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Long term investing alternative to mutual funds

Typically mutual funds will report an annualized return. It's probably an average of 8% per year from the date of inception of the fund. That at least gives some basis of comparison if you're looking ...
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5 votes
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Reasons to add an REIT to portfolio

The reason why people sometimes recommend adding REIT to your portfolio is that REIT tends to be less correlated with company stocks. This gives you greater diversification and possibly even a ...
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4 votes
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Is the interest earned on a TFSA account tax deductible if it is moved to an RRSP

How would the RRSP know where the money came from? You have two separate financial operations going on: You invest some money, within the limits set by the law, in a Tax Free Savings Account. Near ...
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4 votes

Should I max out my TFSA contribution before any other investments?

As a rule of thumb, no. Only in very rare circumstances will it prove better than a RRSP. The media has overplayed the usefulness of this account type for retirement savings. That's just a general ...
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  • 1,592
4 votes
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TFSA and have $1M dollar after 40 years at 5.5% interest with $500 year bump 2% annual inflation rate : Is it an efficient way to be a millionaire?

Don't make it too complicated, the $500 bump is for inflation and it's not every year. Just ignore it and do all your calculations in real dollars. That will also give you the current value of what ...
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  • 1,592
3 votes

In Canada, is it legal to transfer Adsense earnings to free tax account?

TFSA only shelter investment or interest gains on money or investments inside the TFSA. So, there's no problem transferring adsense earnings into a TFSA but you'd still need to pay taxes on your ...
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3 votes
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Switching funds within the same TFSA- how is contribution room impacted?

No, you only lose the room for the remainder of the year if you withdraw funds. As long as there are no withdrawals, you're fine. Note I said "remainder of the year", that's because you'll regain ...
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  • 1,592
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 ...
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3 votes
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Do I pay withholding tax on a US company trading on TSE

The US withholding tax applies to stocks/ETFs purchased on the NYSE and other US-based exchanges. If you buy Cenovus on the TSE then you will not be charged this tax. Your last sentence seems like ...
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3 votes

Can a dividend reinvestment plan (DRIP) and share purchase plan (SPP) be used with a TFSA?

You can hold a wide variety of investments in your TFSA account, including stocks such as SLF. But if the stocks are being purchased via a company stock purchase plan, they are typically deposited in ...
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  • 769
3 votes
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Should I max out my TFSA contribution before any other investments?

The advantages of the TFSA are liquidity - you can take money out and put it back in quite simply and you even get your room back if you take it out a place to tax shelter interest income when you'...
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3 votes
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Investing for Dividend Income with Canadian TFSA

You do not have to pay tax on any earnings inside a TFSA. Quoting Wikipedia's article, "Investment income, including capital gains and dividends, earned in a TFSA is not taxed, even when withdrawn." ...
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3 votes

Does employer matching contributions in a TFSA count towards the annual limit?

From the government's perspective, you have one TFSA account, and the limit applies regardless of how the money gets into it. So be careful that the employer's contribution doesn't cause you to ...
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2 votes
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Are retirement contributions for temporary workers in Canada mobile?

You are not required to contribute to a TFSA or an RRSP. Nobody contributes to OAS, it's a program to provide benefits to old people for them to be "secure". The only fund you MAY contribute to is CPP....
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2 votes

Investing for Dividend Income with Canadian TFSA

Given you other question and your resulting marginal tax rate, you may want to optimize where you hold each type of security. If you still plan to have a regular investment account, it's hard to beat ...
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  • 1,592
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 ...
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  • 1,592
2 votes
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How do I transfer money from one TFSA to another? [CAN]

The CRA's website has pretty good information on this type of thing. The search function is not great, however, so I recommend going to Google and typing: Site:canada.ca [search term] If you search ...
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2 votes

Long term investing alternative to mutual funds

You are not limited in these 3 choices. You can also invest in ETFs, which are similar to mutual funds, but traded like stocks. Usually (at least in Canada), MERs for ETFs are smaller than for mutual ...
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2 votes
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Taxes on foreign and local dividends held in a TFSA

As far as I read in many articles, all earnings (capital gains and dividends) from Canadian stocks will be always tax-free. Right? There's no withholding tax, ie. a $100 dividend means you get $...
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2 votes
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Possibility to buy index funds and individual funds in a Canadian TFSA

This page from the CRA website details the types of investments you can hold in a TFSA. You can hold individual shares, including ETFs, traded on any "designated stock exchange" in addition to the ...
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  • 6,337
2 votes

TFSA withdrawal

As I'm sure you know if you withdraw from a TFSA you can only reinvest it the next Calendar year (unless you have sufficient additional contribution space available). You can split your TFSA between ...
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  • 30.3k
1 vote

Deposit shares in TFSA before capital gain that exceeds contribution limit

No. If there is no over-contribution when the shares enter your account, there will be no over-contribution if the shares increase in value. You may keep your capital in your TFSA regardless of the ...
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  • 1,520
1 vote

Asset Allocation between TFSA vs RRSP

The below are general guidelines only, and the advice herein may not apply perfectly to your situation. Consult a tax accountant or research these items yourself to be sure this aligns with your needs....
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1 vote

What are the consequences of transferring US equities from TFSA to RRSP?

The other answer discusses issues related to the US-or-not aspect of the securities, but it is worth mentioning that if you make any sort of in-kind transfer to your RRSP, you should not transfer any ...
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1 vote

Are GICs a reasonable investment within a TFSA?

In addition to the advice of @karancan, If you wish to stay strictly with GICs, there are better ways to find good GIC rates, than looking at advertising from institutions you are already dealing with....
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1 vote
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Are GICs a reasonable investment within a TFSA?

This is largely dependent on your overall investment goals. GIC's provide protection of the invested capital and a guaranteed return at the end of the term. However, in real terms, 1.4% over 18 ...
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1 vote
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How does TFSA contribution room carryover work, e.g. unused amounts and withdrawals?

Is the TFSA contribution limit per year $5000/person? The annual TFSA dollar limit for 2009, 2010, 2011 and 2012 was $5,000. For the years 2013, 2014 and 2015 it was $5,500. How are unused ...
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  • 126
1 vote
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Why Does My Tax Free Savings Account Say I Have 0 Contribution Room as of 2015?

You might consider calling the broker you invest with. At mine, you can see the room left to contribute each year in the TFSA. The CRA might just have old/bad data.
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  • 101
1 vote
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Option spreads in registered accounts

From my own personal experience, you cannot trade spreads in RRSP or TFSA accounts in Canada. You can only buy options (buy a call or buy a put) or you can sell calls against your stock (covered call ...
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  • 101
1 vote

Different avenues of tangible returns from index funds and bond funds

If you have already begun investing, you should have received a number of fund materials including a prospectus. These materials will include information about how the fund manages its proceeds, both ...
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