Interesting Stuff on the Web

Interesting stuff on the web is what I have read through out the week. I read a lot of articles and there is always a few that I feel is worth you reading. Often I have a different opinion than the articles I post on Interesting Stuff On The Web but they are all well written pieces. Here are the links. Enjoy !!

High fees and trailer commissions are going away, kicking and screaming/My Own Advisor “That’s not great news for financial firms in general. They want my money and some of them would LOVE to charge me high fees to own their products. No thank you. But what about you? Read on.”

Protect Your Early Retirement From Sequence of Returns Risk/Our Next LifeSo it looks like we might finally be getting that market correction we’ve all been expecting for a while. Or maybe we just saw a few random days of market flukiness. Or maybe it’s the start of the next recession. Or maybe it’s nothing. Or maybe the world is ending. Probably not, though. But maybe…”

18 Best Places to Travel in 2018/Conde Nast TravelerThere’s a phrase we like to use at Traveler to describe certain destinations: “It’s having a moment.” It comes up a lot—that near-impossible-to-pin-down, can’t-put-our-thumb-on-it logic as to why you should visit somewhere, now. We feel an urgent need to get to Antarctica; to visit the Azores before the crowds do; to discover a part of former Czechoslovakia the world has overlooked. Travel can be a meaningful way to be an ambassador. So do your part: These 18 editor-endorsed destinations are the best places to travel this year.”

Joined at the hip: The Macroeconomy and the Stock Mark/Early Retirement Now “This is a topic I wanted to cover for quite a while and I think this is the perfect time for it: I got a few posts lined up already dealing with the intersection of macroeconomics and (personal) finance. Of course, I can already hear one objection:”

 

 

 

Don’t wait for retirement to enjoy life !!

TFSA Contribution Rules

 

 

TFSA

According to the Government of Canada, the Tax-Free Savings Account (TFSA) program began in 2009. It is a way for individuals who are 18 and older to set money aside tax-free throughout their lifetime.

Contributions to a TFSA are not deductible for income tax purposes. Any amount contributed as well as any income earned in the account (for example, investment income and capital gains) is generally tax-free, even when it is withdrawn. Administrative or other fees in relation to TFSA and any interest or money borrowed to contribute to a TFSA are not deductible.

 

TFSA Limits for 2018

If you have been eligible to contribute to the TFSA since its inception in 2009, it means that in 2018, you will have a total contribution room of $57,500. You can invest up to $57,500 and not pay any taxes on the income earned on your investment.

You will accumulate TFSA contribution room for each year even if you do not file an income tax and benefit return or open a TFSA. Government of Canada

The annual TFSA dollar limit for the years 2009, 2010, 2011 and 2012 was $5,000.
The annual TFSA dollar limit for the years 2013 and 2014 was $5,500.
The annual TFSA dollar limit for the year 2015 was $10,000.
The annual TFSA dollar limit for the year 2016 was $5,500.
The annual TFSA dollar limit for the year 2017 is $5,500.

Your annual TFSA contribution limit is $5,500 per year. The TFSA annual room limit will be indexed to inflation and rounded to the nearest $500. (Hence $57,500 since inception)

Unused contribution room can be carried forward indefinitely and if you choose to withdraw funds from your TFSA in any particular year, the amount withdrawn can be re-contributed in the following year.
If you over-contribute into your TFSA your extra contribution will be charged a 1% penalty tax per month, until it’s removed.

 

Conclusion

TFSAs are excellent for younger savers or those just entering the workforce and starting with a lower salary, also for retirees in a high tax bracket in retirement or those over the age of 71 wanting to invest. For some, it may make more sense for them to invest their savings in a TFSA rather than an RRSP.

Don’t wait for retirement to enjoy life !!