Search found 1275 matches

by StuBee
16 Dec 2017 15:51
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 899
Views: 75188

Re: Investment income in a CCPC

What a mess!!! #1 As an income splitting tool forget it unless the family member is a serious part of the buisness (i.e. contributes actively with a significant amount of their time or has provided a significant amount of equity). The exception is if the people involved in the splitting manoeuvre ar...
by StuBee
16 Dec 2017 12:33
Forum: Financial Planning and Building Portfolios
Topic: Help Me Work Through This (Early) Retirement Plan
Replies: 7
Views: 262

Re: Help Me Work Through This (Early) Retirement Plan

I do not have much to add. #1 It is highly unlikely that you will fully retire in your mid forties. I have been able to retire for three years now but I am still working part-time (I am currently 56) and I have recently added on a one-in-three week presence in a palliative care unit. What I am sayin...
by StuBee
15 Dec 2017 11:52
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Power of Dividend Growth 2011 (and beyond)
Replies: 773
Views: 54733

Re: Power of Dividend Growth 2011 (and beyond)

For sure EPS growth is the best metric. OTOH many of us (as in me!) are uncomfortable with financial statements. I am mainly uncomfortable because they can be so complicated (I am sure SQRT would agree with this with respect to banks even though he has an important bank background...). IMHO it is so...
by StuBee
15 Dec 2017 08:04
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Power of Dividend Growth 2011 (and beyond)
Replies: 773
Views: 54733

Re: Power of Dividend Growth 2011 (and beyond)

***Unfortunately, its distribution yield is only about 2.6% Why unfortunate? Distribution yield is only part of total return. If dividends have grown by a CAGR of about 7.5%, then in a "directional" way so has EPS and share price appreciation (as JaydoubleU articulated). That is what really counts,...
by StuBee
14 Dec 2017 21:57
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Power of Dividend Growth 2011 (and beyond)
Replies: 773
Views: 54733

Re: Power of Dividend Growth 2011 (and beyond)

Thanks for that info Altared. By comparing 2001 to 2017 (removing the obvious outliers) the yearly distribution has risen from 20 cents to about 64 cents. This comes out to a compound return of about 7.5%!!! Very respectable dividend growth IMHO. ***Unfortunately, its distribution yield is only abou...
by StuBee
04 Dec 2017 21:00
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Enbridge (Symbol-ENB)..are we getting close to a buy???
Replies: 280
Views: 30801

Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

I am mulling over the idea of selling a loser in my spouses account and (by means of an identical purchase) transfering her loss to me and then selling off some of my ENB. StuBee: Are you describing deliberately triggering the superficial loss rule to accomplish this? (I hadn't thought of that befo...
by StuBee
04 Dec 2017 17:21
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Enbridge (Symbol-ENB)..are we getting close to a buy???
Replies: 280
Views: 30801

Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

I have bit the bullet a few times and sold off over 1/2 of my holdings. The last time was in 2016 and I mitigated the tax hit (partially) by selling a loser. My MTR now is about 40% and I have no more losers to sell. My ACB on ENB is around 7$. I would like to sell but I am very reluctant of giving ...
by StuBee
03 Dec 2017 19:23
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Enbridge (Symbol-ENB)..are we getting close to a buy???
Replies: 280
Views: 30801

Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

I am rather intrigued by a catchy title concerning Enbridge on the Globeinvestor Home page. To the effect that ENB has no buisness paying a dividend!!!

The article is behind the paywall. Is anyone able to give a rough summary of its conclusion?
by StuBee
29 Nov 2017 18:18
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Enbridge (Symbol-ENB)..are we getting close to a buy???
Replies: 280
Views: 30801

Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Thanks Altared. All in all the document that you linked to is fairly reassuring and appears fairly realistic (though I am not an investment analyst). I appreciate the fact that they want to focus on the "regulated" part of their buisness and that they have identified 10B$ of potential (non-core) ass...
by StuBee
29 Nov 2017 17:15
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Enbridge (Symbol-ENB)..are we getting close to a buy???
Replies: 280
Views: 30801

Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Enbridge has just announced a 10% increase to its dividend (from the current 0.61$ to 0.671$...exactly 10%). As recently as end of September they guided to a range of 10-12% until at least 2020. Well now they have reduced this number to 10%... Furthermore, 1.5B$ of additional common are being added ...
by StuBee
11 Nov 2017 15:23
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Enbridge (Symbol-ENB)..are we getting close to a buy???
Replies: 280
Views: 30801

Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

That is indeed another headwind, which is one reason why I have been supportive of their diversification into renewable projects, where there is a lot of public support and government money pouring in. While I do applaud Enbridge's move at this level, I question it's profitability. Others know far ...
by StuBee
11 Nov 2017 14:44
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Enbridge (Symbol-ENB)..are we getting close to a buy???
Replies: 280
Views: 30801

Re: Enbridge (Symbol-ENB)..are we getting close to a buy???

