OK, So if you had $5000 in expendable cash to invest into something...

ferniesnow · Jan 2, 2014

I don't care what kind of government sponsored program you get into, you are going to pay tax in the end. It was pointed out earlier that taxes are just going up.

When the RRSP thing came out years ago, I looked at it and laughed. I bought property instead and lo' and behold, did quite well. Small enough parcels that the capital gains didn't kick in and I wasn't audited so all ended well.

But you can't buy a lot for $5000 these days........so continue on with the discussion.

Summitric · Jan 2, 2014

Hit the casino and play the devil's wheel(roulette) and put it all on 13 black....... If it hits, you'd be a millionaire

moyiesledhead · Jan 2, 2014

ferniesnow said:
When the RRSP thing came out years ago, I looked at it and laughed. I bought property instead and lo' and behold, did quite well. Small enough parcels that the capital gains didn't kick in and I wasn't audited so all ended well.

I did that.....and here I am ready to retire soon with property nobody wants to buy. :dunno:

So much about investment depends on timing that's for the most part out of our control.

Nytroman · Jan 2, 2014

It would go towards getting my remaining morgage paid out asap. I am debating slowing up on RRSP contributions and paying out my morgage quicker. The short term gain is quite significant in the first 5 year term. Also no payments will equal to earlier semi retirement for me. Maybe the toys will not be as shiny for a while

CUSO · Jan 2, 2014

lilduke said:
5g isn't enough to invest with,,, Go play some roulette might get lucky...

Whatever.. Try reading the first post.

You yourself must have more than 5g to throw away.

Thanks for the input though.

Joholio · Jan 2, 2014

I want to buy more land.
This would be a nice start.

gates559 · Jan 2, 2014

somethingnuw said:
wait i thought they couldn't touch tax free saving account? That's the point their tax free? When i pull em out isn't the money mine? Your explanation is why i don't buy RRSP's... I have two kids anyone have an opinon on RESP's? Boys are 3, 10 months and one in the oven!

Sorry if i stole this post just seemed like it was going in the right direction with the last few answers

go into into your bank and ask to withdraw your money. You are in for a surprise. They will tax you right at the bank. Depending on how much you take out.

SavageCanuck · Jan 2, 2014

gates559 said:
go into into your bank and ask to withdraw your money. You are in for a surprise. They will tax you right at the bank. Depending on how much you take out.

Where do you get your information from? A TFSA is totally different than an RRSP.You can withdraw funds tax free from your TFSA and no the bank will not take any tax money from you .With a TFSA if you withdraw some funds from it you can not replace the funds until the next calender year.TFSA stands for just that TAX FREE SAVINGS!!!The best thing to come along in years.I have both mine and the wifes maxed already since inception.They are a great investment for the average joe.

HotShotHarry · Jan 2, 2014

Start TFSA with the 5g. Invest in Coalspur TSX shares.

summit1974 · Jan 2, 2014

gates559 said:
Esso is just as risky, a large spill next week would send their stock down and it takes a long time to recover. All investments are risky!

my point is your not gonna do amazing things with buying gold…you would be very lucky to double your money in 15 yrs.All investment is not risky …Never invest in a company that you don't understand how they make their money.

gates559 · Jan 2, 2014

SavageCanuck said:
Where do you get your information from? A TFSA is totally different than an RRSP.You can withdraw funds tax free from your TFSA and no the bank will not take any tax money from you .With a TFSA if you withdraw some funds from it you can not replace the funds until the next calender year.TFSA stands for just that TAX FREE SAVINGS!!!The best thing to come along in years.I have both mine and the wifes maxed already since inception.They are a great investment for the average joe.

Call your bank, tell them you want to withdraw 1000 bucks out of that TFSA account. Bet you get taxed about 10 percent on it. Please dont bother responding until you try it. Like any good salesman, your banking representative left out all the bad and told you nothing but good.

What a tfsa is, is a ploy to trick the average joe into locking their money up so that the bank can use it. Than get taxed at a greater rate down the road when you want it, and in the mean time you loose big time to inflation.

Bnorth · Jan 2, 2014

gates559 said:
Call your bank, tell them you want to withdraw 1000 bucks out of that TFSA account. Bet you get taxed about 10 percent on it. Please dont bother responding until you try it. Like any good salesman, your banking representative left out all the bad and told you nothing but good.

What a tfsa is, is a ploy to trick the average joe into locking their money up so that the bank can use it. Than get taxed at a greater rate down the road when you want it, and in the mean time you loose big time to inflation.

