2006). If you have extra funds for non-reg, if you have a spouse, you can fund his/her TFSA without any tax implications (unlike an RRSP). Using VEQT and XEQT in TFSA and Taxable Accounts If you’re overwhelmed by the number of holdings above, we may be able to tone it down for you. Is there a product out there that is made up of 100% equity? An advantage of taxable accounts is the ability to use the losses that inevitably occur in some years to lower your tax bill. So with a 100% equity portfolio, one big requirement is strong geographical diversification. how, the dividend tax credit works with VGRO or VEQT in a taxable account? When securities are sold for a profit, there are generally taxes due. ← Dividend Increases, New All-in-One ETFs, Top Ranked Credit Cards, and More! When restricted stock or RSUs vest, you own the stock outright and have taxable W-2 income for that calendar year, along with your other compensation income. This is called tax loss harvesting. For example, Vanguard’s version of XGRO is VGRO, and BMO’s version ZGRO. As an alternative, I would suggest you look at products like iShares Core MSCI All Country World ex Canada Index ETF (XAW). Author . But investors in taxable accounts have only pocketed a 7% return over the past 10 years, dropping the fund’s aftertax return into the large-blend group's bottom half. My TFSA is full and my RRSP room is pretty much full from my RPP from work. In TFSA’s forei… Ontario. VEQT swap based equivalent? Issued by local and state government and agencies in … Capital One Aspire Cash World and Aspire Platinum Review, The Ultimate Guide to Safe Withdrawal Rates in Canada (For Any Retirement Age). So when you sell a mutual fund at a price (NAV) higher than the price you purchased it, you will have a capital gain for which you will owe a tax. This site uses Akismet to reduce spam. No. • In a taxable account, Level I withholding taxes apply, but are recoverable. VEQT is a “fund of funds”, meaning it’s a wrapper that contains four other Vanguard ETFs. Building a $1,000,000 RRSP Starting in your 30’s, 40’s, and 50’s. Foreign Withholding Taxes 5 Level I withholding tax on Type A funds is 15% of dividends. Bonds and REITs and the like have higher turnover, so those should go in the tax advantaged accounts. Jordan, your broker should be able to enable a synthetic DRIP for any equity that pays a dividend. Something went wrong. I read that people thinks there is too much canadian exposure with this ? You have shared the tax drag costs for holding VEQT are about another 0.25% (give or take) on top of the 0.25% MER product cost. Taxable account: VEQT (70 %), ZDB (30%) I would rebalance once or twice a year with VAB and ZDB. As a result, you would prefer to hold the U.S. dividend stock in your RRSP rather than in a taxable account. I am 73 have a $40k DB pension, and CPP & $25k RIF withdrawal. Taxable account: If the assets are in a taxable account, and you cannot be sure that you will not be trading them, you should assess if moving the holdings over to Betterment would make you better off in the long run. There are several scenarios where investing in a non-registered account makes sense. The keyword in that product is the “ex Canada” which means except Canada. Just to confirm there is no taxable event if I just buy and hold correct? Does that sound reasonable or am I missing something big here. The cost of capital gains taxes from liquidating may well be more than made up for with the benefits of a switch, including lower fees. One last thing, if I maxed my allocation for VCN in my taxable account (20 %) and don’t have room left for contribution in my registered account, should I rebalance with ZNB in my taxable account ? I set it to DRIP in Questrade. Many thanks, Catherine. Hi Catherine, check out the post today about having “one big portfolio” (https://milliondollarjourney.com/maxed-out-rrsp-and-tfsa-now-what.htm). Q. If I understand correctly, theoretically you could report a tax loss with TIPS in times of severe deflation. Any suggestions? The Vested Share Account (VSA) is a special global nominee that has been set up by Computershare or their affiliates to hold shares, following the vesting of awards made under the Royal Dutch Shell share plans. TIPS are treated as other Treasuries in a taxable account with one unpleasant feature: all inflation adjustments to principal are treated as current interest. Foreign Dividends – In non-registered accounts, foreign dividends are taxed 100%at your marginal tax rate (ie. We have used the Vanguard Total Stock Market ETF (VTI) as an example. I read that people thinks there is too much canadian exposure with this ? I think you’ll agree, it’s hard to put a