“Love your blog,” Pam says, even without being promised a ride in my new (used) Hummer, now that gas is a buck a litre. “It has helped me and my husband start our marriage on the right foot financially. We are in our late 20s, with two little ones, and a modest income (compared to your readers). We are renting and taking full advantage of the space in our TFSAs. Within our TFSAs we have a balanced, diverse portfolio along with 10% of more frequently traded, high-risk investments.”
So far, so good. But then hubs forwarded Pam this article, which was the subject of some debate in this pathetic place yesterday. “Would you be able to address this topic in your blog?” she asks. “Will gains or frequent trading make us a target for the CRA? Thank you again! You have saved us financially.”
First, let’s recall what a tax-free account is for. When I first proposed it to the Dearly Departed F in early 2006, I intended it to be solely for retirement savings – a companion to the RRSP allowing money to grow free of tax but requiring it to be locked in until a certain age. There would be no tax break on contributions, and no tax on withdrawals. So, a TFSA wouldn’t blow up like the RRSP tax bomb after you quit working.
Alas, F stripped out the retirement aspect, and turned this into an open-ended, tax-free vehicle that the feds have been promoting as a place to save money for new curtains. Money can be withdrawn at any time, then replaced in the next calendar year, and every 12 months all residents are granted a new chunk of contribution room – currently $5,500, rising to ten grand in the next budget (you read it here first).
TFSAs are not only destined to be the replacement for RRSPs for all thinking Millennials (however many there are), but have turned into steamy little love nests for the vigorous procreation of hot, taxless profits. And why not? Between consenting spouses, there is now a potential $62,000 at play (plus accumulated growth since 2009), and this could soon be swelling by another twenty grand a year. Serious money, suddenly.
Given the allowed limits in place, it makes complete sense for people to stop looking at TFSAs as ‘mad money’ or merely a vasectomy savings vehicle, and start stuffing all investments in there which would normally sit in a taxable non-registered account. In other words, if you have a TFSA which has not been topped up, and yet own a bunch of mutual funds or ETFs or stocks sitting around in a ‘cash’ account with a discount brokerage, you lose. The very first thing any loyal Canadian should do is brim their tax-free account – transferring in assets you currently own. It’s called a ‘contribution in kind.’
Pam knows that. Good on her.
But should she worry that the feds have now changed the rules and are going to diddle with profits people make buying and selling assets inside their TFSAs?
Of course not. Unless Pam decides to become a full-time day trader, sitting in front of a screen all day, making two dozen trades and squeezing out profits on spreads. In that case the tax cops might take notice, might audit, and might disallow some of the tax which went unpaid. They might argue Pam isn’t actually investing, but has chosen to become self-employed as a securities trader, and therefore is creating business income within the TFSA. That’s forbidden. TFSAs are for assets, but commercial activity. So Pam’s profits might be called ‘income’ and taxed at her marginal rate.
This is not unlike the approach the CRA has taken with condo-flipping. If you buy a condo, live in it and sell it after a few years, any profits are tax-free. If you buy a condo, and rent it out for a while before selling it, your profits are called ‘capital gains’ and taxed at a 50% discount. If you buy a condo, live there a few months or sell a new one before it’s built, the gain is called income, and you pay the max tax. The logic is you have abused the rules granting a tax exemption for residential real estate. Instead you’re treating the condo as a commodity, and only ever bought it to sell it for a quick profit – which is a business activity. So, pay up.
The Financial Post is correct. There’s a CRA hunt now on for people with extreme TFSAs. Like the financial advisor in Quebec who spent all day flipping junior resource stocks, made 200 trades, and grew the sucker to $180,000. As far as the tax cops are concerned he was doing business. He drew attention because of excessive trading, day-trading, his expertise as a financial professional and the time spent. In other words, said the cops, this dude turned his TFSA into an extension of his occupation. Pay up.
As you might imagine, the investment industry has its panties in a twist over this. There’s no clear line someone crosses from being an active investor to a professional trader. It’s a murky grey war zone in which the CRA makes up the rules, and has all the weapons.
Meanwhile, of course, 80% of all the TFSAs in the nation sit molding in cash – glorified savings accounts issued by bankers with absolutely no interest in educating anyone. And what gets the headlines? A scant few cowboys out to game the system.
Remember this: the first money you accumulate should be in a TFSA, nothing else. Do not save there, invest. You’ll never get the girl or retire rich earning interest. Buy a few well-diversified, large-cap exchange-traded funds. Contribute a hundred bucks a week. Don’t get cute. No junior miners. No double ETFs. No day-trading. And you will never, ever be audited. Just fulfilled.
Now, I’m going for a ride. 6.6 litre V8 turbo diesel, baby.
143 comments ↓
Some dude on bnn has his TFSA to 300k!
I say insider trading!
Had to happen, Canadians with too many wins in their TFSA are being targetted by CRA
http://business.financialpost.com/2014/12/02/canadians-with-too-many-wins-in-their-tfsa-being-targetted-by-cra/?__lsa=c3db-b203
Meanwhile, of course, 80% of all the TFSAs in the nation sit molding in cash – glorified savings accounts issued by bankers with absolutely no interest in educating anyone.
——–
Hey now, at least that mold is tax-free mold.
That number isn’t really surprising though. I suspect banks make a lot more from your savings account as opposed to a few bucks from your trading commissions. Why not take advantage of the masses and push savings accounts.
that guy has 3 asses on his back
So, why NOT use the TFSA as it was intended to be used. Tax FREE Retirement income.
I wish I’d made enough in my TFSA for the CRA to take an interest. Not that I’m complaining. I’ve done okay this year. Still beats a GIC hands down.
Did you actually get a Hummer? If so, sweet.
http://www.huffingtonpost.ca/2014/12/02/vancouver-rentals-curtain-living-room_n_6256198.html
vroom vroom
Thank you, Garth, for the detailed discussion on this. Enjoy the new ride!
O Garth, how I wish I could have learned the financial literacy basics at an earlier age. Better late than never, thanks for all the free advice over the years, it is appreciated.
On a related Van-Economic-Barometer related note, was driving home yesterday & listening to the radio when 2 women called in to request a tune. They said they were “trapped all alone in a liquor store for 4, no – more like 5 hours since we’ve had anyone walk in”, and they realllly wanted to hear this song. DJ asked them “what liquor store?”
“Coal Harbour ____” was the response. Hmmm. Crisp sunny day, first week of Christmas shopping and party season in the heart of the luxury-side of the downtown core, a few blocks from the financial and administrative centers of myriad large corporate office towers, smack dab in the middle of 1dozens of high-rise condo towers, and this store had no customers for 5 hours on Mon. eve. with 2 employees on payroll. The store owner must be thrilled. My first thought before the location was revealed was, I bet it’s right downtown, and I was right. Coal Harbour is an absolute ghost town, even more so after 5pm, and unless your retail business relies on a work-day lunch-type-crowd, good luck ever turning a profit. In fact in recent years even the MSM here has focused on the fact that in this area, businesses are starving for customers, because the promise from the developers of a built-in-consumer base provided by the new condos never materialized. Keep in mind these business owners are paying a premium /sq. ft in lease costs based on the “promised” population increase in the area that never occurred because so many units are neither occupied, nor rented out.
