finiki - Recent changes [en]

Adjusted cost base (ACB)

2012-05-19T15:46:10Z

ETF with Multiple Distributions: in may

File:IsharesXAL.png

2012-05-19T14:01:13Z

uploaded "[[File:IsharesXAL.png]]" iShares XAL tax distributions

Adjusted cost base (ACB)

2012-05-19T13:57:33Z

Return of capitalCanetic Resources Trust, Adjusted Cost Base, Viewed July3, 2009.: XAL started

Investment Policy Statement

2012-05-17T03:27:24Z

investment plan

Creating a Financial Plan

2012-05-17T00:29:50Z

First: eliminate non-deductable or high-interest debt: typo; eliminate First

Creating a Financial Plan

2012-05-17T00:18:09Z

Typo fix.

Getting Started

2012-05-16T02:13:37Z

Portal:Main Page/Categories

2012-05-16T01:45:28Z

getting started

Investment Management

2012-05-16T01:21:59Z

rebalancing

Portal:Main Page/Categories

2012-05-16T01:18:57Z

add rebalancing

Rebalancing

2012-05-16T01:17:17Z

cat pd&c

Template:Portfolio Design Sidebar

2012-05-16T01:12:41Z

rebalancing

Rebalancing

2012-05-16T01:11:08Z

pdesign

Rebalancing

2012-05-16T01:08:27Z

Added template.

Portfolio Design and Construction

2012-05-16T01:07:34Z

Added template.

Risk and return

2012-05-16T01:06:46Z

Added template.

Rebalancing

2012-05-16T01:05:06Z

often

Creating a Financial Plan

2012-05-16T00:31:21Z

Added template.

Template:Getting Started Sidebar

2012-05-16T00:05:34Z

Removed duplicate entries (Financial planning).

Rebalancing

2012-05-16T00:03:57Z

that

Talk:Risk and return

2012-05-15T23:54:46Z

Clarified link formatting.

Risk and return

2012-05-15T23:51:02Z

Formatted link.

Rebalancing

2012-05-15T23:47:14Z

Added my rebalancing spreadsheet.

Talk:Getting Started

2012-05-15T17:00:29Z

response

Creating a Financial Plan

2012-05-15T16:58:53Z

First: eliminate non-deductable or high-interest debt: change header level

Talk:Getting Started

2012-05-15T16:34:14Z

Should debt reduction be covered?

New page

Should there be any mention of giving consideration to paying down non-tax deductible debt loads before investing? Or is it an assumed pre-condition to someone getting started to invest? --[[User:Peculiar Investor|Peculiar Investor]] 10:34, 15 May 2012 (MDT)

Canadian-US Investing Differences

2012-05-15T13:28:12Z

add 100k reporting limit

Tax Planning

2012-05-15T13:24:40Z

Do: t1135

Canadian-US Investing Differences

2012-05-15T13:14:00Z

add link to tax consequences

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 <center>[[Image:ROC.jpg]]</center>
 ==ETF with Multiple Distributions==
-The following example is taken from the iShares 2011 Distribution Tax Characteristics.<ref>iShares, [http://ca.ishares.com/content/stream.jsp?url=/content/en_ca/repository/resource/2011_final_tax_character_en.pdf], viewed May 19, 2012.</ref>
+The following example is taken from the iShares 2011 Distribution Tax Characteristics.<ref>iShares, [http://ca.ishares.com/content/stream.jsp?url=/content/en_ca/repository/resource/2011_final_tax_character_en.pdf iShares CDN Funds - Final 2011 Distribution Characteristics], viewed May 19, 2012.</ref>
-Suppose that an investor had purchased the "iShares Alternatives Completion Portfolio Builder Fund ([http://tmx.quotemedia.com/quote.php?qm_symbol=XAL XAL])" at an average unit price, after adding commissions, of $25.50. The tax characteristics of the distributions of this ETF are as follows:
+Suppose that an investor had purchased 100 shares of the "iShares Alternatives Completion Portfolio Builder Fund ([http://tmx.quotemedia.com/quote.php?qm_symbol=XAL XAL])" in May, 2011 at an average unit price, after adding commissions, of $25.50 and a total ACB of $2550.00. The tax characteristics of the distributions of this ETF are as follows (click for larger image):
 ==Further Reading==

