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by AltaRed
25 Mar 2024 12:31
Forum: Taxing Situations
Topic: Attribution of Contributions from Joint Bank Account
Replies: 22
Views: 462

Re: Attribution of Contributions from Joint Bank Account

Short answer, no, you are not allowed to gift your spouse funds for investment purpose (to earn investment income). It should have been a spousal loan, or a contribution to a spousal RRSP or similar. We should not blame CRA for these things. Canadian governments, in their wisdom, have chosen to tax individuals through the Income Tax Act. CRA simply implements the ITA though they obviously have discretion in what they enforce and what they do not. Spousal RRSPs, spousal loans, pension income splitting and allowing one spouse to disproportionately fund household expenses are some ways to level the playing field.
by AltaRed
25 Mar 2024 11:55
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Banks vs VDY
Replies: 12
Views: 625

Re: Banks vs VDY

Not managing a portfolio of individual stocks makes it far easier to manage a portfolio, which becomes increasingly important as one ages and begins to lose interest and/or mentally competent. It is hard for someone mid-journey and young(er) to understand how important that can become.

Fortunately, I went the ETF route for all of my ex-Canada allocation and it was easy to convert to ETFs in registered accounts with no cap gains tax triggers. I am slowly consolidating my non-registered Canadian equity stock portfolio when/as prudent but I suspect it will still contain a number of stocks when I eventually 'lose it' and/or go out 'boots first'. At least it will be a minimum of holdings.
by AltaRed
25 Mar 2024 11:45
Forum: Taxing Situations
Topic: Attribution of Contributions from Joint Bank Account
Replies: 22
Views: 462

Re: Attribution of Contributions from Joint Bank Account

RE: #2. I agree. I received a 6 digit inheritance (land) some years ago. It was eventually sold and It automatically went into a brand new non-registered account, with a different brokerage even. That is also important from a Division of Assets issue in event of divorce. I still use some of those funds for joint expenses, such as vacations, but I know when it is pulled out of that account, it is no longer 'mine'.

Edit: Added clarity
by AltaRed
25 Mar 2024 11:43
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: BMO Investorline
Replies: 1278
Views: 198079

Re: BMO Investorline

Mewmew, I suspect all the information gets into CRA MyAccount eventually, but yes, I agree, in the off chance it does not and folks have used AutoFill, and/or a paper tax slip gets lost, that income would be missed (not taxed). That is not fair to all other taxpayers but I suspect there is a whole lot of other erroneous reporting that goes on, e.g. excessive/inappropriate self-employment/work from home expenses, manipulation of attribution of income between spouses, etc. that exceeds unreported income by orders of magnitude. P.S. I disagree this issue necessarily only started when the change was made to BMTxxx ISAs. I've had no problem with BMTxxx tax slips on CRA MyAccount since the change was made. May I suggest you report the issue to th...
by AltaRed
25 Mar 2024 10:21
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: T+1 Settlement is Coming! On May 28, 2024
Replies: 58
Views: 2695

Re: T+1 Settlement is Coming! On May 28, 2024

poedin wrote: 25 Mar 2024 10:04 ^ Likewise, although my experience with BMOIL is that often the transactions are not fully displayed until a few business days later as backdated transactions. This necessitates keeping track of the transactions (and cash balances) on a spreadsheet.
I would think that might only be necessary/useful if one is actively buying and selling in the market every day. I don't ever recall a situation where I was making multiple transactions per week.
by AltaRed
24 Mar 2024 22:31
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: BMO Investorline
Replies: 1278
Views: 198079

Re: BMO Investorline

It does not matter if they are not on CRA MyAccount as long as you have paper copies and can include them in your tax return. Strange though since my BMO T5 showed up on CRA MyAccount March 1st.

Maybe as joint accounts, they are on your spouse's CRA MyAccount.. albeit they should be on the account with the corresponding SIN.
by AltaRed
24 Mar 2024 22:23
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Moving money out of BMO InvestorLine is slow
Replies: 12
Views: 360

Re: Moving money out of BMO InvestorLine is slow

I do not know what Other 1 INVES is as it is "Chequing" that is linked to my CAD balance in BMO Investorline. Either way, the CAD link is broken or was never set up in the first place.
by AltaRed
24 Mar 2024 22:16
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: VCIP (bonds) - why so awful?
Replies: 15
Views: 415

Re: VCIP (bonds) - why so awful?

What we should probably add here is that a 5 year GIC ladder of equal principal amounts will have an aggregated weighted average interest rates of all the GICs in that ladder. That 'duration' of 3 years (1+2+3+4+5)/5 = 3 is similar to a short term bond ETF like VSB with a duration of about 2.5 years.

The weighted average interest rate of that 5 year ladder today may just be starting to go back up due to those GICs bought in 2020 and 2021 being low yield and pulling the weighted average down until very recently. It is only since about mid-2022 that higher yields will be offsetting and starting to pull the ship back up.
by AltaRed
24 Mar 2024 21:41
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: VCIP (bonds) - why so awful?
Replies: 15
Views: 415

Re: VCIP (bonds) - why so awful?