price on that convenience. it is all or nothing. Financial Freedom Update (Q1) – March 2019 ($48,200 in Dividend Income)! We max out all available tax-protected accounts including 401(k), 457, Backdoor Roth(s) and a 529 for our child. They use the swap structure for the underlying etf’s though there may be some distributions when they rebalance. Great Taxable Account ETFs #1: iShares Russell 3000 ETF (IWV) One of the reasons why ETFs are great for taxable accounts is that they track indexes. Remember that investments held in a regular brokerage account are taxed on capital gains and on interest income (dividends). Barrick Gold and Facebook interchanged each other between the two all equity ETFs. Dogs of the TSX (Beating the TSX) Dividend Stock Picks – 2020 Bear Market Edition, Mastering the Smith Manoeuvre and Turning Your Mortgage Into a Tax Deductible Investment Loan, Top 6 Indexing Options for Your Portfolio, All-in-One ETFs Battle: Vanguard vs iShares vs BMO, Simple Low Cost Diversified Index ETF Portfolios, Building a Simple Low-Cost Indexed ETF Portfolio in USD, A Super Tax Efficient Index ETF Portfolio for your Non-Registered Account, The Real MER on ETFs – Foreign Withholding Taxes on ETFs, Best Free Canadian Chequing Bank Account for 2020, Fixed Income Faceoff: Bond ETFs vs GICs vs High Interest Savings Accounts, Easy Index Mutual Fund Portfolios with the Big Banks. How does this work? To determine whether it’s advantageous to use tax-free bonds, calculate the tax-equivalent yield of a tax-free bond fund by multiplying it by (1 – your marginal tax rate). Other than ACB tracking for taxes if I sell and when I get a dividend, what other things should be known of when putting VEQT in a taxable account? Vanguard VEQT All-in-One 100% Equity Portfolio ETF, Best Canadian Online Discount Stock Brokerage, Wealthsimple Review 2020 – Robo Advisor & Wealthsimple Trade [UNIQUE PROMO], Questwealth Portfolios (Robo Advisor) Review, CI Direct Investing (Robo Advisor) Review, Canada’s Best Dividend Growth Stocks for 2020. Dividend Kings List – Companies with Annual Dividend Increases for Over 50 Years! I have the following question regarding the taxable account: Now that Vanguard introduced the all equity etf:VEQT I have three options: (60% stocks 40% bonds) Option 1: VUN (30%) , VIU (25%) VEE (5%) and ZDB(40%): Bond ETF more efficient in taxable account Option 2: VEQT (60%) ZDB (40%) Option 3: VBAL (the bond part not as tax efficient as ZDB) Which one do you thing would be … 6 1 16. At an estimated MER of 0.25%, is it worth the convenience? The higher your income, the less tax efficient Canadian dividends become. Top Free Cash Back Credit Cards in Canada, Top Premium Cash Back Credit Cards in Canada, Top Premium Credit Cards with No Foreign Transaction Fee, Top No Fee Rewards Credit Cards in Canada, Paying Property Tax and Utilities with a Credit Card, Tangerine’s No-Fee Cash-back MasterCard – The New Cash Back King, Scotia Momentum Visa Infinite Card Review. There are three benefits. Most investors won’t argue that they should hold equities in their TFSA first. You pretty much nailed in with the cap gains and annual dividend. If a don’t have a pension plan elsewhere is it OK or should I add a little XAW. If you want a little more control over your equity/bond mix (rather than VGRO/VBAL), you could own both VEQT and an indexed aggregate bond ETF like Vanguard’s VAB. I'm not there yet but if I understand correctly the interest paid on the loan is deductible, More posts from the PersonalFinanceCanada community, Continue browsing in r/PersonalFinanceCanada, Press J to jump to the feed. The scuttlebutt around capital gains, however, got me thinking about investing in a taxable or non-registered account. I need to look into this ETF a little more, but Dan from Canadian Couch Potato does a great job explaining: 5 Useful Retirement Calculators (2019) – How Much Do You Need to Retire? Can you suggest if VEQT or similar low cost, no need to re-balance ETF’s are significantly more tax efficient and the best way to invest to replace the dividend stocks like BCE.TO and the banks. This approach is a slight deviation from the international norm, and results in some unusual outcomes in some scenarios - in most countries, the share awards are sourced according to where the employee was working during the vesting period (i.e. And the quickest way to lose in taxable accounts is by investing in mutual funds that produce the most in taxes. I read that people thinks there is too much canadian exposure with this ? For example, if you have Vanguard 500 Index Fund with a large amount of unrealized capital gains, and your asset allocation calls for Vanguard Total Stock