Comments on: FAQs on Tax-Free Savings Accounts

By: tsxcommentary

tsxcommentary — Tue, 16 Feb 2010 21:40:17 +0000

in-kind contributions are a great way to take advantage of your TSFA.

if you are own a thinly traded stock especially an option like a 2 year LEAP, the bid ask spreads can be large.

so even though the bid price is at a significant discount. it counts as the market price of the in-kind contributions which will let you squeeze more money into your TSFA.

you will no realize a captial loss, in your non registered account, but you could end up squeezing in an extra 1000$ a year in your TSFA.

the disadvantage is that you have to own illiquid stock / options. so you have fewer choices.

By: Big Spender

Big Spender — Thu, 21 Jan 2010 23:46:24 +0000

You can deal in the stock market, be careful and do research on companies or funds you wish to buy.
Here we are into a new year. I own a TFSA through Questrade. I have another TFSA for my wife through a broker (financial planner).
My Questrade account produced a 40% return as of the middle of Jan. 2010. I made my own picks. For my wife’s account I also made the pick. I purchased a REIT, (real estate income fund). I sold this recently for a gain of almost exactly 115% or $10,600.00+. To amplify gains I used their dividend reinvestment plan and left all of the monthly distributions in the account until I sold it.
Purchasing any stock last year in the first quarter was pretty easy, most of them were at the bottom. This year might not be so easy. My plan is to split it down the middle and try to pick two winners for this year.
Remember, do research, the market drops without warning and great gains can become painful losses.
Good Luck.

By: Joe

Joe — Thu, 30 Jul 2009 02:02:44 +0000

What happens if I put $5100 (extra $100) by mistake in 2009? Does this mean that my contribution room next year is $4900? Or would it still be $5000 and the extra $100 put in this year is just gonna be taxed?

By: Ron

Ron — Wed, 15 Jul 2009 13:22:49 +0000

I am using Questrade for my TFSA. There is no annual fee. The typical trade fee is $4.95
So far they have been great to deal with.

By: Tax Free Savings Account (TFSA) FAQ | Financial Highway

Tax Free Savings Account (TFSA) FAQ | Financial Highway — Mon, 25 May 2009 09:33:57 +0000

[...] Canadian Capitalist TFSA FAQ [...]

By: McGeezer

McGeezer — Sat, 02 May 2009 23:52:22 +0000

Charles,
how many trades would you make in a month do you figure?

By: Charles

Charles — Sat, 02 May 2009 13:19:55 +0000

“McGeezer // Apr 7, 2009 at 8:46 am

If i have a TFSA on Questrade, can i buy and sell ANY stocks i want? I thought for some reason i could only purchase shares of securities or index funds……is this true, or can i do whatever i want?”

I have TFSA on Questrade. I trade stocks on it with no problem. The only problem is that the account is not allowed to be on margin. I haven’t tried options though.

By: McGeezer

McGeezer — Tue, 07 Apr 2009 12:46:03 +0000

By: G Cameron

G Cameron — Thu, 12 Mar 2009 23:15:50 +0000

Reguarding TFSA to hold stocks in acount can I sell stocks already owned that have droped drasticly in value to have a loss to use against capital gains, and then re purchase at the lower selling price to hold in the TFSA. up to my $5000 limit. Or is there a time frame before re buying the same stock.

By: EconStudent

EconStudent — Sat, 07 Feb 2009 15:20:02 +0000

McGreezer: You want to buy stock on margin through TSFA from a line credit. First of all, I think it is really bad idea because your line of credit might be cut at anytime due to problems that TD might be internally facing.

If you are really comfortable with your analysis about stocks, then you might consider doing this. If you want to buy stocks in a TSFA, your best bet is probably Questtrade. 4.95 a trade is the most competitive in Canada.

For most people, it is probably better off to buy an index using borrowed money. TD e series or ishares or claymore are probably good choices in this scenario.