Investing

Couch potato investing for the last 12 years - tracking my progress

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  • Jul 24th, 2017 3:28 pm
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Member
Nov 4, 2015
261 posts
60 upvotes
Ahzuz wrote:
Mar 16th, 2017 9:38 pm
What is high tax bracket considered ?

33%, 202k$ income ?
29% ? 143k?
26% ? 92-142k ?
20.5% ?
It depends on your situation. If you expect to be in a higher bracket then it might make sense to wait until then to maximize your deduction. Otherwise, use that refund to invest.
[OP]
Deal Addict
Oct 1, 2006
1593 posts
491 upvotes
Montreal
paf wrote:
Mar 5th, 2017 5:53 pm
Hello Germack,

What factors does one should consider as to where to invest , RRSP or TFSA in terms of tax efficiency

Another related is My wife works for a hospital and has a pension plan HOOPP ( The Healthcare of Ontario Pension Plan). Now when we are budgeting to invest money, how should we invest . Would the below order make sense just thinking about Taxes at retirement

1. Invest in Both our TFSA
2. Invest in My RRSP first
3. Invest in Wife's RRSP

My above logic is based on , on retirement wife will get paid by her Pension , if we have alot in her RRSP's , at retirement this will make her income go higher ( PENSION + RRSP ). I'm not certain if her defined benefit us counted as her income at retirement or we already paid taxes

Does would it make sense any other way ?

Does it make sense? Let me know if anyone wants any clarification
Yes, makes perfect sense.
[OP]
Deal Addict
Oct 1, 2006
1593 posts
491 upvotes
Montreal
jeffyjaixx wrote:
Mar 16th, 2017 11:38 am
Just to follow up, I opened regular mutual funds accounts for a TFSA, RRSP and non-registered at TD then sent in my conversion forms (all 3) to convert them all to e-series funds accounts. Also followed up with TD Investment Services and confirmed that my registered transfer from Tangerine has went through and should show up in 3-5 business days on my easyweb. The whole process took about 3 weeks or so. Now I'm planning to max out my TFSA first then RRSP then eventually non-registered. I have never contributed to my RRSP before so I need to read up on how much I can contribute and all that soon. Though, my first step would be to max out my TFSA. I've read briefly about maxing out TFSA vs RRSP and it seems for my age (30), it's better to max out the TFSA first in case I need to use it whereas RRSP, you would lose the contribution room?

Planning to go the Assertive approach (25% equally on Fixed Income, Cdn equity, US equity, and Int'l equity), my question is should I do it all in my TFSA account? or should I put some in my RRSP and some in my TFSA? I'm still slightly confused in to put which one in which account to maximize tax efficiency. Any advice would be very much appreciated!
Thank you for the update. It all depends on your income level if investing in your TFSA or RRSP is the better option. If you are a high income earner (~>60K) the RRSP will likely be better. If your income is lower investing in your TFSA is probably better
Jr. Member
User avatar
Feb 12, 2016
128 posts
5 upvotes
I own vanguard etfs and haven't received any tax slips. Has anyone else? Will it be a T5 or T3?
[OP]
Deal Addict
Oct 1, 2006
1593 posts
491 upvotes
Montreal
@dealhawk1 It will be a T3 and they are due by the end of this month. I haven't received them either yet.
Jr. Member
User avatar
May 3, 2015
134 posts
36 upvotes
Germack wrote:
Mar 19th, 2017 5:45 pm
@dealhawk1 It will be a T3 and they are due by the end of this month. I haven't received them either yet.
Quick question.

I received a T5008 from Questrade and am not quite sure what I am supposed to do with it. It states what my purchases have been this year and the total amounts. I haven't sold anything but have received some Canadian dividends. Do I need to fill out this section when doing my taxes? It asks for box numbers (e.g., 11, 13, 15) but these don't appear on the form.

On that same note, I assume my T3 is where my dividends will be recorded/what I'll fill out on my taxes once I receive it. These dividends will be from my Canadian ETF (VCN). How would I go about claiming the Canadian Dividend tax credit for this?