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 {{Template:Tax Planning Sidebar}}
-=Introduction<ref>Globe and Mail, April 15, 2003. [http://www.globefund.com/servlet/ArticleNews/wise_story/WISE_INVESTOR/20030415/weekly Calculating Your Adjusted Cost Base], Viewed July 3, 2009.</ref>=
+==Introduction==
-When you sell a security, your capital gain or loss is normally your proceeds less your cost. The calculation can become complicated by additional purchases after the initial purchase, dividend re-investment, return of capital, stock splits, spin-offs and consolidations. For tax purposes<ref>Canada Revenue Agency, [http://www.cra-arc.gc.ca/E/pub/tg/t4037/t4037-e.html#P1185_82580 Adjusted cost base (ACB)], Viewed July 3, 2009</ref> you must track the ACB of each security that you own.
+When you sell a security, your capital gain or loss is normally your proceeds less your cost.<ref>Globe and Mail, April 15, 2003. [http://www.globefund.com/servlet/ArticleNews/wise_story/WISE_INVESTOR/20030415/weekly Calculating Your Adjusted Cost Base], Viewed July 3, 2009.</ref> The calculation can become complicated by additional purchases after the initial purchase, dividend re-investment, return of capital, stock splits, spin-offs and consolidations. For tax purposes<ref>Canada Revenue Agency, [http://www.cra-arc.gc.ca/E/pub/tg/t4037/t4037-e.html#P1185_82580 Adjusted cost base (ACB)], Viewed July 3, 2009</ref> you must track the ACB of each security that you own.
 The most common and usually the most simple situations involving ACB are additional purchases after the initial purchase, dividend re-investment, return of capital and stock splits. Spin-offs and consolidations are usually complicated. Sometimes the company will provide an [http://www.imperialmetals.com/s/Corporate_Reorg.asp?ReportID=34921 example] of how to calculate the ACB although often with a disclaimer that the example is neither legal nor tax advice.
 =Additional purchases after the initial purchase<ref>Canada Revenue Agency, [http://www.cra-arc.gc.ca/E/pub/tg/t4037/t4037-e.html#P1185_82580 Adjusted cost base (ACB)], Viewed July 3, 2009</ref>=
-<center>[[Image:Additional purchases after the initial purchase.jpg]]</center>
+It is useful to keep the following rules in mind:
-=Dividend re-investment<ref>Canada Revenue Agency, [http://www.cra-arc.gc.ca/E/pub/tg/t4037/t4037-e.html#P1185_82580 Adjusted cost base (ACB)], Viewed July 3, 2009</ref>=
+* Purchasing charges are ''added'' to the cost base.
-<center>[[Image:Dividend re-investment.jpg]]</center>
+* Reinvested distributions are ''added'' to the cost base.
-=Return of capital<ref>Canetic Resources Trust, [http://admin.canetictrust.com/users/folder.asp?FolderID=5022 Adjusted Cost Base], Viewed July3, 2009.</ref>=
+* Distributions that are ''not'' reinvested have ''no effect'' on the cost base.
 The Adjusted Cost Base (ACB) is used in calculating capital gains or losses on the disposition of trust units held as capital property by a unitholder. The ACB of each trust unit is reduced by the amount of distributions received as a return of capital to date on that unit. When a Canadian taxpayer's ACB drops below zero during a taxation year, the negative amount is considered by CCRA (Revenue Canada ) to be a capital gain. Unitholders re-set their trust unit cost base to zero by paying capital gains tax on the negative cost base portion.
 <center>[[Image:ROC.jpg]]</center>
-=Further Reading=
+==ETF with Multiple Distributions==
 * Peter Ponzo aka Gummy. '''[http://www.financialwebring.org/gummystuff/ACB.htm Adjusted Cost Base for Canadians'''].
-=Calculations=
+==Calculations==
 Some trusts provide calculators to help you calculate your ACB. You enter the buy/sell and the trade date and they combine their distribution information on return of capital to produce your ACB. To determine if a trust that you own does, Google the trust name and adjusted cost base.
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-=References=
+{{Ref}}
-<references/>
-−
 {{Footer}}
 [[Category:Financial Planning]]

