RE:RE:RE:T.G.I.F...........This is quite frankly the dumbest thing I have ever read.
RRSPs are capped at 25K/year (or 18% of your yearly income, wichever comes first).
TFSAs have a small capacity so that people don't end up using them to retire tax-free (if everybody did they wouldn't exist, trust me).
Once those are exhausted, where does that leave you? Investing in an unregistered accout.
Let me give you another tip - investing in either of the two registered account options (RRSP or TFSA) to buy Canadian dividend yielding assets is in general a BAD idea - it is a waste of space in those registered accounts. To buy Canadian dividend yielding assets and leverage the Canadian Dividend Tax Credit as a Canadian - you MUST be in an unregistered account. This allows you to reduce the taxes paid on those dividends in a huge way (in short the amount YOU pay is reduced by the corporate income tax the corporation has already paud before issuing them to you). Doing it in an RRSP is not allowed, doing it in a TFSA is not allowed and would also be a waste of space you could be using to receive better tax-free gains elsewhere (growth stocks).
Tax loss selling is not for losers. Many (most) successful investors consider this every year at tax time. You sell, claim the loss, then later re-buy from recovered taxes. It is a paper move that can mean a lot of money for seasoned investors, and more than fair to do.
I also know very successful investors that wouldn't touch an RRSP with a ten foot pole - building massive dividend yielding portfolios in entirely unregistered accounts. Why? Pay the tax man now, retire later on all dividends, leveraging the Canadian Dividend Tax Credit perpertually until you die. If you can draw a low enough income from dividends (supplementing without a consequence of taxable income from elsewhere), you can actually create a negative tax bracket and offset other income.
If ALL you have is TFSA and an RRSP, I get that. At least don't blast others because you are uninformed.
dereklafreen wrote: My take on tax loss selling:
A person would have to be a complete dumb a$$ to sell shares at a loss.... in a Company that is trading near or at all time lows.....just for the benefit of having a write off on Capital Gains.... Give me a break!!!
If you are a person that trades in a regular cash account .... well..... you deserve exactly what you get.
Go right ahead and sell your shares..... December is the Best Time of the Year to be a buyer just because of "tax loss sellers". ie: remember last year?
Tax Free Savings accounts & Self Directed RRSP's have been around for a long time.....
If you don't have TFSA's & RRSP's by this time..... give your head a shake!!
Tax loss selling is for LOSERS !!!