Figuring Out Tax on US Dividends in Canada

tax on US dividends in CanadaA discussion on tax efficiency in the comments section over at Freedom 35’s blog (yes, riveting stuff) has spilled over here: where, oh where, to put plain vanilla US dividend paying stocks for Canadians? The obvious insta-blurt-out-without-thinking answer is in the RRSP. But is it the best place? You get the benefits of no foreign withholding taxes and contributions are deductible from taxable income. It’s probably the best choice in a “between a rock and a hard place” scenario, but it’ll depend on your specific circumstance. Let’s consult the tax efficiency matrix.

Continue reading

The Only Place for an Emergency Fund

Peoples Trust

Emergency funds are important for many people. I know it provides us with a psychological benefit having a large horde of cash sitting around for “just in case”. That psychological comfort and liquidity is worth forgoing potentially higher returns in the market. But, ideally, you want your horde of cash making a decentish return. Where should you park your emergency fund?

Continue reading