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 Morningstar<ref>Morningstar.ca, [http://www.morningstar.ca/globalhome/industry/news.asp?articleid=articleid111920011621 Portfolio 107: Creating your Investment Policy Statement], viewed Mar 7, 2011.</ref> provides an excellent summary of what an IPS should include and a downloadable worksheet<ref>Morningstar.ca, [http://im.morningstar.com/im/InvestPolicyWS.pdf Morningstar's Investment Policy Statement Worksheet], viewed Mar 7, 2011.</ref>.  Libra Investment provides a sample IPS for a mythical retired widow<ref>Libra Investments, [http://www.libra-investments.com/docs/Generic%20IPS.pdf IPS template], viewed Mar 7, 2011.</ref>.
 == References ==
 <references/>

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 * Paying non-deductible interest on anything other than your home mortgage (and a good case can be made that you are better to pay off the mortgage than invest, which you are not likely to hear from someone who gets paid a commission to sell you investments)
-=== First: eliminate non-deductable or high-interest debt ===
+=== Eliminate non-deductible or high-interest debt ===
 The first step, before establishing an emergency fund or setting up an investment portfolio, should be to eliminate high-interest or non-deductible debt. That generally means paying off credit card balances and ensuring that future credit card charges are paid in full. Pre-payment penalties may negate any advantage in paying down a mortgage, and the investor may be fortunate enough to have low interest rates on some types of debt like student loans. However, there is no net benefit to making, say, 6% taxable on a balanced portfolio while paying 18% or more on a credit card.
-In Canada, most interest charges (except those for borrowing to invest) are not tax deductable, so should be addressed first.
+In Canada, most interest charges (except those for borrowing to invest) are not tax deductible, so should be addressed first.
 ===Emergency fund===

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 === First: eliminate non-deductable or high-interest debt ===
-The first step, before establishing an emergency fund or setting up an investment portfolio, should be to eliminate high-interest or non-deductable debt. That generally means paying off credit card balances and ensuring that future credit card charges are paid in full. Pre-payment penalties may negate any advantage in paying down a mortgage, and the investor may be fortunate enough to have low interest rates on some types of debt like student loans. However, there is no net benefit to making, say, 6% taxable on a balanced portfolio while paying 18% or more on a credit card.
+The first step, before establishing an emergency fund or setting up an investment portfolio, should be to eliminate high-interest or non-deductible debt. That generally means paying off credit card balances and ensuring that future credit card charges are paid in full. Pre-payment penalties may negate any advantage in paying down a mortgage, and the investor may be fortunate enough to have low interest rates on some types of debt like student loans. However, there is no net benefit to making, say, 6% taxable on a balanced portfolio while paying 18% or more on a credit card.
 In Canada, most interest charges (except those for borrowing to invest) are not tax deductable, so should be addressed first.

