Comments on: Choosing a TFSA Savings Account

By: no more mutal funds

no more mutal funds — Sun, 07 Mar 2010 23:49:24 +0000

i used to have most of my terms in ING. when i moved they froze my account forcing me to borrow from the credit union to complete my mortgage, then last fall they froze it again, saying i had to change my PIN, that they do this to all clients.
so i have systematically removed about 50 thou from them. that said, i have some TFSA there.
credit union rates are not great, but yearly you get a bonus, a share of profits and knowledge that your dollars are used locally.
also your entire accounts can be joint, avoiding messy death and estate problems and ALL your funds are insured, not just 100 thou
went with TD/CT for tfsa this year. Financial Plus. max return 12% Benefit from the growth potential of the Canadian financial sector through returns based on the performance of the S&P/TSX Banks Index. principal is guaranteed and no foreign currency risk.

By: JB

JB — Mon, 01 Feb 2010 04:03:11 +0000

I don’t know why everyone is saying the CUDGC (Credit Union Deposit Guarantee Corporation) coverage is a downside. I think CDIC coverage is the downside to the banks! CDIC coverage only guarantees that up to $100,000 of your savings are covered. CUDGC coverage in Manitoba guarantees credit union deposits (except mutual funds & stocks of course) without limit!! How is that a downside? Although each province’s coverage is different as the credit unions are regulated provincially not federally like the chartered banks.

By: El-Tigre

El-Tigre — Tue, 20 Oct 2009 15:04:16 +0000

I’m interested in setting up a “Smith” style deductible tfsa investment. One e.g is my tfsa signs a prom note to my wife at 10% and she does the same for me. We both take a tax deduction for interest paid and we both collect interest tax free in the TFSA accounts. Is this a viable strategy?

By: Savings Products from Canadian Direct, Peoples Trust and Ally | Canadian Capitalist

Mon, 14 Sep 2009 13:31:07 +0000

[...] accounts, its top savings rate, top GIC rates and top cashable rate makes it a top choice for a savings TFSA. Too bad Ally did not open its doors before I went looking for a TFSA [...]

By: Linkstuff For Aug 19 « Daily News

Linkstuff For Aug 19 « Daily News — Sat, 12 Sep 2009 10:25:01 +0000

[...] Canadian Capitalist is finally getting around to starting a TFSA. [...]

By: M

Fri, 28 Aug 2009 05:03:38 +0000

Dude.. Why not get some good long term dividend paying stocks?

No capital gains, no tax on dividends. What’s not to love?!

Keep an emergency fund somewhere else. The TFSA should be a growth fund since it is completely tax free.

By: The RR Top 5 (or 7?) | Realizing Retirement

The RR Top 5 (or 7?) | Realizing Retirement — Fri, 21 Aug 2009 12:27:43 +0000

[...] Canadian Capitalist mulls over Choosing a TFSA Savings Account [...]

By: Canadian Capitalist

Canadian Capitalist — Wed, 19 Aug 2009 16:02:43 +0000

@ghentsch: I think of all accounts as one big pot. Before the advent of TFSAs, we didn’t have a choice — emergency funds had to be kept in a taxable account where interest is taxed at marginal rates. If the RRSPs were maxed out, stocks were also held in taxable accounts. With TFSA, the contribution room today is only $5,000. If you could keep part of your emergency funds OR part of your stock portfolio in a TFSA, what would you do? I would pick emergency funds because interest income is taxed at marginal rates. In a couple of years, the TFSA room would have grown enough that stocks can also be sheltered.

By: Canadian Capitalist

Canadian Capitalist — Wed, 19 Aug 2009 15:54:38 +0000

@boko: I disagree. Since GICs are not redeemable without an interest penalty, they tend to pay a bit more because they are illiquid. Here’s an example: 2-year Canada bonds yield 1.29%. ING Direct 2-year GICs pay 2%. 5-year bonds yield 2.53% compared to 3% for GICs.

The money that belongs in secure investments is things like emergency funds where it doesn’t make sense to take market risk. I agree that the bulk of long-term money belongs in the stock market.

By: ghentsch

ghentsch — Wed, 19 Aug 2009 11:56:58 +0000

Should you treat a TFSA like a bank account? Sure you can pull the money out with no penalty but don’t you want that money working for you? TFSAs should be treated like RRSPs in my opinion; leave it in there any make some money from it. A self-directed investment account seems like the best way to go. And until the money builds up, ETFs are a good way to invest as opposed to individual companies. I have my TFSA with TD Waterhouse paying 9.99 a trade. It’s up 7% so far. Clearly it has the potential of losing money but that’s the price of risk (and reward).