No, like your RRSP it can have any amount of US holdings. The restriction on RRSPs was dropped a couple of years ago, and the TFSA has the same rules.
TFSA Balance
- Thread starter big dogie
- Start date
That comment I don't understand. If you have any non-registered investments it makes nothing but good sense to max out your TFSA every year. Use it for the investiments in you overall portfolio that attract the highest tax rate. I've used mine for equities trading, day trading, and general fun stuff. No worries about whether my trading is capital gains or straight income or whatever....it is tax tree once it is in the account. And with mine and my SO together at 10K per year it will add up to a sizable fund in a very few years. 20K this year without any profits/losses considered.
You can't use it for options as far as I know, but otherwise wide open pretty well.
that's conservative? what'd you invest in? my advisor put me in one stock and i was within $100 of your y/e balance
Is a GIC inside an TFSA CDIC guaranteed? If yes, does it share the $100,000 limit with your RRSP?
I manage money for my clients and would not recommend to trade TFSA.. The best is to lock in your return by investing in high quality debentures or corporate bonds. Since all your interest income is tax free, you will achieve around 7 to 10% return no problem. Earlier in 2009, lots of banks were issuing what they called the hybrid bonds/tier 1 capital to clean up their balance sheet. Most are issued with north of 10% coupon at PAR, and if you buy it in the market now you have to pay a premium of around $120. However, I am young and losing 5000 is not a really big deal for me and I would trade options. Buy some put on the financials and call options on energy stocks.
GICs..
Rather or not the GIC would be insured depends on the issuer. The TFSA is just an account to hold your investment. You can have coverage of more than 100k if you have multiple issuer since each should provides up to 100k. If you are with a brokerage accounts that is under the CIPF, you will have up to $1 mil coverage if they default
Rather or not the GIC would be insured depends on the issuer. The TFSA is just an account to hold your investment. You can have coverage of more than 100k if you have multiple issuer since each should provides up to 100k. If you are with a brokerage accounts that is under the CIPF, you will have up to $1 mil coverage if they default
B
burt-oh-my!
I really dont see the point at today;s interest rates to put a GIC into a TFSA. You will save like, what? maybe 40 bucks of tax on the interest? Far better to shoot for the moon with risky investments.
B
burt-oh-my!
B
burt-oh-my!
Technically, they are not. I think you know that an income trust is the right to an
income stream from a company, not a share of the company's assets.
I could be wrong but to me the term equity (or more specifically
common equities) is equivalent to stock also
referred to as common share. The stock or share of a trust are sometimes
referred to as an income trust or income fund to distinguish it from the
stock of a corporation. The assets of a typical equity mutual fund
mainly comprises stocks of corporations but to my knowledge holding
income trusts in the stock portfolio of a stock fund isn't uncommon.
Any difference between the business model of a corporation and that of
a trust is of little or no concern to their investors in the stock market
I believe. There was a time when the shareholders
of a trust could in some way share the liability of the company
they own partially. I believe that is no longer an issue.
common equities) is equivalent to stock also
referred to as common share. The stock or share of a trust are sometimes
referred to as an income trust or income fund to distinguish it from the
stock of a corporation. The assets of a typical equity mutual fund
mainly comprises stocks of corporations but to my knowledge holding
income trusts in the stock portfolio of a stock fund isn't uncommon.
Any difference between the business model of a corporation and that of
a trust is of little or no concern to their investors in the stock market
I believe. There was a time when the shareholders
of a trust could in some way share the liability of the company
they own partially. I believe that is no longer an issue.
Stocks with 10%+ yield is becoming an ultra-rarity even among
income trusts. If you do find one such income trust it will most likely
have to cut its distribution by 2011 anyway when the new legislation
governing trust taxation is implemented.
High yield is usually a sign of weakness in the underlying business of the
stock. High yield seekers may as well invest in promising income stocks
with good growth potential.
B
burt-oh-my!
Income trusts and equities are both ownership of a business entity. You will live or die based on their profitability.
There ARE extremely highly leveraged instruments out there which can goose your returns which you can put in your TFSA.
There ARE extremely highly leveraged instruments out there which can goose your returns which you can put in your TFSA.
+1
BTW, you could try your luck by using the $5k contributed in 2010 to buy a truckload of CLC.UN right now....
Too bad Junk gets PC'd lately!! You get high yield for higher risk. Anybody say otherwise is trying to con you like Bernie Madoff, Earl Jones and the newest member Ian Toews
If you really want to try your luck, you would be better off to invest XHY, the CAD hedged ishares HYG. Not recommend since the spread is less attractive compared to a year ago and the product lacks liquidity.
I prefer something liquid and not hedged, say investing HYG or JNK in RRSP. Personally I invest my fixed income component, be bond ETF or GIC solely in CAD since the bulk of the "liabilities", aka expenses during the retirement will be here in the foreseeable future.
BTW, not sure how CRA is going to treat the distribution in TFSA since those CAD hedged bond ETFs track USD bond ETFs and unlike Roth IRA, the Americans don't consider TFSA "real" tax shelter. That means in TFSA there could be 10% to 15% withholding tax from the Americans, while you could lose opportunity to claim federal foreign tax credit when filling tax returns.
Not good when there's a tax leakage in TFSA.
