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Talking stocks, trading, and investing in general - Page 696

post #10426 of 11160
I was having a discussion with a friend giving her some financial advice about saving money and where to allocate it so these are ballpark the numbers we're talking about here. I said she should wait it out for a few years but she asked me post it to my 'forum guys and see what they said'

Quote:
Originally Posted by SirReveller View Post

Were talkin about moving $5K of bonds from open to RRSP now and $5K in y2 or $10K in y2, yes? Well, you'll probably want to reduce your taxable income as much as possible immediately so 5K and 5K.
http://www.getsmarteraboutmoney.ca/en/managing-your-money/investing/rrsps-for-retirement/Pages/RRSP-transfers.aspx#.V9pLVmopDbM

BTW are you sure your combined tax exposure doubles exactly? If so, congrats! :P

That's the question, yes. The point is more about tucking it away now and getting a small tax return, or waiting 2-3 years and getting a bigger tax return. The income amount is right on the cusp of the next brackets. For example up to $40K is 20%, then $40-45K is 25%, then $45+ is 30%. More or less. So is it better to lower income from $45K to $40K by contributing $5K in year one and get back 5% incrimentally, or wait until the salary is say $50-60K in 2-3 years and then contribute $10-15K to get back a full 10%.

Quote:
Originally Posted by jbarwick View Post

With the example given, it sounds like you get a guaranteed 5% return versus whatever the market returns.  That is up for you to decide but last year I had maybe a 1% return vs this year which is currently over 5% but it is not under my control.
I can get the guaranteed 5% return by putting it into RRSP AND whatever the market returns on top of that. The question is more about should I wait for longer until my income is higher to make these contributions?

Quote:
Originally Posted by Piobaire View Post

In all seriousness, you're talking a few hundred bucks, so do what you feel is correct and don't worry about it. If anything I'd view what the compounded extra year's of returns might end up being and go that way.
Yes, sort of. I'm using these numbers as examples. The actual numbers might be saving $5K now and each year versus accumulating $15-20 in a non-registered and transferring it in 3 years to an RRSP when the income bracket is higher (from 20% to 30%), in which case it's more like 10+% tax return on $15-20K versus the 5% on $5K.
post #10427 of 11160
I mean...your income assumptions may be solid, but you *know* you can earn the 5% now. You *think* your income will be at a level where you can earn the 10% in 2-3 years.

If this were like a "this year, vs next year" thing where you've already received a raise that kicks in next quarter that makes the bump (so barring getting fired/quitting, your income will be at least that high), then maybe it would make sense to play some games and essentially hold on to that money until after the 1st of the year.

But if you are talking about as many as 3 years out...not worth it. You can always still contribute more in year 3...but you can't go back in time and contribute today if you realize down the road that it was the right decision.
post #10428 of 11160

Agree with otc.  I'd rather lock in a 5% gain and let the money start working for me rather than think in 2-3 years I can lock in a 10% gain.  The gains over 2-3 years can beat the 5% increase in tax savings.

post #10429 of 11160
Her pay raises are scheduled by time so every few months she gets a slight raise, so the income is a completely known amount. That being said I think it's still probably better to take a 5% refund now and let the principle grow for 2-3 years and it should be worth more than just a 10% return in 3 years. Thanks guys.
post #10430 of 11160
Is it time to buy some WFC?
post #10431 of 11160
Quote:
Originally Posted by idfnl View Post

Is it time to buy some WFC?

For how long?
post #10432 of 11160
Quote:
Originally Posted by idfnl View Post

Is it time to buy some WFC?

I don't follow it, but I'd guess there will be some downward pressure when the inevitable DOJ criminal and SEC investigations disclosed. The market should already anticipate those and have priced them in, but those sorts of headlines tend to get a reaction.
post #10433 of 11160
Quote:
Originally Posted by lawyerdad View Post

I don't follow it, but I'd guess there will be some downward pressure when the inevitable DOJ criminal and SEC investigations disclosed. The market should already anticipate those and have priced them in, but those sorts of headlines tend to get a reaction.

My main concern is Buffet is getting out... that's a lot of shares to put in play.
post #10434 of 11160
Quote:
Originally Posted by idfnl View Post

My main concern is Buffet is getting out... that's a lot of shares to put in play.

Much like China owning US treasuries, Buffet can't get out without tanking his own investment. Any decent sized sell off by Buffet would tank WFC.
Edited by Texasmade - 9/20/16 at 2:54pm
post #10435 of 11160
What does smörgåsbord have to do with this?
post #10436 of 11160
Decided to hold off on WFC

I'm having trouble deciding whether to sell my BABA stake, it's only a 13% return since the IPO, but I have a good bucket full of shares so its a tidy profit $ wise.

I guess I'm wondering where the conviction in the market is coming from, and whether I'm missing a longer term move by selling because I'm bitten from being underwater for so long.
post #10437 of 11160
I'm sure there will be a pull back but the last couple of days just pushed me to a new high water mark. smile.gif
post #10438 of 11160
Same, thanks to dat sweet, sweet AAPL juice.
post #10439 of 11160

TWTR almost 20% up because of rumors of a possible buy from Sales Force or Google. 

post #10440 of 11160
Quote:
Originally Posted by Betelgeuse View Post

TWTR almost 20% up because of rumors of a possible buy from Sales Force or Google. 

LOL... everyone should get out right here. As soon as due diligence starts, it's certain to fall apart.
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