Question forex tfsa

Use your Canadian discount brokerage and ETFs to keep fees low in your RRSP and TFSA. Or use robo advisors like Wealthsimple and Modern Advisor.

Are you single or married? So, think of every little thing you use to run your business.

Avoid Universal Life Insurance At All Costs

Hey you! Yeah you! I’m talking to you! Don’t email me with your questions. Please! Read below. Update: This post is extremely popular and the comments are a wealth of information – make sure to read them.

Whole life insurance is permanent and will always be there and with the cash value is a great deal if you investigate the company you sign with. And Universal Life, its not for everyone, It is right for me because I have a nice professional salary and I can properly fund it. I have both types of permanent insurance. It gives me options that other retirement venues cant compete with. The contracts are offered with security and values I couldnt find anywhere else. While the stock market has crashed, the value of my contracts continue to rise just as promised.

With all the legal protection and financial protection it offers me and my family I wouldnt choose any other direction. I am happy not to be dependent on Government for my retirement and that I have financial freedom and choices through out this journey. Sounds like your dad was a victim of either bad or no financial planning advice.

The main point, as I see, against UL, is that it gives a false investment security blanket to the investor. Ok, maybe a measly 40K. I will comment on the equity part you mentioned after doing some research. There are too many unknowns and consequences that can leave investors with nothing. And by the way, the evidence and comments are not assumptions, they have all occurred in the past to clients.

Truth of the matter is, buy term and invest the difference is an excellent strategy. It is my unbiased opinion. Fortunately, as demonstrated, it is a most excellent solution. Unfortunately Barry, you have no choice but to be biased.

I used to be as well. Only when you have multiple companies and their products can you be unbiased. Please continue to do some research… learn the ways of UL, my young apprentice. As noted in the other related article: The point of all of this is to suggest that retirement savings should be kept in investment vehicles like TFSAs and RRSPs and should be started early in aggressive funds. Lastly, apart from the millionaires, how have the average or struggling investor coped with the rising UL premiums post-Oct ?

Despite that, you continue to throw out lines such as: There exists no known plausible argument to exclude UL from this group. For this reason, they also are available to serve as an estate planning tool. The cost of insurance, as you no doubt know, is based on mortality tables, not market conditions. So, not one of my clients who I had placed in UL regardless of the company I used… even if my favourite is Transamerica had an increase in their UL premiums.

Having said that, I called my contact at Transamerica for their input, and was given this explanation… IF someone had opted for a pay plan, and had completed their 20 years of payments, and the COI was now being covered completely by their investment component within the policy, then they would have received such a letter.

It would let them know that because of market conditions, their investment component would not be able to sustain the COI for as long as anticipated, and they have 2 choices… cover the COI by making premium payments until the market recovers, or expect the investment component to diminish quicker than expected, reducing the amount available to them in retirement. Nonetheless, I endorse never paying just the minimum premium, and I expect my clients to retire with hundreds of thousands to millions in their investment component.

When market corrections happen, those clients will be well prepared. Yes, struggling investors would be far better served with another option, and buying cheap term and a TFSA is an awesome solution for them for the time being. If someone without principles puts a struggling investor into a UL policy… well, shame on them.

I guess anyone can come here and spew what ever misinformation that crawls across their mind. Either that or someone taught a monkey how to type.

The fact that you cannot distinguish between the two and have sucah a poor grasp of the proper vocabulary terms, further proves that you have no idea what you are talking about and should just remove this article. You should be ashamed of yourself. The mere possibility that someone can come across this article and be totally misinformed by you and your crackpot theories should be a crime. If someone took your advice they might not find out how wrong you are until 30 years has passed.

All the while you are sitting there smugly thinking about how you can dupe someone into working with you to make you more money. You sir, are scum! One cannot make a statement like that without some bias. A true answer is dictated by the situation and the facts, not idicts that do not take into account the facts.

You said it yourself in one of your rebuttals, that you have little experience in the subject matter. Universal life insurance policies are certainly a form of insurance, but one that has a storied history of being sold by college drop outs looking for a quick and high commission. Fact is this type of policy works for those who can afford to properly fund the policy. Purchased plans through poorly managed life insurance companies and their interest rates and thus, their returns have spiraled down.

