If you pay 25 % on income taxes, you could invest $ 1,000 in a retirement account or pay the taxes and only have $ 750 left to
invest in a regular account.
Of course, you could simply save up money for your
kids in a regular account, but with trusts you don't have to pay the taxes on capital gains.
In this comparison, a single $ 5,000 TFSA contribution builds 26 % more savings than the same amount
held in a regular account after 20 years.
I think that is a key factor in the decision, putting
money in a regular account can make contingency planning a little more difficult.
I know when it comes time to think about saving for any future child's schooling, I think I am just going to save money
in a regular account in my own name, and write a check when the time comes.
Unlike RRSPs, you won't be taxed when you take out the money, and your money will accumulate faster than
in a regular account due to the tax - free growth.
I am picking up more traditional dividend growth
positions in my regular accounts, so leveraging the higher valued and higher growth positions in Loyal3 is a great complement to that.
You're
investing in a regular account, where taxes on smaller distributions than what Vanguard High Dividend Yield gives out leave you in a better tax situation.
There are significant downsides to «The best option is to set aside the
money in a regular account, with no special tax provisions;».
Still, I have never liked the idea of keeping the common «emergency fund»
in a regular account.
The best option is to set aside the money
in a regular account, with no special tax provisions; and then when they are close to graduating determine the best way to handle the transfer.
In a regular account, anytime you sell a stock or receive a dividend, you are going to be losing some of that money to taxes.
In regular account, only A shares showed up, still waiting for the B shares.
I'm also assuming the same 5000 is invested (in pre-tax, that would be all of 5000, but
in regular account, that would be only $ 3750).