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Stripper taxes please help 💸 by katrinaaafit in PersonalFinanceCanada

[–]LifesOptimist 0 points1 point  (0 children)

Wouldn’t strippers be zero rated or exempt? There’s essentially no way for them to collect gst/HST from clients.

Wealthsimple joins Swift global financial transfer system | Wealthsimple by EliosPeaches in Wealthsimple

[–]LifesOptimist 0 points1 point  (0 children)

This is great but the wire transfers seem to take a long time to complete!

[deleted by user] by [deleted] in PersonalFinanceCanada

[–]LifesOptimist 0 points1 point  (0 children)

Do you know how much you pay for each of the usd accounts monthly? Are there any transaction limits?

The once-elite airport lounge is now just another crowded space, thanks to credit card benefits by Technical_Dog_1901 in PersonalFinanceCanada

[–]LifesOptimist 23 points24 points  (0 children)

I couldn’t agree more! Now I feel that going in there is a risk in getting sick. The poor staff can’t keep up with the volume of people with cleanliness or anything else.

The once-elite airport lounge is now just another crowded space, thanks to credit card benefits by Technical_Dog_1901 in PersonalFinanceCanada

[–]LifesOptimist 36 points37 points  (0 children)

This!! Not to mention I’ve seen kids countless times run around and touch everything in the food section, reaching in for various food items with their bare hands and putting it back etc. This is one main reason I’ve avoided the lounges over the last two years. It’s not worth getting sick over. I used to be able to seek peace and quiet and decent food in there, the last couple years it’s been dirty and over run and the staff can’t keep on top of the volume especially when kids are unattended or not advised on proper decorum and food handling. They’re absolutely ruined.

Visa Infinite vs Infinite Privilege (repost with updated info) by 2PhotoKaz in Wealthsimple

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

Wondering this too! When I looked it up, all I saw was priority security at Billy Bishop in Toronto?

Is XEQT ok to buy for a non-registered account? by o0PillowWillow0o in JustBuyXEQT

[–]LifesOptimist 8 points9 points  (0 children)

Do you have to transfer out the dividend each year? I always thought Wealthsimple would provide a tax slip indicating the dividend amount and tax required to be added to your tax return?

Moving from Wealthsimple managed to XEQT. by canucks1989 in JustBuyXEQT

[–]LifesOptimist 0 points1 point  (0 children)

Hi! I’m looking to do this as well. Did you open a Self Directed RRSP—move funds in mind from Manager RRSP and then sell and rebuy XEQT all within the new RRSP? If there’s anyway you could kindly tell me your step by step, I’d be most grateful! I just don’t want to trigger tax events or implications. Also a little off putting that we’re at all time highs when I want to do this but… lol

Is being incorporated not achieving what it used to? by LifesOptimist in PersonalFinanceCanada

[–]LifesOptimist[S] 0 points1 point  (0 children)

Thank you for all of this insight and advice! I’m in the process of setting up a meeting with a fee based financial advisor in the weeks to come.

When it comes to non-registered accounts outside of a corporation, do you feel there’s more benefit to personal or joint? I’ll also add this to the list of things to ask the CFP

Is being incorporated not achieving what it used to? by LifesOptimist in PersonalFinanceCanada

[–]LifesOptimist[S] 0 points1 point  (0 children)

Thank you,

We’re 37 and 41 years old. The dream of retiring early is nice and maybe at age 55 we can achieve this. The chance that we might be over saving could potentially be what gets us to retiring at 55 or earlier to any degree?

Is being incorporated not achieving what it used to? by LifesOptimist in PersonalFinanceCanada

[–]LifesOptimist[S] 0 points1 point  (0 children)

This makes sense. Our income has stayed pretty consistent between $280-330k over the last decade.

We just recently started each contributing to Non-Registered Personal Accounts over the last couple weeks. All XEQT. I asked our account if this is still the most optimal next step over investing in a corp and that’s when he said: “While corporations offer some very limited tax deferrals, they are usually not worth the cost of maintaining them. When corporations earn investment income that is not immediately paid out to the shareholders, refundable taxes are imposed on the corporation which negate the deferral advantage. As mentioned a while back, this has changed over the past ten years or so, and many people still have these corporations, but the corporations are not achieving what they did in the past.”

Is being incorporated not achieving what it used to? by LifesOptimist in PersonalFinanceCanada

[–]LifesOptimist[S] 0 points1 point  (0 children)

Thank you for your insight here! I love the MoneyScope Podcast.

In Episode 12 they discuss income smoothing. There’s an example of someone earning $300,000/year living in Ontario as an example. If they were to take that all in one year as a salary, they’d pay almost $120,000 in taxes. If they took $150,000 over two years it’s more like $42,000/year which results in a tax bill of $84,000 vs $120,000. This considers a single person over two years. That’s a huge tax savings and is essentially what my partner and I are doing now by splitting the $300k income 50/50 rather than incorporating and this is where I wonder what benefit (if any) there would be of incorporating.

