RE: Target $200 (InDaRRSP? NO!)You may want to swap out the WIN shares from your RRSP to your non-registered account to take advantage of the lower capital gains inclusion rate, thereby lowering your break even point on these shares.
For example, suppose you have 5,000 WIN shares with an book value of $75,000 in your RRSP. You need to get back to $15 a share before you break even. Yet, in spendable dollars, assuming a 40% tax rate, $75,000 in an RRSP equals $45,000 after tax.
Conversely, if you swap now at $3 a share ACB (cash for shares), you only need the shares to go to $10.50 to end up with the same $45,000 spendable dollars. At $10,50, you have $52,500 of stock, but pay $7,500 in capital gains tax to net your $45,000. Of course, besides a lower break even point, the other benefit is you keep more of the growth on a non registered basis, so if the shares hit $50 again, your RRSP at $250,000 value is only worth $150,000 spendable dollars, while the non registered account is worth $203,000 after capital gains taxes. Over 33% more!
Hmmmmmm.