Author Topic: What to do with 2 years and $25K CAD?  (Read 2085 times)

drg

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What to do with 2 years and $25K CAD?
« on: October 20, 2013, 01:57:44 PM »
Hi all,

I have roughly $25,500 sitting in my TFSA collecting 1.4% pa.  I've just been offered a job in the UK for two years (first job post grad school), and probably returning to Canada after that.

(I should say, I have ~1.5 years living expenses saved in £ as well.)

What should I do with that cash in the mean time?  I would probably like to use it as part of a down-payment on a house within the next 7 (=2+5) years.

Thanks!


daverobev

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Re: What to do with 2 years and $25K CAD?
« Reply #1 on: October 20, 2013, 03:59:14 PM »
Transfer it to People's Trust at 3%.

Investing means >5 years MINIMUM.

I *suspect* you should declare the TFSA as interest earned while in the UK... though if you're just working all your tax will be deducted at source so you won't have a self-assessment tax return to fill in. So probably don't worry about that.

If you're still here in January, withdraw all that money on Dec 20th or so, and open a PT TFSA with all that money. If you're not resident you may not get more TFSA room for those two years (and to open a TFSA account you must be resident).

Good luck in the UK - I miss my home!

drg

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Re: What to do with 2 years and $25K CAD?
« Reply #2 on: October 21, 2013, 02:07:03 PM »
Thanks daverobev.  I looked at People's Trust, and 3% does seem to be the best option, and beats out the GIC rates I've seen for that period.  However, the residency issue may be tricky, as I've been residing in the UK as a student (Canadian resident for tax purposes, although I have no taxable income in either country).

You've also given me the push to figure out this double taxation situation...

 

Wow, a phone plan for fifteen bucks!