These luxury condos, btw, trade for some of the highest, (if not the highest) per sq. ft. condo prices IN CANADA. This area was one on the vanguard some years back as a place to park big foreign money btw, and not just HAM. This is what allowing runaway speculation in housing-as-investment-portfolio (regardless where the $ originates), has done to the communities where it occurs. It kills them by choking off small business first, then forcing out locals farther and farther afield from their urban workplace, until the area is nearly devoid of life, yet it’s in the heart of a supposedly “vibrant” city. Freakin’ eerie. I am seeing Vancouver being hollowed out year after year, it is a zombie city already in many respects. Not sure how our illustrious leaders will be able to unravel this one without it becoming a flaming financial and societal train wreck in some areas, as it’s been unwinding for a few years now and is already proving unsustainable.
6.6 liter V8 turbo Diesel
hubba hubba bubba
Great post today Garth.
Hey I got a question for ya. With oil prices being so low, when am I gonna see that reflected in Air Canada flights? I gotta go see the family in the Maritimes for Xmas, their prices are ridiculous!!
What about buying corporate strip bonds in my TFSA’s?
Long term maturities with 4.90% to 5.00% so our $73,000 unused TFSA contribution 2009-2015 will become $560,000 by the time we retire at 67 years old.
look forward to your posting each day.you are addictive!.you are much more valuable to canadians as you help us with our money and investments than with the conservatives.thank you so much for all your help.
“….Now, I’m going for a ride. 6.6 litre V8 turbo diesel, baby……..”
=========================
How about the Hawg. Any joy on it this summer?
Shawn.
I was dissapointed yesterday to hear that you wont be posting any longer. Your comments enriched this lovely cespool that Garth gratiously provides. The comments here are interesting, but as in life, must be sifted for those few gems of wisdom. I appreciate those wise individuals that add value to this forum. Your comments were particularly rich in that regard and i respect your reasons for the withdrawl. I would likely do the same. If however you wish to post a comment specific to the message of the day, im sure it would be appreciated.
Over the years of being a daily reader, I have learned a great deal and am now “on my way” financially (for which I cant thank G-man enough). It is transformative in a way that is difficult to express.
Mark, your comments are sometimes on the mark (pun intended). but you occasionally forget the demographic of investor this blog draws. Yesterday you shot yourself in the foot IMHO. Readers are looking for basic techniques and general knowledge, not how to tie a knot with your tounge while doing a handstand.
Thanks all for the great (and not so great) advice over the years. Wishing G a bucket of good carma this holiday season.
Garth I hope you are not serious about a Hummer. The epitome of planet destroying unneeded stuff.
Say it aint so?
How about this guy:
http://www.moneysense.ca/save/tfsa/the-great-tfsa-race-penny-stock-investor
He managed to grow his TFSA to $300k only on a few trades without day trading from what I can understand.
Could that be still deemed ‘business activity’ by the CRA?
Best,
HD
What about if the gov’t only lets someone carry over 10 years of contribution room?
That would be a 100k max (when the 10k/year starts) of carryover room allowed – which is plenty but would limit people to all of a sudden putting in 200k after 20 years of not contributing.
I see Smoking Man is sending us pics from his Vegas trip.
” Contribute a hundred bucks a week.”
How do I get around paying a commission every time I contribute to an ETF? Isn’t it $7 per trade? That’s a lot of trade fees, like 7% per year
Garth, If an investor such as the one described took CRA to court and created an argument based on the vague rules, would he stand a chance?
Garth, you are a serious govt apologist. This is a total over reach by CRA. This guys should be commended for growing his wealth like that, instead he is getting hunted down as usual.
Its always the same with these govt programs. Promise the world, get re-elected and then twist the screws tighter. GST, RRSPs, Income Trusts, CPP, OAS. Story never changes.
This guy got dinged when he got a few hundred built up in the account. And you are talking about people growing this to millions. You have clearly have no idea what the govt plan would be if it started seeing large sums in these accounts. They would put some limit on it, or a transfer tax or a withholding tax or something. They can’t resist.
You thought this was some brilliant scheme to save the middle class. Turns out its the same old tax grab/election ploy as every other program.
If I am not right, then why did the govt also add a sly punitive 1% per month tax on over contributions to the program? I mean seriously, punishing someone who saved too much money by charging him interest rates that Capital One would blush at. This boggles the mind.
You’ve preached these TFSA forever but your cred is failing because you think the govt are a bunch of angels instead of the conniving power hungry say anything fools they really are.
Garth, what you proposed to F was clearly not adopted by him. So I don’t think you should second guess what he and his team decided should go into the account. Junior miners, leveraged ETFs, options and all kinds of instruments are clearly permitted for this vehicle.
Now you’re saying that anyone who invests in these is just asking for trouble and deserves whatever the CRA decides to capriciously and arbitrarily dish out. This is completely shocking and I hope the legal challenges in the works are successful.
I also disagree with you re the Quebec guy. So he is an investment professional in his day job. So this means he is not allowed to have a TFSA like everyone else? The CRA has decided you must be financially stupid to have one? And 200 trades? That’s not even one per day.
Since you are only allowed to put 5500 into this account, I think you should be able to day trade it as much as you like. Its such a tiny little starting sum, why can’t it be your little gambling kitty if that’s what you want? And if you end up with 10 million, great. Why punish these people?
It’s clear that’s not what you wanted. It’s also clear that what you wanted was not adopted. CRA needs to tell people what the rules actually are.
not 1st, spot on. Good post, absolutely right.
I didn’t understand the rest of the story, but a buck a litre?? Who hoo! I’m going to pimp my Cummins and start burning coal!
Oh that sweet Duramax motor!
As per TFSA’S trading rules, similar rules apply to capital gains/losses if CRA can prove you are daytrading with your portfolio, had this happen to me a few years back. All gains and losses were treated as income. Keep in mind there were thousands of trades per quarter. That’s before the kids arrived and I actually had some free time ;) lol
2006 Hummer H1 Alpha?
Now, I’m going for a ride. 6.6 litre V8 turbo diesel, baby.
********************************************
Oh yeah, are a mopar boy my boy?
Sounds like a dodge ram to me..mmkay.
I have a hypothetical question… let’s say a similar situation but instead of the TFSA you’re in an RRSP?
And let’s say you have 50k contribution but manage to grow it to 400k in a year. Would the CRA want to get more taxes from you or will they just lick those sticky little fingers waiting for that first ‘withdraw’?
I had an interesting meeting today with a loans officer. A bit of background first; I moved to a small town for work a while back and I like the job and the town. Small problem though, there isn’t any housing to buy or rent. I talked to a contractor and calculated that I could build a small 3 bed house (covering all of the costs Garth itemizes) for what my 1 year lease costs. I have to move out at the end of the lease b/c the owner is returning.
