Personal Finance

Investment Club TFSA?

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  • Feb 12th, 2013 6:11 pm
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Deal Addict
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Aug 1, 2007
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Investment Club TFSA?

Does anyone know if it's possible to setup an investment club where each member makes contributions and they're recorded as their own TFSA?
7 replies
Deal Addict
Oct 9, 2005
1884 posts
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cmackie wrote: Does anyone know if it's possible to setup an investment club where each member makes contributions and they're recorded as their own TFSA?

TFSAs can only be individual accounts as there's one SIN attached to it. How would you know who contributed how much?
Deal Addict
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Sep 26, 2007
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SC
i think if they can do it with rrsp they can somehow do it with tfsa...
Deal Addict
Oct 9, 2005
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xlfe wrote: i think if they can do it with rrsp they can somehow do it with tfsa...

Except that the income tax act says that "the arrangement requires that it be maintained for the exclusive benefit of the holder" and "the arrangement prohibits, while there is a holder of the arrangement, anyone that is neither the holder nor the issuer of the arrangement from having rights under the arrangement relating to the amount and timing of distributions and the investing of funds".
Deal Addict
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Sep 26, 2007
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guessaaa wrote: Except that the income tax act says that "the arrangement requires that it be maintained for the exclusive benefit of the holder" and "the arrangement prohibits, while there is a holder of the arrangement, anyone that is neither the holder nor the issuer of the arrangement from having rights under the arrangement relating to the amount and timing of distributions and the investing of funds".

i was never good at reading these legal things. but at first glance it does seem you are correct.

http://www.icicibank.ca/PersonalBanking/term_TFSA.html
if anyone wants to read the entire thing.
Deal Addict
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Aug 1, 2007
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guessaaa wrote: TFSAs can only be individual accounts as there's one SIN attached to it. How would you know who contributed how much?

When setting up the investment club, each member still has to give their own personal info and SIN. They also have to report their own portion of gains and income so you have to keep track of everyone's contributions. I think there should be a way to get it done but right now it seems it wouldn't be allowed.
Deal Addict
Jul 8, 2009
2028 posts
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Edmonton
You can't have a TFSA or RRSP in joint name. However, why not have everyone manage their own TFSA according to how the investment club decides? I know it sort of defeats the purpose of using an investment club but there is no way to do what you're suggesting.
Newbie
Feb 11, 2013
1 posts
cmackie wrote: When setting up the investment club, each member still has to give their own personal info and SIN. They also have to report their own portion of gains and income so you have to keep track of everyone's contributions. I think there should be a way to get it done but right now it seems it wouldn't be allowed.
Hi all, does someone found a method of regrouping TFSAs or RRSPs into one "Investment Club" entity ? My strategy (market neutral) needs leverage and I can't perform it with registered accounts.

Thanks for all the insights you may have.

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