ACC-HE

原帖由 tripixel 於 2009-1-6 18:28 發表
I invested $2000 into a canadian equity fund. And set up a monthly plan for $250.

canadian equity fund? which one?

tripixel

Fidelity Canadian

bluemoon

Not a good idea to use the TFSA as stock account or mutual fund account, holding equity funds.  I'd hold equity fund in regular investment account.  You lost the benefit of claiming capital loss.

It's better to hold interest-bearing investments.

快樂牛郎

原帖由 bluemoon 於 2009/1/6 18:21 發表
Not a good idea to use the TFSA as stock account or mutual fund account, holding equity funds.  I'd hold equity fund in regular investment account.  You lost the benefit of claiming capital loss.

It' ...

So you invest with the expectation of incurring capital loss?
Capital loss is a side product, not a purpose.

bluemoon

You only being tax 50% on cap gain but 100% of interest income.  An investor would have portion high risk investment and a portion in low risk investment, why would you overly smart to use the TFSA to hold equity but not the interest-income bearing investment?

who said cap loss is a side product nor a purpose?  what are u talking about?

you do not expect your investment would be in capital loss, but it's part of good financial planning to consider the big picture.

原帖由 快樂牛郎 於 2009-1-6 19:46 發表


So you invest with the expectation of incurring capital loss?
Capital loss is a side product, not a purpose.

快樂牛郎

原帖由 bluemoon 於 2009/1/6 18:50 發表
You only being tax 50% on cap gain but 100% of interest income.  An investor would have portion high risk investment and a portion in low risk investment, why would you overly smart to use the TFSA to ...

Because I expect my 50% of capital gain to be way in excess of the paltry "interest" that I receive from the bank in this environment.

The interest rate right now varies from 0% to 4%.  However, with the stock market down 50%, your potential capital gain in the next 2 years is most likely somewhere between 50% to 200%. Even if you take 50% of that, it's still 10 times as much as what you get from interest.

I hope you are not a professional financial advisor.  Otherwise I feel pity for your clients.

molamola

one would put the most tax inefficient investment in the TFSA in theory, there is nothing wrong with that.

bluemoon

I think any financial advisor telling his client that you can earn 50% capital gain should get fired and retake the code of conduct course.   I am sure you are not a financial advisor cause the place you work for would have been pretty screwed up by a banker liked this.

I can only agree with your "plan" if it's for someone that takes the TFSA $5k limit as only a small portion of one's investment.  Still, it's kinna dumb to expect you can always on the winning side.  

And nah.. i am no financial advisor.  it's just common sense.

原帖由 快樂牛郎 於 2009-1-6 19:55 發表


Because I expect my 50% of capital gain to be way in excess of the paltry "interest" that I receive from the bank in this environment.

The interest rate right now varies from 0% to 4%.  However, wi ...

快樂牛郎

原帖由 bluemoon 於 2009/1/6 19:22 發表
I think any financial advisor telling his client that you can earn 50% capital gain should get fired and retake the code of conduct course.   I am sure you are not a financial advisor cause the place  ...

A financial advisor should be realistic, not only retelling stories from his textbooks. In today's market, it's much more likely to make 50% in two years than the historical average. Of course it's not possible to make that kind of return every year. but investment strategies should vary flexibly based on the current situation, not just sticking with a fixed principle.

I am not claiming my way is better with 100% certainty.  But weighing all possibilities, I would say my recommendation has a 80% chance of outperforming yours.

Anyways, financial advisors are people I have the least respect for, so I take every chance to bash them.

[ 本帖最後由 快樂牛郎 於 2009-1-6 19:32 編輯 ]

快樂牛郎

原帖由 molamola 於 2009/1/6 19:20 發表
one would put the most tax inefficient investment in the TFSA in theory, there is nothing wrong with that.

Yes, "in theory".  But if you only invest according to "theory", I guarantee you will be better off sticking with cash.