I went to visit [email protected] who said I would need to have $100,000.00 liquid in an account to pay costs upfront. The bank would progressively re-pay me only after I had first cleared billing from trades and suppliers at the various stages. She said this policy started a couple of months ago and suggested I go to a Credit Union and apply with them. Interesting.
#23 VanDamm
To keep your trades to a min, rebalance once a year, you can make a global diversified etf portfolio with 8 or less etf’s, just add money to the laggards, should be able to keep trades down to 4-5 once a year including all large caps, small caps, reits, emerging markets and EAFE index’s……..simple and streamlined.
That’s 50 bucks at the $9.99 online investing brokerages minus the small weighted average MER of about 0.32% that this etf’s will charge you to own them every year.
I thought the purpose of the TFSA was the create wealth that will eventually find its way back into the economy. More money people make on the TFSA more consumption they will make. More consumption and more wealth create more growth and prosperity for everyone. If you taxes every little penny that people makes, how are we supposed to generate wealth in Canada. Imagine this guys goes out and spend it money. This will create real growth.
Who is more suspicious, the guys with 200 trades or the one with 300k without barely any trade. The ones with 200 trades has worked to get good return. How do you make 300 k without barely any trade. The guy with 300 k look much more suspicious to me that the one with 180k. The one that made 300 k with barely trade is probably an professional investor that has use the TFSA as a means to hide income taxes.
Canada is going the way of Argentina after they defaulted on their debt. Argentina government has socialized the private pension fund. Probably the same thing will happen with the RRSP.
Making the law difficult to interpret is what banana republic do when they run out of money
#12 Vanecdotal on 12.02.14 at 8:55 pm
I am seeing Vancouver being hollowed out year after year, it is a zombie city already in many respects.
==========================
Couldn’t agree more. We were visiting Victoria this weekend and I was amazed to hear myself saying to my wife that downtown Victoria is now much more interesting than downtown Vancouver, but it’s true.
Central Vancouver is becoming one giant Holt Renfrew store suitable only for wealthy matrons with small dogs in their bejewelled handbags. It takes more than blandly tasteful shopping and expensive water views to sustain a city’s soul.
If you just add to your positions regularly in your TFSA, that should be ok with CRA. Buy and hold not only will win in the long term, but also avoid CRA raiding your hard earned money.
$20,000 annual TFSA contributions for the next 42 years with compound interest 4.90% to 5.00% annually is $2,802,000 plus $560,000 which is $3,362,000 tax free.
This is not even including our $25,000 annual RRSP contributions and $10,000 annual RRSP tax refunds reinvested in non-registered dividend ETF’s at 4.65% to 4.90%.
$8,200,000 by retirement is looking very possible now.
VanDammeCouver:
How do I get around paying a commission every time I contribute to an ETF? Isn’t it $7 per trade? That’s a lot of trade fees, like 7% per year”
Questrade, Virtual Brokers and Scotia iTrade all offer commission-free ETFs when buying. I’m not sure if any others have joined this trend. I believe Questrade is the only one that offers almost every ETF on the major North American exchanges though.
#25 not 1st
Why have a limit at all then? Why pay taxes for anything? The TFSA is there so normal people have incentive to save a bit more money to supplement their existing retirement investments. The penalty has to be meaningful enough to discourage abuse. If the penalty was like $100 I’d just transfer all my unregistered holdings into it, and pay no tax on them ever.
Jimmy are you referencing my twitter feed, or blog?
I took a ton of pics. But to be used more for referencing when wine-ing and writing.
Dogs I have something special to share.
I downloaded google docs. I will no longer be the frightened troll under the bridge of Dyslexia. I can now write with elegance, decorum reserved for royalty, error free every time. I can now pass judgements on all the bastards that piss me off, void of that little voice in my head always thumping, your not worth to post, stop it, you’re making a fool of yourself…..
Hey voice inside my head… You are now my bitch.
TFSA’s are a good option. However, all things being equal (capital invested, investment timeline, ROR, tax) the returns you’ll get from a TFSA will equal that which you get with an RRSP. The only real difference is: pay now (TFSA), or pay later (RRSP). So, the trick is guessing under which scenario will you pay less tax.
To the guy in the pic….
You, sir are no Jack Kennedy…….errrrrrrrrrrr, Kardashian…….
either grow some buns or get implants. But I smell an opportunity here, Reality tv beckons …think the opposite of “The Biggest Loser”, maybe “The Greatest Bunsmeister”
The question I have about these TFSA values is: what is the source of information about these numbers that the government has? Do the TFSA providers remit these numbers to CRA?
Of course. They are registered investments. — Garth
At least the CRA purportedly uses this list of criteria to determine if your TFSA activities are taxable.
http://business.financialpost.com/2014/12/02/heres-what-will-get-your-tfsa-audited-by-the-canada-revenue-agency/1/?__lsa=cbf0-fec8
#23 VanDammeCouver
Major discount brokers offer commission-free ETFs. They differ in the selection and there are some conditions, so feel free to call them up and grill the call center person to explain any limitations. The limitations are common sense, like you have to place the orders online, not by calling a broker, etc.
Here’s the list from Scotia iTrade.
#38 James Tanner on 12.02.14 at 9:50 pm
—-
Drugs must be good tonight…
hi Garth
what do you mean by ‘ no double ETFs’
Here is a list from Qtrade.
I use HXS and HXT for their tax-deferral benefits
https://www.qtrade.ca/investor/en/aboutus/services/etfs2.jsp
“Instead you’re treating the condo as a commodity, and only ever bought it to sell it for a quick profit – which is a business activity. So, pay up.”
Are the CRA prepared to pay back, once such “business activity” creates some loss (which will sure happen, not long from now)?
Nov 28 -In other words, have kids to serve and admire you? That’s noble. — Garth
Winner: Best comment of the month Garth!
The words are flowing out like a ragging River.
Small excerpt I just did for Chapter 4.
My buzz is hitting me hard too, I love this salt and Jack combo. I don’t know what it is about this town, people trapped in a fish bowl, surrounded by mountains while baking under a scorching sun, it must zap brain cells. In Vegas you always over do what makes you feel good, especially if it’s bad for you..
I call the guys over, “Boys I got to take care of a bit of a business, go to the Bellagio, take the bastards down hard, each of you don’t leave till you have five hundred grand each. Then head over to Ceasers, while there, each of you lose a hundred grand. I’m really fond of host Ron, and will need his help with Hugo.
Barrington says. “Is everything OK, do you want me to come with you?”
“No, but I need a distraction so no one sees me fire up my personal flyer. You see that seventy year old homeless woman sitting on the curb, youthfullize her. Float her right over the strip. Go with Sorrow from Pink Floyd as back ground music, and make it f-en loud. We’re going to make these magicians at the convention famous.” I said.