Dude you're the one that fell for a ploy if you let your bank sell you a TFSA as a savings account. Ultimately a TFSA is just a box on your tax return, you can invest the money in whatever you see fit. For me that is not giving it to the bank and collecting 1% interest on it.

Braddock54 · Jan 2, 2014

Tax free savings is exactly that; tax free withdrawals and contributions. There is no tax benefit like RRSP. I believe some TFSA options may have 'withdrawal, transfer fees ' set by your bank, which may eliminate any benefit you gained. I don't get all the hype really. You won't get taxed on withdrawing any money on it though.

For me I like RRSP's to try to lower my net income and increase how much Uncle Stephen ends up having to pay me back in a refund. And it makes sense for the Home Buyers Plan.

4byrookie · Jan 3, 2014

gates559 said:
Call your bank, tell them you want to withdraw 1000 bucks out of that TFSA account. Bet you get taxed about 10 percent on it. Please dont bother responding until you try it. Like any good salesman, your banking representative left out all the bad and told you nothing but good.

What a tfsa is, is a ploy to trick the average joe into locking their money up so that the bank can use it. Than get taxed at a greater rate down the road when you want it, and in the mean time you loose big time to inflation.

I have taken money out of my TFSA a couple times and nothing gets charged back to me. The money you put in there has already had taxes taken off and you get no tax deductions from this type of account. If your bank is charging you to take this money then they are scamming you.
This is the explanation straight from the Scotiabank FAQS for TSFA accounts.

TFSA
Limits
Maximum 2009 annual contribution limit is $5,000 regardless of an individual's earned income
Tax Deductibility
Contributions are not tax-deductible and therefore do not reduce taxable income Income/returns earned on investments are tax-free
Withdrawals
Withdrawals are not added to taxable income - they are tax-free

Braddock54 said:
Tax free savings is exactly that; tax free withdrawals and contributions. There is no tax benefit like RRSP. I believe some TFSA options may have 'withdrawal, transfer fees ' set by your bank, which may eliminate any benefit you gained. I don't get all the hype really. You won't get taxed on withdrawing any money on it though.

For me I like RRSP's to try to lower my net income and increase how much Uncle Stephen ends up having to pay me back in a refund. And it makes sense for the Home Buyers Plan.

I have not had to pay any service charges or transfer fees for the few times I have taken money out of my TFSA but I am not sure if other banks charge anything for withdrawals.

Clode · Jan 3, 2014

I would buy my wife one implant....not enough cash to do both :Cry:

UMACHME · Jan 3, 2014

Rrsp's or mutals !!

stuckenough · Jan 3, 2014

If you just want to gamble it away...find some small startup company in the oil and gas industry or internet related. Who knows, maybe it will be the next snapchat.
I like stuff like Tesla motors, these guys are revolutionizing the electric car industry and selling lots of their technology to companies like Toyota. Should be able to double your money in 5 or less years.
RRSP's are a bit of a joke (although I have some) the only person making money on them is your investment adviser. They certainly haven't kept up with the inflation rate in the past ten years.

Sorry about the rant Mark...have fun on the hills this weekend!

gates559 · Jan 3, 2014

I been through the bs of closing out a tfsa at RBC, got taxed right there at the bank based on my amount withdrawn. The government does not let you earn money tax free, they let you defer the tax.

If you put money in a tfsa that you have already paid tax on your good to go, but what is the benefit? any interest or profit you make, you still get charged tax on. You either pay the tax now or later.

KawisakiRider · Jan 3, 2014

You might want to do some reading on TFSA's. The banks never work in your interests but only theirs. TFSA's are very good for investing out of it's to bad there limited on the amount.

Bnorth · Jan 3, 2014

gates559 said:
I been through the bs of closing out a tfsa at RBC, got taxed right there at the bank based on my amount withdrawn. The government does not let you earn money tax free, they let you defer the tax.

If you put money in a tfsa that you have already paid tax on your good to go, but what is the benefit? any interest or profit you make, you still get charged tax on. You either pay the tax now or later.

I think that you're either confused or your bank hosed you.

An RRSP contribution is tax exempt. When you withdraw it the principle and growth are taxable, this is tax deferal.

TFSA contribution is an after tax amount but the principle and and growth are non taxable when withdrawn.

OK, So if you had $5000 in expendable cash to invest into something...

I'm doo-ing it!

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