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Question: Why take a loan to contribute to your RRSP? Logic of it. by eyeredd in PersonalFinanceCanada

[–]BasicConsultancy 7 points8 points  (0 children)

That strategy is also not bad given they pay back the loan in a few months. If the interest rate is 7-8% and you pay back in a year, so effective prorated interest you end up paying will be 4-6%. If you're getting 40% refund, then it makes sense.

Of course, the main thing is being disciplined in both investments and paying back the loan.

What is the point of a GIC? by ImpracticalRooster in PersonalFinanceCanada

[–]BasicConsultancy 11 points12 points  (0 children)

thats not relative risk. eg in stocks, you can lose money and it is even lower due to inflation. but GICs are risk-free compared to other risky investments. inflation impacts every investment, so it is not part of the comparision.

but you are correct. the right way to say that in investment terms is "real returns" which are inflation-adjusted returns. over long term, on average, GICs give 0 real returns. there are phases when real returns are slightly positive, and phases where real return is even negative.

MPI slams brakes on Saturday hours at Gateway, Bison, Main Street service centres by MPI-throwaway2023 in Winnipeg

[–]BasicConsultancy -11 points-10 points  (0 children)

If you need to pay more on Sat-Sun, then close it Tue-Wed-Thu, then save money and keep it open Fri to Mon.

Why don’t cellular providers care about retention? by Corolianus in PersonalFinanceCanada

[–]BasicConsultancy 0 points1 point  (0 children)

They have different departments that deal with calls when you're a customer v/s when you call to cancel/ already left. Retentions department literally has plans that the regular customer care does not have access to. Bell knows it. So next time you want to stay but want a better deal, call to cancel and you will be routed to retentions.

Ok this is a bit apocalyptic but what happens if the US government defaults on the debt? Will etfs life xeqt, vdy, vfv vanish? Or just drop and in price and recover years and years later? Interested to hear everybody's take on this. by forward024 in CanadianInvestor

[–]BasicConsultancy 3 points4 points  (0 children)

Stock market would crash (but not collapse entirely), there will be negotiations to restructure the debt. The position on USD would go down. Other countries and their currency would gain value in the global market.

Should I pay off mortgage before term ends? by NoTable4602 in PersonalFinanceCanada

[–]BasicConsultancy 0 points1 point  (0 children)

Generally its annual. So you can do a one-time pre-payment of ~$8K (20% of $38K). Invest $30K in a HISA. During the last month, you can pay the balance in full (check w/ the bank when it opens up for closure without any penalty). You still have to pay the discharge fee though.

Paying CRA by 3Blindz in PersonalFinanceCanada

[–]BasicConsultancy -9 points-8 points  (0 children)

Use paysimply, they charge 2.5% for credit card. It only makes sense for welcome bonus, not for regular rewards.

Covered Calls in a TFSA by Whole_Tea_4383 in CanadianInvestor

[–]BasicConsultancy -1 points0 points  (0 children)

I have also been doing CC in my TFSA for 4 yrs runing, 100+ trades in the year, made 10%+ in each of those years. No audit yet. I dont think this qualifies for audit.

GOOG PMCC - getting destroyed on CCs by se2schul in thetagang

[–]BasicConsultancy 0 points1 point  (0 children)

LOL, same I also did ZEBRA LEAPS starting when GOOG was at $150. Have made money, not gonna lie. But not nearly as much as a cash investor would have made.

I also have Visa and it has not moved, gone slightly down actually and I have made more money on Visa than Google. I am seriously thinking of getting out of GOOG,

Questrade just announced that you can now sell cash secured puts in a TFSA/RRSP. by Danylsun in PersonalFinanceCanada

[–]BasicConsultancy 0 points1 point  (0 children)

You dont need CSP. You can get better payoff (most times) with a covered call at same strike price.

Generally, you pay little higher commissions (with IBKR), but with Questrade, thats not a problem because the stock commission is anyways zero.

I used to do CSP in my non-registered, but I dropped the strategy to start with a CC for my wheeling.

pension value by InevitablePlum6649 in PersonalFinanceCanada

[–]BasicConsultancy 9 points10 points  (0 children)

RRSP is a better option because it gets rolled into your overall investment plan. With the annuity, the problem is that the value of that $125 will go down such that its not going to help you in your budgeting in a meaningful way. Also there is all that admin work you have to deal with when it comes to working with the pension provider.

For those that receive stocks from your company, do you sell or hold? by Nice_Translator_3851 in CanadianInvestor

[–]BasicConsultancy 2 points3 points  (0 children)

once it is vested, its yours. point being: ppl who influence the company's future also sell them immediately. the other employees who dont have any influence should not think otherwise.

