tag:blogger.com,1999:blog-5465015914589377788.post7162047501631178430..comments2024-03-20T09:32:16.592-04:00Comments on Michael James on Money: What to Look Out for with TFSAsMichael Jameshttp://www.blogger.com/profile/10362529610470788243noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-5465015914589377788.post-34487681381129687552019-09-03T16:35:09.152-04:002019-09-03T16:35:09.152-04:00@Unknown: Here's a quote from a Government of ...@Unknown: Here's a quote from a Government of Canada website (https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/tax-free-savings-account/who-open-a-tfsa.html):<br /><br />"In certain provinces and territories, the legal age (depends on the age of majority) at which an individual can enter into a contract (which includes opening a TFSA) is 19. In 2009 or later, in these jurisdictions, a person turning 18 years of age who would otherwise be eligible accumulates TFSA contribution room for that year and carries it over to the following year."<br /><br />So, the reason for different TFSA start ages is local laws for age of majority. However, TFSA room accumulates from age 18. So, at worst, an 18-year old might miss out on one year of tax-free gains, but could contribute double once he or she turns 19.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-4019618458872717662019-09-03T16:26:54.299-04:002019-09-03T16:26:54.299-04:00Michael: Why are there separate ages for early co...Michael: Why are there separate ages for early contributors to TFSAs? Some provinces are age 18 and some are age 19. Why isn't this just common at age 18 for all provinces. It just seems odd that provinces penalize their TFSA contributors from the most important year from a compounding perspective. Depending on your assumptions, this could be a $50K end-result differenceUnknownhttps://www.blogger.com/profile/13026796420026592843noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-68768065988057176692009-01-07T18:55:00.000-05:002009-01-07T18:55:00.000-05:00CanadianInvestor: Thanks for the explanation. I'...CanadianInvestor: Thanks for the explanation. I'm used to calling that an in-kind transfer.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-17725999649928370642009-01-07T15:15:00.000-05:002009-01-07T15:15:00.000-05:00Swaps are an exchange of shares, for instance in a...Swaps are an exchange of shares, for instance in a taxable unregistered account, with cash in the TFSA. It means not having to sell the shares in the taxable account then buying them back in the TFSA. However, if it costs less in sell followed by buy commissions than the swap fee, there is no benefit from a swap. <BR/><BR/>Plus no matter what way it would be done, the selling/movement of shares out of the taxable account would trigger(deemed)disposition and capital gains or losses on the income tax return.CanadianInvestorhttps://www.blogger.com/profile/05645767559302303541noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-9655199350096222422009-01-06T10:38:00.000-05:002009-01-06T10:38:00.000-05:00CanadianInvestor: Nice spreadsheet! That must ha...CanadianInvestor: Nice spreadsheet! That must have taken a while to compile. As you point out, the transfer out fees are very high. Far too high to justify opening an account for only $5000. The transfer out fees range from 1% to 2.7%. As is often the case, it just isn't worthwhile to open an account unless you put a lot of money into it, or you're confident that you'll be leaving the money there for several years.<BR/><BR/>One of the rows of fees is labeled "Swaps". What does this mean?Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-3335509126092845872009-01-06T10:09:00.000-05:002009-01-06T10:09:00.000-05:00Good post, Michael. I took a look at the fees and ...Good post, Michael. I took a look at the fees and deals in my post of Dec.10th and found fairly significant differences amongst the banks but not amongst brokerages for self-directed TFSAs. See http://canadianfinancialdiy.blogspot.com/2008/12/fees-and-deals-on-tfsas-at-banks-and.htmlCanadianInvestorhttps://www.blogger.com/profile/05645767559302303541noreply@blogger.com