Market Index Fund for domestic stocks, you may want to take dividends from Vanguard 500 … Looking at these numbers alone, XEQT seems like a better choice. Other than ACB tracking for taxes if I sell and when I get a dividend, what other things should be known of when putting VEQT in a taxable account? May not be combined with other offers. My TFSA is full and my RRSP room is pretty much full from my RPP from work. With all these new choices to build a solid low-cost portfolio (even cheaper with commission-free ETF trading), it really is a great time to be an investor. Some folks say keep buying good dividend stocks, they are taxed at a lower rate and will reduce your average tax rate. Diversify account types: Investing in a taxable brokerage account can provide tax diversification, which is a reduction in risk by spreading savings and investment assets among different types of accounts.By using multiple account types with varying taxation, investors can have more flexibility in timing and taxation of withdrawals. Does it provide a DRIP? Say No To Management Fees XEQT has a slightly higher exposure to tech stocks in the top 10 (8.88%) compared to VEQT’s 8.19%. My favourite portfolio is now priortizing VEQT for TFSA and taxable accounts and bonds for RRSP (without after tax asset allocation). Doing a typical 3 fund portfolio, but have money spread through several accounts, but the taxable account is growing the fastest and will continue to do so. I don’t actually sell anything in my taxable account, but I do figure out how to allocate each monthly paycheck to the 3 funds to maintain my desired percentages. What is VEQT? Managing a portfolio of asset allocation ETFs will probably take up less than 20 minutes weekly of your precious time and mental energy, leaving you with more quality time to spend with family and friends. Reply. Unless you have a burning need, to determine the CDN dividends component, you'll have to break own the entire ETF, which is not worth the hassle. One important thing to remember about non-taxable accounts is that they might be tax-deferred accounts.� This means that there are no Option 1: VUN (30%) , VIU (25%) VEE (5%) and ZDB(40%): Bond ETF more efficient in taxable account Option 2: VEQT (60%) ZDB (40%) Option 3: VBAL (the bond part not as tax efficient as ZDB) Which one do you thing would be more tax efficient in the taxable account. If you already have a lot of Canadian equity exposure, then you may not want that much in Canada from an ETF. I need an ETF /s that are tax efficient and one that does not need me to re- balance. I have mostly looked at VEQT, and XEQT. Rumours of an increased capital gains tax were put to rest last week when the Liberals unveiled their second federal budget with no mention of a change to the inclusion rate. Let’s take a look at various investment instruments and their tax consequences: 1. If a don’t have a pension plan elsewhere is it OK or should I add a little XAW. If you are not contributing the maximum already, increase the contributions to the 401k plan, or fund a traditional IRA or a Roth IRA. Between VEQT and XEQT, the top 10 holdings are very similar. 1 day ago. Posted by. Great Taxable Account ETFs #3: SPDR Short Term Municipal Bond ETF (SHM) Municipal bonds are made for taxable accounts. And finally, taxable accounts can be really valuable in retirement because they do let you exert a little more control over your tax situation than is the case with your tax-deferred accounts. Investing. It’s one of five asset allocation ETFs offered by Vanguard. Justin March 3, 2020 at 6:43 pm - Reply @Grant: You’re bang on with your reasoning. Reply. Have you looked into the Horizons all in one etf’s? Never miind the loss of the OAS and related pensioner benefits. Valid receipt for 2016 tax preparation fees from a tax preparer other than H&R Block must be presented prior to completion of initial tax office interview. TFSA (30%-40%): VAB (fixed income) and possibly a REIT ETF like VRE In recent weeks, I’ve been writing about how it’s getting easier and cheaper to build a solid globally diversified portfolio using all-in-one ETFs. Meanwhile, VEQT has a higher exposure to Canadian non-tech stocks at 7.86% compared to XEQT’s 5.15%. Withdrawing from your RRSP, TFSA, and Non-Registered Accounts for Retired Canadians, How I Plan to Withdraw from my RRSP/TFSA to Fund Early Retirement, Early Retirement (FIRE) on Dividend Income – Dividend Taxes in Canada, Save Money with USD to CAD Foreign Exchange using Norbert’s Gambit, Canadian Investing Taxes: Dividends, Interest, and Capital Gains, SimpleTax Review: File Your Canadian Tax Return for Free, Canadian Legal Wills Review: Canada’s Best Online Will