If the economy is doing well and thus the insurance companies returns are doing well the fluctuating UL interest rates can be as high at 9. When the economy becomes sluggish for an extended period of time, the interest rate can lower to the guaranteed rate and if it stays there for any length of time and only the minimum payments are made, one will see the shortfalls. The mortality costs are set in stone when you buy the policy. The cost of the insurance goes up every year as you get older, just like an annual term life policy does.

Out of that account the insurance company takes out the cost of the insurance every month. So you never know what the cost of the insurance really is because all you know is that you are making deposits into that account. The interest you earn is suppose to grow or offset the increasing cost of the insurance in later years.

If the interest drops that never happens. Feel ripped off yet? Even some life insurance agents do not understand how UL works. Call your agent and ask them what your mortality costs is today. I am the owner, along with my sister, of a Universal life policy on our year-old mother.

The premiums are 27, a year and the whole policy is only worth , We do not have the money to pay for the policy any longer. The amount we would realize if we surrender is 18, Who can we sell this policy to? We are feuding with our mother and she probably will not sign for a physical. Do we need to have her signature in order to sell the policy?

Perhaps either one of you could help. What is everybody else getting in the same sluggish economy? It is not only UL policy-holders or owners of life insurance policies in general who get very little — or occasionally nothing — back when they terminate or surrender a plan too early. It makes me laugh when an insurance agent pretend they are so knowledgeable about insurance when they say any form of Cash Value Life Insurance is better than Buy term and Invest the difference.

This is usually a cheaper policy BUT the Insurance cost keeps on going up yearly, when the cost of insurance becomes higher than the premiums you are paying from your bank account, they start stealing the extra cost of that insurance from your Saving Investments to pay for the increase, when the Savings equal or less Than Zero the policy will terminate. The other kind of Universal Life Insurance is a Term with Savings or Investments, now the premiums of these kind of policies are very high from the beginning because they have to guarantee the price till age Because you are self insured and you do not need to keep paying for it.

As well in Universal Life policies you have a market risk how? Ohha they steal it from your savings and deplete your investment till one day the Savings equal Zero and the policy will terminate cancel.

What a Scam, Scam, Scam. You see after reading approx. Shame on you Insurance Agent, Shame on you. I know someone will reply in a negative way and try to defend themselves,I just know and expect it, may you be forgiven for your doings, Just remember you are the only one that have to look in the mirror everyday and one day when you are old and lonley you will not maybe, you will remember this e-mail and say man what was wrong with me, all these people that I took advantage of………..

Now that is funny. Interesting when one with just a little information tries to come across as knowledgeable, especially when that information is misapplied. Better luck next time, but study the subject in depth first and create a compelling argument.

Universal life is simply a cash cow for the life company. Surrender fees are horrendous this is where life companies are making a lot of money by keeping innocent investors monies when they cancel their plan due to financial hardship and it happens to be in the first years depending on the contract they lose it all. The fact that investment funds in these contracts are not guaranteed and therefore client can make or lose money. Most of the cases term insurance is the best but again consumer be aware, Life companies consider this type of plan a lapse subsidy policies which mean companies make a lot of money since majority of people never keep them to term and hence life company pocket the money and pays little death benefit and guess what upon renewal they make it so expensive that you will cancel since a similar new term insurance is less expensive!

Does this make any sense to you? If so, do not touch them, just Google and see which company has had law suites against them for charges, do not touch them they cannot be trusted. You do not want to deal with hungry policy hunters, Life Company loves them, and they bring in policies by weight and have no mercy on any client. Once they sell you they disappear. Once a thief always a thief.

Google them and avoid them. I am amazed at the ignorance on this page. Sounds like a whole bunch of coddled precious snowflakes so dependent on government welfare that anyone or anything which offers financial independence from Government will get sacrificed on the altar of political correctness. Wow, this article is full of inaccuracies and grossly misleading. It fails miserably on fact checks and logical consistency, not to mention basics of economics, taxation, etc.