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 {{Template:Getting Started Sidebar}}
 ==Overview==
 One of the biggest barriers in developing an investment portfolio is getting started. Although a great deal of information is available, sorting through it is a major task. Let us consider the various stages in order, with links to the appropriate finiki sections or Financial Webring Forum threads.
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 Once the IPS is created, the investment plan must be implemented. This falls under [[Investment Management]], in particular [[Portfolio Design and Construction]], as the outlines of the required portfolio are determined. Note that it is only after the portfolio has been designed that security selection - i.e. purchasing components - takes place. Many investors make the mistake of starting at this point.
-Investing is usually done to meet a particular goal, often retirement. This is governed in [[Retirement Planning]]. Once the goal of retirement is reached, [[Retirement Living]] examines some of the lifestyle choices. Finally, [[Reference Material]] is available for further reading and clarification where needed.
+Investing is usually done to meet a particular goal, often retirement. This is governed in [[Retirement Planning]]. Once the goal of retirement is reached, [[Retirement Living]] examines some of the lifestyle choices. Additional [[Reference Material]] is available for further reading and clarification where needed.
 Finally, and above all, remember the words of Ralph Waldo Emerson: "Life is a journey, not a destination." <ref>Cited at [http://www.goodreads.com/quotes/show/24142 Goodreads], viewed May 14, 2012.</ref>
@@ Line 40: / Line 39: @@
 ==See also==
+[[Creating_a_Financial_Plan#Further_Reading |Further Reading]]
 {{Ref}}
 ==External links==
-[[Category:Development]]
+[[Category:Main Page]]

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 <!--- No blank lines before the start of the table- it shows up in the content. That includes above this comment ----></noinclude>
 {|  style="width:100%; background:none"
 |-
 | style="border-bottom: 1px solid #00608f" | '''[[Financial Management]]''':<br /> [[Cash Flow Financial Planning Software]] ∙ [[Cash Management]] ∙ [[Consumer Tips]] . [[Cross-Border and Expatriate Issues]] ∙ [[Free and Open Source Personal Finance Software]] ∙ [[Short Term Cash Returns]]

@@ Line 2: / Line 2: @@
 *[[Investment Styles]]
 *[[Portfolio Design and Construction]]
 *[[Risk and return]]
 [[Category:Main Page]]
 [[Category:Investment Management]]

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 | style="border-bottom: 1px solid #00608f" |'''[[Financial Planning]]:'''<br />[[Canadian-US Investing Differences]]  ∙ [[Creating a Financial Plan]] ∙ [[Estate Planning]] ∙ [[Finding a Financial Adviser]] ∙ [[Insurance]] ∙ [[Mortgages]] ∙ [[Tax Planning]]
 |-
-| style="border-bottom: 1px solid #00608f" |'''[[Investment Management]]:'''<br />[[Asset Classes]] ∙ [[Investment Styles]] ∙ [[Portfolio Design and Construction]] ∙ [[Risk and return|Risk and Return]]
+| style="border-bottom: 1px solid #00608f" |'''[[Investment Management]]:'''<br />[[Asset Classes]] ∙ [[Investment Styles]] ∙ [[Portfolio Design and Construction]] ∙ [[Rebalancing]] ∙ [[Risk and return|Risk and Return]]
 |-
 | style="border-bottom: 1px solid #00608f" |'''[[Retirement Planning]]:'''<br /> [[Annuities]] ∙ [[Canadian Retirement Software & Calculators]] ∙ [[Government Retirement Benefits ]] ∙ [[Pension Plans]] ∙ [[Preparing to Retire]] ∙ [[Tax Deferred and Tax Free Savings Plans]]

← Older revision		Revision as of 01:17, 16 May 2012
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	*[https://docs.google.com/spreadsheet/ccc?key=0AsVSNcUR-B6IdE4tZm0yVk9ObkxsZ2xvNmJpRTB0b0E Rebalancing spreadsheet], free download from Google Docs. Supplies three example approaches to rebalance a portfolio by allocation percentage, transfer amount, or final value; by forum member LadyGeek. To download, select File --> Download As --> Excel or OpenOffice.		*[https://docs.google.com/spreadsheet/ccc?key=0AsVSNcUR-B6IdE4tZm0yVk9ObkxsZ2xvNmJpRTB0b0E Rebalancing spreadsheet], free download from Google Docs. Supplies three example approaches to rebalance a portfolio by allocation percentage, transfer amount, or final value; by forum member LadyGeek. To download, select File --> Download As --> Excel or OpenOffice.
	[[Category:Financial Planning]]		[[Category:Financial Planning]]
		+	[[Category:Portfolio Design and Construction]]

