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I have a TFSA trading account all set up and ready to go. Looks like stock prices have all increased lately. Any advice would be greatly appreciated. Almost all my current stocks are dividend paying stocks.
Thanks.
 

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I have a TFSA trading account all set up and ready to go. Looks like stock prices have all increased lately. Any advice would be greatly appreciated. Almost all my current stocks are dividend paying stocks.
Thanks.
IIRC, if you put dividend paying stocks in your TFSA, you don't get to claim the tax credit for Canadian stocks nor do you get the preferred with holding tax treatment for US stocks. You won't be able to claim losses at tax time either.

FWIW, stock prices advancing the last month or so is no reason to think you may have "missed the boat" so to speak.
 

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The OP seems to have disappeared so let me re-use this thread to discuss TFSA strategies that people are using and share my own.

Well, my lack of a strategy. Basically I have all $5000 of my TFSA in a money market mutual fund.

My problem with using the TFSA to buy common stock is that I'm unable to average down. $5000 isn't a whole lot of money. Most likely, I'd want to use that whole amount buying something. And if that particular stock tanks in the short-run, I won't be able to average down to take advantage of that correction.

Then there is the point that someone made above - any proceeds received from Canadian dividends in a TFSA is less "useful" than receiving those proceeds in a cash account - because I can't take advantage of the dividend tax credit.

For maximum tax savings (since interest is charged at your marginal tax rate) I suppose I could use the TFSA for a "high interest savings account" (like ING) but 1.7% isn't very appealing now is it?

Discuss...
 

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The OP seems to have disappeared so let me re-use this thread to discuss TFSA strategies that people are using and share my own.

Well, my lack of a strategy. Basically I have all $5000 of my TFSA in a money market mutual fund.

My problem with using the TFSA to buy common stock is that I'm unable to average down. $5000 isn't a whole lot of money. Most likely, I'd want to use that whole amount buying something. And if that particular stock tanks in the short-run, I won't be able to average down to take advantage of that correction.

Then there is the point that someone made above - any proceeds received from Canadian dividends in a TFSA is less "useful" than receiving those proceeds in a cash account - because I can't take advantage of the dividend tax credit.

For maximum tax savings (since interest is charged at your marginal tax rate) I suppose I could use the TFSA for a "high interest savings account" (like ING) but 1.7% isn't very appealing now is it?

Discuss...
Before you start this discussion, check out this thread:
http://canadianmoneyforum.com/showthread.php?t=35&highlight=tfsa+strategy
 

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hmmmm.....

i just opened a TFSA on Questrade and am debating which stocks to buy...
REIT's are interesting (Calloway, Yellow Pages, Riocan) because of their high monthly yields...

i also have done my research on a few small-cap companies that are in good positions right now...

any suggestions as to which path i should follow?
 
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