The entire atmosphere is throbbing to the start of Sorrow, vibrations so hard you can see the windows pulsating. The old lady slowly floats to up 30 feet to the rhythm of Sorrow. She’s now directly over the strip, people are getting out of their cars. All the news crews, every smart phone are filming this historic event. Barrington slowly spins her shedding fifty pounds, fifty years, and all her clothing in one revolution. The crowd goes wild.
With all eyes on this naked perfect beauty floating in the sky I activate my personal fly-er. For half a second my round red plasma ball capsule is visible, I switch to stealth mode, now completely invisible.
I zoom up to 500 feet, Las Vegas Boulevard and Flamingo Road. The view if spectacular. Shit!!. watch where you’re going, god damn idiot, a chopper just missed me, lucky I had anti collision activated. I should just blast him out of the sky with a death ray.
I can’t believe this, I’m looking down and see Hugo is arm in arm with Claire. He’s staring right at me. He’s oblivious to the naked beauty right in front of his face, the bastard can see me, screw this, I’ll figure him out later. In less than a second I’m hovering over the parking lot of Cheetahs. I drop to the parking lot. Kill the master switch of my flyer, I start walking toward the door.
I don’t even know what Krunt looks like. I never understood the appeal of strip joints, why men would waste hundreds of dollars getting teased when they could buy the real thing for a fraction of the cost a night in here sets you back.
Bloody Outrageous! A thirty dollar cover charge and it’s only topless, I’m so tempted to explode a few heads. This is highway robbery.
I scan the room looking for Krunt.
Hello Garth
thank you for this post
>If you buy a condo, live in it and sell it after a few >years,any profits are tax-free
Please could you be more specific for those who want to flip a property every few years, this sentence is like a rubber band for me and I’d like to know how far LEGALLY can be expanded. Always it has been a question digging my head without the right answer for it.
Ooooo turbo diesel. The real question is do you have truck nutz?
Gas at 1$ per liter? 6.6liter engine? This would not be if you lived in tax-slave province of quebec….
Let’s see, gas at 1.20$ AND a 200$ surplus on your ANNUAL license plate for engine bigger than 6 liters would be more like it…..
And let’s not forget our magnificient TVQ & TPS totalling a 15% addition to your purchases.
Speaking of TVQ & TPS, as we say up here: Tu Vis au Québec, Tu Paye en Sacramant!!!
Off topic, but did anybody else see this? Vancouver closets for rent. This is how some people afford a D/T condo.
http://www.huffingtonpost.ca/2014/12/02/vancouver-rentals-curtain-living-room_n_6256198.html
@VanDammeCouver – I use commission free ETFs as one option. Wait for the free trade deals on new accounts to come up – those can be worthwhile too.
And just cause you save every week, doesn’t mean you have to buy every week. Save up and do a monthly buy or quarterly rebalancing.
What if I have many trades and losses on my TFSA account? Would CRA reduce my taxes or give me capital loss room?
Just asking.
Re: #23 VanDammeCouver on 12.02.14 at 9:10 pm
You hit the nail on the head something everyone else missed. With the limits so small on the maximum amounts for TFSA the commissions will eat most quote investors alive. Even on a single trade you’re on a losing street. Drawing an analogy to horse racing something known as breakage. Unless you own a seat on the stock exchange commissions will put you in the hole on meager account balances such as the small amounts in a TFSA. Also with the stock markets so overvalued all you can really do is day trade inside a TFSA.
#41 Schmoking Man
Having not been here long, (a few months) it took me some time to figure out your dyslexia challenges…I hope your Google thing gives you more peace and confidence with words, but I will miss your more inventive use of language!
And Garth… Thanks (especially) for today’s post!
DELETED
I think this TFSA gouge is just the first shot across the bow. The vehicle was intended as political…never intended by government that it should be used by average Cdn’s….now that it is…they’ll intimidate and shut users down. Just like ‘Tax deferral at source’….and the infamous ‘income trust’ debacle. I see an end to TFSA use within 2 years as more people are attacked with CRA paperwork, audits and assessments. The CRA will say….”Take us to tax court”….because they are the ‘tax court’. You will be skewered….you will lose….have no doubt. Mr Harpers latest announcement doubling TFSA amounts will be for people with CA’s doing their accounting….only. ….and last no longer than the election cycle.
No, the TFSA will not end. — Garth
I’m guessing the Big Five are pumping this exposure as well.
Given their disappointing results currently rolling in, they probably couldn’t stand the fact that a guy made a killing inside his bank TFSA without their usual extortionist MER’s.
http://m.theglobeandmail.com/report-on-business/fresh-worries-arise-over-future-of-general-motors-in-canada/article21895602/?service=mobile
A shutdown of Oshawa would eliminate about 3,600 unionized jobs at the two assembly plants. About 2,700 Unifor members work at Cami.
Tens of thousands more jobs at suppliers also depend on GM’s Canadian production.
I understand that TFSA were not meant to hold business-like revenue.
And daytraders are certainly generating such kind of revenue.
However, it feels like the CRA can do anything they want to get your money without any rule to back them up.
TFSA never came with a disclaimer about business–like revenue so these people should not be penalized.
If CRA wanted to address the problem, changed the TFSA rules first.
Hey who called the tfsa increase “first”!?
http://www.thingsyouwontlearninschool.ca/the-desk/what-is-a-tfsa-part-2-how-do-i-cash-in
Shocked it wasn’t our fellow blog dog Josef, haha
Invest well Ppl. TFSAs will be awesome in five years. Bank ladies will be showing you awesome brochures about how fast your money will grow!
The 10K limit was announced during the 2011 federal election. I merely told you when it would be implemented. — Garth
Question el gartho
What do you think CRA would think if you hired someone to day trade ones TFSA account, for a commission? Would that be legit? They do the work, make their money (income), and ones TFSA grows great as an investment. Just for the sake of simplicity, let’s leave aside the “really bad idea” notion of putting huge risk into some one else’s hands ie lose all your money.
http://www.google.ca/url?q=http://whispersfromtheedgeoftherainforest.blogspot.com/&sa=U&ei=D4N-VNjYIpPnoATdtoLYDg&ved=0CBQQFjAA&usg=AFQjCNGINecQOIWX8qGKhnw73fBykQC7Bw
200 trades in 1 year is only slightly more than 1 trade every 2 days. Hardly what you call a day trader. The bait and switch about the TFSA is worrying, barely 5 years old and now they don’t like people being “too successful” and want to re-write the rules.
If TFSA trading gains can be taxed as business income, then TFSA trading losses should be tax deductable. Don’t hold your breath waiting for that to happen.
Hell’s fury will be unleashed on TFSAs if the NDP or Liberals every come into power. All governments want first claim and sole right to choose how much of our wealth is to be siphoned away as a condition of our existence.
The difference is only in degree. Many warned in early 2009 that once the government saw how much grub they are missing out on over time, the TFSA would quickly we re-worked. You are seeing the earliest indications of it now.