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 *[[Index funds]]<br>
 *[[Exchange Traded Fund]]<br>
 |}<noinclude>
 [[Category:Templates]]</noinclude>

← Older revision		Revision as of 01:08, 16 May 2012
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		+	{{Template:Getting Started Sidebar}}
	{{Stub}}		{{Stub}}
	Although the investor may start with a given [[Portfolio Design and Construction\|portfolio design]], as time evolves the portfolio will move away from the original asset allocation targets. As part of portfolio maintenance, it is desirable to periodically readjust that allocation, in order to control the risk. This is referred to as "rebalancing", and can be done on a calendar schedule, or if allocation thresholds in the [[Investment Policy Statement]] are exceeded. Such rebalancing thresholds may be set on either an '''absolute''' basis - that is, as a percentage of the entire portfolio - or on a '''relative''' basis, as a percentage of the particular holding. For example, a statement that "Equity weightings to remain in the range 45% to 55%, with a nominal target of 50%" is a threshold of 5% absolute. An example of a relative threshold could be a statement that "Small Cap Stocks to be set at a weighting of 10%, with a deviation of not more than 25% relative" (which would be a 2.5% absolute threshold).		Although the investor may start with a given [[Portfolio Design and Construction\|portfolio design]], as time evolves the portfolio will move away from the original asset allocation targets. As part of portfolio maintenance, it is desirable to periodically readjust that allocation, in order to control the risk. This is referred to as "rebalancing", and can be done on a calendar schedule, or if allocation thresholds in the [[Investment Policy Statement]] are exceeded. Such rebalancing thresholds may be set on either an '''absolute''' basis - that is, as a percentage of the entire portfolio - or on a '''relative''' basis, as a percentage of the particular holding. For example, a statement that "Equity weightings to remain in the range 45% to 55%, with a nominal target of 50%" is a threshold of 5% absolute. An example of a relative threshold could be a statement that "Small Cap Stocks to be set at a weighting of 10%, with a deviation of not more than 25% relative" (which would be a 2.5% absolute threshold).

← Older revision		Revision as of 01:07, 16 May 2012
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	{{Template:Portfolio Design Sidebar}}		{{Template:Portfolio Design Sidebar}}
		+	{{Template:Getting Started Sidebar}}
	In finance, a '''portfolio''' is a grouping of financial assets such as stocks, bonds and cash equivalents, as well as their mutual, exchange-traded and closed-fund counterparts. Portfolios are held directly by investors and/or managed by financial professionals. <ref> [http://www.investopedia.com/terms/p/portfolio.asp#ixzz1cNCawXkx Definition], from investopedia, viewed Oct. 31, 2011. </ref>		In finance, a '''portfolio''' is a grouping of financial assets such as stocks, bonds and cash equivalents, as well as their mutual, exchange-traded and closed-fund counterparts. Portfolios are held directly by investors and/or managed by financial professionals. <ref> [http://www.investopedia.com/terms/p/portfolio.asp#ixzz1cNCawXkx Definition], from investopedia, viewed Oct. 31, 2011. </ref>