Any insights or clarification would be greatly appreciated!
Deal Addict
Feb 4, 2015
2268 posts
369 upvotes
Germack wrote:
Mar 19th, 2017 5:45 pm
@dealhawk1 It will be a T3 and they are due by the end of this month. I haven't received them either yet.
Is this normal? Thought due by end of Feb? Or is that for T4s only?
Deal Addict
Feb 4, 2015
2268 posts
369 upvotes
MikeZ13 wrote:
Mar 19th, 2017 6:04 pm
Quick question.

I received a T5008 from Questrade and am not quite sure what I am supposed to do with it. It states what my purchases have been this year and the total amounts. I haven't sold anything but have received some Canadian dividends. Do I need to fill out this section when doing my taxes? It asks for box numbers (e.g., 11, 13, 15) but these don't appear on the form.

On that same note, I assume my T3 is where my dividends will be recorded/what I'll fill out on my taxes once I receive it. These dividends will be from my Canadian ETF (VCN). How would I go about claiming the Canadian Dividend tax credit for this?

Any insights or clarification would be greatly appreciated!
Believe T5008 is only to help you fill out tax returns but not necessarily needed if you keep good records.

When you get your T3s and T5s those will have various amounts in boxes [numbered]. If doing taxes by hand then there will be instructions on slips as to which line the amounts go to. If doing taxes by software then just enter the amounts into the corresponding line/box number. The sw will then calc the div tax credit. The sw program might have a heading like Investment Income and then you click to add a T3 or T5.
Member
Oct 14, 2012
428 posts
182 upvotes
Woodstock
Unfortunately, yes, it's normal. Drives accountants crazy bec. their clients won't have all the forms they need till the beginning of April, but the filing deadline is April 30. Some T3s can certainly arrive beforehand, but they are not required to send them till March 31.
Deal Addict
Jun 3, 2009
3519 posts
399 upvotes
Montreal
BetCrooks wrote:
Mar 19th, 2017 7:19 pm
Unfortunately, yes, it's normal. Drives accountants crazy bec. their clients won't have all the forms they need till the beginning of April, but the filing deadline is April 30. Some T3s can certainly arrive beforehand, but they are not required to send them till March 31.
Is there any particular reason the T3 doesn't need to be made available to clients earlier?
Jr. Member
User avatar
Feb 12, 2016
128 posts
5 upvotes
T3s should be made available in February. It's a real pain to wait this long especially when we need to figure out how much rrsp we need by March 1.
Deal Addict
Jul 15, 2009
1065 posts
259 upvotes
cn_habs wrote:
Mar 19th, 2017 10:23 pm
Is there any particular reason the T3 doesn't need to be made available to clients earlier?
A fund that issues a T3 is a trust. It must complete and file its own tax return before it can issue the T3. It probably has to wait for other entities to provide it their slips first.
Deal Addict
User avatar
Sep 14, 2008
1505 posts
196 upvotes
Winnipeg
Germack wrote:
Mar 18th, 2017 10:43 am
Thank you for the update. It all depends on your income level if investing in your TFSA or RRSP is the better option. If you are a high income earner (~>60K) the RRSP will likely be better. If your income is lower investing in your TFSA is probably better
+1 Best way to determine and maximize your tax deduction is to determine where you are in your tax tax brackets.
Deal Addict
Nov 22, 2005
1726 posts
129 upvotes
If I only made $16.13 (just 2 months worth) in dividends from my ETF in total for 2016, should I bother waiting for a T3 or will they not even produce one for me? Should I just report the dividend as eligible and be done with it?

EDIT: Nevermind. TD just sent my first T3. There's a note on it too, saying that I'll be receiving an additional T3 at a later date. Looks like I need to wait longer.

This also might seem like a silly question, but is the Trust Name I put in my T1 form the banking platform I use? So TD Direct Investing?
[OP]
Deal Addict
Oct 1, 2006
1593 posts
491 upvotes
Montreal
I have received now all taxforms from TD for all my ETFs

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