Insight Please? Tax Savings/Home Buying Advice

[newt_101]

I hope this question is clear, as I'd truly appreciate the help and insight.

I'm 30, single, make $60k+/year (plus 4-8% bonuses), with no debts (currently am living with family, so my expenses are auto insurance, gas and cell; quite minimal at $200/month) and have $30k in savings ($5k in TFSA and $25k in a high-interest savings account).

I do not have any RRSPs as I used all the ones I had saved back in '00 to use as a purchase on my home (which I sold in '06), and still need to pay it back (which I will do after I buy my home and know what my money flow is like).

In 4 months, I will be making a purchase on a new home (I have excellent credit), so the $30k+ in savings will go towards that.

I am currently putting $150/month into TD's E-Series ($30 Canadian Index, $30 US Index, $30 International Index and $60 Canadian bonds).
I plan to re-balance this once a year and am looking at this as a long-term investment, as the amount is minimal for me.

I'm seeking 3 things:

- How do I save the most amount of money come tax time (RRSP, TFSA, etc..) to maximize everything in full, while still keeping in mind that I will be making a home purchase within the next 4 months?
- Is there anything I should change from the above Mutual Funds allotment, considering my goals are long-term and my tolerance level is medium?
- For someone new to stocks/bonds, is it better to setup the same amounts above going into each fund each month, or to deposit them according to how the funds are doing? If so, what should I look at?

Regards and thanks!
Marco

[newt_101]

Bump?

[pitz]

I hope this question is clear, as I'd truly appreciate the help and insight.

I'm 30, single, make $60k+/year (plus 4-8% bonuses), with no debts (currently am living with family, so my expenses are auto insurance, gas and cell; quite minimal at $200/month) and have $30k in savings ($5k in TFSA and $25k in a high-interest savings account).

You have no expenses, but only managed to accumulate $30k in total savings? Am I reading this correctly?

I do not have any RRSPs as I used all the ones I had saved back in '00 to use as a purchase on my home (which I sold in '06), and still need to pay it back (which I will do after I buy my home and know what my money flow is like).

Did you take a loss on the house in 2006? Where did all your money go?

In 4 months, I will be making a purchase on a new home (I have excellent credit), so the $30k+ in savings will go towards that.

How much is the proposed house?

- How do I save the most amount of money come tax time (RRSP, TFSA, etc..) to maximize everything in full, while still keeping in mind that I will be making a home purchase within the next 4 months?

Since you don't have the HBP available to you, there's nothing you can do to optimize things, aside from putting your entire savings account into the mortgage and/or the downpayment.

I really question whether buying a house is affordable for you though.

- Is there anything I should change from the above Mutual Funds allotment, considering my goals are long-term and my tolerance level is medium?

If you have a mortgage, you shouldn't have a bond allocation in your portfolio.

- For someone new to stocks/bonds, is it better to setup the same amounts above going into each fund each month, or to deposit them according to how the funds are doing? If so, what should I look at?

I think you need to address whether or not the house is affordable at all. You can do all the investment stuff in the world, but the real elephant in the room is the house. Buy at a time when housing is mispriced, or buy when your financial position is in such a weak position -- and it doesn't take much to wipe out any possible gains.