These stocks form a small
component of registered accounts (since they pay interest income they are better in registered accounts), and I am pleased with both so far.
On the other hand, the capital gains on stocks and the dividends from Canadian corporations are taxed at a much lower rate, so those investments can be kept
outside of registered accounts.
That means all
types of registered accounts must be available as well as a wide variety of investments and the research, planning and screening tools to make smart investment choices.
Sony Computer Entertainment has noted that the cumulative number
of registered accounts on PlayStation Network has exceeded 50 million worldwide as of...
As can be seen in the
comparison of registered account fees table, the cost per year for these accounts ranges typically from $ 25 to $ 50 for balances that range between $ 15,000 and $ 25,000.
A
variety of registered accounts (including RRSPs) and smaller deposit - taking institutions with assets of less than $ 175 million are exempt from these reporting requirements.
You can also transfer money to and from any bank account in Canada (there are a few rules regarding the transferring money
out of registered accounts, nothing major), again a big plus as there is no need to change banks to transfer money.
Brokers are graded here on their webpage for trading stocks, bonds and funds; on the range of investment products clients can buy online; and the
availability of registered accounts that can hold U.S. dollars (many brokers force a conversion into Canadian dollars when clients sell U.S. stocks or receive dividends from such stocks).
At the very least they should sit down and figure out which income types are most beneficial and if they have the option of hiding dividend income inside some type
of registered account like a TFSA.
And, if you own any non-Canadian dividend paying company outside
of a registered account then you can get a tax deduction for the amount that's been withheld.
If your children are the direct
beneficiaries of your registered accounts and are named beneficiaries, it's important to keep in mind your estate is responsible for the tax payable, barring any of the above exceptions.
Our long - term investment strategy can be summarized in one sentence; we invest in low - fee, highly diversified index funds, taking full
advantage of registered accounts to grow our wealth until we can sustainably withdraw our living expenses without depleting said wealth.
Starting later this spring, you will be able to hold U.S. dollars in
most of your registered accounts, including the Registered Retirement Savings Plans (RRSPs) and Registered Retirement Income Funds (RRIFs).
If you are transferring from a broker that does not segregate US dollar securities in registered accounts (such as TD Direct Investing) to one that does (such as RBC Direct Investing or BMO InvestorLine), call and journal your US dollar holdings to the USD
side of the registered account.
These corporate fixed - income instruments pay a dividend that is taxed at a more favourable rate than regular bond interest, but you only benefit from this if they are held
outside of a registered account.
So we'll have to sell some bonds in one
of the registered accounts and use it to buy equities.
While possible outside
of a registered account, there is a bit more work that's required to ensure the transactions are properly accounted for.
How smoothly this process goes depends somewhat on whether an investor chooses to use this strategy inside or outside
of a registered account.
According to the literature that i've read from financial guru's / advisors, it is recommended that you keep all dividends and capital gains OUTSIDE
of your registered account.
It used to be that investors put their bonds into RRSPs to capitalize on the zero tax rate offered by these accounts for income - producing and other securities, keeping their equities outside
of registered accounts to take advantage of Canada's Dividend Tax Credit.
Beyond that, with age 71 looming, you should consider if you might as well start taking your minimum RRIF withdrawal now for
all of your registered accounts rather than delaying.