Actually I’m not sure where I’m going to live in retirement. Likely close to my family, so SK has appeal for now.

I’ve actually just started my dividend portfolio just last month. I picked up a bit of BMO when it was around the bottom of its latest dip.

Tim

My point was you should start building that dividend portfolio today so that “some day” all your income (outside your RRSP) would be Canadian dividends

Hail to the champions – here in Ottawa we do not even have a team

I don’t live in Ontario. I’m in Saskatchewan, home of the Grey Cup champs for 2007!! (Sorry I can’t help that, it still seems a little unreal.)

I agree a taxable account would typically have mostly dividends, but in our case it doesn’t matter that much with my wife. She is below the basic exception for her business income.

Thanks for that list of numbers.

Tim

Currently, it is more efficient to keep your dividends outside your registered account if you are a low income earner (except BC).

Your dividend income is grossed up by 45% which is then added to your employment income to figure out your marginal rate.

These numbers are based on tax law today and probably won’t be the case in a couple years with our randomly changing tax landscape.

Provincial Maximum Tax free Dividend Income (assume you have no other income)
NL $29500
NS $29500
PE $37100
NB $37100
QU $29900
ON $35900
MB $37100
SK $37100
AB $37100
BC $68700

Bottom line is that since you live in Ontario you can earn $35900 tax free in dividends. So can your wife.

To get the combined $71800 tax free per year you need about $1.4 M in Canadian bank shares. (Mix in some convertible preferreds in for safety)

We now produce electric cars in Canada, for sale to other countries, but we Canadians are not allowed to buy them, because the government would lose to much in gas tax!

I would rather have an efficient, environmentally clean car, rather than a couple loonies back in my pocket, only to be spent on more tax at the pump. Wouldn’t you?

I agree some of it was smoke and mirrors. After all you are correct they raised the 15% tax bracket back up to 15.5% just after getting in, just to lower it again. *sigh*

Matt,

I’m fairly sure the surplus was under $60 billion, which is the total cost of the tax cuts the Fed’s introduced. They are going to have to cut some programs to make it work.

Thanks for the feedback everyone,
Tim

Will, the government has a surplus! That means these cuts do not affect any programs or services at all.

Some Canadians are never happy. Even when there is good news they find a way to complain.

All people will remember is the cuts, but don’t look behind the cuts to see where that money is being made up.

Needless to say, I’m not a conservative! CD, as you note, this will certainly have a positive impact on the individual, but I wonder what it will cost Canadians.

The largest expense reduction I had when I retired was a very large reduction in income tax.