It is actually funny to read despite it being blatantly slanted, ill informed, and lacking any attempt of business ethics. Before you choke on your self righteous indignation or have a knee jerk reaction to a challenge of your sacred yet biased and inaccurate beliefs, take a moment to realize there are as many diverse financial situations and needs as there are people. Just where does this article of misrepresentation fall on that quite undesirable spectrum? Thankfully, there are a diverse range of products and creative approaches to meet a complicated and ever changing array of financial needs.

I have been in insurance and financial services for 23 yrs, selling primarily Term Life and Disability, but there are lots of legitimate needs for UL, whole life, annuities, etc. A narrow view is just that, …narrow. I find it right on the money…Maybe it takes a true victim to this insurance policy, as well as hundreds of other misled people that are now suing …to be the real testimony here dear.

I agree with the article above. I bought UL insurance thinking that I was planning for the future and would only have to pay the same premium every month for life.

Boy — was I wrong! I trusted the guy I bought the ploicy from and wound up getting screwed years later. Guaranteed premium rider to UL is a great product for people who have good advisers. However, In order to benefit from this product the adviser must set up and explain the policy properly. Failure to do so could result in many of the issues mentioned above. This is a complicated product that is VERY flexible and, as a result, is easy to screw up. If planned properly, the policy is NOT minimally funded, and the investment not needed for at least about 10 years.

You have to allow for the money to grow in this tax shelter in order for it to be of real advantage. If you are concerned, have your dealer run multiple projections to see how your premiums will affect your investment. I am a grand daughter trying to help my family out… My grandmother purchased Universal Life insurance around now she is 89 and her policy states that she must life past for her family to recieve the full payout…..

My recommendation is to call the company and request for an inforced illustration. The second is to adjust your monthly or whatever payments your sending in to the company.

What I mean is to increase the payments so that the payment would cover the expense and the increasing costs of insurance. Just to let you know, the cost of insurance increase yearly, so pay close attention to your annual statement. Universal Life insurance is a scam. Anyone that says otherwise is benefiting from the scam in someway, a UL sale man for example. A while back one of those sale agent tried to sale me a UL plan. After a smoke and mirror power point presentation, they tried to get you to sign up right away sale pressure tactic.

Although I agree with all of these statements high fees, cost of insurance, etc. Shame on the producers who focus solely on cash values, and do not sell life insurance on its pure merit — the death benefit. At this time, the cost of insurance and other fees of this policy drive the premiums higher, or, are taken out of the cash values of the policy if the insured refuses to pay the higher premium.

Why would anybody pay to insure and insurance policy? UL, by design, is a way to transfer risk back onto the insured, with no guarantees later in the policy. You are looking at families and spouses who are relying on that policy to be there when they need it, and for it to potentially fail them at the worst times. Many do no plan correctly, simply because they may have never had the extra income to plan and save. Which should always be the primary reason to solicit life insurance — not as an investment.

Again, shame on all those who sell life insurance based on cash value earnings alone. You are putting people in a potentially awful situation later on in life when they may need that insurance the most. But I cannot agree that UL is safe, in any manner. I totally agree with this article because I have friends, family members, including myself who have purchased these policies and have dealt with the loss coverage.

There is nothing good about Universal Life. I honestly believe that the government and the insurance companies came up with this so call product so that the vast majority of consumers would end up either replacing their policies after finding out about the poor performances, or loosing their coverage after many years of paying into this product finding out that the premium is not enough to cover the expense and the increasing costs of insurance.

The government is the biggest crooks for allowing such product to exists because they are the ones who controls all life insurance companies. Agents, and especially newly licensed agents should learn more about the product before promoting the products to friends and families.

Although you swore that you sell only term life and disability insurance, I doubt you only focus on the two products.

Pay a little extra for peace of mind. I later realized this was insurance and not mutual funds. Keystone used market timing, forbidden in Prospectus. Ridiculous in every way for our child. Nationwide could not explain anything. Fees and more fees. This is one product that should be shot down. Many have been hurt by these policies. But they go on. Avoid Universal Life Insurance At All Costs Universal life insurance universal life consists of life insurance and an investment account which can also be called the side or linked account.