Well, I guess I have no choice but to say my two cents worth... As some are aware, I have (or had) a prolonged love affair with ENB. It has been very good to me but has been going more or less no where in the last two or three years. In spite of this, the dividend keeps on rising. I find an in exces...
by StuBee
15 Sep 2017 19:14
Forum: Financial Planning and Building Portfolios
Topic: Harvesting of capital gains
Replies: 9
Views: 574

Re: Harvesting of capital gains

Another argument in favour of such a move would be being in a year with a low, possibly zero tax bracket, when one expects that in the future the tax bracket would move significantly higher. Very true. I had assumed that this type of situation did not apply to the OP (because of his "and take cap g...
by StuBee
15 Sep 2017 14:54
Forum: Financial Planning and Building Portfolios
Topic: Harvesting of capital gains
Replies: 9
Views: 574

Re: Harvesting of capital gains

dave2008, Moving funds by means of a sale from "fund X" to a "fund similar to X" if done on the same day (simply stated for the purpose of illustration) accomplishes only one thing! The erosion of your wealth (as well as the income generating power of your portfolio). I mean the erosion occasioned b...
by StuBee
04 Sep 2017 11:24
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 899
Views: 75188

Re: Investment income in a CCPC

The original proposal is most ambivalent about the passive income part. For other two-income splitting and dividend stripping- it seems they will have legislation in effect very soon. They want to do something about the passive income, but they can't figure out an easy way of doing it. They talk ab...
by StuBee
03 Sep 2017 14:24
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 899
Views: 75188

Re: Investment income in a CCPC

Except for the passive income part where my accountant says there's some hope, other items are baked in the cake now. Even for passive income, I wonder for how long could this be deemed as a reliable shelter. Depending on the hunger and 'needs' of the government at some point in future, they could ...
by StuBee
01 Sep 2017 15:06
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 899
Views: 75188

Re: Investment income in a CCPC

What is the impact of the proposed changes when there is no active income just passive income? Unfortunately, if I understand correctly, that going forward it is the government's intention to ensure that there is no advantage in any way whatsoever to earn income passively within a CCPC as compared ...
by StuBee
23 Aug 2017 19:14
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 899
Views: 75188

Re: Investment income in a CCPC

However, what I was trying to show is that IF somehow we are able to apply soldtosoon's strategy of converting passive corp income to personal salary, thus not paying corporate tax on it or dividend tax, just personal income rate there may be a modest advantage to capital gains held for a long peri...
by StuBee
23 Aug 2017 17:01
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 899
Views: 75188

Re: Investment income in a CCPC

Unfortunately, the government appears to have proposed that if this active income is used for passive purposes then this same active income is subjected to a greater level of taxation so that the [(0.85)Pexp(n)] becomes the equivalent of [(0.5)Pexp(n)]. Did you take a second look at proposal? My un...
by StuBee
22 Aug 2017 22:27
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 899
Views: 75188

Re: Investment income in a CCPC

But then you have converted passive investment income to personal employment income tax. Unless that investment income was all interest (ie no cap gains/divid) you are taking a loss vs holding investments personally as far as i can see Which may not be entirely bad. If you look at the major beef th...
by StuBee
22 Aug 2017 21:59
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 899
Views: 75188

Re: Investment income in a CCPC

Actually I think you are right Say you have amount P active small business income If you invested in capital gains after paying small business tax you would have [(0.85)P exp(n)] * 0.5=.425 Pexp(n) for simplicity assuming 15% small business, 50% personal, growing exponentially at n, capital gains t...
by StuBee
22 Aug 2017 21:38
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 899
Views: 75188

Re: Investment income in a CCPC

If it is taxed after expenses then your salary will bring all corporate income to zero and you would have no taxes at the corporate level. In fact it would be as if that year you had no CCPC at all. But then you have converted passive investment income to personal employment income tax. Unless that...
by StuBee
22 Aug 2017 14:22
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 899
Views: 75188

Re: Investment income in a CCPC

How would this get categorized? From my understanding of the federal proposal, all of your investment income would be taxed immediately at nearly 50% since it is passive income. If I am right (and I am not sure) then you would not have the funds necessary to pay your full 120K$ salary. Setting asid...
by StuBee
21 Aug 2017 20:25
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 899
Views: 75188

Re: Investment income in a CCPC

Resulting in 0 gross profit. Is this a kosher situation? Are there any issues with this? On the one hand, it is assumed that your corporation does indeed produce active income (otherwise all of your mentioned expenses would be for no purpose). Therefore, your active income would be your net income ...