A Good Article For TFSA 'Newbies' | Page 2 | Tax Free Savings Accounts | Discussion forum

RetirEd said
The preferential tax treatment of equities and dividends is still not as good as the zero-tax treatment in a tax-free portfolio. It only gets attractive if one has fully taxable investments to put in the tax-free accounts and then still has equities and dividends that won't fit. For example:

If one has $10K in TFSA room
$5K in fully taxable assets (GICs and savings accounts, etc.)
$5K in equities and dividends

THEN put it all in the tax-free pile. No tax.

BUT -

If one has $10K in TFSA room
$7500 in fully taxable assets (GICs and savings accounts, etc.)
$7500 in equities and dividends

THEN put the GICs into the tax-fee and then use the remaining $2500 of TFSA room for the best-earning equities and dividends.

The remaining $5K of equities and dividends will get its tax advantage outside the TFSA, but the $2500 that went into the TFSA will do even better.

If one has only fully-taxable (such as GIC) assets, put them all in the tax-free pile.

If one has only tax-advantaged assets, put them all in the tax-free pile.

CAVEAT: you can't take a tax loss in a tax-free investment! Keep things low-risk.
RetirEd
(high assets, low income, big TFSA holdings; I don't worry about income tax.)  

I know what you mean but equities don’t get “preferential treatment” in a taxable account. CRA gets a huge cut in corporate taxes even before it taxes your dividends and cap gains.

With regards to locating different types of assets in reg vs non-reg, you can see the maths presented here (as well as subsequent parts)m https://www.canadianportfoliomanagerblog.com/asset-location-part-1-key-concepts/

You can pick different levels of complexity and use different strategies. The approach of putting fixed income preferentially into tax free accounts is never the best on after tax basis for a given level of risk.

Agree that not everything is true on the internet. But you're in a forum with opinions, so accept that not all are going to align with yours.

Not sure what a "Handel" is.

You suggested a conspiracy of multiple people disguised (or advertisers) contributing so don't complain about being called out about it.

fat_dog said
You suggested a conspiracy of multiple people disguised (or advertisers) contributing so don't complain about being called out about it.

That not a conspiracy happen on face book twitter . Bot trying to influence election and then their is AI . these things are facts . and company and government employ them . to do their bidding  

We should probably ignore you but one last attempt… How exactly would this nefarious AI adverser with multiple handles benefit from you putting your $10 in investable assets in a TFSA rather than a non-registered account?

Dean said
.
In addition to what Loonie said (Posts 21 & 27), there's also this . . .

"Only A Fool Argues With A Fool"

And of course, what we have here is one of the most Derailed, Hijacked threads we've had in a Looong Time.

Sadly, it happens ... time to move on.

Dean

  

A wise man says ‘the fool that argues with a fool is the bigger fool.’
Like chicken vs egg, who is the first fool