Q – I’ve heard that a Tax-Free Savings Account is a good way to set aside money for things like a down payment on a home or a new car. But I’m not sure I really understand what makes it such a good deal. Can you explain? – Steve Y., Toronto, Ontario
Is it time to sell your winning stocks? Given recent stock market highs, plenty of investors are thinking that now’s the time to sell and lock in those juicy gains. That may or may not be a good idea from an investment standpoint. But from a tax perspective, triggering capital gain can also trigger a tax bill – remember, you have to include 50% of capital gains in income, to be taxed at your top marginal rate. To help soften the blow, here are some places to look for tax losses (some obvious, others not so much) that could shelter or offset capital gains tax.
Unlike a lot of small-cap funds that look to shoot the lights out with big returns and big volatility, theDynamic Small Business Fund takes a more conservative approach. Managed by the team of Oscar Belaiche and Jason Gibbs using what they call “quality at a reasonable price” approach, the fund has nevertheless delivered a compound average annual 10-year return of 13.82%.
When I began this series, I stated that “the ideal outcome of every retirement plan is to have a secure, tax-efficient income with a low-risk, low-fee portfolio.” The best way to do this is to minimize investment management fees in a retirement portfolio. This can add hundreds of thousands of dollars of additional income and wealth through the retirement years, often with less risk. Here’s how.
Wise investors always value dividends, but many investors don’t realize that share buybacks can be just as valuable as dividends, and in some cases, more so. Dividends are in fashion with investors, and that’s a good thing. But it’s odd that while investors periodically crave cash dividends, they rarely get excited about stock buybacks.