62
votes
Minimize taxes now that I earn more
Congratulations on an amazing rise on salary. Please pat yourself on the back for such an accomplishment.
The best thing you can do is to hire a competent tax specialist. Here in the US, it is ...
- 76.1k
55
votes
If you're loaning yourself a mortgage, why must you pay interest? At the bank's posted rate?
Don't bother. It's a stunt, and a wasteful one.
The whole point of it is emotional: wanting to believe this is your money, blah blah. But money is fungible: there's no difference of this, vs your ...
38
votes
If you're loaning yourself a mortgage, why must you pay interest? At the bank's posted rate?
First to answer your question: Because it is the law. Period. No discussion allowed there - yes, some laws make no sense, but still, that is the reason. DO not like it? Vote for someone who will ...
- 11.6k
20
votes
Accepted
Can I pay my partner’s income tax (Canada)
There is no gift tax in Canada. Neither the giver nor the receiver have to pay tax on a gift (unless it's from your employer or something similar). There are a number of rules around income ...
- 33.1k
7
votes
Accepted
Is there any reason to choose my bank's index fund over Vanguard?
That expense ratio on the bank fund is criminally high. Use the Vanguard one, they have really low expenses.
- 3,997
7
votes
Minimize taxes now that I earn more
Minimizing taxes at your scale is more an exercise in determining which activities the government decides to tax less rather than an exercise in finding clever loopholes to exploit. You lack the ...
- 559
5
votes
How do I do double-entry bookkeeping for separately-managed investment accounts?
For any accounts where you have a wish to keep track of dividends, gains and losses, etc., you will have to set up a an account to hold the separately listed securities. It looks like you already ...
- 421
4
votes
Building a diversified portfolio at market high
Considering that the market has grown consistently in the macro sense (the regression curve slopes up) the market is often at an "all-time high". So the only reason you would not want to invest in ...
- 131k
4
votes
Accepted
Does it ever make sense not to join DC pension?
Think about it this way: you are considering giving up a 100% guaranteed return [contribute 5% of your salary, get 5% for free from your employer] to avoid a 1.5% management fee. You would be giving ...
- 42k
4
votes
Minimize taxes now that I earn more
If you own any works of art or ecologically sensitive lands you can donate those to a city government/museum/conservation trust/accredited charity and receive a tax refund for the appraised value of ...
- 2,582
4
votes
When calculating net-worth, how to discount money in an RRSP?
It depends on what you mean by "net worth". If you mean "how much money would I have now if I liquidated everything", then yes you'd take the after-tax (and penalty, if applicable) value of your ...
- 131k
3
votes
Option spreads in registered accounts
No, it is not the nefarious government preventing Registered Account traders from making money. They get their taxes eventually.
A registered account has legal limits to the amount in a year a person ...
3
votes
Accepted
Can I withdraw from an RRSP for home renovation using the Home Buyer's Plan?
You can withdraw the funds, you'll just have to pay tax on them as you would any other RRSP withdrawal, and you would be unable to recontribute the funds at a later date.
The only exception is for ...
- 42k
3
votes
Why does strategy with borrowing 35,000 and using Home Buyer's Plan apply to just Canadians in 40% marginal tax bracket?
The plan works regardless of your bracket - it is one of the most tax-effective things you can do if you are planning on buying your first home, and are looking to maximize your down payment.
...
- 42k
3
votes
Excess contribution to RRSP
1% of your overcontribution will be paid in penalties per month. It's not just a one-time penalty. That continues until you correct the problem by withdrawing to reduce the overcontribution or until ...
- 14.1k
2
votes
What are the consequences of transferring US equities from TFSA to RRSP?
US domiciled stocks/etfs are better held in a RRSP as there is no withholding tax on dividends.
Your bank probably won't allow this. They might make you withdraw from the TFSA and then make a cash ...
- 1,737
2
votes
Accepted
As an American living in Canada what should I consider in determining distribution between RRSP and IRA contributions?
One question to ask yourself is: do you like being double-taxed?
Let's assume that you are already contributing your maximum limit to the RRSP. Although it appears that contributions to your IRA ...
- 556
2
votes
Accepted
Does contributing to company pension take away from RRSP contribution room
Yes it does. The amount of tax sheltered pension room is fixed every year. You either use it for your RPP or RRSP. Note that the employer's contributions are also accounted for in your T4 in box 52 ...
- 1,737
2
votes
Accepted
Beyond RRSP deductions, how does a high income earner save on taxes?
That's not especially high income, and while I can't speak for Canadians, most of us south of the border just pay the tax. There are tax-advantged retirement savings plans, and charitable donations ...
- 42.9k
2
votes
Accepted
Can I invest RRSP funds in ETFs myself in Canada?
Short answer: yes.
Long answer: you have to check with Desjardins if you can buy other funds using their broker, but if not you can just open another RRSP account with a better broker who gives you ...
- 239
2
votes
Accepted
Can I withdraw money from my rrsp if I made excess contribution by mistake?
Overcontributions made after the calendar year are not usually a problem. This is because while contributions made in Jan and Feb can be counted towards the previous year, they do not have to be. This ...
- 33.1k
2
votes
Can I withdraw money from my rrsp if I made excess contribution by mistake?
Intuit has a pretty good write-up on this subject.
As you noted, you are allowed to exceed your limit by $2000 (though this overcontribution is not tax-deductible). Also, your contribution room ...
- 14.1k
2
votes
US withholding taxes on investments held in RRSP by non-resident of Canada
No, US dividends in a canadian RRSP are exempted from US income tax. The fact that you left Canada is irrelevant, only the registered status of your RRSP is taken into account.
So as long as the ...
- 1,000
2
votes
Is there any reason to choose my bank's index fund over Vanguard?
Your bank's fund is not an index fund. From your link:
To provide a balanced portfolio of primarily Canadian securities that produce income and capital appreciation by investing primarily in ...
- 49k
2
votes
Cashed RRSP For Startup Venture
Grade 'Eh' Bacon gives the correct answer, and what I am writing here will not help you as it is too late. However future readers might find it helpful.
RRSPs can be put in a wide variety of ...
- 33.1k
2
votes
Cashed RRSP For Startup Venture
No, unfortunately withdrawals from an RRSP cannot be returned on a tax deferred basis, outside of 2 specific exceptions:
Money taken out for purchasing your first home (exceptions and limits apply); ...
- 42k
2
votes
Is there any reason to choose my bank's index fund over Vanguard?
Extortionate expense ratio aside, comparing the fund to the vanguard balanced fund (with an expense ratio of 0.19%) shows that your bank's fund has underperformed in literally every shown time period. ...
- 731
2
votes
Accepted
Contribute to RRSP without deducting - how long can the deduction claim be deferred?
You can carry forward unused contributions indefinitely. The best way to prove it to you would be to read the schedule 7 that you have to fill out in order to carry them forward.
https://www.canada....
- 1,737
2
votes
Can I withdraw from an RRSP for home renovation using the Home Buyer's Plan?
Depending on the ratio of the value of the home and the equity you have uncovered, you could qualify for a Home Equity Line of Credit (HELOC). Typically, Canadian banks will give HELOC loans if your ...
- 2,680
2
votes
To lease or buy when I have the cash in my RSP
Any OAS clawback you might incur by withdrawing additional RRSP amounts, would certainly wipe out any ownership cost-benefit analysis comparing buying vs leasing. Further, you quite possibly would be ...
- 42k
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