RE:RE:RE:Special distributionA serious rethink is indead in order, but not so much what securities you hold but where you hold them. Like many Canadians I was/am a low/middle income earner who did my duty and contributed to my RSP each year. It was only when I began planning my retirement and helping my aged mother with her taxes that I realized the full cost and limited benefits of Registered accounts. The benefit of holding your securities in an RSP is defferring the taxes until the funds are withdrawn. This is great if you are in an elevated income bracket, but of limited value if your income in retirement is in the same tax bracket as your income when working.
What they don't tell you is the costs of keeping your savings in an RSP. Each year you forfeit the dividend tax credit on eligible dividends and you cannot claim the 50% capital gains deduction, as all withdrawls are taxed as interest and regular income.
I would be very interested (and probably horrified) to calculate what this cost amounts to for the last 40 years. In reality the only benefit of registered account is the disincentive provided by the hassle of early withdrawl.
For example, if you live in Ontario and have an annual income of 50 - 75K, your marginal tax rate for funds withdrawn from an RSP is 29.65%. The marginal rate for capital gains is 14.83% and for eligible dividend income is 6.39%. Even non-eligible dividends margial rate is less at 20.28%. (marginal tax rates provided by Manulife securities at https://www.manulifeim.com/content/dam/mim-ca/viewpoints/pdf/1099289%20-%20Tax%20Rate%20Card%20AODA_MK2418E_1119_AODA.pdf)
SuperDude2 wrote: Gord , at least you got a reply , l sent an Email on XMAS eve no reply or phone call as of yet. I hold about 40% of my portfolio in EIT and have always had the utmost faith in BRETT WILSON and mgmt , but if what you say is accurate , it is disgusting , misleading garbage and if it helps anyone its the wealthy holding outside registered accounts. If that is case , then my respect for them , their BS press release and their discrimatory practices concerning only some shareholders is a disgrace. l dont intend selling like some have posted but l see where they are coming from. A serious rethink may be in order. l know you have 90% in this , somebody recommended you take a look at another ETF to further diversify. Maybe worth considering. you know what they say , All your Eggs , but if you are comfortable wityh this recent BS , well so be it, l hope you are right or are we going to see a buck pullback