Even the insurance company will admit as much: The potential buyer, and spouse if applicable, have maximized their RRSPs. He or she understands the risks of leveraging. He and or she will have a need for higher income in retirement that can be provided through regular means.

What I am trying to figure out: Unfortunately, the process described above is necessary to calculate the gain or loss on capital account. Does your website have this capability? Dividend payments certainly complicate the ACB calculation. Dividends may be re-invested automatically into more shares, or not. I gather from other comments here that it is the re-invested portion that must be considered in the ACB calculation, not the original dividend payment?

Dividends are automatically used to purchase additional shares. What is my ACB now for the shares? For further information, please see the following page:. I would suggest either using the year when the bulk of the shares were initially acquired, or if possible list all the years when there were acquisitions.

Is that assumption correct? But assuming there is no deemed disposition or other taxable event due to the conversion, it would be equivalent to the following transactions:. Buy shares of Baralex Inc. I bought the same stock over two years, and sold some shares, but not all, recently current year.

How do I report the acquisition date and disposition date? My general problem with the reporting is how to deal with selling small amounts of a larger holding, when the stock has been held for a few years. If your question is about completing Schedule 3, then I would suggest putting all the years in column 1 year of disposition. Each disposition can go on a separate line. My son inherited stock from his grandmother in The stock split 2 for 1 in He placed the stocks with a brokerage in and sold them in For his ACB, would he use the historic value of stock the day he received them in for of them?

Then the value of the Stock in for the remaining ? The initial ACB would be the fair market value on the date of the transfer in The stock split should not affect total ACB nor does it trigger a capital gain. For further information on splits, please see:. When recording these, I have adjusted the ACB and I have calculated the capital gains or loss and reported them on my tax forms. My question is does a capital gain on this type of sale get added to the ACB since I am taxed on it without actually receiving it similar to a reinvested dividend?

Or can I deduct the capital gain along with the fee as an investment expense? Not after a confusing transaction the company effectively split into two entities , I now own 1.

However, if certain conditions are met, you can elect to defer paying taxes on the distribution, and allocate the previous ACB based on the relative fair market values of the shares. The link above shows an example of this. Note that Hertz is not yet on the list, but you may want to give it some time as the spin-off was just announced a few days ago. I have shares, held in my name only, in certificate form.

I have a joint brokerage account with my spouse. My spouse has a brokerage account, in his name only. Royal Bank common shares: For tax purposes I declare all the dividends in the joint account on my tax return the money invested came from me.

Hi I am evaluating a job offer where they included RSUs in cash in the compensation plan. I can cash them out every quarter, if I choose to. I would like to understand what would be the tax implication for me.

Does RSU work to my advantage or would I end up paying more tax? If I decide to sell my shares but not the jointly owned shares, is my ACB simply my purchase price plus transaction costs in my own account or do I have to recalculate my ACB in consideration of the purchase of shares in the joint account?

I did have some problem following the multitude of Parenthesis in your examples. This term is used by CRA and often is reported on tax documents. In your examples this would combine many factors into one number and greatly simplify the explanation. Thanks for your feedback. Hopefully this will improve the readability. Wow, all of this is really confusing, but your site is really helpful. I do have a couple of questions though. How can this be determined? Oftentimes, these amounts are the same for each security, except one is positive and the other negative — with no impact on the amount or units held.

What are these book value adjustment amounts to be recorded as when calculating the ACB for each security separately? Or are they to be ignored altogether in the calculation of ACB? So in Dec of I phoned brokerage and told them to dispose of those shares or sell as the amount I was gonna get was not even gonna cover commission. So, my question is, how do i enter this final entry in my ACB spreadsheet above to determine my capital loss? If the commission is equal to the value of the shares such that the net proceeds are zero, then the calculation method is the same.

Simply input the amount and commission into AdjustedCostBase. The calculation method and formulas above are also still valid even when the commission exceeds the value of the shares, resulting in negative net proceeds.

