[darkpuppet]

Now that I've gone and registered for a self-directed TFSA, I was wondering how many people have one. I've heard that registrations for them have been low thus far.

It's a great idea...sure, you're limited to contributing 5 grand a year, but you're not limited to how much money you can make with it (that's why I got a self-directed investments TFSA).

I'm looking forward to investing some money without having to pay the taxman.

[oldeguy]

Your best savings plan is to get out of debt.

[06gtpony]

darkpuppet,Feb 23 2009, 03:01 PM Wrote:It's a great idea...sure, you're limited to contributing 5 grand a year, but you're not limited to how much money you can make with it (that's why I got a self-directed investments TFSA).[right][snapback]281561[/snapback][/right]

What's the return on investment for one of these??
I was considering opening an account, but haven't heard too much about it thus far. At this point, I still use the good old RRSP to offset the money I owe to the government from investment income. I have a few GIC's setup which yield about 4% but like you said, the taxman will catch up with you eventually.

The crappy part about the TFSA is the 5 grand per year cap.
Even if the ROI was good, it's tough to make money on such a low investment.

[NefCanuck]

I'm using a different vehicle called a "Registered Disability Savings Plan".

Sure there are no tax incentives per se the fact that the federal government will kick in $1,500 on the first $500 I toss in and up to $3,500 total per year in grants if I can kick in another $1,000? That's a freakin' steal and call me Lupin III (and only Aka will get that reference ;))

NefCanuck

[NOS2Go4Me]

I'm getting one VERY shortly. I already have a self-directed investment account on top of my pension et al. and I'm quite comfortable with "dealing" with my own investment strategies.

It's about time ANY government got this right.

[Flofocus]

I have one, but will only contribute once my rrsp's are maxed out.

[NikiterZTS]

I have one with PC

[FocusGuy7476]

don't have, probably won't have one until I'm done university.

however I do understand how the TFSA work a bit, and they only really seem beneficial for when you max it out a $5K a year, plus $500 for every year afterward (adjusted for inflation). The interest rate would have remain relatively competitive for them to really take off, and IMO they should have been a couple of percentage points higher to give everyone the incentive to put their money in these accounts. I do like the structure of them and how they carry over any unused amount to the next year.

[darkpuppet]

FocusGuy7476,Feb 23 2009, 11:48 PM Wrote:don't have, probably won't have one until I'm done university.

however I do understand how the TFSA work a bit, and they only really seem beneficial for when you max it out a $5K a year, plus $500 for every year afterward (adjusted for inflation). The interest rate would have remain relatively competitive for them to really take off, and IMO they should have been a couple of percentage points higher to give everyone the incentive to put their money in these accounts. I do like the structure of them and how they carry over any unused amount to the next year.
[right][snapback]281588[/snapback][/right]

well, that's the thing... a regular TFSA isn't so dandy. But a TFSA investments account is pretty dandy since you're not constrained by a bank's interest rate. Tho the risk is slightly higher.

Which means I can double, triple, quadrouple, or even lose all of my 5,000 every year and the money's all mine.

[NOS2Go4Me]

^^ Exactly, Steve.

That's what makes a properly-managed TFSA investment account so appealing. And, that's why I'm glad I haven't flipped out of my one self-directed investment account just yet.

This is going to be a fun ride. :D

[paolo]

I thought all Savings account were Tax Free? I only pay a service charge every month on my bank account, which is what, like a measly $5 bucks, but I put some money into it when ever I can, but its not like im rich or something like many of you guys on here flaunt, so I can only sometimes put a Grand at the most in a year.. I never got taxed... how are some people getting taxed on their Savings Accounts from their banks? is this not the same Savings Account I'm thinking about?

[darkpuppet]

actually, you should be paying taxes on all interest made in any account.

I pay taxes on my savings account, Rent interest, etc...

However, I never really claimed interest before (it was usually < $100/yr) and it was never a problem in the past.

[ZTWsugardaddy]

paolo,Feb 25 2009, 10:16 PM Wrote:I never got taxed...  how are some people getting taxed on their Savings Accounts from their banks? is this not the same Savings Account I'm thinking about?
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Whever you earn interest, the banks send you a T5 for the interest amount which you must declare on your income tax as "income from investments". Sometimes it's a sizeable amount (several thousand) which when added to your regular T4 income means additional taxes payable. A lot of banks don't send you one for small petty amounts such as a few dollars. As Steve pointed out, legally, you're supposed to declare all interests even if no T5 was issued.

Steve, be careful with your investments. As far as I know (I may be wrong) since you don't pay tax on your gains, on the flip side, when you lose, unlike outside of the TFSA , you can't write off losses either.

[darkpuppet]

I hear ya Ken... I assumed that if I wasn't taxed on gains that i wouldn't be able to claim losses either.

My track record in the past has been quite good up to this point (haven't had a net loss on my portfolio to this date so far). ... so here's hoping my luck doesn't change. *fingers crossed* ... would be nice to keep the other half of my 'winnings'.

[ZTWsugardaddy]

er...um...who's Ken? :huh:

[Feral]

ZTWsugardaddy,Mar 1 2009, 09:21 PM Wrote:er...um...who's Ken?  :huh:
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LOL I think someone got you confused for ZTWSquared XD

[Aka]

NefCanuck,Feb 23 2009, 03:44 PM Wrote:That's a freakin' steal and call me Lupin III (and only Aka will get that reference ;))

NefCanuck
[right][snapback]281568[/snapback][/right]

lol...

I was asking about these at work because I had no idea what the point of them was. I thought I didn't get taxed on my bank account so why would I bother with this. Then I actually read up on them.

I just have a normal bank account and a RRSP. I don't have enough money to throw elsewhere, I barely get any in my RRSP as it is, I make so little.

[darkpuppet]

Feral,Mar 1 2009, 10:37 PM Wrote:

ZTWsugardaddy,Mar 1 2009, 09:21 PM Wrote:er...um...who's Ken?  :huh:
[right][snapback]281959[/snapback][/right]

LOL I think someone got you confused for ZTWSquared XD
[right][snapback]281962[/snapback][/right]

whoops!

I wasn't prepared for someone else to provide sage and practical advice around here :P...

[NefCanuck]

Aka,Mar 2 2009, 05:58 AM Wrote:

NefCanuck,Feb 23 2009, 03:44 PM Wrote:That's a freakin' steal and call me Lupin III (and only Aka will get that reference ;))

NefCanuck
[right][snapback]281568[/snapback][/right]

lol...

I was asking about these at work because I had no idea what the point of them was. I thought I didn't get taxed on my bank account so why would I bother with this. Then I actually read up on them.

I just have a normal bank account and a RRSP. I don't have enough money to throw elsewhere, I barely get any in my RRSP as it is, I make so little.
[right][snapback]281966[/snapback][/right]

Yeah, the TFSA seems mostly aimed at middle classers who have spare cash that they want easier access to than if they parked it in an RSP or GIC.

I'm not in any great need of liquidity ATM myself, but in future a TFSA might be useful, to save for the next set of wheels for example.

In the meantime I'll squirrel away extra $ in the RDSP, at least until I turn 49 and the grants stop coming :P

NefCanuck