tag:blogger.com,1999:blog-5465015914589377788.post3303246242804695026..comments2024-03-20T09:32:16.592-04:00Comments on Michael James on Money: Spinning the TFSA IncreaseMichael Jameshttp://www.blogger.com/profile/10362529610470788243noreply@blogger.comBlogger12125tag:blogger.com,1999:blog-5465015914589377788.post-6674032956312209962015-05-27T15:56:20.840-04:002015-05-27T15:56:20.840-04:00@AnatoliN: That's partially true, but not comp...@AnatoliN: That's partially true, but not completely. For example, the government's policy of employing people who can't do their jobs well takes people away from potentially doing other jobs where they would be more useful. This is a net detriment to our society rather than being zero-sum. Policies that prevent companies from putting poisons in foods work out to be a net benefit.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-89380462165193409302015-05-27T15:00:50.427-04:002015-05-27T15:00:50.427-04:00Michael, government can't possibly have a prog...Michael, government can't possibly have a program that benefits one earning group and does not hurt the other, simply because governments only redistribute monies. Accordingly, when Harper & Co passes a bill that benefits richer people through TFSA, it does so at the expense of poorer people. AnatoliNhttps://www.blogger.com/profile/07937984526970646627noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-78614335350250734502015-05-01T13:50:56.882-04:002015-05-01T13:50:56.882-04:00I think that discretionary increases will become a...I think that discretionary increases will become a political campaign promise.<br /><br />Vote for us and we'll increase your TFSA!Paul Tnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-24714144819893461502015-05-01T13:24:27.882-04:002015-05-01T13:24:27.882-04:00It's very easy to think about. The new TFSA p...It's very easy to think about. The new TFSA provides a benefit for 30 more years, when the old TFSA would have caught up (on a contribution room basis). assuming 2% inflation. If contributions compound, then the new TFSA would be better for even longer.<br /><br />I think it's more likely that someone will revisit the TFSA before anyone has big regrets about this decision (and most people reading this blog will probably be close to death by that time, anyway).Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-6667204451111262702015-04-29T20:13:10.599-04:002015-04-29T20:13:10.599-04:00I think it's a great idea - especially since t...I think it's a great idea - especially since the RRSP system penalizes those who have low salaries, only allowing you to contribute 18% of your previous year's income rather than a flat dollar amount like they do in the US for 401K. It's a step in the right direction, but I still think the US system is better.Tara Cnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-85749571086382898892015-04-29T16:17:36.666-04:002015-04-29T16:17:36.666-04:00@Garth: True. I'm still pondering the best w...@Garth: True. I'm still pondering the best way to think about the lack of indexing.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-65874806642987243302015-04-29T15:29:00.228-04:002015-04-29T15:29:00.228-04:00With the loss of indexing, I think it might be mor...With the loss of indexing, I think it might be more accurate to call this a temporary increase. By making no changes from now on, inflation will eventually reduce the value of the TFSA to less than it was before this change. Most wont notice. Kinda sneaky I say...<br /><br />Use it or lose it!Garthhttps://www.blogger.com/profile/14367654772040176371noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-61644561479540856562015-04-29T12:00:17.317-04:002015-04-29T12:00:17.317-04:00Michael, I'm also in favour to help poor and m...Michael, I'm also in favour to help poor and middle class.<br /><br />In Canada, individuals themself are, most of the time, the #1 reason why they get ahead or not.<br /><br />I mean, some related, earning much more than us, asked to review their taxes. Shit! They took no RRSP (even skip the HBP repayment) and no RESP, let alone the TFSA's!<br /><br />It's easy to compare for us since we put aside 25k$ into tax sheltered accounts and almost 20k$ on mortgage principal.<br /><br />What is killing them? Cars (for this item only, they spend 15k$/year more then us) and taxes (including missed subsidies, another 15k$ left on the table). This 30k$/year can turn into a 1.5M$ over 25 years @ 5%<br /><br />They are both brilliants people with degrees but think I'm over inflating the shaft they are giving to themself... Le Barbunoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-38638429461519588052015-04-29T11:44:30.497-04:002015-04-29T11:44:30.497-04:00@Patricia: Glad you liked it. I like to think we ...@Patricia: Glad you liked it. I like to think we can help the needy as well as maintain the incentive to work.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-71609140631653899292015-04-29T11:40:38.239-04:002015-04-29T11:40:38.239-04:00Great post. Agree with your perspective completely...Great post. Agree with your perspective completely. Everyone deserves appropriate incentives to save, build wealth and support themselves in retirement. Also makes for a strong economy.Patricia Gasshttp://letstalkaboutmoney.wordpress.comnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-18516847553012227702015-04-29T10:59:58.434-04:002015-04-29T10:59:58.434-04:00@Le Barbu: I guess I'm one of the exceptions. ...@Le Barbu: I guess I'm one of the exceptions. I favour some policies to help the poor, but I also support many (but not all) of the Tories' positions. I try to decide what I think is right regardless of which party supports the idea.<br /><br />The metaphorical table holding the world's money is tilted toward smart people in many ways. You're right that TFSAs are no different.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-22064355273570929952015-04-29T10:09:59.703-04:002015-04-29T10:09:59.703-04:00Not to be blunt but, groups defending poors are ab...Not to be blunt but, groups defending poors are about against any decision Tories are taking anyway.<br /><br />TFSA increase benefit smart people more than rich or wealthy one's. If used to put aside 41,000$ in GIC's @ 1%, it's likely a 155$ gift/year...<br /><br />I wish my parents can understand how powerfull TFSA are and buy something like 50%VAB and 50%ZCN. This way, they would get the real benefit of this account.<br /><br /> Le Barbunoreply@blogger.com