It has nothing to do with speculation of interest rates going up or down. I am done with GIC and bond ladders because I want my RRIF to be as simple as possible....one holding of VCNS that I only have to look at once per year. Sell some units circa Dec 1st for the minimum annual withdrawal Dec 15th. A robotic transaction.

I should add that my RRIF is less than 10% of my portfolio, so inconsequential.

Added: VCNS is 60% bonds so I will participate in any bond rally that comes along.
by AltaRed
24 Mar 2024 20:53
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: VCIP (bonds) - why so awful?
Replies: 15
Views: 415

Re: VCIP (bonds) - why so awful?

In a general sense yes. If you had been in a 5 year GIC ladder for several years, you would have in the ladder a GIC bought in late 2020 @ 1.6% maturing in late 2025 and one maturing in 2024 at maybe 2.5-3%. When you invest in a 5 year GIC ladder, you are always buying a new 5 year GIC at the then prevailing rates.

Ask me how I know about a 1.6% GIC. :twisted:
by AltaRed
24 Mar 2024 20:31
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Moving money out of BMO InvestorLine is slow
Replies: 12
Views: 360

Re: Moving money out of BMO InvestorLine is slow

Have you not 'linked' your chequing accounts to your BMO Investorline account via AccountLink? In that way, the USD and CAD cash balances of your BMO Investorline account are automatically the cash balances in the 'linked' chequing accounts. There is no need to initiate any transfers or do any keystrokes! Regardless of the time of settlement on settlement day in BMO Investorline, I find that I cannot use the funds in BMO Banking for Bill Payment, or Interac e-transfer in Banking until late the same day after close, or even to wait to the next morning. I suspect the system processes these things in batches at a particular time of day. I have heard that one can call in and they can override the 'wait' to use the funds in Banking but I have ne...
by AltaRed
24 Mar 2024 20:15
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: VCIP (bonds) - why so awful?
Replies: 15
Views: 415

Re: VCIP (bonds) - why so awful?

I suggest you map VCIP against VAB and VSB over that 5 year period. Maybe start here and add VAB and VSB as comparisons over the 5 year period. You will see a similar effect for VAB and VSB with VAB taking a deeper dive because its duration of ~7+ years is almost 3 times that of VSB. VCIP tempers the decline relative to VAB because it has a 20% equity component. Now add VCNS (40% equity) to that charting and you will see how much better it holds up than VCIP. The theory is that when the bond yield curve moves down, in all or most durations, bond prices will rise. Price behaviour is inverse to yield. As has been discussed a number of times, a GIC ladder would behave in a similar way to VSB if GICs were 'marked to market' on a daily/monthly b...
by AltaRed
24 Mar 2024 18:56
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Banks vs VDY
Replies: 12
Views: 625

Re: Banks vs VDY

There is a lot to read in Canadian Banks and likely a few other threads. As for best dividend ETFs, this link provides one place to get some sector weightings.

A high allocation to financials is either a plus or over-concentration. XDIV has over 50% financials like VDY. It helps to look at ETF objectives as well to try and decipher the differences in metrics/themes.
by AltaRed
24 Mar 2024 14:55
Forum: Taxing Situations
Topic: Record Keeping Practices: Scanned/Digital?
Replies: 31
Views: 920

Re: Record Keeping Practices: Scanned/Digital?

The free versions of the CutePDF family are good enough for me for the very little I ever do with PDFs.
by AltaRed
24 Mar 2024 13:50
Forum: Financial Planning and Building Portfolios
Topic: Investing with a Ten Year Horizon under 2024's Market Valuation
Replies: 39
Views: 1195

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

It depends on one's view. Investopedia does mention the 3 broad asset classes (equities, fixed income and cash equivalents) but goes on to slice it further to include commodities, etc.

Generally speaking, I use the broad definition where fixed income is 'terms exceeding one year' and technically is not perfectly liquid. One might argue fixed income has a market value that may be more, or less, than cost base, i.e. cap gains/losses. In my view, I consider GICs fixed income.

Cash and cash equivalents is capital that is fully liquid on a day or two notice, and has little no capital risk (gains or losses) such as MMFs, ISAs, HISAs and even the Cash ETFs which are not on my radar screen.
by AltaRed
23 Mar 2024 20:52
Forum: Financial Planning and Building Portfolios
Topic: Investing with a Ten Year Horizon under 2024's Market Valuation
Replies: 39
Views: 1195

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

Is it going to be different this time? This has got me feeling like maybe it's time to time the market and get out of stocks. Then either stay in GICs and/or bonds for the rest of my life - or potentially get back in some day years from now when valuations have returned to something reasonable. What would others do in my position? It is always a dilemma when the market may appear to be fully valued and there is a 50-50 probability or maybe in one's opinion a 60-40 chance that a prolonged downturn may be imminent. That is the classic market timing dilemma. But as OMO said, you are not investing for a 10 year period only leading up to retirement. You are investing for the rest of your life and you are going to see multiple cycles over the ne...
by AltaRed
23 Mar 2024 20:30
Forum: Retirement, Pensions and Peace of Mind
Topic: LIRA, what to do?
Replies: 16
Views: 322

