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Email this5:16 pm
November 18, 2017
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savemoresaveoften: As has been noted, TFSA interest is never taxed; it comes from after-tax dollars.
Mordko: I don't understand why one would speak of "poor use" TFSA room - unless one is counting on equity returns to be reliably higher. That's not guaranteed, and for those of us past the ability to use current earnings to replace losses, it's a poison pill. Remember, TFSA losses can't reduce taxes.
RetirEd
7:17 pm
April 27, 2017
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RetirEd said
Mordko: I don't understand why one would speak of "poor use" TFSA room - unless one is counting on equity returns to be reliably higher. That's not guaranteed, and for those of us past the ability to use current earnings to replace losses, it's a poison pill. Remember, TFSA losses can't reduce taxes.
Equity returns are not “reliable”. They are volatile. But they will be higher than cash over a meaningful period of time (over 5 years) with very high likelihood.
So, whether stuffing TFSA with 100% cash makes sense depends on duration. If you already have more money then you can spend then 100% cash is fine. However the individual isn’t retired and the quoted numbers did not suggest that 100% cash option made sense. And getting back to inflation, while nothing is guaranteed, stocks invariably handle it better than cash.
6:01 pm
November 18, 2017
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Mordko: Several (but by no means all) of our members in this discussion are retired, as am I. It would be helpful to mention that proviso in your assessment of fixed-income TFSA use.
RetirEd
8:25 am
January 28, 2015
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mordko said
Equity returns are not “reliable”. They are volatile. But they will be higher than cash over a meaningful period of time (over 5 years) with very high likelihood.
So, whether stuffing TFSA with 100% cash makes sense depends on duration. If you already have more money then you can spend then 100% cash is fine. However the individual isn’t retired and the quoted numbers did not suggest that 100% cash option made sense. And getting back to inflation, while nothing is guaranteed, stocks invariably handle it better than cash.
The individual is me and my rrsp and savings is coming close to 2 million and I will be 61 this year and have a defined benefit pension . You should keep your comments to yourself ,you know nothing.
9:14 am
April 27, 2017
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Everyone can do whatever they want. Naturally.But this site is for commenting and my comment very much stands.
Having a nice but not very large pot, if I were in this position, I would hate for it to be eroded by inflation. Which will happen for a typical 60 year old and his cash.
Keeping TFSA in 100% cash makes even less sense for someone with a (good?) DB pension. That kind of individual should be able to weather stock volatility without too much stress. It is a bit unusual to have a reasonably large RRSP AND a good DB pension.
Would be different if you were 80 with a $5M pot. Then it falls under “does not matter”.
9:59 am
December 21, 2022
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mechone said
The individual is me and my rrsp and savings is coming close to 2 million and I will be 61 this year and have a defined benefit pension . You should keep your comments to yourself ,you know nothing.
Mechone, you and I are in a similar position when it comes to bringing viewpoints to the site- people try to shut you down and dismiss your perspective. Lots of people, especially close to or retired, are not comfortable with stocks and other volatile investments. You obviously know a little to have put yourself in the strong position you are, others could learn something from that or go their own way.
There are ways to try to minimize the impact of inflation. However, my concern for you is try get some advice on minimizing the taxation impacts you may be headed for. In particular, the best option and timing for your rrsp draw down. Maybe there is still time before you retire or take the DB to get some tax advice. I’m in a similar boat on this topic. Keep sharing your perspective and evaluate what is offered on the site. Both can be good in some, but not all cases.
11:24 am
March 30, 2017
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mechone said
The individual is me and my rrsp and savings is coming close to 2 million and I will be 61 this year and have a defined benefit pension . You should keep your comments to yourself ,you know nothing.
Hmmm so all your comments are really just to show off how successful you are ? The numbers thrown around are ok, not something I would brag about tho.
Let’s all play nice. Everyone is free to express their comments, if one always only accept viewpoint that are the same, why even bother going to a public forum…
Please write your comments in the forum.