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Discussion Starter · #1 ·
Hello Friends,

I would be in Canada from next week to next 11 months, I'm looking for good retail investment options in Canada, what are the short term and mid-term options in Canada. I would be interested in Stocks, Mutual Funds, Government Schemes [saving account] or other options I don't know about. Also, which of these investments I can keep after leaving the country. It would be great if someone can share basics of tax structure in Canada.

Thanks,
DD
 

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If you will only be in Canada for 11 months, it might make more sense to just transfer your savings back to your home country and invest there instead. It would save you the effort of having investments in two different countries.

I don't know if TFSA (tax free savings account) and RRSP (registered retirement savings plan) would be available to you if you're here on a work visa. I guess RRSP definitely wouldn't be, because you earn "room" in your RRSP based on your previous year's earnings, and you won't have any previous year's earnings, at least until January. TFSA is available to anyone who is over 18, resident of Canada, with a valid SIN number. I don't know if being here for a year on a work visa makes you a resident. If it does, then you could use the TFSA. However, once you leave Canada, you can't make further contributions or they will be taxed severely. https://www.sunlife.ca/slfas/Invest...FSA+held+by+non-residents+Max?vgnLocale=en_CA

There are two ways to invest - banks or brokerages. You can either invest non-registered (taxable) or in the TFSA if that's available to you. Both ways of investing are possible at both banks and brokerages. The main difference is that banks will have savings accounts or mutual funds available for investment. Brokerages will have stocks, ETFs (like a mutual fund, but usually less fees, and you buy it like a stock).

Banks that offer savings and investments: Tangerine (online only), TD, RBC, ScotiaBank, Bank of Montreal, CIBC
Brokerages: Questrade, Qtrade, Virtual Brokers, and all the banks except Tangerine that I listed above also have brokerages

Hope that helped, if you have more questions just ask.
 

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Discussion Starter · #3 ·
Thank you so much and few new queries

First of all sorry for such a late reply, my flight was pre-pond didn't get the time then and then was busy settling in Canada (Montreal) , getting a house for rent, going to job, SIN, bank account etc.

I have created a account in TD Trust bank. I'm able to gather the following information. I would be eligible for TFSA but not for RRSP.
As of now, I'm thinking of investing in stocks/ETFs and probably ultra-short term mutual funds. Is this sounds a good strategy? Could someone suggest me a balanced portfolio consisting of ETFs, stocks and (short term)mutual funds? What if I exhaust my TFSA limit and gain most profit from it and tax rest of the investments, what you guys think of it?
I get a feeling that general (retail) investor has more inclination towards stocks or ETFs than mutual funds which is different from my country(India). Could someone let me know what's the reason behind it?

may thanks for previous reply!

Cheers,
DayDreamer
 

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You can put $5,000 in a TFSA. Generally ETFs are better because the fees are as low as .05% vs at least .5% for mutual funds so the better option for similar investments.

In all honesty, I would just invest the $ back home . The Indian markets are doing better and you can probably get ETFs based on the US or other global mkts there as easy.

If it is just to park excess cash for the year, maybe look at a short term bond ETF like HPR Floating Rate bond ETF that yields about 2.2%. You don't want to hold equities just for one year - too much risk . Taxes here are likely higher than in India and you dont' want to leave any $ here either.

What you could do is leave all the cash in your account ( believe is about $3,000 min) and pay no fees. That is usually worth a 4% through fee savings and no headaches setting up investment accts.
 

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Discussion Starter · #5 ·
Thanks Jimmy for such a prompt response, investing in India looks better option for ultra short term. I think minimum balance is 4k CAD, which back in India would be over 200,000 INR so it would be better to take all of it and make some gains out of it.

Cheers !
 

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Hey guys I just joined. This is really useful. I have been thinking a lot about investing and actually thinking of buying a company. I know that a lot of people might think that it is very hard but in reality there are a lot of option for people to actually manage that. One of the reason I think about that is because a friend of mine has recently acquired an e2 visa. I was really surprised when he decided to do that especially since he was not exactly poor but here he was looking to buy a company in the states. was surprised why he wanted to go tot he US but hey that was his money. He decided to invest in one of the companies that was actually focusing on agriculture (of all things) but when I asked him why he said we cannot eat money and hey he was right. He contacted the company and after a few discussions he started looking for a lawyer preferably based in LA. He googled e2 visa lawyer Los Angeles and got a list of potential lawyers that worked with cases like that. He selected one and a few short months later he was already applying for the visa. He is currently living in the states a proud owner of an E2 thanks to the work of his lawyer. I think it is an amazing story of perseverance. I am thinking of doing the same so knowing as much as I can about trading is important hehe. Wish me luck.
 
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