Re: LIRA, what to do?

optionable68 wrote: 23 Mar 2024 19:26 That's the point I made above. Unless you convert to a LIF, the LIRA funds are rarely accessible outside of the conditions I mentioned above.
WADR, the OP did say in the original post that Step 1 is convert to a LIF. However, he should have just continued with the appropriate use of "LIF" instead of "LIRA" in commentary, and we would have saved about 6 posts. :wink:
by AltaRed
23 Mar 2024 20:25
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Housing Market 2024
Replies: 56
Views: 3430

Re: Housing Market 2024

The most effective solutions will vary by region.

\The BC Central Interior is quite different than the GVR, etc. The Okanagan Valley really does need restrictions on Short Term Rentals as an example due to housing taken out of circulation to gouge the summer and winter tourism market. There is plenty of hotel space AND areas zoned Tourist Commercial, i.e. low rise condo developments allowing vacation rentals, for those wanting to use the Okanagan Valley for a summer playground.

Victoria has a somewhat similar issue with STRs and apparently there is a surge of housing now on the market that had been taken out of circulation for everyday housing.
by AltaRed
23 Mar 2024 18:10
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Housing Market 2024
Replies: 56
Views: 3430

Re: Housing Market 2024

It would allow more who currently rent to own housing rather than rent...from the same inventory. Why pay high rent when one could purchase a dwelling at lower cost (more people could quality with lower down payments and mortgage payments)? It would shift the dynamic somewhat. e.g. level the playing field better.
by AltaRed
23 Mar 2024 17:59
Forum: Retirement, Pensions and Peace of Mind
Topic: LIRA, what to do?
Replies: 16
Views: 322

Re: LIRA, what to do?

I was also under the impression that LIRA funds were accessible (within limits) at age 55 and conversion to a LIF? ...unless some jurisdictions are different.
by AltaRed
23 Mar 2024 17:33
Forum: Community Centre
Topic: Printers
Replies: 21
Views: 488

Re: Printers

Bylo Selhi wrote: 23 Mar 2024 08:08
Phil D wrote: 23 Mar 2024 07:12 What are the factors which have caused you all to move to laser printers ?
I come to my extreme dislike of inkjet printers and love of laser printers legitimately.
As do I. I went through 2 or 3 inkjets that gave me too much trouble. Smearing and clogging probably from lack of use and messy to service. I know of no laser printer that has caused any grief, standing idle for months on end. The extra investment was peace of mind.
by AltaRed
23 Mar 2024 17:24
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Housing Market 2024
Replies: 56
Views: 3430

Re: Housing Market 2024

Well no, that not how I see it. Too many people are being forced into the rental market who would otherwise be buyers due to these dwelling being removed from the for sale to owner occupier and are instead being purchased by investors ranging from mom and pop landlords to billion dollar investment funds. I would propose a tax regime that would make investment ownership of dwellings clearly built as single family family homes and condominiums so unpalatable as rental properties that owner/ landlords would put them up for sale so as to be purchase by owner occupiers. This should see an increase in supply for sale and a resultant increase in affordability, that is to say a drop in prices. I agree investor demand is a factor in house prices be...
by AltaRed
23 Mar 2024 15:23
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Housing Market 2024
Replies: 56
Views: 3430

Re: Housing Market 2024

I think by words used, we can believe it to be transactions in the year named but I agree it is terribly sloppy.
by AltaRed
23 Mar 2024 13:29
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Housing Market 2024
Replies: 56
Views: 3430

Re: Housing Market 2024

If increased affordability is a goal should we be looking at tax policy that encourages owner occupancy of houses rather than purchase for investment? Exactly. There are a range of possible taxes, fees and licenses that can be brought to bear. The difficulty will be in defining what housing stock is included, or not, in such measures. BC is experimenting with more 'squeeze' on investors, some of which is having good effect. The latest is restricting Short Term Rentals to owner-occupied principal residences in municipalities with less than a 3% rental vacancy rate. This, by the way, was the original premise of AirBnB and VRBO, i.e. to make a bit of money from the spare bedroom and/or while away on vacation or winter snowbirding, as examples.
by AltaRed
23 Mar 2024 12:38
Forum: Taxing Situations
Topic: Final Return: Document Mechanics
Replies: 7
Views: 187

Re: Final Return: Document Mechanics

nitro wrote: 23 Mar 2024 11:57
AltaRed wrote: 23 Mar 2024 10:16 This was included as an Exhibit in both the Final T1 and T3 Trust returns
Just to be clear, this was via a paper filling though yes?
Yes. An individual cannot do digital filings of these returns. An accounting firm will have their own well oiled processes to do the same thing.