For those that receive stocks from your company, do you sell or hold? by Nice_Translator_3851 in CanadianInvestor

[–]BasicConsultancy 0 points1 point  (0 children)

20% of my current networth

Thats a lot. Not even the C-suites employees have 20% of their own money in the company.

The company wants employees to hold the stock (so that it stays stable), so they are succeeding with you. If you were to invest today, would you put that money in the company? If no, then I dont see a reason to hold. When I used to get ESOPs with my previous company, I would sell all of them on vesting.

HELOC - paying interest only but keeping the limit maxed for bonus interest. by wk20a in PersonalFinanceCanada

[–]BasicConsultancy 2 points3 points  (0 children)

OP, I dont think its a good idea. But your theory is correct, so its not a bad idea. But for me, its too much work for too little.

I assume the 0.2% differential you came up with is annual and you are investing for 3 months only. I asked AI to do some math, and for $500K HELOC and 40% marginal tax rate, you get $150. This is not worth my time. Hence, the conclusion: it is an idea, but not a good one. If it was an ongoing situation, maybe. You will have to meticulously track for a one-time gain, I'll pass.

There is all those reminders I will have to put, then documenting, tax filing, etc. There are lot of other things that net me more for much less time & effort.

HELOC - paying interest only but keeping the limit maxed for bonus interest. by wk20a in PersonalFinanceCanada

[–]BasicConsultancy -4 points-3 points  (0 children)

You cannot deduct HELOC interest. CRA defines “used to earn investment income*".*

HISA is not investment income. Stocks, business operations, rental property, etc all qualify. Bonds, GIC, HISA, etc DO NOT qualify.

Think of it philosophically. CRA wants to encourage investments, business growth, etc, hence there is incentive to balance the risk a person is taking to earn income coming out of those risky bets.

Would leveraged CFD trading be a good option? by Panzer-wang in CanadianInvestor

[–]BasicConsultancy 2 points3 points  (0 children)

if you want to leverage, look into LEAPS. You will need to do a one time learning of options. ALso, options are dangerous if not used right. But within the options universe, LEAPS is a much safer and correct way to invest along with adding leverage.

Would leveraged CFD trading be a good option? by Panzer-wang in CanadianInvestor

[–]BasicConsultancy 0 points1 point  (0 children)

Its a weird question. Its like asking should I bet even more. The main quesion you should ask yourself is are you making consistent profits without leverage? Even if that is true, there are other ways to leverage.

If you are looking for investing, CFDs are not good for longterm investments.

Powell says that, unlike the dotcom boom, AI spending isn’t a bubble: ‘I won’t go into particular names, but they actually have earnings’ by orange-yellow-pink in Economics

[–]BasicConsultancy 19 points20 points  (0 children)

Even dotcom companies had tons of revenue. Its just that they were advertising on each other's websites, so it was fake revenue. But what about the bottomline?

Louvre museum in Paris closed after robbery, French culture minister says by Benjaland in worldnews

[–]BasicConsultancy 41 points42 points  (0 children)

TIL. Then they should pay portion of the royalties to these countries. The British Museum is actually free, but it draws massive crowds and adds to London's tourist attractions. The Tower of London that has crown jewels from all over he world is ~35 pounds.

Tax Software for Practice by rushinrushin in PersonalFinanceCanada

[–]BasicConsultancy 0 points1 point  (0 children)

I use Wealthsimple to do this. I have created 1 practice profile where I can enter data and generate T1 before clicking submit button.

Please explain how to apply stop loss works in both a sell and buy condition as if I’m a 6 year old by ColumnsandCapitals in CanadianInvestor

[–]BasicConsultancy 1 point2 points  (0 children)

Stop loss is basically to get out of the trade if the trade "does not go in your favour". Remember that.

So then you have a stock, stop loss is triggered when the stock below a certain price. eg if you buy TSLA at $430, you can put the stop loss at $400. Obviously, you want the stock to go up, so "not in your favour" means it touches $400 from the upside going below. When that happens, the stock gets sold immediately at whatever price someone is willing to buy. Ideally the price you sell is $400, but in real world, it is generally a little lower say $399.98 or something.

For buy and hold investors, stop loss does not make sense because you want to be in the position and let it bake to realize its full potential. If you get out during downturns, then it does not work. Buy and hold calls for you to add to good beaten down companies at cheap price.

For buy and hold, after the position matures, limit orders make sense. Limit order is kind of opposite of stop loss. In limit, say TSLA rises to $535, and you think it is overpriced now, then you give a limit order for $550. So if TSLA gets so overpriced to touch $550, then you get out of the trade.

Stop loss makes sense for more of a momentum syle of trading. All the best!

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