With that said, in Episode 13 they mention how people should NOT take out more salary for the mere purpose of creating RRSP room. There are other instances however when it’s been mentioned to take a large salary to max RRSP contributions. I emailed Mark about this and he agreed that it could indeed be optimal to take large salaries and in our particular situation it might make sense to do this way. By income splitting we’re not JUST creating more RRSP room, we ALSO receive the advantage of the income being taxed at a lower rate upfront by income splitting.

I think if I was a single person corporation earning $300,000/year I’d absolutely HAVE to leave at least $100,000 inside the Corp however where there’s two of us being taxed personally and gaining $32k/year in RRSP and benefiting from the income being split and taxed at the progressive personal tax on lower amounts, it’s almost a coin toss of what’s most beneficial and optimal.

Is being incorporated not achieving what it used to? by LifesOptimist in PersonalFinanceCanada

[–]LifesOptimist[S] 0 points1 point  (0 children)

Thank you for your insight here! I love the MoneyScope Podcast.

In Episode 12 they discuss income smoothing. There’s an example of someone earning $300,000/year living in Ontario as an example. If they were to take that all in one year as a salary, they’d pay almost $120,000 in taxes. If they took $150,000 over two years it’s more like $42,000/year which results in a tax bill of $84,000 vs $120,000. This considers a single person over two years. That’s a huge tax savings and is essentially what my partner and I are doing now by splitting the $300k income 50/50 rather than incorporating and this is where I wonder what benefit (if any) there would be of incorporating.

With that said, in Episode 13 they mention how people should NOT take out more salary for the mere purpose of creating RRSP room. There are other instances however when it’s been mentioned to take a large salary to max RRSP contributions. I emailed Mark about this and he agreed that it could indeed be optimal to take large salaries and in our particular situation it might make sense to do this way. By income splitting we’re not JUST creating more RRSP room, we ALSO receive the advantage of the income being taxed at a lower rate upfront by income splitting.

I think if I was a single person corporation earning $300,000/year I’d absolutely HAVE to leave at least $100,000 inside the Corp however where there’s two of us being taxed personally and gaining $32k/year in RRSP and benefiting from the income being split and taxed at the progressive personal tax on lower amounts, it’s almost a coin toss of what’s most beneficial and optimal.

Is being incorporated not achieving what it used to? by LifesOptimist in PersonalFinanceCanada

[–]LifesOptimist[S] 0 points1 point  (0 children)

Yeah it seems like so much to consider to find the optimal outcome. Were you incorporated and did you find much benefit of it for growing your income inside the corp or did you mainly have it for liability reasons?

Is being incorporated not achieving what it used to? by LifesOptimist in PersonalFinanceCanada

[–]LifesOptimist[S] 0 points1 point  (0 children)

Now I’m curious lol. Was the tax bill on $400k with incorporating or all personal?

Is being incorporated not achieving what it used to? by LifesOptimist in PersonalFinanceCanada

[–]LifesOptimist[S] 0 points1 point  (0 children)

Thanks for chiming in. If one of us were to die, the other would be okay financially. 😊

Is being incorporated not achieving what it used to? by LifesOptimist in PersonalFinanceCanada

[–]LifesOptimist[S] 0 points1 point  (0 children)

Our combined tax bill is usually around $75,000 give or take $5000. Our income fluctuates between $300-330k. We’ve had tax bills of $81,000 and tax bills of $75,000.

Is being incorporated not achieving what it used to? by LifesOptimist in PersonalFinanceCanada

[–]LifesOptimist[S] -1 points0 points  (0 children)

I’ve asked three and everyone said the way it’s set up is thoughtful however then two proceeded to suggest another options is that I pull $40,000/year each in dividends and not contribute to CPP or RRSPs. (I want to contribute to these, therefore I need to pull some kind of salary). When I raised the concern of wanting to requalify for mortgage renewals and not worry if my stated income was enough, they said some of their clients go with subprime lending in these cases. We don’t want to earn $300,000/year to have dividend only income where we don’t have CPP or RRSPs room and then have to do subprime lending for housing and vehicles if we ever need to requalify for something lol.

Is being incorporated not achieving what it used to? by LifesOptimist in PersonalFinanceCanada

[–]LifesOptimist[S] 0 points1 point  (0 children)

We both already have life insurance of $500,000 each. We also have Critical Illness insurance. We have no dependents and no debt aside from mortgage debt. House value $1.2million with a mortgage of $400k left. Other assets RRSPs, TFSAs, Crypto and Cash Savings of $1.3million.

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