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Discussion Starter #1
Howdy all,

I am interested in comparing the progess of TFSAs with others in the forum. On the web the main discussion is always 'RRSP or TFSA?' which is getting stale.

I am interested in hearing how people are doing, what they have in their acct(s) what they have learned, are they happy with company (TDW, Etrade etc) plus whatever people want to share about their TFSAs.

To begin, I am at TDW and have a single investment in mine (yeah I am using it as gambling account) and the book value today is $20,340, which includes the 2010 contribution. My plan is to let this stock soar and then cash in some or all and invest in growth stocks with distributions/dividends. I am also hoping that I will be able to transfer all of my investments into the TFSAs over time.

How about you?
 

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Great thread!

I do have the maximums invested for 2009 and 2010 but I treat the account merely as a holding place for my rainy day cash fund. Right now I've got a few pennies more than $10K there now. This money is fluid and can be accessed by placing a call to RBC. When I set up the account I was surprised that they asked me about investing the money since I had thought that these were simply sheltered cash savings accounts. I don't want to take chances with market funds in this account for the time being. By January 2011 I will have $15K of principle stored there. I'll add $5K per year for the next few years at least, after which point I'll have to re-eavluate where I put my money.

I realize this is a totally elementary approach compared to what many other people are doing. The good news is this is not cast in stone and the cash can easily be moved around, invested later etc.
 

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Most of the questions you have asked are irrelevant to whether or not funds are in a TFSA. (Other than to satisfy your idle curiosity.) A TFSA could hold everything from savings account to stocks, depending on the investor profile.
 

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Yes to what OGG said, and I'm a case in point: my TFSA is fully funded for 2009 and 2010 but I use it as my emergency fund, not a money-making machine. So it's sitting in an ING account. Worth about $10,120 at this point and I'm perfectly happy with that.
 

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brad:

Yes to what OGG said, and I'm a case in point: my TFSA is fully funded for 2009 and 2010 but I use it as my emergency fund, not a money-making machine. So it's sitting in an ING account. Worth about $10,120 at this point and I'm perfectly happy with that.
Do you have a goal for the amount of emergency fund you want to ultimately have? What will you do in future TFSA contribution years once you have achieved your goal?
 

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brad:

Do you have a goal for the amount of emergency fund you want to ultimately have? What will you do in future TFSA contribution years once you have achieved your goal?
No emergency is too big for me ;-)

Seriously, though, my goal is $50K for emergencies (which I think of as a degree of self-insurance), and I'll also keep contributing to it to provide some "sabbatical" money if I want to take a few months off. It'll take me another 8 years to reach $50K, and at that point I'll be getting close to 60 years old, so will probably just keep socking it in there, treating it as a liquid and secure piggybank that I can tap into as needed as I transition toward semi-retirement.

My approach is full of lost opportunities to make more money, but i don't care. If I were younger I'd probably do it differently but at this stage in my life a healthy emergency fund is a priority for me.
 

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That's like a 72%+ return! :eek: What's in your water? :p
Natural flavours, citric acid, sodium hexametaphosphate, phosphoric acid, sodium benzoate, sodium citrate, sucralose and calcium disodium EDTA.

(Raspberry flavour) :p

The largest gain was from WRK.UN. I bought in back when it was yielding over 20% well ahead of the stock split. The stock price has doubled since the purchase. I wish I had more cash available then to have bought more stock. Oh well. Gotta crawl before you can walk then run. The other large gain came from a junior oil company.

I also had WRK.UN in my RRSP but used most of the profits there to bail my *** out of another stock that tanked and hasn't recovered. So I'm no genius. :eek:

I do plan on being back in WRK.UN at some point in the future.
 

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Interesting, brad!

That brings to mind another question: withdrawals. Has anyone tried to WITHDRAW money from their TFSA? How easy was it? I deal with the ROYAL BANK and apparently I can't use online banking to move the money into my savings account, I need to call them during business hours and they will apparently "counsel" me...anyone have more details of what's involved in withdrawing cash from the TFSA?
 

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Discussion Starter #11
Most of the questions you have asked are irrelevant to whether or not funds are in a TFSA. (Other than to satisfy your idle curiosity.) A TFSA could hold everything from savings account to stocks, depending on the investor profile.
I disagree. In other threads people have complained and discussed the issue of costs, services and interest rates (that change) at different institutions. Since we all have the option to move, this is relevant.

What people are using their accounts for (emergency fund/gambling account) is more useful to the forum readers than to satisfy my idle curiosity.

Additionally, due to the unique nature of the tax-free aspect, investors may choose to carry different or a different mix of investments in their TFSA. The various reasons for this would be relevant to others as well. There are many questions regarding this on the web where people are asking what should be held in a regular account, versus an RRSP, versus a TFSA etc.

Indeed a TFSA can hold many, many types of investments, but not all.

Maybe you should check in on the thread and see what is being discussed and if it is relevant to you or not?
 

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Discussion Starter #12
That brings to mind another question: withdrawals. Has anyone tried to WITHDRAW money from their TFSA? How easy was it? ...anyone have more details of what's involved in withdrawing cash from the TFSA?
Not yet. I had planned that once I diversified into distribution and dividend paying investments, I would make monthly withdrawals and put to my mortgage or RRSPs. However at TDW you get one free withdrawal per year and any other incurs a $25 fee! Watch out for this cost.
 

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That brings to mind another question: withdrawals. Has anyone tried to WITHDRAW money from their TFSA? How easy was it? I deal with the ROYAL BANK and apparently I can't use online banking to move the money into my savings account, I need to call them during business hours and they will apparently "counsel" me...anyone have more details of what's involved in withdrawing cash from the TFSA?
If you check the threads for last year you will find a number of posts from idiots who made frequent withdrawals and re-contributions, sometimes at different institutions, without reading the rules, and wound up in deep doo-doo with CRA. So it's probably sensible of RBC to insist you talk to an agent first.
 

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I am at TDW and since my total is over $100k I can trade for $9.99 and most annual fees are waived. No issues - it is the simplest and littlest investment account I have.

I started the TFSA in the mid January correction with $10k and now it is at $11,242. Not bad for two months. I invested in three income trusts, with a monthly cash flow of just under $100.
 

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notice of assessment

My wife got her notice of assessment recently, and interestingly it said she had a $10,000 TFSA limit despite contributions in early 2009 and early 2010 at ING. I can understand the 2010 contribution being too late, but I expected the 2009 contrib to be reflected in the total.

Also, I had no problem removing cash from my TFSA at ING at the end of 2009. As easy as if it were a savings account. I put some back in this year into their Streetwise fund.
 

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My wife got her notice of assessment recently, and interestingly it said she had a $10,000 TFSA limit despite contributions in early 2009 and early 2010 at ING. I can understand the 2010 contribution being too late, but I expected the 2009 contrib to be reflected in the total.
Try looking online using CRA's "My Account" service and you'll probably see more up to date TFSA contrib info.

Even then though, my tax refund was processed and deposited into my account in February but My Account online was still showing no TFSA contributions up until a few weeks ago.
 

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The CRA only required financial companies to report TFSA account activity starting this month for 2009 contributions. I definitely would ignore any TFSA info you see on the Notice of Assessment for a while. The one you get in 2011 might be more accurate.
 
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