TFSA

[Hopperbin]

Agstar if a farmer has avoided income then he will have no money to put into the account. Tom and Ag you both need to calculate or think about income that is tax free in a TFSA when you retire, with a self directed account with a decent return is where it really shines. In my case I have already paid myself a descent wage and dividend and bonus and still have no money left in my personal account, hmmm. Still have extra cash in the farm account.
So will wait to talk to the accountant on how to get money into the personal account. I believe you have till Dec. 31, like RESP's Dec. 31, RRSPs Feb.28.
Actually between the kids RESPs and now the TFSA Possibly yet some RRSPs that gobbles up some big chunk of change.

[agstar77]

Tax not income!

[Hopperbin]

Agstar how do you avoid tax and still have income to invest? Avoiding tax avoids income. The TFSA avoids the tax when you retire with more benefit if you can invest in the account for more years.

[charliep]

It is also very flexible in that you can pull money out in bad years/replace in good years. If you put aside money during the winter to pay cash expenses in the spring, a good way to do it over time without paying taxes on interest.

I have always considered paying taxes a good thing - means you made money. Minimizing the tax bill including things like incorportation so you can the equity in the business at a cheaper tax rate are all things that need to be considered.

[agstar77]

There are many legal ways to avoid or defer income tax and still have money to invest.

[boarderbloke]

under the TFSA, can i give my 19 yr old daughter $5000 to put in a fund of her own. have her buy a blue chip equity, and watch her receive dividends and capitol gain, all tax free for the next 20 or 30 years???

[charliep]

I have to send you to your financial advisor/accountant but that is my understanding. will get comments but I would go with more income related investments versus dividends/capital gains - these are taxed different so not the same benefit. Also need to sort out what her/your objective is and time frame. A new car/university in 2 years has a different answer than a new house in 10 years.

[Fransisco]

Can I invest in the CWB contingency fund?

[TOM4CWB]

Fransisco,

If it was anything like the Tricycle funds the CWB sponsored...

[cottonpicken]

Pay your daughter a five thousand dollar wage on income tax,then she turns around and invest in the plan.I doubt single equities qualify.

Buy a good resource fund.

Whats everyones problem with this,its a great long term investment stradegy.