This is what happened below:. The separation is scheduled to become effective before market open on November 1, As previously announced, the separation will occur by means of a pro rata distribution by Company A. Stock split approval pending: Earlier this year Company A announced plans for a reverse stock split of CompanyA common stock at a ratio of 1 for 3 and a proportionate reduction in authorized shares of its common stock.

A special shareholder meeting will take place on October 5, to seek approval of this reverse stock split and authorized share count reduction. If the reverse stock split is approved, at the time of separation Company A shareholders will receive one share of the new Company A common stock for every three shares of the of the old Company A common stock held. If the reverse split is not approved, shareholders will receive one share of the new Company A for every nine shares of the old Company A common stock held.

In addition all Company A shares held at the time of separation will become Company B shares. Company A also noted that no fractional shares will be issued in the distribution, and shareholders of record will receive cash in lieu of fractional shares, paid on November 1, The record date for the distribution is October 20, What you seem to be describing is a foreign spin-off.

The CRA has some information on foreign spin-offs here:. Depending on the details, the spin-off can either be taxable as foreign income, or the spin-off can occur on a tax-deferred basis. Assuming that the spin-off is taxable as foreign income, then the fair market value of the shares that are spun-off would be taxed as foreign income in the year of the spin-off. This can be inputted into AdjustedCostBase.

Split for Company A with a ratio of for You would need to make an election on your tax return in order to take advantage of the tax deferral.

My question for you today is about instalment receipts. In , Emera Inc Instalment Receipts were purchased and in some were sold. Later in , the instalment receipts matured and the final instalment payment was paid. In exchange, Emera Inc shares plus cash were received. To determine the ACB, I entered the amount that was paid in and the number of instalment receipts received.

For the sell transactions, I entered the number of instalment receipts sold and the amount received for the sale. For the shares received, I added a new security and entered a buy transaction for the number of shares received with the value per share that was provided by Emera. Now, how do I handle the cash received? My first thought was to enter a sell transaction with the cash received as the amount, resulting in a large loss; however, the tax package from my advisor lists the cash as received interest and is included in the total on my T5.

If the cash received is taxed as interest, how do I record the maturity of the instalment receipts? The way this is calculated depends on the transaction type.

For a buy transaction this will be equal to the total cost of the shares plus commission. For a sell transaction this will be equal to the ACB per share multiplied by the number of shares sold. I inherited some stock from my mother last year.

She realized a capital gain on the deemed disposition of her shares on the date of her death. The stock was held in her trust for approximately 7 months after her death, and was then transferred to me as stock. Is there an option to do it either way, or is only 1 way correct? There would be a deemed disposition upon death based on the fair market value on the date of death that would result in capital gains on her final tax return unless assets are transferred to a spouse. Your ACB would be based on the fair market value on the date the shares are transferred to you.

Could you please clarify the calculation for distributions with capital gains. The per share amount when a distribution component is given as a percentage of the total distribution can be calculated as follows:. What value are you referring to? For the December 29, distribution for ZLB for example, it shows 9. So the capital gain and return of capital values would be as follows:. Interestingly, I discovered your formula and my formula consistently yield the same answers.

When there is a capital gain as part of the distribution, does this reduce the ACB by the total amount of the capital gain similarly as it does for the return of capital? A capital gains distribution will not affect ACB. It results in a capital gain for the year of the distribution, and should also be included on your T-slip. Does your calculator take DRIPing into account? Many long term investors buy and drip shares for years before selling. This is what makes the calculation complicated as any investor doing this is buying small amounts of share at different prices 4 times a year.

For further information please see the following:. Question — if I sold shares for a capital gain in my cash non registered USA account can I offset this with capital losses from my cash non registered CDN account? The two accounts have different account numbers but are both under the same name and grouped together by my broker. Your capital losses can be used to offset any of your capital gains, whether they occur in the same brokerage account of a different one. So basically I wish to buy X shares, then transfer X shares out.

Like if the buy and transfer out occur on the same day? When you make an in-kind contribution from a non-registered account into a registered account, you have deemed to have sold the shares.

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