TSX:BPO.PR.A - Post by User
Comment by
SONOFFERGUSon May 30, 2024 11:10am
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Post# 36064431
RE:It's not even close
RE:It's not even closeSigh.
I was going to write an essay but pointless.
GIC in margin is stupid in all circumstances. GIC is smart in TFSA if that money is a rainy-day fund. Risky stuff is smart in TFSA if you don't need the money for a long time and have de-risked your other portfolios accordingly.
BPO in TFSA is brilliant if it goes up fast -- quick capital gain with no tax bill. BPO in TFSA is stupid if it goes down -- non-deductible capital loss, wasted dividend tax credit. BPO in TFSA is meh if it's treading water, like now.
The trick, of course, is knowing what will happen.
If you bet right and have a big gain in your TFSA (as you report frequently), now might be a good time to book it. The tax savings are known and the "easy" price appreciation looks over. Time for the buy-and-hold crowd to settle in for big dividends and, if lucky, decent capital appreciation if long-term rates settle in around current levels. (Not so high that BPO's ability to pay comes into the spotlight again. 3.80% GoC5 just fine, TYVM.)