Comments on: The Double Bridge Investment Plan http://blog.canadian-dream-free-at-45.com/2007/12/19/the-double-bridge-investment-plan/ Wed, 08 Feb 2012 17:31:40 +0000 hourly 1 http://wordpress.org/?v=3.1 By: Michael http://blog.canadian-dream-free-at-45.com/2007/12/19/the-double-bridge-investment-plan/comment-page-1/#comment-5976 Michael Sun, 22 Jun 2008 16:58:00 +0000 http://blog.canadian-dream-free-at-45.com/?p=307#comment-5976 Thanks for the great article. Keep up the good work. Thanks for the great article. Keep up the good work.

]]> By: Canadian Dream http://blog.canadian-dream-free-at-45.com/2007/12/19/the-double-bridge-investment-plan/comment-page-1/#comment-2218 Canadian Dream Thu, 20 Dec 2007 12:22:41 +0000 http://blog.canadian-dream-free-at-45.com/?p=307#comment-2218 Traciatim, I don't intend to have too much in dividend income. Likely we will keep it to at most 25% of our total. Basically we want enough dividend income to ensure we never have a income tax bill. FP - You are completely correct. Yet I think Traciatim's point is other little programs that are out there that you might not qualify for when I'm a senior (think more local like provincial or city programs) with a high amount of dividend income. Tim Traciatim,

I don’t intend to have too much in dividend income. Likely we will keep it to at most 25% of our total. Basically we want enough dividend income to ensure we never have a income tax bill.

FP – You are completely correct. Yet I think Traciatim’s point is other little programs that are out there that you might not qualify for when I’m a senior (think more local like provincial or city programs) with a high amount of dividend income.

Tim

]]> By: FourPillars http://blog.canadian-dream-free-at-45.com/2007/12/19/the-double-bridge-investment-plan/comment-page-1/#comment-2212 FourPillars Wed, 19 Dec 2007 18:39:00 +0000 http://blog.canadian-dream-free-at-45.com/?p=307#comment-2212 Traciatim - if you make $20k then you won't be eligible for GIS. CPP is not a government benefit - it's a pension payout which is not dependent on any other income or assets. OAS is the only one that Tim would have to worry about and even there you would need a grossed-up income of about $65k (in today's dollars) before it would start getting clawed back. With income splitting, his family could make about $130k in today's dollars without worry about the OAS clawback. Mike Traciatim – if you make $20k then you won’t be eligible for GIS. CPP is not a government benefit – it’s a pension payout which is not dependent on any other income or assets.

OAS is the only one that Tim would have to worry about and even there you would need a grossed-up income of about $65k (in today’s dollars) before it would start getting clawed back. With income splitting, his family could make about $130k in today’s dollars without worry about the OAS clawback.

Mike

]]> By: Traciatim http://blog.canadian-dream-free-at-45.com/2007/12/19/the-double-bridge-investment-plan/comment-page-1/#comment-2210 Traciatim Wed, 19 Dec 2007 17:26:20 +0000 http://blog.canadian-dream-free-at-45.com/?p=307#comment-2210 You may want to rethink the dividend in retirement strategy. Many of your benefits from the government are calculated on your gross income, included in this will be 145% (under current rules) of your dividend income. For instance if you have $20,000 of dividend income, your actual income will say $29000 and you will have a tax credit. This $9000 difference could make you ineligible for certain government freebies even though you didn't actually make the money. If you plan on not receiving OAS, the GIS, CPP and other benifits and do things on your own dime, then all the better for everyone. It is something to keep in your plan though. You may want to rethink the dividend in retirement strategy. Many of your benefits from the government are calculated on your gross income, included in this will be 145% (under current rules) of your dividend income. For instance if you have $20,000 of dividend income, your actual income will say $29000 and you will have a tax credit. This $9000 difference could make you ineligible for certain government freebies even though you didn’t actually make the money.

If you plan on not receiving OAS, the GIS, CPP and other benifits and do things on your own dime, then all the better for everyone. It is something to keep in your plan though.

]]> By: telly http://blog.canadian-dream-free-at-45.com/2007/12/19/the-double-bridge-investment-plan/comment-page-1/#comment-2208 telly Wed, 19 Dec 2007 17:11:11 +0000 http://blog.canadian-dream-free-at-45.com/?p=307#comment-2208 I don't think your approach is crazy at all. In fact, it's precisely what we do. We are maximizing our RRSP contributions (we have some contribution room to make up as well) using an index strategy and also taking small positions in individual dividend stocks in a non-registered account. We currently use TD Index funds for both our RRSP accounts (mine and my husband's). Realistically, we should be moving them to ETFs but I don't trust myself. If I moved the RRSPs to a brokerage account, I'd be tempted to make individual stock purchases within the RRSP (like I have found myself doing with my 401k as US stocks go 'on sale' :( ), which goes against our financial plan. So yes, we pay more in fees, but I know it makes sense for discipline purposes (at least I can admit to it ;)). I don’t think your approach is crazy at all. In fact, it’s precisely what we do. We are maximizing our RRSP contributions (we have some contribution room to make up as well) using an index strategy and also taking small positions in individual dividend stocks in a non-registered account.

We currently use TD Index funds for both our RRSP accounts (mine and my husband’s). Realistically, we should be moving them to ETFs but I don’t trust myself. If I moved the RRSPs to a brokerage account, I’d be tempted to make individual stock purchases within the RRSP (like I have found myself doing with my 401k as US stocks go ‘on sale’ :( ), which goes against our financial plan. So yes, we pay more in fees, but I know it makes sense for discipline purposes (at least I can admit to it ;) ).

]]>