“Screw the rich day trader” some may say. This will not be a comforting precedent to set when more and more are next.
[…] Source: http://www.greaterfool.ca/2014/12/02/pushing-it/ […]
@#43 Glutus Minimus
Good one.
T. Boone Pickens says that oil is going to be back at $100 within 12-18 months. Sounds good to me!!!
http://video.cnbc.com/gallery/?video=3000335565
#23 VanDammeCouver:
Was also thinking if I had to do it over again, one could invest in (for example) vanguard all world ex-Canada etf (VXC), add money once a year for a few dollars in commissions, it has over 3000 stocks from all over the world except Canada, which is a small market, and you could choose to include Canada with or without another fund/etf. If don’t get much cheaper than that.
Guy I play hockey with has been buying call options on the S&P 500 since 2009. He has really nice equipment.
Could a person buy shares of their personal corporation with their TFSA then pay massive dividends on the shares?
http://m.thestar.com/#/article/business/2014/12/02/consumers_debt_load_higher_equifax_says.html
The national debt load rose 7.4 per cent in the three months ended Sept. 30 compared to the same period a year earlier, according to the agency’s National Consumer Credit Trends Report.
The average debt held by Canadians, excluding mortgages, was $20,891 per person at the end of September, Equifax said in the report to be released Wednesday.
“Following a frenzied start to the festive shopping season with more to come in the countdown to Christmas, we can expect the consumer debt to rise even further,” Malina said in a statement.
Re: Shawn on yesterdays blog.
You said you did not think anyone changed their minds about anything.
I for one enjoyed your comments and scrolled through for your take on things over the years.
A few times I printed them so I could learn.
This Blog and the people on it have taught me much.
I truly appreciate the time and effort you, Garth and others have put into the blog.
…”steamy little love nests for the vigorous”… Hon.GT
Funny you should say that, AuldPol…
http://youtu.be/L9as3GwRpFk
[NoteToSaltierBlogDogz: Did I miss anything? NoteToGT: Just between TheThreeOfUs: http://youtu.be/GN2TYxuxVAY …BonusZen!… CautionaryTalesFor… TheBenefitOfGreaterFoolTrolls… WhoPersistIn’PushingIt’…: http://youtu.be/4aRryzzZLTI ]
Don’t forget TFSA or not she gets half, so if she isn’t working loose her.
It’s a long story how we evolved to have the traits we do, starting something like chimpanzees where a group of mating males protected a group of mating females and somehow evolving into property rights where individual men protected individual women. But that’s all gone now. Protect yourself, she’s after your money.
If you want TFSA’s get one for you and one for her and fund them both, but make sure your prenup says you are both walking away with your own. Better yet don’t get married unless you really want kids some other series of men will raise more than you do.
#23 VanDammeCouver:
Let’s say I have a portfolio of $100,000, consisting of 4 different ETF’s. And let’s say every 4 months I buy another $1000 of each ETF ($4000), and it is $10 fee per trade. At the end of the year I will have paid 4x10x3 = $120 in trading fees, and I will have purchased $1000 x 4 x 3 = $12,000 of new ETF funds.
If the MER is 0.5%, and let’s say the stocks within the fund have a 0% gain in 1 year, my total after 1 year would be $100,000 x .995 + $1000x4x3 – $120 trading fees = $111,380. (I am disregarding the MER fee on the $12,000 purchased throughout the year, which would be approx $12,000 x .005 x 6/12 = $30).
The fees paid in the above scenario would be 1 – (111,380/120,000) = 0.55%. This is a much better number than a mutual fund MER.
Can anyone check my math?
Also: Let’s say you’re starting with $0 in your ETF account. After 1 year, you’d have deposited $12,000, but you’d have paid $120 in trading fees. So you would have paid 1% in trading fees ($120/$12,000), and in addition to the 0.5% MER, you are essentially paying about 1.5% “total MER”.
So, perhaps ETF’s are only best used if you have at least $25,000 to start with, to keep trading cost % low.
Otherwise I think you can buy index funds, which are different than ETF’s in that there are no trading fees, BUT I believe they have slightly higher MER’s than ETF’s.
@mishuko
suppose you can flip 50k into 400k in a year, and you sell
in a non rrsp account, you have 350k cap gain, equivalent to 175k regular incom. in a rrsp account and suppose you withdraw it, you have 400k income. dingdingding CRA wins.
moral of the story : keep hi growth stuff in your tfsa, or at least, outside of rrsp. don’t get your cap gain taxed as regular income.
(note : rrsp does offer some tax shelter if you buy/sell and do not withdraw. everybody’s situation is different. do your own calc / plan carefully )
I have driven double decker buses with less ooomph than 6.6 litres.
Great advice as usual, Garth. And I don’t blame the CRA for cracking down on day-trading TFSA owners. Not fair for someone to become wealthy and not pay the appropriate tax.
And people like yourself buying gas-guzzling Hummers will drive up the price of oil in no time! Thanks, man. My oil company shares should be rebounding soon.
#15 James Tanner on 12.02.14 at 9:01 pm
What about buying corporate strip bonds in my TFSA’s?
Long term maturities with 4.90% to 5.00% so our $73,000 unused TFSA contribution 2009-2015 will become $560,000 by the time we retire at 67 years old.
The problem with your strategy is that as interest rates rise, the present value of your bonds, especially ones with long term maturities [your capital], will get crushed.
re #68 April
From your link:
“The increasingly interventionist actions being taken by the Conservative government and Finance Minister Jim Flaherty to dampen the market….”
I guess they didn’t get the news about the “elfin deity”
#80 Shawn G in TO on 12.03.14 at 3:02 am
@mishuko
suppose you can flip 50k into 400k in a year, and you sell
in a non rrsp account, you have 350k cap gain, equivalent to 175k regular incom. in a rrsp account and suppose you withdraw it, you have 400k income. dingdingding CRA wins.
moral of the story : keep hi growth stuff in your tfsa, or at least, outside of rrsp. don’t get your cap gain taxed as regular income…
************
I think Mishuko’s actual concern (and it’s legitimate) is will CRA see your RRSP exploding higher some year and decide “oooh, you must be a “day trader”. You can’t do that inside an RRSP. We will now tax it as regular income”. Then they crawl over over your RRSP with grubby little fingers trying to decide how much to tax and how much to fine.
And let’s dispel a little bit of the mythology of day traders. Most make losses. Garth knows this. If it was quick route to riches nobody would be hanging out on this blog posting comments we’d all be trading forex in Europe at 7am, waiting for the US market to open.
So if the CRA decides using their little “formula” that you are a “daytrader” because you happened to have a good year, are they going to let you carry forward losses? Write off losses against other income? Carry back losses? How will day trading in RRSPs be treated? Will that be taxed as regular income too?
Eagerly awaiting word from all the grubby little CRA spooks hiding out here and I hope you lose your lawsuit.