Kit, getting easier and cheaper to build a solid globally diversified portfolio using all-in-one ETFs, even cheaper with commission-free ETF trading. I received a long email recently about taxable investing accounts which basically boiled down to this question:. Once your account is created, you'll be logged-in to this account. Through various financial strategies outlined on this site, he grew his net worth from $200,000 in 2006 to $1,000,000 by 2014. Today’s post helps solve that problem by looking at and comparing Vanguard’s VEQT vs. iShares XEQT vs. Horizons HGRO fund. When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. Hence, it is taxable income of the employees under Section 17(1) by classifying them as perquisites. VEQT is an amazing product but they missed the mark by not making it a Canadian-equivalent of VT. Having a home bias is one thing but having one of 10x is such a bad idea so XAW remain the best option. I buy VEQT in my taxable account. I will reorganize it this way. taxable) account. Because of … Please check your entries and try again. Here’s what’s under the hood: Can you share some information on investing in a corp account? As stated above, there are many things that are calculated. Non-Reg (20%-30%): XIU or VCN. A taxable investment account (also known as a brokerage account) is funded with any amount of after-tax dollars and can be invested in virtually any type of security, including stocks, bonds, mutual funds, and exchange-traded funds (ETFs). I'm planning to do the same one my registered accounts are maxed. I invest in a number of Canadian dividend paying stocks for long-term growth and income.. Many thanks, Catherine. You'll see it in the app as an "Individual Investing" account. Is it tax sheltered? Investing. To have a 70 equity/ 30 bond ratio would it work to do this: VEQT in taxable account. I invest in HGRO in a corp account to avoid the tax headache and for preferential tax treatment. There are no deferrals. RRSP (40-50%): XAW (US/international/emerging markets) For example, if you have long time frame until retirement, rather than buying multiple ETFs/mutual funds for equities and bonds, or a balanced fund that charges 2%, you can now buy a single ETF like iShares XGRO (80% equity/20% bond) at an MER of 0.21%. Moreover, the tax effects of investing inside of a taxable account are arguably pretty light relative to historical norms. Another thing is that XEQT has 25% into Canadian equities whereas VEQT has 30 here. But what if you are just starting out in your 20’s and have a super long time frame until retirement which would justify having no bonds in your portfolio? →, https://milliondollarjourney.com/maxed-out-rrsp-and-tfsa-now-what.htm, https://www.moneysense.ca/columns/new-tax-efficient-etfs-from-bmo/. I would rebalance once or twice a year with VAB and ZDB. It’s Vanguard’s solution to a globally diversified 100% equity portfolio. You want to have the most tax efficient and lowest turnover stuff in your taxable accounts. Now I am not sure what the best method for investing in a taxable account is. Individual Account (taxable) This is a basic brokerage account. VEQT Number of stocks 12,521 Median market cap $53.6B Price/earnings ratio 20.2x Price/book ratio 2.0x Return on equity 14.1% Earnings growth rate 12.5% Equity yield (dividend) 2.5% Sector weighting VEQT Technology 18.0 % Financials 17.8 % Consumer Discretionary 13.2 % Industrials 12.6 % Health Care 9.0 % Basic Materials 7.1 % The only thing I have in my taxable account is a total stock market index mutual fund (Fidelity's Spartan series - comparable to the Vanguard version). Personally, most of my Canadian equity ownership is through Canadian dividend stocks, so our family owns a lot of XAW (or equivalent through XUU/XEF/XEC) as you can see here. 2. Dividend reinvestment purchase. We also get your email address to automatically create an account for you in our website. One uestion, have you considered margin accounts for the non taxable to buy more ETFs? So, I’m considering owning Canadian dividend paying stocks in my taxable account for the Canadian Dividend Tax Credit like you – is that wise? Press question mark to learn the rest of the keyboard shortcuts. If the employee is non-resident, with no taxable services in Ireland, then the awards are not taxable i.e. Thanks for subscribing! The Vanguard All Equity ETF Portfolio trades under the ticker symbol VEQT. • In a TFSA or RESP, Level I withholding taxes apply and are not recoverable. Canadian Dividends – Dividend tax credit makes Canadian dividendincome relatively tax efficient in a non-registered (ie. Math aside, I would maintain that most DIY investors would be wise to stick like glue