Dec 2, 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

Dividend Reinvestment Plan (DRiP)

drip investingThese types of investments are overwhelmingly popular and are offered by about 1000 companies and funds. Simply put, a Dividend Reinvestment Plan is an equity investment allowing shareholders to purchase more stock of the underlying company directly instead of through a broker which would normally charge brokerage fees. Once set up this becomes an automatic process and dividends that are normally distributed to the investor will instead be used to purchase more shares (reinvested) of that company. One can usually also make voluntary cash payments into the DRiP to purchase more shares.

So although DRiPs start out as stock-earning dividends on regular intervals, each quarter those distributed dividends are collected and used to buy more shares of the underlying company at no cost (in most cases). And as you gain more shares you generate even more dividend income which then is used to buy more shares. Again, this is an automatic process.

Virtually all companies who take part do not charge commissions for purchasing stocks through DRiPs. However because of its growing popularity it is becoming more commonplace for a nominal fee to be charged to purchase more shares within the plan. So make sure you are aware of these fees, if any, when joining a DRiP.

Taking part in this type of plan provides the benefit of compounding and price appreciation without having to wait to accumulate enough cash for a full share (they are bought as partial shares, if necessary). That being said, there are two kinds of plans: classic and broker. The classic DRiP is what we’ve discussed here. The difference between the two lays in how and when shares are bought. Classic buys fractional shares; the broker type does not. So with a broker DRiP you must have enough money to purchase at least a single share before it is executed. This approach is horribly inefficient which is why you should always prefer the classic approach. Questrade, a popular discount broker, offers both types. In the classic type you would buy at least one share of the company through the online broker and then opt to receive the paper version of that share(s) and then fill out a DRiP enrolment form and have it sent to be processed at the underlying company.

So in many respects DRiPs are more of a get rich slowly method.

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Dec 1, 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

Smith Manoeuvre

smithDevised back in 2002 the Smith Manoeuvre is a clever, yet simple, approach to converting your regular mortgage into a tax-deductible mortgage.

To use this method correctly you need to have what is called a readvanceable mortgage from your financial institution (bank). With this type of mortgage your Home Equity Line of Credit (HELOC) increases for each dollar you pay towards your mortgage. And so with the Smith Manoeuvre you can then turn around and use this line of credit to invest into stocks — ideally fixed-income securities (dividends). You cannot use RRSPs, RESPs, nor TFSAs. The Smith Manoeuvre can only be applied to non-registered accounts — they are the only types that are tax deductible. So in other words you can’t use the HELOC funds to make non-investing purchases like buying a car.

By making your usual mortgage payments you will experience the benefit of also having the ability to use dividends earned from your investments and tax credits you receive from investment interest paid. With all this paying going on towards your mortgage this will in effect open up more room in your HELOC giving you more to invest.

Now if you continue this approach repeatedly you will, over time, pay off your mortgage significantly faster and have an impressive investment portfolio to boot! And let’s not forget that your debt will now be tax deductible.

You will end up with a large amount of credit debt when your mortgage is paid off but you will then have a few choices to explore to help pay it off: Use some of your dividend income. If dividends earned is covering more than the interest on that credit line it may be wiser to keep the debt indefinitely. Another option to explore is to sell some of your stocks to pay off the debt entirely.

The Smith Manoeuvre isnt for everyone since it requires one to have strong discipline to pay monthly interests owned on time while carrying a growing debt and juggling the volatilities of the stock market.

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Nov 30, 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

RRSP (Registered Retirement Savings Plan)

rrspRRSPs are Canada’s clever way of helping people save money for retirement. Saving for many years is quite a herculian feet for most people but making planned contributions and withdrawals from your RRSP is a great investment way to get the most for your retirement buck.

The primary advantage of an RRSP account compared to standard investment accounts is the tax benefit. Contributions made into an RRSP are tax-free and the money held within this type of account can compound without having to pay taxes on the gains.

In that regard RRSP isn’t an investment as it is a container (an account) for investments. So you dont buy an RRSP you actually buy an investment into the RRSP account which you contribute into.

By not taxing individuals contributing to their RRSPs, CRA (Canada Revenue Agency) is rewarding those who are contributing to their twilight retirement years. RRSPs are actually tax-deferred rather than tax-exempt. Meaning any profits made from investments within an RRSP account (capital gains, interest, dividends) are not taxed to you as income right away. In fact they are taxed on it when the funds are withdrawn. The benefit of this is that for most people income tends to be lower in retirement than in your younger years.

So in other words RRSP provides a tax credit — it reduces your taxable income by the amount you contribute (up to a yearly limit).

RRSP accounts can be opened at any financial institution and investment house such as Questrade.

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