Search found 5520 matches

by ghariton
20 Jul 2017 17:18
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 627
Views: 63097

Re: Investment income in a CCPC

I'm an MD that graduated last year. I haven't incorporated yet as I still have some debt to service but if this goes through is there any reason to incorporate at all? I can't income split as my partner makes lots. As far as I know, lowering income taxes was the main advantage of incorporating for ...
by ghariton
19 Jul 2017 21:25
Forum: Financial Planning and Building Portfolios
Topic: Outstanding Financial Pornography
Replies: 619
Views: 106431

Re: Outstanding Financial Pornography

FWIW, I would expect the rates of return on family-controlled businesses, as earned by external shareholders, to be slightly higher that rates of return on widely held businesses. The reason is that shareholders in family-controlled (or any narrowly controlled) businesses are exposed to an extra ris...
by ghariton
19 Jul 2017 16:52
Forum: Retirement, Pensions and Peace of Mind
Topic: Best DB Plan?
Replies: 6
Views: 221

Re: Best DB Plan?

DB plans are sometimes known as 'ball and chain', 'golden handcuffs', etc. From what I experienced (so anecdotal) DB plans did indeed act as golden handcuffs. Indeed, I was told that many DB plans were designed that way. This can have the unfortunate side effect of incenting people to stay in jobs ...
by ghariton
17 Jul 2017 22:38
Forum: Taxing Situations
Topic: Budget 2016
Replies: 52
Views: 1860

Re: Budget 2016

Ah, but is there anything in there for restrictions on use of CCPC's? The scuttlebutt pre-budget was along the lines of needing at least 3 arms length employees to get value from CCPC....not that I am against putting the squeeze on those who used it primarily for income splitting. There was a bit o...
by ghariton
17 Jul 2017 21:50
Forum: Financial News, Policy and Economics
Topic: NAFTA Renegotiation
Replies: 20
Views: 758

Re: NAFTA Renegotiation

Read the document itself. Once you get past the cover, introduction and table of contents, it's only 14 pages long, and an easy read. First, this is very high level. The devil will be in the details, which will likely only come out during the negotiations. We must be patient. Second, at this high le...
by ghariton
16 Jul 2017 13:53
Forum: Retirement, Pensions and Peace of Mind
Topic: Investment changes in retirement
Replies: 132
Views: 3141

Re: Investment changes in retirement

Not only can equities have negative real returns for extended periods of time, so can bonds and other fixed income. In fact, if there is unanticipated inflation, bonds can suffer much more than equities. Similarly, wars and changes of regime can completely wipe out bonds, while equities do retain so...
by ghariton
14 Jul 2017 13:19
Forum: Retirement, Pensions and Peace of Mind
Topic: Investment changes in retirement
Replies: 132
Views: 3141

Re: Investment changes in retirement

I just imagine what my wife would say if I told her than we lost more than half of our portfolio which we accumulated through hard work and savings. I remember losing 12 per cent of our portfolio over two consecutive days in 2001 part of a cumulative loss of 66 per cent). When I told my wife the se...
by ghariton
13 Jul 2017 21:58
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: TD Direct Investing (was Waterhouse) Service
Replies: 1857
Views: 159177

Re: TD Direct Investing (was Waterhouse) Service

Business as usual... Please be advised that your personal account statements for the period ending June 30, 2017, are currently unavailable in eServices. We are working to re-post them as soon as possible and an update will be provided by no later than 5:00 p.m. (ET) on Friday, July 14. In the inter...
by ghariton
11 Jul 2017 11:43
Forum: Retirement, Pensions and Peace of Mind
Topic: Investment changes in retirement
Replies: 132
Views: 3141

Re: Investment changes in retirement

Do you have a suggestion of better wording? I don't want to use the term "bucket" because those who promote bucket systems usually have money migrating between buckets. There's no such thing, here. The lifelong income part is isolated and never replenished. Well, English is my third language, so I'...
by ghariton
10 Jul 2017 21:54
Forum: Retirement, Pensions and Peace of Mind
Topic: Investment changes in retirement
Replies: 132
Views: 3141

Re: Investment changes in retirement

So, in my view, you have a non-sliding allocation of 100% to stocks in your portfolio. I agree with your analysis. I just hadn't understood it from your choice of words. FWIW I used to calculate the rate of return on what I call my portfolio after backing out the RRBs and the coupons they paid. I g...
by ghariton
10 Jul 2017 18:33
Forum: Retirement, Pensions and Peace of Mind
Topic: Investment changes in retirement
Replies: 132
Views: 3141

Re: Investment changes in retirement

I'm not a fan of sliding asset allocations, even when based on bequest motives (e.g. leave the extra money, not needed by the retiree, growing in stocks). Imagine the following situation: The retiree passes away and markets crash deeply (80% or 90%) quickly after. Big parts of the remaining portfol...
by ghariton
09 Jul 2017 20:57
Forum: Retirement, Pensions and Peace of Mind
Topic: Investment changes in retirement
Replies: 132
Views: 3141

Re: Investment changes in retirement

The reality for us turned out quite different from the plan, in good ways. I retired at 53 in 1999, with a portfolio of almost all tech stocks. (My idea of diversification was to spread my money over different technologies.) My wife continued to work for the federal government. I went back to work t...
by ghariton
26 Jun 2017 23:21
Forum: Financial Planning and Building Portfolios
Topic: The Perfect Dividend ETF
Replies: 59
Views: 1730

Re: The Perfect Dividend ETF

If the goal is income investing, you should look at what you can get on your money now. That may mean selling at market value and purchasing another investment with higher income yield on that value. :thumbsup: :thumbsup: :thumbsup: The relevant cost for making decisions is the opportunity cost, i....
by ghariton
24 Jun 2017 18:59
Forum: Taxing Situations
Topic: living with parents
Replies: 4
Views: 216

Re: living with parents

Is there a lease or other formal contract? If not, I would be very surprised if CRA were to be interested.