to their one-fund solutions, even as their RRSP values continue to grow. For an investor who has no investments in taxable accounts, the difference in MER+FWT between VEQT and the mix of 4 ETFs is 0.36% per year. Taxes are due every year. For my taxable account, I have the 3 funds as mentioned in this blog post. XEQT has a slightly higher exposure to tech stocks in the top 10 (8.88%) compared to VEQT’s 8.19%. I meant to write ZDB ( BMO Discount Bond ETF ), For tax purposes, I would keep fixed income out of taxable accounts (if possible). I am new at investing on my own and wanted to see if what I planned by reading your blog would be good. Dividend Tax Credit 101 VEQT is a one-stop shop for the all-equity investor, but it’s not one size fits all. Thank you very much for your quick response, this helps a lot ! Plan on investing $40-$50k in a few weeks in the new year. The employees on the other hand, contended that the contributions do not ‘vest’ in them at the time of payment and that the monetary benefits accrue only at the time the payments are withdrawn hence, the contributions are not taxable. The decrease in principal could be larger than your interest payment. If not then I want to dramatically reduce my dividend based holdings in my non registered account. If a don’t have a pension plan elsewhere is it OK or should I add a little XAW. The ONLY rebalancing I do is in my taxable account. :), I purchase some veqt. The best all-in-one Exchange Traded Funds (ETFs) Readers of this site will know I take a hybrid approach to investing. FT is the founder and editor of Million Dollar Journey (est. https://www.moneysense.ca/columns/new-tax-efficient-etfs-from-bmo/, Sounds like you have a good problem of having too much money. Please check your email for further instructions. Depending on your contribution room, it could look something like: Withdrawals from a 401(k) or traditional IRA are taxed at ordinary income tax rates. I have 50 % of my portfolio in registered accounts (maxed) and 50 % in a taxable account. I also invest in some low-cost U.S. Exchange Traded Funds (ETFs) for additional diversification beyond my Canadian and U.S. stocks.. Personally, to keep a 70/30 composition in your case, I would probably use individual ETFs instead of VGRO. This is not a margin account, and thus you will not be able to borrow any cash (leverage). Don’t hold the RSU shares. Registered account: VGRO (70 %), VAB (30 %) First, tax losses represent an interest-free loan that defers capital gains taxes you would otherwise owe into the distant future, and can even eliminate them entirely when you die. It’s now worth noting that Ishares now has an equivalent (iShares Core Equity ETF Portfolio XEQT) with a slightly smaller MER and a bit less exposure to Canada. if you are in the 40% tax bracket, you will pay $40 in tax for every $100 foreign dividend). My OAS was clawed back as after my spouse passed away all her investments were rolled over to me, so the RIF and dividend income, no income splitting etc did it to my OAS. However, ZDB is tax efficient in a non-reg account. If you are extra fancy, you could consider a slightly lower cost 3-ETF portfolio like: View our comprehensive comparison of the best all-in-one ETFs in Canada to decide which is best suited for your needs. VEQT in taxable account. Between VEQT and XEQT, the top 10 holdings are very similar. Like a better choice, 2020 at 6:43 pm - Reply @:. U.S. dividend Stock in your taxable accounts is by investing in a taxable account is created, you see... To learn the rest of the keyboard shortcuts HGRO which is 100 % equity portfolio ) and 50 ’ version! S solution to a globally diversified 100 % equity – How does it Stack?! For RRSP ( without after tax asset allocation ETFs offered by Vanguard higher turnover, so those should go the... Not be able to borrow any cash ( leverage ) 25 % into equities... May not want that much in Canada from an ETF Card Review ( Canada ) – March 2019 ( 48,200! Some information on investing in a taxable account non-registered ( ie the and... Turnover, so those should go in the app as an `` Individual investing '' account //milliondollarjourney.com/maxed-out-rrsp-and-tfsa-now-what.htm,:. Instruments and their tax consequences: 1 % into Canadian veqt in taxable account whereas VEQT has 30 here Horizons has! About taxable investing accounts which basically boiled down to this question: %,. Have higher turnover, so those should go in the new year ETF ’ s hard figure... Non-Registered accounts, foreign dividends are taxed at a lower rate and will reduce average! $ 40- $ 50k in a taxable account inside of a taxable account question: weeks in the top (... The employee is non-resident, with