# are you ready with your TFSA money?



## the-royal-mail (Dec 11, 2009)

Just two weeks away and just thought I would check in with everyone to see if you are ready with your $5000 for next year's TFSA allowance?

I am now ready. Took me quite a bit of time and work to save up for it but I should be ready to go in the new year. 

It will be a cash balance as I am using my TFSA to hold tier 2 savings.

How about you? Do you have the money saved? Are you ready?


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## Jon_Snow (May 20, 2009)

Bring it on. 

Another 10k (wife and I) that the gov't won't be able to touch - its a beautiful thing, isn't it?


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## mind_business (Sep 24, 2011)

We're still playing catch-up with our TFSA's. The last few years we've been focused on paying off the house. Once that was done (Aug '11), we started contributing on a monthly basis to our two TFSA's (Wife + mine). So far we've contributed $10,000 and will continue contributing $2500 per month until they're max'd out. Then we'll change our monthly contributions to a lower amount to maintain our yearly contribution room. I'd rather contribute monthly, getting the money into the investments ASAP, rather than waiting for a lump sum at the end of the year. Works better for us


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## Ihatetaxes (May 5, 2010)

Ours are set up with 12 monthly automatic deposits of $400 and I'll throw and extra $200 in each account in January.

Same setup with our RSP accounts. Sure beat the old days where we would scramble in February to deposit lump sums to max out.


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## Jungle (Feb 17, 2010)

Not ready, but did contribute about $775 to tfsa over the last couple months.


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## larry81 (Nov 22, 2010)

More REIT !!!


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## Sampson (Apr 3, 2009)

Jan 2 - 
Both TFSAs - check
RESP - check
Apr 1 - 
RRSPs - check

Maxing registered accounts never seems a problem for us anymore.


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## crazyjackcsa (Aug 8, 2010)

the-royal-mail said:


> Just two weeks away and just thought I would check in with everyone to see if you are ready with your $5000 for next year's TFSA allowance?
> 
> I am now ready. Took me quite a bit of time and work to save up for it but I should be ready to go in the new year.
> 
> ...


It's going to be close this year. I'm still using my TFSA as "tier 2" savings as well and my wife's account is our car fund. 

We'll be able to do half in January into both, and the rest in within a few months. We maxed them both out over the past few years, so I'm not all that concerned.


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## jamesbe (May 8, 2010)

I got paid today, $10,040 so I'm pocketing the $40 and putting the $10k in to our TFSA's Jan 1st... okay probably the 3rd or 4th.

I think I'm going to do a GIC ladder of some sort as the rest of our TFSA is in stocks.


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## CanadianCapitalist (Mar 31, 2009)

Wow. It is great to see so many of you on top of your game. For us, TFSAs and RRSPs will probably be ready to go. RESPs contributions will have wait a little bit.


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## dubmac (Jan 9, 2011)

A few questions CC.

I just topped up my TFSA for 2011, and have a little more (1K) to max out the Missus account. 

1. Is there a Dec 31 deadline for these 5K contributions (ie: no carry over into the new yr?).

2. I withdrew 1 K from my account in Feb. Can I contribute 6 K in 2012 to this account after having made the withdrawl? (I think that my advisor said that I had to wait until the next year to replace the withdrawn amount)

thanks.


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## HaroldCrump (Jun 10, 2009)

1. Unused TFSA contribution room carries over year after year - similar to unused RRSP room

2. Yes, $6K for 2012.


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## Spudd (Oct 11, 2011)

There's no deadline for the contributions, the room carries over from year to year. And yes, you can contribute 6K in 2012 if you withdrew 1K in 2011.

Mine is ready and has been sitting in my ING TFSA kick-start account for a couple of months. I haven't decided if I want to keep it at ING in the new year in a HISA or transfer it to Waterhouse for investing.


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## the-royal-mail (Dec 11, 2009)

There is no deadline for contributions. You can make them any time as long as you don't contribute BEFORE the year in question.

