Tax Free Savings Account -Go open one!!

[Reef Pilot]

Originally Posted by Reef_Geek

You are right, volatility provides opportunities. I need to get better at jumping on these.

Well, tomorrow, Friday, might be your chance. Could be some good buying opportunities. Just don't catch a falling knife. Might be even lower next week.

[Reef_Geek]

Originally Posted by Reef Pilot

Well, tomorrow, Friday, might be your chance. Could be some good buying opportunities. Just don't catch a falling knife. Might be even lower next week.

because of fiscal cliff or because of the Mayan end of the world? lol!

Looks like fiscal cliff plan B ain't happening.

Yup, looking good for stocks going on sale! (fixed income funds will become over priced)

[Reef_Geek]

Looks like the markets aren't reacting to the impending midnight fiscal cliff at all. There's a few articles out this morning, but at the peak of Fri vs low of Mon (so far)... it's only been a drop of 0.97% at the widest gap for the Dow Jones industrial average. Rest of the indices have gone up.

This is disappointing. I was hoping to take a contrarian tactic here...

[Reef Pilot]

Originally Posted by Reef_Geek

Looks like the markets aren't reacting to the impending midnight fiscal cliff at all. There's a few articles out this morning, but at the peak of Fri vs low of Mon (so far)... it's only been a drop of 0.97% at the widest gap for the Dow Jones industrial average. Rest of the indices have gone up.

This is disappointing. I was hoping to take a contrarian tactic here...

They are playing the pass the hot potato game right now. The Dem controlled Senate is waiting until the last minute to give the Repub House a deal they know won't pass. Then they can blame the Repubs for going over the cliff.

Any deal passed today will be meaningless. The big negotiation will happen in the new year with the debt ceiling coming up in a couple months. Then they will be forced to do something big, one way or the other.

[Reef_Geek]

Originally Posted by Reef Pilot

They are playing the pass the hot potato game right now. The Dem controlled Senate is waiting until the last minute to give the Repub House a deal they know won't pass. Then they can blame the Repubs for going over the cliff.

Any deal passed today will be meaningless. The big negotiation will happen in the new year with the debt ceiling coming up in a couple months. Then they will be forced to do something big, one way or the other.

Good call.

[foxfishfan]

If anyone is investing in a TFSA, don't do it as the interest rate is quite low. You can also buy a tax free gic which pays 1.6% for a 15 month term, for instance. Yes, the money is locked in for 15 months but the interest is 3x that earned leaving it in the account and is all tax-free.

[Reef_Geek]

Originally Posted by foxfishfan

If anyone is investing in a TFSA, don't do it as the interest rate is quite low. You can also buy a tax free gic which pays 1.6% for a 15 month term, for instance. Yes, the money is locked in for 15 months but the interest is 3x that earned leaving it in the account and is all tax-free.

TFSA is simply the status registered with the government. What you're describing is applying the TFSA status to GIC.

For example, my TFSA is a mutual funds account. I can choose to buy any mutual funds (offered by the financial institution where account is held) in this account so long as I do not exceed my contribution room. Additionally, you can have multiple TFSAs... for example, everyone has a cumulative contribution room of $25.5K ($5K/yr since 2009 and $5.5K for 2013), so you could have, say, $5K in a TFSA GIC, $5K in a TFSA mutual funds account with bank X, $5K in a TFSA mutual funds account with bank Y, $5K in a TFSA cash savings account, $5.5K in a stock trading account with another brokerage. You can withdraw at anytime and you will get your contribution room back (following year).