A few days ago, Derek Foster finally gave sign of life and wrote a newsletter about the TFSA, and that we should all contribute to it, that too much people do not invest inside their TFSA. Well, it happen that I am one of these people.
To start the year 2015, I had $23 738.83 contribution room left for my TFSA.
I even have more contribution room inside my RRSP, but I no longer want to invest inside a RRSP. First of all, RRSP is complete bullshit. You get a tax credit for the year you invest in the RRSP, but 30 years later, bad surprise, heavy tax come once its being touched, so there's no real gain. And anyway, I don't want to benefit from my money when I will be old and grey and that my whole sexy body will be hurt because of gravity. I want to benefit from my money now while my body is still fresh and shining. And for that, the TFSA is the perfect tool.
We never know when a bad luck can happen, job loss, or health problem, or whatever else. And when those things happen, we need money NOW. Not later. That's one of the biggest reason why I am against the idea of investing inside a RRSP. I do invest in the RRSP with my current job, but that's all.
So today, I listen to Derek Foster and I decided to invest inside my TFSA. I did a contribution in kind of my current investments in Exchange Income Corporation (EIF) and Firm Capital Mortgage Investment Corporation (FC) that I hold inside my non-registered account.
To make a contribution in kind - that mean to take existing investments that are from a non-registered portfolio and make them transferred to a TFSA - is really easy. You just need to call your broker, tell which stock you want to transferred, give your order and in a day or two, the investment will be inside the TFSA. The broker will ask a funky question: do you want to place the transferred for the stock at its highest or lowest level value of the day? To that, I suggest to always answer the lowest because the lowest you go, the more you have left in contribution room for the TFSA. Also, if you currently experience a capital gain on the investment you want to get transferred over the TFSA, you'll pay tax on that - that's another reason why to always answer the lowest value of the day.
With EIF, I was experiencing just a few dollars gain and for FC, it was a small capital loss.
EIF had a margin value loan of more than 1k. If you have a non-registered account with a margin, you need to make sure to have enough in cash reserve inside the non-registered portfolio to take the place of that 1k value that will be soon gone.
A contribution in kind is free of charge at TD Waterhouse.
While holding a margin link to a non-registered, stuff are always complicated, but things will go smoothly if you enjoy dealing with stress and if you are good dealing with market shit.
I guess everything had been said. lol
I had applied to a job. So far, I got a phone interview. And I also did a test. No answer yet, but I believe in my chances because I prayed God to help me.