've been soliciting a number of opinions regarding my risk with the CCPC structure which I use as a professional (MD) as an investment vehicle to minimize tax like thousands of others in Canada do. On Friday, I met with an accountant and lawyer from a firm that believes it is likely that the rules ...
by couponstrip
12 Nov 2015 11:30
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 620
Views: 62878

Re: Investment income in a CCPC

Food for thoughts before October 19th. Is Trudeau challenging small business tax benefits? http://achenhenderson.ca/is-trudeau-challenging-small-business-tax-benefits/ Post election now...this is a big issue. I'm curious how it is going to play out. There were 4 main pillars of the liberal financia...
by couponstrip
25 Aug 2015 10:26
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: What did you Buy? What might you buy? (2015)
Replies: 596
Views: 47652

Re: What did you Buy? What might you buy? (2015)

Ended up with 15,000 CPG at about 13.05 ACB over Friday/Monday. Missed all the 11''s and it was over 12.50 buy the time I got a chance to put an order in yesterday. Also got smaller positions SGY and RMP (a riskier name) to complete the oil bet. Also took the opportunity to complete the passive purc...
by couponstrip
21 Aug 2015 15:48
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: What did you Buy? What might you buy? (2015)
Replies: 596
Views: 47652

Re: What did you Buy? What might you buy? (2015)

Went off the passive grid a bit and bought 5000 cpg at 13.40. Trying to catch a falling knife. This might hurt.

Ready for another tranche, maybe bte if lower next week.
by couponstrip
23 Apr 2015 20:48
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Interactive brokers - anyone have any experience with them?
Replies: 6
Views: 581

Re: Interactive brokers - anyone have any experience with them?

Also depends on the types of equity you are investing in. The commissions can be low if you're buying stocks priced in the double digits, but can be very high vs other brokers if you are buying penny stocks or even a large number of shares of sub-ten dollar stocks.
by couponstrip
21 Feb 2015 11:02
Forum: Financial Planning and Building Portfolios
Topic: Lifetime cashflow spreadsheet... comments?
Replies: 56
Views: 5451

Re: Lifetime cashflow spreadsheet... comments?

I still manage to make the occasional error on my DIY spreadsheets, but it is usually easy to discover by cross checking data. Trying to understand a spreadsheet written by someone else is almost like trying to learn a new language. A colleague who was in the early stages of learning DIY personal fi...