The Money Mustache Community
Around the World => Canada Discussion => Topic started by: saltytheseadog on January 24, 2018, 11:08:31 PM
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Hello, I'm about to become an pensioner. I have a small rainy day fund I have been investing in GICs for quite a few years now. I would like to find an investment that would provide a monthly allowance and protect the rainy day fund. It would also have to be tax free as any increase in taxable income will be cancelled out by a reduction in my GIS . Is this possible? I know zilch about investing but everything about frugal living.
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Hello, I'm about to become an pensioner. I have a small rainy day fund I have been investing in GICs for quite a few years now. I would like to find an investment that would provide a monthly allowance and protect the rainy day fund. It would also have to be tax free as any increase in taxable income will be cancelled out by a reduction in my GIS . Is this possible? I know zilch about investing but everything about frugal living.
You could invest in a series T mutual fund, but their expense fees are generally quite high.
Can you put that money in a TFSA? If so, you can invest in anything and any income generated and withdrawn from the account is not reportable for taxes so no impact on GIS or other benefits.
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Thanks Mr. Moose
That's good advice. With the annual contribution limit it would take awhile to load the TFSA but worth it in the end
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Thanks Mr. Moose
That's good advice. With the annual contribution limit it would take awhile to load the TFSA but worth it in the end
Don't forget the TFSA is cumulative. If you were in Canada and over 18 in 2009, you can put up to $57,500 in a self-directed TFSA today.
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Thanks, I didn't know that . That will solve my problem.