Before I start complaining, I would just like to say that I now have $5,041.16 in savings! I don't remember the last time I had that much in savings. I am looking forward to pushing that amount to $10,000. I should be able to do so quite easily. With the TSX hitting on a record high, it's not a good time to buy stocks anyway. Currently, my portfolio seems kind of complete and all done for me. Something else that is working in favor of me building up some savings is this current pandemic. I wouldn't like to sell any of my baby stocks in case I need money. Ideally, I would like to have a good $20,000 in savings.
This past Thursday and Friday, I spent several hours trying to reach TD Direct Investing, without success. I wanted to do a couple of contributions in kind from my non-registered portfolio to my TFSA portfolio. I think "regular" users can perform contribution in kind online, but for safety measures, a long time ago, I made it impossible for me to perform any kind of transfers to both my TFSA and RRSP portfolio. I did so because I am scared of myself - I could do a costly mistake and transfer money over my TFSA and RRSP by accident or something like it. But now, that block that I put in my broker account is costing me hours and hours of waiting on speakerphone, trying desperately to reach a customer rep at TD Direct Investing to perform my contribution in kind orders. But I guess am asking too much from TD Direct Investing.
Putting such a block in my broker account could seem as being a stupid move at first, but penalties can be huge if you exceed your contribution limit for the TFSA portfolio. And once you make a mistake, I don't think it can be corrected easily. I prefer to prevent any annoying situation that could occur.
For 2021, I have over $24 000 in contribution room left for my TFSA portfolio! It's quite a shame, but I exposed that situation before. This past Thursday, I had it all figure out and I so wanted to make the plan roll on, but guess what, I couldn't get my amazing plan rolling because I couldn't reach anyone at TD Direct Investing, despite giving it several attempts. It went like this, I placed my call, and then it says something like we are experiencing a higher than usual volume of calls. After close to 2 hours of waiting on the speakerphone, I got the message: "We are experiencing technical difficulties, please try again later" and then, the line cut off on me! At a $9.99 commission fee, TD Direct Investing is certainly not cheap. At that price, I am expecting to receive excellent service, but I am currently not getting that with TD Direct Investing.
Here are the contribution in kind orders I had in mind for my fabulous portfolio:
Aphria Inc. (APH)
Telus Corp (T)
Bitcoin Fund The Class A units (QBTC)
Both Aphria Inc. (APH) and Bitcoin Fund The Class A units (QBTC) don't have any margin loan value, so fact that I switch them both from my non-registered portfolio to my TFSA one is not hurting me in any way. Earlier this week, Aphria Inc. (APH) went through some massive volatility. Most of my Telus Corp (T) stocks are in my TFSA portfolio. The shares that I have of T in my non-registered portfolio result from a DRIP.
I hope I will be able to reach someone at TD Direct Investing on Monday because I would like to proceed with those contributions in kinds.
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6 comments:
Time to let them all go. Then just put it all in a few of crypto stocks, then retire later this year, have a couple bebes, move to the Caribbean, and live a good life.
That's a lot of contribution left for your TFSA. That's nice!
that's a lot of contribution room left -- I think it's suspicious. If you got that number off the CRA website, don't trust that number. Mine doesn't include the contributions I made last year to my TD TFSA. It's like that every year, I think TD only sends them the info in March or April. It's not instantenuous
I still think you do any kind of contribution-in-kind is stupid because you end up paying taxes on the sale of the stock you transfer in. It's much better to transfer cash, and if you don't have the cash, you *choose* what to sell, for example, a loser that you can claim a capital loss on, or something else with almost no gain
BTW Monday Feb 15th is a holiday and everything is closed outside of Quebec, including the exchanges
I was able to contact TD Direct this morning and I was able to proceed with my contribution in kinds! Finally!
No worries, I have a contribution room left of 24k, I assure you. I always check my data directly on my profile with Revenue Canada. A few years ago, I sold out some stocks that I was holding on in my TFSA to decrease my margin debt - which use to be in the 100k. A part of that 24k came from that from money that I transfer from my TFSA to my non-registered in order to pay down my margin.
I only do contribution in kind on stock that I want continue to hold, but who are experiencing a loss at the moment I proceed with the operation. You should read more of my blog, I explain all that in previous posts.
Contribution in kinds are not stupid move if you use them to you own advantage.
I'm glad to hear you're sure about the 24k. As I wrote above, the Revenue Canada website right now tells me I have 12k room to contribute right now, but I know I do not and it's just 6000$. The CRA doesn't have the data from last year for TD yet. I over-contributed 3 years ago because of this. And until for RRSP, TD makes it difficult to see how much you contributed.
I have read your blogs about In-Kind transfer evert year. There cannot be any advantage to it. Contribution in kind is the same thing as selling the stock, paying the taxes, and buying it back, except it's hidden. It's better to do that manually to understand what's going on, and choose the day to buy or sell, for a better price. But it gets worse: if you have any capital loss, you cannot legally claim it https://www.moneysense.ca/columns/in-kind-transfer-tfsa-tax/
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