You can withdraw anytime you want, but have to wait until the following calendar year to put the money back (if desired).


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## CanadianCapitalist (Mar 31, 2009)

HaroldCrump said:


> 1. Unused TFSA contribution room carries over year after year - similar to unused RRSP room
> 
> 2. Yes, $6K for 2012.


+1. Also, if you have log in access to your CRA account, you can find the current year's TFSA contribution limit. I'm not sure when they will update it for 2012 but it will be early in the New Year.


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## Four Pillars (Apr 5, 2009)

I'm still working on my unused RRSP contribution room. I think next year I will finally get caught up.

Then I'll worry about TFSA.

On the plus side, I paid off my mortgage a couple of days ago, so that should help with whatever account I'm trying to contribute.


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## KaeJS (Sep 28, 2010)

I am not ready.

I have margin to pay for.

I will be contributing to my trading account to reduce my margin, and then I will contribute to my TFSA.

This will be my first year that I am not ready.

Can't buy more securities if you already owe for the ones you own. 

Depending on how the market does over the next little while, I may be able to start contributing to my TFSA in June (if all goes well), or it may be in November if the markets continue to fall.

I'm looking to exit two positions that would reduce my margin significantly.


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## Toronto.gal (Jan 8, 2010)

Unless it goes up drastically in the next 2 weeks, some of my SU stocks purchased in September will be transferred there [don't mind minimal capital gains/losses].


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## DanFo (Apr 9, 2011)

I'm set, i opened a trading TFSA last month so I can dabble a bit with stocks in the new year, I'm going to put 8K into the trading account and split it between a bank and a (leaning towards) utility stock (may go telecom)


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## Ihatetaxes (May 5, 2010)

Four Pillars said:


> On the plus side, I paid off my mortgage a couple of days ago, so that should help with whatever account I'm trying to contribute.


Congrats Mike!


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## dubmac (Jan 9, 2011)

thanks for the replies...I think that I may contribute to my sons' RESP given that that (registered) program does have a dec 31 deadline and the TFSA does not.


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## stephenheath (Apr 3, 2009)

Normally I scramble to put the entire amount in January 1st, but this year considering the rocky markets I think I'm going to contribute monthly to the TFSA/RESP. I'm also pushing to replace our non-deductible debt with deductible debt so I'll be working on that this year rather than worrying about the RRSP... I'll catch up on that in a few years when all the non-deductible debt/mortgage is gone...


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## marina628 (Dec 14, 2010)

I am not sure what I am doing yet ,will probably rebalance some things towards end of January and figure it out then.Ready as in I do have the cash but not ready to make any decisions yet...


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## Sherlock (Apr 18, 2010)

Yep got my $5k sitting in my checking account ready to transfer to my TFSA. Still haven't made up my mind about what to buy with it, want something relatively safe that pays good dividends, was thinking of XPF or maybe ZDV.


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## Four Pillars (Apr 5, 2009)

Ihatetaxes said:


> Congrats Mike!


Thanks!


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## Maybe Later (Feb 19, 2011)

Ihatetaxes said:


> Congrats Mike!


+1

We will also prioritize RRSPs and RESPs - there will be another budding genius in our house next year.


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## eulogy (Oct 29, 2011)

I was thinking I might have about $2000 dump into my TFSA in the new year, but I'll probably only have about $1000-1500. I have just over $10k in contribution room, so I'm just going to pay it out throughout the year.

Over the last few days I'm probably going to end up with more US dollars than I expected, so I'm going to be dumping those into my RRSP and that should pretty much take care of it for the year (not including my work RRSP matching).


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## Four Pillars (Apr 5, 2009)

Maybe Later said:


> +1
> 
> We will also prioritize RRSPs and RESPs - there will be another budding genius in our house next year.


Congrats to you! The world could always use more geniuses (but not the evil kind of course).


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## heyjude (May 16, 2009)

I will be putting $5K in my TFSA early in January. I will either put it in a "high" interest savings account to act as an emergency fund, or I might buy one of those new Vanguard ETFs via TDW. 