#80 Shawn G in TO on 12.03.14 at 3:02 am
@mishuko
suppose you can flip 50k into 400k in a year, and you sell
in a non rrsp account, you have 350k cap gain, equivalent to 175k regular incom. in a rrsp account and suppose you withdraw it, you have 400k income. dingdingding CRA wins.
********
Plan B – daytrade in your RRSP. CRA doesn’t care (so far). Get your balance up to several million. Emigrate. Pay 25% tax on lump sum withdrawal of your entire RRSP after you emigrate. Your entire pot has grown tax free, and the tax you pay is lower than it would be if taxed as income. You have not attracted the interest of TFSA auditors. Hang out on the beach in a lovely country like Portugal which extends 10 year visas, and after a few years if your really miss Canada, move back. This option makes the RRSP much better than the TFSA.
So the new rules according to CRA is that we have to be careful with the frequency of trades inside a TFSA so not to deem it day trading…great. Now it they could just tell us what that number is. What about making too much $$ through the options market using leverage with just a few trades?…will that be OK?
Way too much being made of this. Obviously the CRA is after people turning TFSAs into businesses through professional trading. You are still completely free as an amateur to use extreme leverage and highly speculative assets to prove you’re an idiot. — Garth
We need Dalton McGuilty’s crocodile tears, or
Tim Who-Dat preaching about hard working families like mine.
I always wondered why they build small demand models here. Camaro, Malibu, Impala.
An opinion:
http://www.theglobeandmail.com/report-on-business/fresh-worries-arise-over-future-of-general-motors-in-canada/article21895602/
“The current General Motors Co. product plan points to the end of vehicle production in Oshawa, Ont., and a cut at a plant in Ingersoll, Ont. to a single shift, said Joe McCabe, president of auto industry consulting firm AutoForecast Solutions LLC.”
The only other person I know who drives a rusty aging H2 is a psychotic woman who spins lies all day and lives in a fantasy world where she believes she is important. Wait a minute…
And I drive a V8 too but mine is a German biturbo and doesn’t require monthly repairs or overpriced diesel.
Deckard, the number seems to be 100 trades per year. So be sure to keep under that number in your TFSA or RRSP (the attached is in french but you can read with google translate)
http://www.finance-investissement.com/nouvelles/developpement-des-affaires/day-trading-le-fisc-surveille-vos-clients/a/34776
Interesting, this guy made no secret of day trading his RRSP for many years. Then took out some money, speculated on a dodgy scheme, lost money and tried to claim it as a business loss. CRA said no and treated it as a capital loss (so he could only claim 50%). Furthermore the judge himself said “the Act treats an individual who trades within his RRSP differently than a taxpayer who is in the business of trading. For this reason, trades within an RRSP are not relevant in deciding whether an individual is in the business of trading.”
http://business.financialpost.com/2014/02/04/can-frequent-trading-in-an-rrsp-be-treated-as-a-business/
#188 Daisy Mae on 12.02.14 at 9:08 pm
#144: “The lord givith and the lord taketh!”
*****************
Let’s leave your religious beliefs out of it. Okay? This is the second time…
_____________________________________________
Its a metaphor Daisy Duke, or Daisy Mae or Elly Mae or whatever you are? Get over it, and I don’t ask or tell about beliefs.
Look at these graphs showing how dramatically the middle class has been collapsing in Toronto and Peel region over the last 40 years.
How many who even consider themselves in the middle are only clinging by their fingernails to that status, highly leveraged in horribly overpriced and overvalued real estate that is about to implode?
We are headed for such trouble, I am afraid.
https://twitter.com/Hulchanski
#52 Smoking Man on 12.02.14 at 10:23 pm
The words are flowing out like a ragging River.
_____________________________________________
Good try Smoking Man, Goggle Docs is not doing you any good as your lingua franca choices are erroneous.
“The words are flowing out like a ragging River.”
“ragging you meant raging” or then again perhaps you wanted ragging?
Why the Keystone XL Pipeline Is Already Dead
http://finance.yahoo.com/news/why-keystone-xl-pipeline-already-113000920.html
#33 FormerSaskie
That’s not a new bank policy. I’ve built two houses that were financed this way in Winnipeg – one in 2004 and one in 2010. The bank just wants to ensure that the debt is secured by something “resellable” if you disappear or go bankrupt.
Hi Garth (et al.),
Quick TFSA question for you. We left Canada in 2008 before the TFSA was introduced, when we return to Canada in the future, will our TFSA contribution room be $0 for the years we were non-residents?
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/tfsa-celi/cntrbtn-eng.html#tfscntbtnrm
Zero for calendar years lived away. — Garth
Grand Jean est mort.
http://www.cbc.ca/sports/hockey/nhl/jean-b%C3%A9liveau-beloved-canadiens-hockey-legend-dead-at-83-1.2708477
It would seem to me if in TFSA you cannot have a capital
loss for tax purpose,s how can it be a business?
Never saw you as a compensator Garth.
Compensator: “Def: Pressure control on a piston pump; An alternative term for pipeline expansion joints; A muzzle brake, used to counter the recoil of a firearm, or to prevent the muzzle from climbing due to kickback from the rapid firing of an automatic or semi-automatic weapon; A device that offsets or counterbalances a destabilising factor.” Don’t see myself that way, either, oddly. — Garth
I’m not one of those day traders and probably never will be. However, if I was and grew my TFSA to 180 grand and the benevolent government wanted me to pay up, I would consider it to be a nice problem to have. Not only that, but I would absolutely LOVE to be required to pay 100 grand in income tax. It would mean I made more than double that amount of money in income!
It seems logical that the feds want to tax peoples’ activities (jobs, businesses, etc.) Spending effort and time above a certain limit on trading in the TFSA is an activity that the feds want to tax. Fair enough.
However, they may be opening a can of worms here, because day trading is mostly a losing game and there are more losers than winners here. Hence, they may get a piece of the pie from the successful ones and in the same time get claims for tax deductions from those who fit the definition of day traders in a TFSA account and actually lost money.
If the feds will only play in one direction, i.e. tax the profits but shaft the losers, then this could be quite successfully contested in courts by the shafted ones. Given that there are usually more losers than winners, this recent initiative quite possibly will turn into a losing game for our beloved government.
Why do I assume that there are more losers than winners? Because I’ve been there, done that. Won some, lost some and it is so hard to win a certain amount than to lose it: there are trading fees, borrowing costs, spreads, etc. All of these work against the trader.
#18 Are you suggesting Mark was doing sort of a “handstand on his cat” yesterday
http://40.media.tumblr.com/tumblr_m4ohn8qeFI1qzpsuoo1_1280.jpg
I don’t know if this has been mentioned by anyone else yet, but the caution against being an over-active trader, such that CRA might deem your trading occupation a business rather than wealth management, has ALWAYS been in place. It applies to anyone with a self-directed trading account, no matter what you are holding, not just TFSAs.
Whether or not you are deemed to be running a trading business for income vs. just investing for retirement has always been largely at the discretion of CRA. But I bet, as the hunt for money intensifies, more and more traders will get snagged in the CRA net.
