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COMMENT
COMMENT
June 10, 2019
When you must wtihdraw from your RRIF, what to do with that money? If you have a spouse, you can make the RRIF withdrawals. Also, you can withdraw now, not at 71 which is the limit to withdraw from a RRIF. Sure, you pay a little more tax sooner, but there's less to sell in the RRIF later. You can withdraw $6,000 and put it into a TFSA and never pay tax on it. A note: in your late-60s/early-70s, you can still travel, but no one travels when they reach 80. So, if you're in your late-60s and healthy, travel now--don't wait!
When you must wtihdraw from your RRIF, what to do with that money? If you have a spouse, you can make the RRIF withdrawals. Also, you can withdraw now, not at 71 which is the limit to withdraw from a RRIF. Sure, you pay a little more tax sooner, but there's less to sell in the RRIF later. You can withdraw $6,000 and put it into a TFSA and never pay tax on it. A note: in your late-60s/early-70s, you can still travel, but no one travels when they reach 80. So, if you're in your late-60s and healthy, travel now--don't wait!
John DeGoey
Portfolio Manager, Industrial Alliance Securities
COMMENT
COMMENT
June 10, 2019
My bank offered me a $30K line of credit with 3% up front over 10 months. I'm paying $900. What should I do with that $30K to invest over 10 months yet write-off that $900? Do you have any non-deductible debt? (No.) If so, pay it off. Interest is only deductible only for things that earn capital gains. So bonds and GICs make no sense; buy stocks. Buy if you're in the stock market for only 10 months, then you're speculating, not investing. Look for things that are cheap, but buy two or three things totalling $30K--and pray it works out. He won't say which geographies to buy, but diversify to lower risk.
My bank offered me a $30K line of credit with 3% up front over 10 months. I'm paying $900. What should I do with that $30K to invest over 10 months yet write-off that $900? Do you have any non-deductible debt? (No.) If so, pay it off. Interest is only deductible only for things that earn capital gains. So bonds and GICs make no sense; buy stocks. Buy if you're in the stock market for only 10 months, then you're speculating, not investing. Look for things that are cheap, but buy two or three things totalling $30K--and pray it works out. He won't say which geographies to buy, but diversify to lower risk.
John DeGoey
Portfolio Manager, Industrial Alliance Securities
COMMENT
COMMENT
June 10, 2019
A low-cost mutual fund? The DFA (Dimensional Fund Advisors) family, which are cheap and structured in cost like ETFs (very low); and are exposed across many geographies. DFA is the world leader in factor-based investing. He uses DFA a fair bit.
A low-cost mutual fund? The DFA (Dimensional Fund Advisors) family, which are cheap and structured in cost like ETFs (very low); and are exposed across many geographies. DFA is the world leader in factor-based investing. He uses DFA a fair bit.
John DeGoey
Portfolio Manager, Industrial Alliance Securities