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detox

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About detox

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    2nd Pairing D-Man

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  1. detox

    Stock tip

    Did xanthic shares convert 1:1? If so that's a pretty crazy return. I can't imagine that you would have been given 1 GGB share for every XTHC share but it looks like the premium was still a good percentage
  2. Fuck Montreal! Day 1 of the Leafs Stanley cup season is here
  3. detox

    Help me be wise with money

    Yeah 2.15 in a savings? That has to be a promotional rate, most banks don't even offer 1% on a savings account.
  4. detox

    Help me be wise with money

    About as good as it gets if you are thinking short term with no risk. Better than leaving your money in a chequing account, but watch out for fees - some have withdrawal fees based on your balance. And interest is so low that one fee basically takes away everything you made in the account
  5. detox

    Help me be wise with money

    Your issue with the TFSA still doesn't make sense. The RRSP is only one piece of a financial plan - retirement savings and to a lesser extent a first down payment/education. There are many other goals that people have. Banks benefit off RRSPs the same as they do TFSAs. You seem to think that TFSAs offer lower interest rates and the banks get to rake in the money. This is absolutely incorrect and if you still think it is you need to do more research before you continue to speak on the subject. The banks make money on what you're invested in, not what account you have. RRSPs and TFSAs are holding places for the same investments, you can choose your own stocks in both accounts and avoid the bank fees. Both accounts are useful in their own way.
  6. detox

    Help me be wise with money

    I promise to have another appearance when that album comes out. But for now I'm going disappear back into the abyss.
  7. detox

    Help me be wise with money

    You're not wrong with any of this, but don't forget that the money will be taxed when it is withdrawn from the RRSP so you have to take that into calculation as well. You might get a 29% tax credit for the deposits, but that money has to come out eventually and someone earning 200K per year will still be in a higher tax bracket in retirement and will be paying income tax on that deposit plus all of it's growth. Simple scenario because we can go on for days and you're right I don't think that Sandman was exactly expecting this with his thread: 10,000 to RRSP invested into stocks averaging 7% for 20 years. Received a 3000 tax credit back. Worth roughly 40,000 at the end of 20 years Invest that 3000 back into the RRSP for the same term and say it's now worth 12000 for arguments sake Withdraw that money in a lower tax bracket in retirement (say 20%) - pay 10,400 in income tax. 40,000 (initial investment + growth) + 12000 (refund + growth) = 52,000 52,000 - 10,400 = 41,600 End of the day finish up with 41,600 from 10,000 over 20 years. Say you do the same thing in a TFSA, all things stay the same except no taxation. You end up with 40K, which you're right is less than you ended up with the RRSP (41,600) but you also have to factor in the cost of liquidity and the RRSP doesn't offer that in the same way that a TFSA does. But change the scenario a little bit, say this person is someone with a strong pension (teacher, government worker, etc.), their tax bracket in retirement may not even decrease, now instead of withdrawing this money in a lower bracket they're withdrawing it in the same bracket that they were working in and instead of coming out with 41,600 they come out with 36,400. Either scenario is a good problem to have, but my main point at the beginning of all of this is that there is no generic solution to personal financing. If there was it would be a lot more simple than it is and two people such as Armster and I wouldn't have differing views on what you should do. If you want to keep it simple to get started: saving no matter how you do it is the key. I don't know your situation Sandman but if you are preparing to purchase your first home go onto a mortgage calculator and figure out what your monthly expenses will be (Mortgage + property taxes + bills) and start putting that much money away every month. if you can't afford to save that much per month you can't afford to live in the home once you get there. Learn how TFSAs and RRSPs effect your taxes and familiarize yourself with the Home Buyers withdrawal and Life long learning plan if you ever plan on doing future education. Watch out for fees, especially percentage fees if you're looking at mutual funds, and remember that virtually none of the information that financial professionals are holding is proprietary and you can double check your facts online.
  8. detox

