Search found 472 matches

by couponstrip
10 Oct 2017 23:25
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 827
Views: 70437

Re: Investment income in a CCPC

I agree with your assessment for some groups, e.g. small business and perhaps limited use by certain individuals, but for many who have used (and abused) the CCPC for purposes other than originally intended, I'd suggest those specific individuals who now feel harmed should instead be thankful that ...
by couponstrip
26 Jul 2017 00:16
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 827
Views: 70437

Re: Investment income in a CCPC

To those watching this from the outside, this is a subtle, but important point. Physicians bear much risk in their businesses particularly with regards to wage inflation, rent inflation, material inflation, and now tax inflation :shock: without any means to offset those increased costs with higher ...
by couponstrip
25 Jul 2017 20:11
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 827
Views: 70437

Re: Investment income in a CCPC

About incorporated professionals, some groups (dentists, lawyers, accountants) have more freedom than others (physicians) to pass along increased costs (taxes in this case) to their clients. Seventeen years after physicians negotiated with provincial governments the option to incorporate in lieu of...
by couponstrip
24 Jul 2017 21:14
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 827
Views: 70437

Re: Investment income in a CCPC

Here is a growing petition in response to the proposed changes originating from a physician women's group. The petition is from a female physician perspective, however there is an opportunity to add the reason you might be signing at the end of the signature. The petition is approaching 5000 signat...
by couponstrip
22 Jul 2017 20:02
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 827
Views: 70437

Re: Investment income in a CCPC

On the campaign trail, Trudeau mentioned the CCPC several times. He referred to "friends of his" who are professionals and derived great benefit from incorporation which he felt the CCPC was not designed for. I think he is headstrong and determined to close what he perceives as a tax loophole for th...
by couponstrip
21 Jul 2017 21:00
Forum: Financial News, Policy and Economics
Topic: Clippings 2017
Replies: 225
Views: 13340

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: 827
Views: 70437

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: 827
Views: 70437

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: 827
Views: 70437

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: 1234

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: 7584

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: 1578

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: 5034

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: 42151

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: 2278

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: 827
Views: 70437

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: 1020

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: 6828

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: 827
Views: 70437

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: 827
Views: 70437

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: 354
Views: 15458

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: 354
Views: 15458

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: 827
Views: 70437

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...