All Forum Posts by: Agnes Chlebowski

I'm waiting for a call from my current robo advisor which is all ETF's. I will find out what vehicles they have that are more tax efficient.

If they do not have tax deferring vehicles I am open to switching since the account is just recent and the tax implications of moving the money is not too high right now.

I am looking into Horizon ETF's - They have TRI ETF's (tax efficient alternatives to corporate class) . The current corporate class vehicles I am looking at have not ETF's and seem to be, as suggest earlier, mutual funds and similar.

I saw this article while doing research so I'm pressing further into this:

https://www.theglobeandmail.com/globe-investor/funds-and-etfs/total-return-index-etfs-a-ticket-to-a-tax-efficient-portfolio/article29829250/

I have decided not to move forward with the financial advisors handling the account. Its too expensive, period!

My husband and I are really struggling to devise a plan to purchase investment properties through a corporation.

We have the corporate formed and funded through an intercompany loan ( I own a small business that does well).

We had a semi successful large scale renovation through this company (we purchased a bad property, renovations went sideways and then the market stalled with the stress tests on mortgages - Yikes). We broke even after all was said and done. Phew!

However, we are still hot on the idea of purchasing properties through the corporation. Tax benefits and long term portfolio.

Our mortgage broker and lawyer say that we are on the hook for 20% down on the next investment property we purchase through the corporation. 

This is a huge chunk of capital, and as you know Ontario housing market is high right now. My husband and I did and airbnb rental on the last property we sold and manage the properties ourselves with cleaners etc. Last year we net approx $15,000 from the property but figured we can do better since we learned we had lower daily rental rates then airbnb's around us.

How do we circumvent the 20% down payment? When we originally did this, it was through a B lender with high rates and we refinanced after 1 year. Is there any other way that is easier?

We don't want to be down the capital incase the market starts to come down, we want cash in hand to pick up great deals if we see any.

Thoughts on how to get this moving?

If we can't find an answer to owning a property through the corporation, we are willing to do it through our personal names and pay income tax as a last resort.

Again...any helps is appreciated. There are so many rules and regulations it makes your head spin.

Thank you,

-Agnes

I understand. 

Does anyone know anything about the tax implications of a regular non registered versus a corporate class?

I asked my accountant and he has varying answers as well. Does not seem as clear cut as one would hope for.

-A

I own a few companies and my bread and butter firm has a Non Registered Investment Account with Wealth Simple.

I started tucking money away into this account for a rainy day. Anywhere from $100 - $250 weekly. This is not a match, its diverting profit from the company into an investment fund. This is a long term investment fund for my early retirement. We wish to draw from it as salary. I plan on using it in 10-15 years to continue to fund my retirement. I'm currently 32 and love my job and my team so I do not see myself moving away from my firm anytime before that. I work about 20 hours a week and am actively working on getting my husband out of his 9-5 position as well. He is 10 years older than I am so I want to early retire with him at the same time.

My company makes close to $500,000 a year. From that I take a $76,000 income for the house (approx $65k after tax). Of which I save 30% into various RRSP / TFSA and other investment savings account including cash.

The remaining money (profit) after paying subcontractors etc, we use for investments. Part of that is rental property purchases (downpayments, rehab costs etc) The other part is weekly funding to our Wealthsimple account. 

How do we fund an account with profits from my corporation into an appropriate tax deferring account? The corporation is Ontario, Canada registered. 

My husband and I own short term rental properties with another incorporated company and want to do the same here but want to ensure we do it right to work around the taxes.

The current portfolio is Index Funds with 35% equity and 65% fixed income. I have it in a standard account with conservative risk. We have about $16,000 in the account and it makes us anywhere from 6% to 12% its been doing well (knock on wood)!

The financial advisors told us that right now we are eligible for capital gains tax on the fund. They have advised to move it into a tax deferred vehicle (corporate class) which would mitigate the capital gains.Again they told us to move it into the 
Fidelity Global Balanced Class Port Sr B (CAD). We just dont know how we feel about this account at 1.24% and than the financial advisors taking another 1%.

 

We would like to do this but feel there should be an Index fund option for Corporate Class at lower fees. 

The 2.24% is very high comparable to our current 0.75% and we do not believe in managers picking stocks. We prefer to ride out the overall market with index funds.

I hope this is enough info!

I am going to research the couch potato investing.

-Agnes

Hello,

Our Financial Advisors have been great so far. We have accomplished so much to date with their aid.

They would like us to move our corporate investments from a current ETF fund into a Fidelity Global Balanced Class Port Sr B (CAD). They have advised that these styles of investment funds will shield our corporate investments from tax. (it will defer tax). 

The numbers look good but we found out that this fund is a management firm that selects the stocks in the portfolio with managers. It is not tracking a grouping like an Index fund. My husband and I are in the Index Fund mindset and do not believe any one manager can play the market.

The fee will be 2.24% and our financial advisors are taking approx 1% of that. Our current investments are not in a corporate class and subject to tax laws. They are costing us 0.75% and we make a steady 10%-12% over the last year. The tricky part is the tax!

Does anyone have experience with corporate investments in a Non Registered Investment Account inside a corporate class investment?

Does anyone have suggestions for a corporate class that's an Index Fund or similar??

We are just not that comfortable with the idea of managers picking the stocks.

Thank you,

Agnes