    Help me be wise with money

    The main benefit of the TFSA is that you have access to it before retirement. Obviously you are correct that you don't get the benefit of tax reductions but that isn't the only option. If you are simply saving for retirement RRSPs are great, and having the home buyers/life long learning withdrawal options make them more flexible. But there are other massive expenses that people may also be saving for, wedding, car, vacations, etc. that RRSPs don't really help with. Some people also don't want to have the added expense of paying back your RRSP when you move into your first home and your expenses sky rocket. Paying back the max RSP home buyers plan withdrawal adds 140/month to your expenses monthly. For some people this isn't always an option. If you are aggressively investing within a TFSA you can withdraw all of the money without paying taxes on the growth - obviously you rode the crypto boom, but the other boom that happened over the last 2 years was the Marijuana stocks that a lot of people held/are holding in a TFSA. This is a unique situation of exponential growth however long term stock holding within a TFSA can easily see averages of 10-20% a year in a growing market all tax free and accessible without paying income tax on withdrawals. Both accounts are essentially the exact same in regards to their growth because both of them are simply holding places for the same suite of investments. The only difference is the tax events that take place on contributions/withdrawals. Fees and growth for both accounts are the same, products are the same, banks will still try to push mutual funds with 2.5% MERs the same.
  9. detox

    Help me be wise with money

    You don't seem to understand what you can do with the TFSA. It is the same as the RRSP in the sense that it's simply an account that can hold different investments or cash. You're thinking that a TFSA is simply a cash account providing low savings account rates. RRSPs also have this option, but no one leaves their RRSP as cash. You can invest in the exact same products through a TFSA as you can within an RRSP. The account itself isn't what provides the interest/growth it's the investments within them. The growth potential in both accounts is the exact same, you can have TFSA mutual funds, TFSA stocks, TFSA cash just like you can have RRSP mutual funds, RRSP stocks and RRSP cash.
  10. detox

    Help me be wise with money

    There are a ton of arguments against it. I'm well aware of how rrsps are tax deductible. It doesn't mean that RRSPs are the only way to go. If you didn't know that you can invest in mutual funds or other investments within a TFSA I can understand why you would think this. You can get the exact same growth, also tax free and not have to pay income tax on the growth when it comes out of the account. If Sandman is just getting into his career and has a strong pension there is a good chance his marginal tax rate will be higher in retirement than it is now meaning he will pay a ton more in taxes in the long run. If however Sandman is self employed than RRSPs make a lot of sense depending on what he's claiming in income. RRSPs like anything depend on your situation. More often than not it's good to do a bit of both TFSA and RRSPs.
  11. detox

    Help me be wise with money

    You can invest in the same mutual funds in a TFSA
  12. detox

    Help me be wise with money

    Sure Brocto, if you really need me to. Not trying to stir shit up but financial advice that is incorrect or doesn't fit the situation can cost people a lot of money. This can be great advice depending on the situation, like Armster said he is just mentioning generic advice. However if Sandman works in an industry where he will retire with a strong pension or he wants to buy a house soon this can be detrimental. This has already been corrected, there is a program that allows for withdrawals from RRSPs, but there are conditions that might not fit everyone's situation. This is fine but it's just 1 account at one bank, there are a ton of better places to park your money. The part about rrsps providing more interest than tfsas is untrue, both accounts can hold the same investment vehicles that provide the same amount of interest. Like I said, not trying to be a dick, but you can't get the advice you as easily as this. It's a bigger conversation with the client (Sandman) doing most of the talking. It's a good idea to understand how the different accounts work going in as Armster has helped with so you can have a more in depth conversation with an advisor. But you'll need to go over a lot of things first that you probably don't want to mention here: like how much money you make, how much debt you have, what expenses can you cut out and how much can you put away each pay check. Also what are your next financial goals? Are you willing to take a risk on speeding up your desired timeline on order to get there faster? There's a lot to go over, speak to different advisors at different companies and make the decisions yourself. Always try to understand the motive of the person sitting across the desk from you. And do your best to consider your personal tax situation and the consequences of what you're doing. Hope that's good enough for you Princess Brocto
  13. detox

    Help me be wise with money

    Also note* be careful when talking to professionals in the industry because a lot of time they will only tell you about products and plans that are in their best interest.
  14. detox

    Help me be wise with money

    Not really interested in diving into this conversation on the internet considering I go through about 10 of them a day.... But providing financial advice should be left for people who look at it every day. Armster has clearly done research and knows the industry which is extremely helpful to get started but Sandman should also have a conversation with someone who can look at his entire financial picture to make recommendations.
  15. detox

    Help me be wise with money

    I haven't posted for a while but you'll want to be careful here - there is a fair amount of wrong information in this thread. You should go talk to someone who does this for a living, making mistakes can be very costly in the long run.
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