Nov 9, 2017 – Today’s Questrade Offer Code / Promo Code

$50 FREE REBATE @ Questrade

It’s and we have for you today the active Questrade Offer Code (Promotional Code)! Use the following promotional coupon offer code at Questrade to claim your FREE $50.

$50 Questrade Offer Code (Promo Code):

Canada

OR Click Here to Use this Offer Code at Questrade

Note: Input the above promotional offer code (colored in red) into the “Offer Code” input box when signing up for a new account at Questrade.com. Enjoy your FREE $50!

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Investment Tip of the Day

Tax-Free Savings Accounts

TFSABack in 2008 the Ministry of Finance introduced the Tax-Free Savings measure as an investment option for Canadians to save for the future. It is a type of savings account whereby any investment income earned inside the account (including compounding interest) will not be taxed, even when withdrawn.

For Canadian residents of 18 years of age or older with a Tax-Free Savings Accounts (TFSA) one can withdraw money at any time. However, contributions made to it are not tax deductible.

There is a $5,000 annual contribution limit. And any unused TFSA contribution is carried forward and accumulates for the following years. Withdraws cannot be re-contributed without risking over-contribution for that year — one must wait until the following year before the room is made available again (it is reallocated in the tax year following the withdrawal). So, for example, if you’ve contributed $5,000 for the present year into your TFSA and then go about withdrawing the full $5,000 then you cannot re-contribute any more money into this account until the following year.

TFSAs come in a variety of investment flavors including as GICs, bonds, public/private traded shares investment accounts, mutual funds, and many more. The structure of TFSAs are very generous in what it can be used towards in earning tax-free income. And one extra benefit is that income earned doesn’t affect federal credits and benefits like Canada Child Tax Benefit and Old Age Security.

TFSA also allows limited income splitting by allowing higher-earning individuals to contribute to a lower-earning spouses TFSA.

Some may confuse TFSAs with RRSPs. However, in many respects TFSA is the direct opposite of RRSPs. RRSPs are for retirement and TFSA is to be used for everything else. Contributions to RRSPs are tax-deductible and withdraws and investment income are all taxable. Contributions into a TFSA are not tax-deductible but there is no tax on withdraws of investment income earned or contributions to a TFSA. RRSPs also must be withdrawn before the account holder turns 71 in age. TFSAs on the other hand do not expire. Another notable distinction between the two is that any withdraw space made within a TFSA is automatically made available as contribution space again in the following year. Contribution space is permanently lost on RRSPs once a contribution was made and a withdrawn is taken.

TFSAs are similar to Roth IRAs of the United States.

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Nov 8, 2017 – Today’s Questrade Offer Code / Promo Code

$50 FREE REBATE @ Questrade

It’s and we have for you today the active Questrade Offer Code (Promotional Code)! Use the following promotional coupon offer code at Questrade to claim your FREE $50.

$50 Questrade Offer Code (Promo Code):

Canada

OR Click Here to Use this Offer Code at Questrade

Note: Input the above promotional offer code (colored in red) into the “Offer Code” input box when signing up for a new account at Questrade.com. Enjoy your FREE $50!

Check out this detailed Questrade Review

Investment Tip of the Day

Canada Savings Bond (CSB) and Canada Premium Bond (CPB)

bondsBecause of investment uncertainties one can always look to the government to place their well-earned dollars to earn quality interest. The Government of Canada offers savings bonds: Canada Savings Bond, and Canada Premium Bond. These bonds are safe and secure investments that are made available to all Canadians (adult or minor).

Although their interest rates are quite competitive to private banks they are not without their restrictions.

The CSB can be redeemed for cash at any time while the CPB can only be redeemed on the anniversary of its issue date (and 30-days thereafter). Both types of bonds have a 10-year term until they mature. However, rates of return will vary during its life, as determined by the Minister of Finance.

The primary difference between Canada Premium Bond and the Canada Savings Bond is the rate of return. The Premium Bond has a higher rate of return. But in exchange for this higher rate restrictions apply on withdraws, as outlined above.

To purchase a bond you only need a minimum of $100; and can only be done in Canadian currency. The maximum size for a bond is $500,000.

Although bonds are usually in the name of a specific person one can add additional owners after purchasing the bond(s). These new owners will only take custody of the funds upon the original owner’s death.

If you own a CPB and attempt to withdraw funds outside its redeemable window then you will forfeit any earned interest. However, in special cases, such as the owner has died, or through a court order, one can redeem a CPB outside their anniversary window without penalty.

It should be noted though that no interest is earned on either bond types during the 1st three months after it was issued. And no interest is earned during the month in which the bonds are redeemed.

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Nov 7, 2017 – Today’s Questrade Offer Code / Promo Code

$50 FREE REBATE @ Questrade

It’s and we have for you today the active Questrade Offer Code (Promotional Code)! Use the following promotional coupon offer code at Questrade to claim your FREE $50.

$50 Questrade Offer Code (Promo Code):

Canada

OR Click Here to Use this Offer Code at Questrade

Note: Input the above promotional offer code (colored in red) into the “Offer Code” input box when signing up for a new account at Questrade.com. Enjoy your FREE $50!

Check out this detailed Questrade Review

Investment Tip of the Day

Bankruptcy

BankruptcyAlthough thoughts of bankruptcy scares most people we feel it is a necessary topic for smart investors. The primary purpose of bankruptcy law is to afford a person who has fallen deep into debt a fresh chance to start over again with a clean record — no more debt.

To go into bankruptcy one must be insolvent. To be insolvent one must owe at least $1,000 and be incapable of paying debts.

When a person goes bankrupt they must have a trustee, as licensed by the Superintendent of Bankruptcy, to manage assets (held in trust) and provide proposals while maintaining a debtor’s rights and a creditor’s rights. Trustees also are debt consultants who provide advice, make settlement negotiations, and other arrangements with creditors on your behalf.

Prior to going into bankruptcy it is common for people in debt to be harassed by creditors. However, once the paperwork for bankruptcy is filed these creditors, by law, must cease contacting you directly for payment. This however, does not apply to secured creditors such as banks.

Your spouse (or common law partner) is in no way part of your bankruptcy (assuming s/he is not responsible for any of your debt e.g. did not sign any contract related to taking any of your debt).

Although your credit score will likely get dramatically lowered by going into bankruptcy rest assured that opening a new bank account will not be a problem. If, however, a bank refuses to open a bank account or cancel an existing one after being made aware of your bankruptcy (past or present) then they are breaking the law.

There are several personal seizure exemptions which vary from province to province once you go into bankruptcy. For example, in Ontario there is a $5,650 exemption which unsecured creditors cannot tough. So if you own a car worth $4,000 then you are permitted to keep that car.

One overlooked benefit of filing for bankruptcy is that no one has to know. So your friends, family, and co-workers will never find out you filed for bankruptcy (assuming you don’t tell them). The only way to find out is if someone requested a credit report.

Bankruptcy isn’t for everyone but with today’s pressures to invest or take on new debts it is nice to have a fall back course of action in cases of poor investment decision making or plain bad luck.

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