RRSP is another matter. I recently became entirely self employed, so I can now pay myself with corporate dividends tailored to my expenses, thereby remaining in lower tax brackets. In fact when I retire I am planning to draw down on my RRSP early, to avoid getting stuck with mandatory minimum withdrawals that would put me into a higher tax bracket later on. I have not put anything in my RRSP for 2011 and I probably won't for 2012 either.


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## donald (Apr 18, 2011)

Im ready for both....can't wait to throw some more capital to increase the dividend stream.....im only lacking a pipeline and a riet so i'll likely add one or the other and than try to wiegh out the rest of the sectors.

Do you try to top up a telecom here or go the other way and allocate towards a financial....or do you look at a us blue chip....even though im under a bit this yr this ''game'' is like nothing else.

With the tfsa you almost only get 1 lot depending @ what your looking at so yhe big ? is do you try to time it or just plunge.


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## m3s (Apr 3, 2010)

TFSA will be maxed in early Jan. No rush for RRSP because I already have tax free income in 2011/2012


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## warp (Sep 4, 2010)

KaeJS said:


> I am not ready.
> 
> I have margin to pay for.
> 
> ...


KaeJS:

I am hestitant to give specific advice here, but from reading your posts, I know you are a young man.

Do yourself a favour and AVOID buying on margin, plain and simple.
Your broker loves this kind of action, but it's not a good investment strategy.

I know you are probably trying to increase your returns through leverage and margin......but take it from me, most times this is a recipe for bad results.

OK..I've said my piece.

In any event, I will wish you good luck.


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## KaeJS (Sep 28, 2010)

warp,

I appreciate your concern and know exactly what you are trying to say.

I have learned my lesson in the past, which is why I am paying down my margin as quickly as possible. Most of this margin was for buying nice dividend payers on the August dip. My dividends are more than my margin interest payments, its just a matter of actually paying the rest of the margin down. 

And I've got to say - if it weren't for margin, I would have been a lot worse off this year. Margin has kept me afloat. I am only down -1.74% for the year. When compared to the TSX (-13.45%), my numbers don't seem too shabby (although they are definitely not good!). 

I do not want to lose my low priced dividend payers by selling them, as they are paying out more than the margin interest and I've got a nice yield on them. I want to pay off the margin instead of selling my stocks.

But yes, you are right. Margin can quickly turn sour. Let's just hope there are no 75% drops in the market over the next couple months...


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## Cal (Jun 17, 2009)

Of course. TFSA is the best place to shelter investment growth. Ready to go. Now whether my buy prices are within range might be another story.


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## lister (Apr 3, 2009)

Nope, have to pay off my LoC first. After that we'll see if one or both TFSAs will get funded this year.


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## Financial Cents (Jul 22, 2010)

Same. Can't contribute to TFSA until LOC is paid. Hopefully LOC will be paid off by end of Feb. 2012. Hope 

Then, will try and save for TFSA throughout year and max. it out before RRSP.


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## luisa (Dec 7, 2011)

We use our TFSA as our emergency cash at the moment, so it is all set to go in an ING kick start account. We recently sold our business and our home so we topped up the TFSA right away to have that cushion there. Once the smoke clears and we have tied up all the loose ends with the new house and the final business stuff I will look at trying to do something with it that might yield more than what ING is offering, but for now, it will sit.

We did max out the RESP already for our two kiddos. That extra 20% the government kicks in is pretty good.

We maxed out my husband's RRSP through spousal. I went with unregistered funds for mine as I am in the lowest tax bracket this year and did not see the point.

I am looking forward to getting some index funds started in the new year. I've been reading up on it and I think I am ready to make a plan and put it into action.


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## loggedout (Dec 30, 2009)

I have cash available for both my RRSP and TFSA, but I'm not sure what to purchase with it.

I think I may go to a financial advisor to figure out what exactly I am doing with all of my assets.


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