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Message: Canadian TFSAs and RRSP season

Canadian TFSAs and RRSP season

posted on Jan 07, 2009 02:49PM

WOW, I am amazed at what the new TFSAs will let Canadian investors do. I went to one of my two banks, and opened a $5,000 TSA, linked to my online brokerage account. I can now transfer stocks into the account, or invest directly, and will pay no capital gains on anything I make with this account. Ever. That's great for new TDC shares I'll be bying at what, 13 cents or so? This is not as great as RRSPs, which give you a nice tax refund and then grow tax free, but the good things with TFSAs is that you can take money out tax free at any time, and not have to wait until retirement!

Bank staff told me that they have a lot of people coming in to open up TFSAs. This, combined with the Jan - Feb RRSP rush means, in my opinion (player w.h.s take note) that there could be a good influx of investment dollars into funds and shares. ALl of this in the context of a war going on, and fears of currency collapse in the US....bodes well for gold and gold juniors.

Once your equity in a TFSA is over $100,000, there are no service charges...

I'll open one for my wife as well. So I'll be looking to scoop up $10,000 more TDC in a week or so, when the accounts are fully set up. Any foolish / distressed sellers? Maybe there will be another round of deleverigaing, and something like the RAB effect, some forced sales of TDC? A SHORT droop back to 10 cents would be nice for those of us still accumulating.... If not, I'm buying anyhow, all the way up!

It's very irresponsible of me, and I would not adivse it...but I'm setting myself up for maximizing my exposure and number of shares prior to February, as I inuit that once the dust settles after inauguration day, the US dollar weakness will be on everybodys' radar.

As for TDC in the coming 2 weeks, I hope things are relatively quiet on the news fronteir. DW has said they tend to put out 2 per month.

Here's to the calm before the storm. For motivational graph observing, take a look at CSM. I don't recommend them, but the story is that they had a financing deal fall through in the finance crisis, and shares fell drastily from well over a dollar to what, 15 cents or so. Then there's some buy out, and they are around 40 cents now. A distressed asset in deep kaka suddenly more than doubles. Just indicates how undervalued and cheap juniors are.

Canadians: Do you plan to open a TFSA?



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