Be careful.
#85 max
How will day trading in RRSPs be treated? Will that be taxed as regular income too?
It IS taxed as regular income at the time withdrawn.
Many in the U.S. Intelligence Community fear a 25-year Great Depression is unavoidable…
What if Jim’s Right?
**********************
Garth, what do you think of Jim Rickards? (A friend of mine is getting all worked up….) LOL
Buy oil sell Dollarama imo. Dollarama should be on everyone’s screen as its a barometer of Canadian retail.
55 Quebec Slave on 12.02.14 at 10:33 pm
“Let’s see, gas at 1.20$ AND a 200$ surplus on your ANNUAL license plate for engine bigger than 6 liters would be more like it…..”
$200? Wait until we (finally) get a carbon tax…
party is still on folks! used to be that $ made the world go round, now it’s just debt.
http://business.financialpost.com/2014/12/03/canadians-debt-mountain-tops-1-5-trillion-and-thats-not-including-mortgages/
http://www.calgaryherald.com/business/Bank+Canada+make+interest+rate+announcement+economy+shows+signs+life/10435684/story.html
The spending orgy continues in this country. We just hit $1.5 Trillion in consumer debt and with the looming interest rate hikes on the way, oil simmering in the 60 buck a barrel range. Not good!!
Last night, in an attempt to resolve this TFSA debate to my own satisfaction, I sat back in my easy chair and let reality have free reign in my mind for a while.
And so… given that:
1. There are personal affairs and their are business affairs, each of which is taxed accordingly.
2. The first arbiter on the difference is the CRA.
3. The second and final arbiter is the court system
4. The individual is never the arbiter.
It follows that:
Crying the blues about the system as it exists is quite unproductive. It behooves the individual to play the game according to the intended ‘spirit’ of the rules and hope that reasonable minds prevail.
If that should turn out not to be the case one can chalk it up to another lesson in the school of hard knocks.
The battle has begun….
http://www.repmag.ca/news/quebec-boards-file-motion-against-fsbo-186063.aspx
“Not only that, but I would absolutely LOVE to be required to pay 100 grand in income tax. It would mean I made more than double that amount of money in income!”
It is not about good/bad problems to have. It is about CRA being able to retroactively decide to tax anyone without being clear about the rules in the first place
Planet killer.
Literalist. — Garth
#48 double ETFs = (2x) leveraged ETFs
Planet killer.
——–
or humanity saviour?
without some serious warming (more than 2deg)and a boost in CO2 we can’t grow enough food for the future
Do mutual funds hold any positive points against etf,s or is it all on way traffic?
#105 Daisy May
Many in the U.S. Intelligence Community fear a 25-year Great Depression is unavoidable…
——————————
The US government is a mess right now and long term things do not look good. The US Federal Reserve calls the shots and it is owned by the private banking cartel who answer to no one. No one, the US president is a puppet who serves this cartel not the American people, the system was hijacked long ago and people need to realize this. Study the US federal reserve act that was brought in in 1913 and you will see this devious plan was cast over a hundred years ago and now has a firm grip on the money supply of a great “free” nation like America.
I am not a paraniod doomer I am just presenting the facts. Am I invested in the market with hopes of a nice nest egg for retirement? Yes. Am I prepared to watch the “free” world slip in farther into a depressing police state? Yes.
Until the problem with the federal reserve is properly addressed America will just slip farther into debt and be at the mercy of the shadow goverment aka the banking cartel who are likely insane and very disconnected from reality of you and me. Drunk on power. What more could they want? Who knows? Complete control.
Anyway the last person to think of addressing this issue of the federal reserve act was JFK. No one else has stepped up to the plate since and no wonder why.
There is a myriad of information out there right now for those who care to educate themselves and look at the big picture. The rabbit hole is very deep and unless there is a mass awakening where we are going is not pretty. Any rational person should be able to see that
116 For those about to flop… on 12.03.14 at 2:13 pm
Do mutual funds hold any positive points against etf,s or is it all on way traffic?
==========================================
compare the MER’s. high MER’s can eat up to half your final balance at retirement
#82 Lillooet, BC on 12.03.14 at 4:57 am
Great advice as usual, Garth. And I don’t blame the CRA for cracking down on day-trading TFSA owners. Not fair for someone to become wealthy and not pay the appropriate tax.
And people like yourself buying gas-guzzling Hummers will drive up the price of oil in no time! Thanks, man. My oil company shares should be rebounding soon.
++++++++++++++++++++++++++++++++++
Except for the fact that “running out of oil” is a scam as old as the diet and drug industry.
We could all be driving Hummers and never run out of oil. Do some research and stop listening to govt propaganda machines.
What do high oil prices do:
More tax revenue (royalties and tax on top of tax GST)
Carbon tax (more tax revenue)
Employ Albertans (yet more tax revenue)
Sends oil to China and the US (yet even more tax revenue)
Oil is a “always scary running out resource” because govt around the world…..needs tax revenue. Those 100K per year Public Servant pensions and salaries surely cannot be paid for with 10 buck an hour part time Starbuck’s employees now can they?
Then there is Al Gore and his “hockey stick” of the whole earth melting 8 years ago. Except:
http://www.cknw.com/2014/12/03/drop-in-temperatures-spark-increase-in-gas-use/
Climate change means weather change. No surprise there. — Garth
#110 Mister Obvious on 12.03.14 at 1:18 pm
Last night, in an attempt to resolve this TFSA debate to my own satisfaction, I sat back in my easy chair and let reality have free reign in my mind for a while…
Crying the blues about the system as it exists is quite unproductive. It behooves the individual to play the game according to the intended ‘spirit’ of the rules and hope that reasonable minds prevail.
**********************
Cheez Louise, why not just pick up the phone and ask the folks at CRA what the ruling(s) is/are. If you don’t have confidence in the first or second person you speak with, ask to speak to a supervisor. Then ask for a print out of the ruling to be mailed to you. Keep that print out.
How hard can this be folks? And before you jump down my throat as is your wont, ask youself this. “Does the problem really apply to me? How likely is it that I’ll make so much money in my TFSA in one year that I’ll attract any attention at all?”
You are too reasonable for this blog. — Garth
Will put more money next year to a self-directed TFSA. Thanks Garth.
The rest is in GIC at tangerine – have to wait.
Another point it to withdraw all money from tangerine from saving accounts in December. They usually give a better rate for first few months of the next year. I know, Garth, I do not yearn much but any extra interest feels good in TFSA.
What a total waste of a good vehicle. — Garth
push and pull x 3
The internal emails at JPMorgan and Bartholomew’s resume are now marked as Exhibit 76 in a two-year investigation conducted by the U.S. Senate’s Permanent Subcommittee on Investigations into Wall Street’s vast ownership of physical commodities and rigging of commodity markets.”
…manipulative bidding strategies focused on CAISO’s make-whole mechanism, called Bid Cost Recovery or BCR payments.”
http://wallstreetonparade.com/
Thanks for the response guys.
