bluemoon

Not a good idea to use the TFSA as stock account or mutual fund account, holding equity funds.  I'd hold equity fund in regular investment account.  You lost the benefit of claiming capital loss.

It's better to hold interest-bearing investments.

bluemoon

You only being tax 50% on cap gain but 100% of interest income.  An investor would have portion high risk investment and a portion in low risk investment, why would you overly smart to use the TFSA to hold equity but not the interest-income bearing investment?

who said cap loss is a side product nor a purpose?  what are u talking about?

you do not expect your investment would be in capital loss, but it's part of good financial planning to consider the big picture.

原帖由 快樂牛郎 於 2009-1-6 19:46 發表


So you invest with the expectation of incurring capital loss?
Capital loss is a side product, not a purpose.

bluemoon

I think any financial advisor telling his client that you can earn 50% capital gain should get fired and retake the code of conduct course.   I am sure you are not a financial advisor cause the place you work for would have been pretty screwed up by a banker liked this.

I can only agree with your "plan" if it's for someone that takes the TFSA $5k limit as only a small portion of one's investment.  Still, it's kinna dumb to expect you can always on the winning side.  

And nah.. i am no financial advisor.  it's just common sense.

原帖由 快樂牛郎 於 2009-1-6 19:55 發表


Because I expect my 50% of capital gain to be way in excess of the paltry "interest" that I receive from the bank in this environment.

The interest rate right now varies from 0% to 4%.  However, wi ...

bluemoon

It neither realistic or retelling story, but unethical to give such advise to clients.  It does not consider as flexible advise.  Also, investment return does not base on historical data.

I agree your way would generate better (and a lot better) return than utilizing the TFSA with least tax efficient investment vehicle, ONLY if you are always on the winning side.  It is so call unrealistic.  And yes, I do hope the market will go back up in the next two years, and regardless the investments is in normal investment account or TFSA.

I would be more incline to hold investment liked monthly income fund in the TFSA than overly high risk equity fund.

And, I have respect to any occupation, including Financial Advisor.  

原帖由 快樂牛郎 於 2009-1-6 20:30 發表


A financial advisor should be realistic, not only retelling stories from his textbooks. In today's market, it's much more likely to make 50% in two years than the historical average. Of course it's  ...