Author Topic: Investment Culture  (Read 1355 times)

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Offline msj

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Re: Investments
« Reply #30 on: March 11, 2017, 10:18:04 pm »
I'm talking about people like me who buy stock in companies like Shopify, Kinaxis, Enghouse, and other non-tech names like Spin Master or Savaria, Grande West Transport, or CRH Medical. What happens to their stock the day after this goes into effect?

I doubt it would have any measurable effect.

What would you do? All of a sudden sell and trigger tax because the tax rate went up?

Then buy a bond in a rising interest rate environment?

Definition of dumb is letting taxes influence investment decisions.


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Most people don't start seriously saving until their mid to late thirties. And most people don't earn enough to collect a huge amount of money in their RRSP given the allowable contribution levels. I have been seriously saving for about fourteen years now. My RRSP contribution level was quickly maxed out because my earnings in much of my life were very low. If I'm to save enough for retirement there simply is not enough room in my RRSP or TFSA.

Most people don't have non-registered investments since if they will save anything it will be to own a house first (gains exempt thanks to PR exemption), then TFSA's second (unless they are in a higher tax bracket), RRSP's third and finally non-registered last. 

Why investors need a tax subsidy for taking risk has never been a compelling argument to me.

Particularly as a guy who is almost always all in stocks at all times - volatility is why I make more than those putting money into GIC's. If I want to defer tax then I will use my RSP. If I want to save tax I will use my TFSA.

There is no reason to subsidize capital gain returns other than, perhaps, with the inflation argument.

Even that is a weak argument.
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