@@ Line 1: / Line 1: @@
 ''This article expands on the historical data described in [[Portfolio Design and Construction#Risk | Portfolio Design and Construction]] (Asset Allocation, Risk, and Return 1972 - 2008) to demonstrate the concepts of risk, return, and diversification.''
@@ Line 6: / Line 7: @@
 == Risk as the uncertainty of returns ==
-{| style = "float:right;margin-left:1em;margin-right:0em;"
+Refer to Figure 1 below. The uncertainty inherent in investing is demonstrated by the historical distributions of returns of three major [[Asset Classes | asset classes]]: cash ([[:Short Term Cash Returns#Treasury Bills |Treasury Bills]]), [[Conventional Bonds | bonds]], and [[Equities|stocks]]. A span of 41 years (1970 - 2011) should be a sufficiently long time to show general trends, but 1982 had a significant impact and is highlighted separately.<ref group="footnotes">All numerical results presented here are available in the spreadsheet.</ref>
-|align="center"|[[File:Return Dispersion - Cdn T-Bills - Bonds - Stocks.png|451px]]
+<br style="clear: right" />
-'''Figure 2. Risk vs. Return: 1970 - 2011'''<ref name="attrib" /><ref group="footnotes">  Standard deviation is a statistical measure that often is used to quantify the dispersion (variation) of investment returns which provides a standardized way to compare risk for different investments. Standard deviation increases as dispersion of annual returns increases. This is illustrated by the standard deviation of the asset classes shown in the returns history shown in Figure 1. </ref>
+{| style = "float:right;margin-left:1em;margin-right:0em;" cellspacing="0"
 |}
 {| style = "margin-left:1em;margin-right:0em;"
 ||[[File:Range of Annual Cdn Returns.png|451px]][[File:Range of Annual US Returns.png|451px]]

@@ Line 2: / Line 2: @@
 Although the investor may start with a given [[Portfolio Design and Construction|portfolio design]], as time evolves the portfolio will move away from the original asset allocation targets. As part of portfolio maintenance, it is desirable to periodically readjust that allocation, in order to control the risk. This is referred to as "rebalancing", and can be done on a calendar schedule, or if allocation thresholds in the [[Investment Policy Statement]] are exceeded. Such rebalancing thresholds may be set on either  an '''absolute''' basis - that is, as a percentage of the entire portfolio - or on a '''relative''' basis, as a percentage of the particular holding.  For example, a statement that "Equity weightings to remain in the range 45% to 55%, with a nominal target of 50%" is a threshold of 5% absolute. An example of a relative threshold could be a statement that "Small Cap Stocks to be set at a weighting of 10%, with a deviation of not more than 25% relative" (which would be a 2.5% absolute threshold).
-Rebalancing can be most easily done in accumulation mode by adding new funds to that section of the portfolio that is most out of balance on the downside, or in withdrawal mode by selling a portion of that section of the portfolio that is most out of balance on the upside. In registered accounts, where there is no immediate tax liability, it is also possible to switch funds from one component to another at reasonable cost. Rebalancing in a taxable portfolio, however, may incur significant tax, and should usually be avoided in that case.
+Rebalancing can be most easily done in accumulation mode by adding new funds to that section of the portfolio that is most out of balance on the downside, or in withdrawal mode by selling a portion of that section of the portfolio that is most out of balance on the upside. In registered accounts, where there is no immediate tax liability, it is also often possible to switch funds from one component to another at reasonable cost. Rebalancing in a taxable portfolio, however, may incur significant tax, and should usually be avoided in that case.
 Bernstein<ref>W. Bernstein, [http://www.efficientfrontier.com/ef/996/rebal.htm THE REBALANCING BONUS: Theory and Practice].</ref> has concluded that, in some circumstances, greater returns may be achieved by periodic rebalancing. Nevertheless, the investor should regard rebalancing as primarily a procedure for controlling the risk, since it is impossible to say in advance whether the returns will be greater or less.

← Older revision		Revision as of 23:54, 15 May 2012
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	Is the bullet alignment correct in "External links"? --[[User:Peculiar Investor\|Peculiar Investor]] 21:40, 14 May 2012 (MDT)		Is the bullet alignment correct in "External links"? --[[User:Peculiar Investor\|Peculiar Investor]] 21:40, 14 May 2012 (MDT)
		+
		+	:The US spreadsheet was intended to be supplemental information, which seemed to need a 2nd level indent. I replaced the bullet with () to be more clear. --[[User:LadyGeek\|LadyGeek]] 17:54, 15 May 2012 (MDT)