George
by ghariton
21 Jun 2017 21:37
Forum: Financial News, Policy and Economics
Topic: NAFTA Renegotiation
Replies: 20
Views: 758

Re: NAFTA Renegotiation

As a compromise, I suggest government buy back all quotas at the price originally paid by current farmers, i.e. book value (without goodwill). Randomly call in 10% of the quotas each year, and allow imports to replace double that amount each year.

No other compensation.

George
by ghariton
21 Jun 2017 21:23
Forum: Financial Planning and Building Portfolios
Topic: Questions for my Fin. Advisor
Replies: 26
Views: 1064

Re: Questions for my Fin. Advisor

Here is a suggestion that you ask any new (or existing) financial adviser to sign this : The Fiduciary Pledge I, the undersigned, pledge to exercise my best efforts to always act in good faith and in the best interests of my client, _______, and will act as a fiduciary. I will provide written disclo...
by ghariton
21 Jun 2017 13:26
Forum: Retirement, Pensions and Peace of Mind
Topic: CPP Deferral debate - Fred Vettese article discussion
Replies: 219
Views: 4464

Re: CPP Rules - Fred Vettese article

I'm curious to learn about how other FWF members, retired members living in a couple in particular, tackle this problem. In our case, we relied on term life insurance until we had built up sufficient assets, mainly in RRSPs, to feel we could reduce the term insurance and eventually discontinue it. ...
by ghariton
17 Jun 2017 12:59
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Canadian Banks
Replies: 599
Views: 40309

Re: Canadian Banks

The REAL Canadian bank bailout I must admit I found the two articles you linked to, less than clear, and neither was the CCPA study. But as best I can reconstruct things, what CMHC did was to increase the amount of mortgage insurance it sold to the banks. That did indeed constitute a transfer of ri...
by ghariton
16 Jun 2017 22:37
Forum: Financial Planning and Building Portfolios
Topic: Portfolio creation [with some US taxation considerations]
Replies: 12
Views: 203

Re: Portfolio creation

Since much of her income is earned in the US, she has been advised not to put any monies into her TFSA. Why not? As I recall, the issues with income earned in the U.S., if any, come at tax time. TFSA contributions are after tax. As for holding U.S. based securities in a TFSA, there is the problem t...
by ghariton
16 Jun 2017 13:05
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Amazon - Whole Foods Merger?
Replies: 17
Views: 482

Re: Amazon - Whole Foods Merger?

Ordering groceries online is not exactly a new concept. Our local Loblaws has provided this for some time. There are four designated parking places in their lot where you can pick up your order. Saves you the trouble of pushing a shopping cart around and then lining up at the cash. I suspect that on...
by ghariton
15 Jun 2017 21:53
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: BCE (Symbol-BCE)
Replies: 1736
Views: 263063

Re: BCE (Symbol-BCE)

It occurs to me as I watch Bell satellite 720p on my new 4K TV, awaiting a call from Telus on a switch, that satellite TV will show little or no growth and may shrink because it can't handle 4K bandwidth. New technology, in the form of High Throughput Satellites (HTS), is just starting to be implem...
by ghariton
14 Jun 2017 14:20
Forum: Financial News, Policy and Economics
Topic: Protectionism
Replies: 284
Views: 25283

Re: Protectionism

So CETA, Canada's free trade deal with the EU, is due for implementation in July. But there are bumps on the road . As part of the deal, Canada agreed to let in 18,000 of European cheese imports, duty-free. That is essentially an import quota, and presumably worth a lot of money. So who gets the quo...
by ghariton
08 Jun 2017 10:52
Forum: Financial News, Policy and Economics
Topic: Clippings 2017
Replies: 149
Views: 8042

Re: Clippings 2017

Ben Snider of Goldman Sachs ponders the death of value investing.

(Spoiler: He thinks it is sick but will recover.)

George
by ghariton
08 Jun 2017 10:39
Forum: Financial News, Policy and Economics
Topic: Clippings 2017
Replies: 149
Views: 8042

Re: Clippings 2017

Statistics Canada reports quarterly on private sector trusteed pension plans. From the latest release Pension fund assets held in stocks increased 4.4% in the fourth quarter, while bond holdings decreased 3.5%. The value of mortgage investments has increased steadily over the last two years, rising ...
by ghariton
06 Jun 2017 00:10
Forum: Retirement, Pensions and Peace of Mind
Topic: Strategy for stock market correction
Replies: 29
Views: 1100

Re: Strategy for stock market correction

I'd be planning how you want to provide the liquidity in your RRIF's to provide for the yearly withdrawls. A topic that I seldom see discussed. I'm greatly interested, as I turned 71 this April. RRIF withdrawal is based on your balance at the close of the previous calendar year. If you plan to make...