Sentences with phrase «rrsp holding equities»

What about an RRSP holding equities?

Not exact matches

With our clients we're often managing large portfolios with multiple accounts and we may wish to hold, for example, international equities in an RRSP and US equities in a non-registered account.

In that case, you would enjoy greater tax deferral by holding the equities in your RRSP.

In our recent white paper, Asset Location for Taxable Investors, Justin Bender and I argue that most investors are better off keeping their bonds in an RRSP, while equities should be held in a taxable account (assuming, of course, that all registered accounts have been maxed out).

Because of these savings in management fees and taxes, we generally use U.S. - listed funds for our clients who hold foreign equities in RRSPs and related accounts (such as LIRAs and RRIFs).

In Portfolio A, the bonds were held in an RRSP and the equities were held in a taxable account.

Say, for example, that both you and your spouse both hold some bonds in your RRSPs and some Canadian equities in your TFSAs.

In a large RRSP, therefore, it may be significantly more cost - effective to hold US - listed ETFs for your foreign equity exposure.

Anyhow, no matter how good is TD Waterhouse, I was thinking about transferring the 7 000 $ I hold in my TFSA under the Sprott Canadian Equity Fund into RRSP before the end of 2010.

@Blunt Bean Counter: Since I mostly invest in broad - market ETFs, it still makes sense for me to hold fixed income and foreign equity funds inside the RRSP.

If you're holding bond funds in non-registered accounts and Canadian equity funds in your RRSP, for example, you're paying too much tax.

Meet Julie, an investor who is looking to hold U.S. equities in both her RRSP and non-registered account.

While holding foreign equities in a non-registered account (as opposed to an RRSP) allows you to claim the foreign tax credit, the dividends are taxed at your full marginal rate, and any capital gains are also taxable.

Say one spouse has a generous employer pension and little RRSP room: in that case it's generally fine if that spouse holds more of the equities and the other holds more of the fixed income.

Cash Instinct: If there is RRSP room, for most people in the middle or top tax brackets, even Canadian equities should be held in a RRSP account.

Holding equity in your RRSP is volunteering to be taxed at a higher rate, since every dollar that comes out of the account is going to be taxed as regular income.

- allow bank rep to advise you and spouse to hold in your rrsps high - MER, low - return mutual funds to pad his commissions - ignore nagging feeling throughout 2007 that you should reduce proportion of investments in equities — instead listen to bank rep about wisdom of buy - and - hold - watch market in fall 2008; kick yourself repeatedly - start reading about investing (e.g. canadiancapitalist!)

But in an RRSP, there's a significant benefit: using U.S. - listed ETFs can dramatically reduce the impact of foreign withholding taxes, which can add an additional cost of 0.30 % to 0.70 % to U.S. and international equity holdings.

@Be» en — if you're comfortable doing Norbert's gambit, holding US - listed global equity ETFs in your RRSP is still likely to be cheaper than holding Canadian - domiciled ones over the long term.

@Daniel S. — I only recently learned about this structure when Dimensional Fund Advisors (DFA) was interested in launching a version of their U.S. equity fund that could only be held in RRSPs, and was also exempt from foreign withholding taxes.

International equities (i.e. VIU) have the highest dividend yields, so VIU would arguably be a better option for the RRSP than emerging markets (a Canadian - listed emerging markets equity ETF held in an RRSP will generally face two levels of foreign withholding taxes).

@Aleks: Holding foreign equity US - listed ETFs in an RRSP account is generally more tax - efficient than holding Canadian - listeHolding foreign equity US - listed ETFs in an RRSP account is generally more tax - efficient than holding Canadian - listeholding Canadian - listed ETFs.

Working with your current allocation, I'd recommend holding all of your fixed income in your RRSP and TFSA, and your equities in the non-registered account.

«Holding higher - growth equities in an RRSP would defer more taxes today, but the investor would also end up retiring with a larger registered account (relative to if they had held lower - yield fixed income).

In general, it is better to hold foreign equities like VTI, VEA etc. in your RRSP because in a taxable account the dividend income will be taxable at your marginal rate, as it is not eligible for the dividend tax credit.

As for RRSP, since it's meant as a retirement account, my preference is to hold equities (and perhaps short - bonds) instead of long bonds.

«It's a very simple strategy,» says Stevens, who stresses this only works for people who hold much of their RRSP in equities.

From an asset allocation perspective, you may want to consider holding your low - yielding fixed income in your RRSP (where the income is tax - sheltered) and instead hold equity investments (stocks, stock ETFs, stock mutual funds) outside your RRSP (whether a non-registered account or Tax - Free Savings Account).

I'm just curious — if I want to hold U.S. equities within my RRSP, if I'm not mistaken, doesn't the currency have to be in Cdn $?

It's more tax - advantageous to hold interest - bearing securities inside your RRSP and shovel the equities outside, all other things being equal.

For most assets there isn't a difference between the treatment of the RRSP and TFSA, except US equities held through US vehicles, which can save the withholding tax in the RRSP (and international equities gets complicated but let's say a weak RRSP preference as well).