@@ Line 105: / Line 105: @@
 ==External links==
 *The file used to generate the Figures is available as a free download from Google Docs: [https://docs.google.com/open?id=0B8VSNcUR-B6IWVhkS1VGTUlvNUU Risk - Historical Performance of Cdn Bonds and Stocks.xlsx]
-**The US information, including an example of Value at Risk, is also available from Google Docs: [https://docs.google.com/open?id=0B8VSNcUR-B6Idk9welFiMDhRX3UybzZxdjdseDVwdw Risk - Historical Performance of Bonds and Stocks.xlsx].
+:(The US information, including an example of Value at Risk, is also available from Google Docs: [https://docs.google.com/open?id=0B8VSNcUR-B6Idk9welFiMDhRX3UybzZxdjdseDVwdw Risk - Historical Performance of Bonds and Stocks.xlsx].)
 *[http://www.ndir.com/cgi-bin/downside_adv.cgi Stingy Investor: The Stingy Investor Asset Mixer], by forum member NormR. Create your own historical portfolio performance.
 *[http://www.financialwebring.org/forum/viewtopic.php?f=29&t=114868 finiki: Risk and Return], forum discussion.

@@ Line 6: / Line 6: @@
 To minimize costs, frequent rebalancing should be avoided. In registered accounts, yearly rebalancing may be a reasonable compromise between risks and costs.
 {{Ref}}
 [[Category:Financial Planning]]

← Older revision		Revision as of 17:00, 15 May 2012
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	Should there be any mention of giving consideration to paying down non-tax deductible debt loads before investing? Or is it an assumed pre-condition to someone getting started to invest? --[[User:Peculiar Investor\|Peculiar Investor]] 10:34, 15 May 2012 (MDT)		Should there be any mention of giving consideration to paying down non-tax deductible debt loads before investing? Or is it an assumed pre-condition to someone getting started to invest? --[[User:Peculiar Investor\|Peculiar Investor]] 10:34, 15 May 2012 (MDT)
		+	:[[Creating_a_Financial_Plan#First:_eliminate_non-deductable_or_high-interest_debt]] added. Expand or link as desired. --[[User:Shakespeare\|Shakespeare]] 11:00, 15 May 2012 (MDT)

@@ Line 20: / Line 20: @@
 * There are also some terminology differences. For example, a US "Certificate of Deposit" is similar to a Canadian [[Guaranteed Investment Certificate]].
-Canadian purchasers of US securities should also be aware of the [[Tax-Efficient_Investing#Foreign_withholding_taxes|tax consequences]].
+Canadian purchasers of US securities should also be aware of the [[Tax-Efficient_Investing#Foreign_withholding_taxes|tax consequences]] and [[Tax_Planning#Do|$100K reporting limit]].
 ==See Also==

@@ Line 11: / Line 11: @@
 * Generate [[Tax-Efficient Investing|tax-preferred]] investment income: Dividends from Canadian corporations and capital gains on the sale of investments get preferential tax treatment relative to earned income and interest. Earning $80,000 at a job in 2008 would cost an Ontario resident about $23,000 in income tax and [http://www.hrsdc.gc.ca/eng/isp/pub/factsheets/retire.shtml#f CPP]'''/'''[http://www.servicecanada.gc.ca/eng/ei/menu/eihome.shtml EI] premiums. The same income, half in dividends from Canadian public companies and half in capital gains, is liable for about $6,000.
 * Keep the least tax-efficient securities (e.g. bonds and high yielding foreign equities) inside your RRSP/RRIF/TFSA and the most tax-efficient outside.
 =Don't=

← Older revision		Revision as of 13:14, 15 May 2012
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	* There are also some terminology differences. For example, a US "Certificate of Deposit" is similar to a Canadian [[Guaranteed Investment Certificate]].		* There are also some terminology differences. For example, a US "Certificate of Deposit" is similar to a Canadian [[Guaranteed Investment Certificate]].
		+
		+	Canadian purchasers of US securities should also be aware of the [[Tax-Efficient_Investing#Foreign_withholding_taxes\|tax consequences]].

	==See Also==		==See Also==