Posted on: 25-01-11 19:59:10
Quote:That particular scenario is fine and I don't think CRA can object to that.
Originally posted by BlueLobster
Agreed. In a couple of years though, it'll go to 25K. And say you're some "poor sob" who hits the jackpot and magically quadruples the 25K "investing" in penny stocks. Boy, would it suck to then have the CRA come demand a big piece of the pie.
Lots of people are trading penny stocks in TFSA.
Many are losing, but many are winning too.
In that forum link you posted, there was a discussion thread where people had posted the balances in their TFSA accounts.
There were at least half a dozen folks that had over $20,000 in the TFSA.
The discussion thread is from 2010, so that means they have more than doubled their investments.
With baby boomers starting to retire now, there is going to be tremendous pressure on the public financing system.
However, it is not as bad as what's about to come.
Many of the boomers have solid, guaranteed pensions.
Which means even after retirement they will be paying substantial taxes.
But, moving forward, with guaranteed pensions disappearing more and more, the govt. cannot tax retirees as much as they can now.
Add to that the TFSA and how it protects OAS clawbacks and other social benefits.
Which means the govt. has to change something to keep the tax cash flowing.
It is possible that in addition to constraining the TFSA, the govt. may increase the limits of minimum RRIF withdrawals, increase tax rates at strategic income levels and do other things.
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
Quote:
Originally posted by pratickm
That particular scenario is fine and I don't think CRA can object to that.
Lots of people are trading penny stocks in TFSA.
Many are losing, but many are winning too.
Not so confident on that one, especially going forward. I do hope one of us CDs gets lucky enough to find out
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Are you there?
Smart investors have over 200 to 300k in their TFSA.
Though I would not call them smart any more as CRA is cracking down on them. They made this by swaps which were legal then - however CRA nows deems this as manipulative to transfer gains from RSP to TFSA. One has to be very prudent in what they do.
Quote:
Originally posted by BlueLobster
Quote:
Originally posted by pratickm
For most investors, either of this situation is very unlikely, esp. since the max anyone could have contributed into TFSA at this point is $15,000.
Agreed. In a couple of years though, it'll go to 25K. And say you're some "poor sob" who hits the jackpot and magically quadruples the 25K "investing" in penny stocks. Boy, would it suck to then have the CRA come demand a big piece of the pie
Will be interesting to see how this plays out, I likewise think there's changes coming, timeframe TBD.
Quote:Can you explain this?
Originally posted by Iceberg
Smart investors have over 200 to 300k in their TFSA.
Though I would not call them smart any more as CRA is cracking down on them. They made this by swaps which were legal then - however CRA nows deems this as manipulative to transfer gains from RSP to TFSA. One has to be very prudent in what they do.
What do you mean swaps?
Like CDS instruments?
$200K - $300K?
That's seems astronomical.
How can a $10K investment produce $300K, even with swaps or whatever instrument?
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
Quote:
Originally posted by Iceberg
Smart investors have over 200 to 300k in their TFSA.
Though I would not call them smart any more as CRA is cracking down on them. They made this by swaps which were legal then - however CRA nows deems this as manipulative to transfer gains from RSP to TFSA. One has to be very prudent in what they do.
Quote:
Originally posted by BlueLobster
Quote:
Originally posted by pratickm
For most investors, either of this situation is very unlikely, esp. since the max anyone could have contributed into TFSA at this point is $15,000.
Agreed. In a couple of years though, it'll go to 25K. And say you're some "poor sob" who hits the jackpot and magically quadruples the 25K "investing" in penny stocks. Boy, would it suck to then have the CRA come demand a big piece of the pie
Will be interesting to see how this plays out, I likewise think there's changes coming, timeframe TBD.
I am sorry but I am confused here. How can one hold ("Smart investors have over 200 to 300k in their TFSA"
200-300K in their TFSA accounts? Maximum contribution one can make till to date is 15K. -----------------------------------------------------------------
He who has not acquired one of the following: religious merit (dharma), wealth (artha), satisfaction of desires (kama), or liberation (moksa) is repeatedly born to die
Quote:
Originally posted by pratickm
Quote:Can you explain this?
Originally posted by Iceberg
Smart investors have over 200 to 300k in their TFSA.
Though I would not call them smart any more as CRA is cracking down on them. They made this by swaps which were legal then - however CRA nows deems this as manipulative to transfer gains from RSP to TFSA. One has to be very prudent in what they do.
What do you mean swaps?
Like CDS instruments?
$200K - $300K?
That's seems astronomical.
How can a $10K investment produce $300K, even with swaps or whatever instrument?
There were many loopholes in the first year when CRA introduced TFSA regulations, on the next year, after learning lessons from smart investors, CRA quickly revised and tightened TFSA regulations. In other words, many people misused TFS accounts and they had more than 100K in 1 year... this is why Iceberg said that CRA is cracking them down.
Quote:
Originally posted by Iceberg
Smart investors have over 200 to 300k in their TFSA.
Though I would not call them smart any more as CRA is cracking down on them. They made this by swaps which were legal then - however CRA nows deems this as manipulative to transfer gains from RSP to TFSA. One has to be very prudent in what they do.
I'm genuinely curious too. What're we laymen missing here?
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Are you there?