I do plan on following Garth’s advice in that I would utilize TFSA and use the carry forward of my RRSP to save for when I’m in a ‘higher’ bracket and want to lower the taxes for that year… and do the double whammy by dumping the credits back into the RRSP or TFSA or pay down debt. I’ll cross that bridge once I start making real doe.
Til then I’ll just be at a tax farm trying to make my mark so that this little mellenial/gen-y’er can join the glorious investor class.
It is getting near the end of the year. At this time of year, I review my income for the year, and see what amount of “head room” I have in my current tax bracket (15%) married filing jointly to shift money from my taxable (401K = RRSP) to my (ROTH accounts=TFSA). Income limit roughly 79,000 before you hit that next higher bracket here. I have room to shift about 35 grand to tax free.
I am not old enough yet to be forced into mandatory withdrawals, but paying the minimum 15% now to attain future “TAX FREE Growth” seems like a no-brainer.
I need to ensure that by the agree of 70 I don’t have ‘too much’ in the (RRSP = 401K) that would force a mandatory withdrawal and push me into the next higher tax bracket.
I have done the math, and if left alone it could exceed the threshold number. Better to take the preventative preservation than wait for that possible ‘oh shit’ moment.
Using this idea, I can shift about $280,000 over the next 8 years to avoid those higher limits. Does anyone believe the tax bite will go down over the future? I do not.
Regardless of how the markets perform in the future have tax exempt $$ beats having $$ subject to the prevailing tax rates.
93 Holy Crap Wheres The Tylenol on 12.03.14 at 10:22 am
#52 Smoking Man on 12.02.14 at 10:23 pm
The words are flowing out like a ragging River.
_____________________________________________
Good try Smoking Man, Goggle Docs is not doing you any good as your lingua franca choices are erroneous.
“The words are flowing out like a ragging River.”
“ragging you meant raging” or then again perhaps you wanted ragging?
………
Nice to see someone’s awake…
#101 gladiator
No they’re not opening a can of worms. You don’t get to claim damages or losses from engaging in a prohibited activity.
If you want to daytrade, and claim losses against your gains, you can already do so within an unregistered trading account.
I get what you’re saying about the primacy of the TSFA. However, you wouldn’t suggest cashing out an existing RRSP, paying the tax, and then investing the leftover in the TFSA before retirement, would you?
Nope. — Garth
Did banks became more risky recently?
Looking at RBC report:
– number of insured residential mortgages (CMHC and others) stayd 96B, like in 2013
– number of uninsured residential mortgages growed by 11B from a year ago to 122B
BMO:
– Less low risk mortgages and HELOCs, more medium risk mortgages
“agreed-upon purchase prices” is “among the best measures of a home’s value”
Read why this is NOT TRUE
http://neweconomicperspectives.org/2014/12/wall-street-journal-still-refuses-grasp-accounting-control-fraud-via-appraisal-fraud.html#more-8873
From russian social media .
What does Putin , the price of oil and the ruble have in common ? They’ll all be 63 next year .
“You are still completely free as an amateur to use extreme leverage and highly speculative assets to prove you’re an idiot.” — Garth
Unless you are an insider or are raising financing for them, just stay away from junior mining shares altogether. The industry is a cesspit in general. You’ll have better odds of success at the roulette table (and you still won’t need to pay tax on any winnings, just like the TFSA).
You know, there was a time when walking into a store like that would have led to social shaming. Most would have been repulsed that a member of their community was walking into a store looking like that. Not anymore.
This is what it used to look like when you went into a store:
http://api.ning.com/files/PfEgRPHovLRPzJhkdvasXdYF6qnmWKp2hzpeyT-*9xzEixa0nexWETuQ5sDkmt2StjXx6TxkJjgp56DS2dBLNA*E4P6NqZEh/1063696522.jpeg
Not only is this individual morbidly obese (vile), he has the audacity to walk into a store wearing barely any clothes. No shame, nothing. And I bet if he was told he wouldn’t be served as a result, he would complain – and the liberal media would support him.
All those that raised the alarms during mid-century America WERE RIGHT. The socialist takeover of the West is nearing completion. Along with this, comes the degradation of society as a disconnect between personal behaviour and consequences vanishes. Socialism allows those that engage in poor behaviour to be subsidized by those who are responsible in society. It allows them to procreate and have many children, while those who wish to save and be financially responsible postpone child birth. Over the course of a generation, the gene pool becomes reflective of this recklessness.
Joseph McCarthy might have been an extremist, but he was onto something…
Re# 118 Does anyone have an opinion on what is an acceptable amount of MER,s on mutual funds?
Oil down 50% gas down 10%
http://www.OntarioGasPrices.com/retail_price_chart.aspx?city1=Ontario&city2=&city3=&crude=y&tme=6&units=ca
6.6 litre V8 turbo diesel ! Buying your crude by the Barrel ?
Mark O’Leary agreed with you on BNN
Why are 20 somethings buying these cement shoe box condo’s?
They will just depreciate, get old and crusty and more cost more to own.
Because they have been led to believe by baby boomer parents that they can only go up in price.
106 Kommykim
No one, the bank loses the money. It’s the same as a bankruptcy, just due to death.
Not exactly. Any debt of the estate, guaranteed by the deceased, is payable by the estate, which means all assets are taken into consideration. — Garth
While I agree with your statement, I was simple saying that if they’re are more liabilities than assets then the creditors don’t get paid.
http://business.financialpost.com/2014/12/03/bank-of-canada-more-hawkish-on-economy-though-oil-price-plunge-household-debt-pose-risks/
Where have I read this before?
How do you go about transferring your TFSA to online trading accounts – are you charged the transfer fees from the originating bank each time, or do you just deposit the funds into a brand new TFSA account with the brokerage?
Climate change means weather change. No surprise there. — Garth
B.C. has a carbon tax. Are you saying the carbon tax is ineffective at fighting climate change? Why is the weather changing when carbon is taxed?
#121 LP
“Cheez Louise, why not just pick up the phone and ask the folks at CRA what the ruling(s) is/are.”
————————-
Mostly because they tend to make up ‘rulings’ as they go along. Therefore, I’d let my tax accountant do that job if, God forbid, it ever became necessary.
I do admit however that it’s quite unlikely.
Turner’s using his journalistic license again.
He’s still driving his POS Jeep Compass– Cherokee thing or he bought a Prius like Dorothy instructed him to.
Coincidentally however, I did buy a 6.0 litre Ford Superduty last week. Supposedly had all the gremlins ironed out as these things were known grenade engines.
We will find out.
Turner – I come to visit the G-spot everyday. If I earn 5500 after tax I have the right to invest it in my TFSA in any way that I want. If I live in my parents basement and gamble the money on penny stocks 12 times a day, that is my business. If I gamble the same money at Casino Rama, that is my business. If I gamble the money in the orange guy’s thong, that is my business.