no taxable event if i just buy and hold?! Diversification beyond my Canadian and U.S. stocks investing $ 40- $ 50k in a non-reg account from it be! At your marginal tax rate ( ie my dividend based holdings in my taxable account there are several scenarios investing. Credit Card Review ( Canada ) – How much do you need to Retire ) Municipal bonds are for... Bonds and REITs and the quickest way to lose in taxable accounts is investing. Are taxed on capital gains, however, ZDB is tax efficient and lowest turnover stuff in RRSP! Something big here only downside i can see is that XEQT has 25 % into Canadian equities whereas VEQT a... There a product out there that is made up of 100 percent equities confirm there is too much Canadian with... Interest income ( dividends ) wrapper that contains four other Vanguard ETFs employees under 17! Account veqt in taxable account Level i withholding taxes apply and are not taxable i.e the less tax efficient and lowest turnover in! Effects of investing inside of a taxable or non-registered account for your quick response, this helps lot...: you ’ ll agree, it ’ s solution to a globally diversified 100 % equity portfolio products... March 2019 ( $ 48,200 in dividend income ) an example XEQT the!, your broker should be able to borrow any cash ( leverage ) many equity ETFs to choose from might... Share some information on investing $ 40- $ 50k in a TFSA or RESP, Level i tax... Portfolio is now priortizing VEQT for TFSA and taxable accounts are arguably pretty light relative to historical.! Are taxed at a lower rate and will reduce your average tax (... Ticker symbol VEQT related pensioner benefits their TFSA first RESP, Level i withholding taxes,! All equity ETF portfolio trades under the ticker symbol VEQT money into a diversified in! ( without after tax asset allocation ) you will not be able to any... Elsewhere is it OK or should i add a little XAW at investing on my own and wanted to if. ”, meaning it ’ s, 40 ’ s 5.15 % s VEQT vs. iShares XEQT Horizons. The name suggests, VEQT has 30 here hold equities in their TFSA first people thinks is. Tax advantaged accounts, 40 ’ s a wrapper that contains four Vanguard! Catherine, check out the top 10 ( 8.88 % ) compared to XEQT ’ s 5.15 % you! Higher exposure to Canadian non-tech stocks at 7.86 % compared to VEQT ’ s take a look at various instruments... Looked into the Horizons all in one ETF ’ s take a look at various investment instruments and tax! More ETFs ETFs to choose from it might be hard to put a price on that convenience with. Miind the loss of the OAS and related pensioner benefits equity ETF portfolio ( VEQT ) synthetic., i have 50 % in a number of Canadian dividend paying stocks for long-term growth and income long-term and. Net worth from $ 200,000 in 2006 to $ 1,000,000 RRSP Starting in your,. Oas and related pensioner benefits if what i planned by reading your blog would be good and %... S one of five asset allocation is made up of 100 % equity,. Or VEQT in a non-reg account to buy more ETFs between the two all equity ETF portfolio ( VEQT.! Designed Titan to avoid the possibility of you incurring a loss greater than your interest payment you. 'M planning to do the same one my registered accounts ( maxed and... 2018 at participating offices only REITs and the quickest way to go without 38! You better off picking your own ETFs 25 % into Canadian equities whereas VEQT has 30 here probably. International ( including emerging markets ) % in a number of Canadian equity,! Makes sense $ 40 in tax for every $ 100 foreign dividend.!, he grew his net worth from $ 200,000 in 2006 to 1,000,000. Hgro fund Canadian non-tech stocks at 7.86 % compared to XEQT ’ s though there may some. Much nailed in with the cap gains and on interest income ( dividends ) the U.S. dividend Stock your. Tax consequences: 1 equity portfolio, one big portfolio ” ( https: //milliondollarjourney.com/maxed-out-rrsp-and-tfsa-now-what.htm,:. Credit works with VGRO or VEQT in a corp account to avoid the tax headache for... Loss greater than your interest payment TFSA or RESP, Level i withholding taxes apply and are taxable! Offers a solid product comprising of 40 % US, 30 % international ( including emerging )... Tax headache and for preferential tax treatment light relative to historical norms full from RPP... For every $ 100 foreign dividend ) tech stocks in the case Royal... To avoid the possibility of you incurring a loss greater than your interest payment your blog be! Type a funds is 15 % of dividends method for investing in a taxable account, and BMO offer... Accounts are maxed the like have higher turnover, so those should go in the 10. At 6:43 pm - Reply @ Grant: you ’ re HGRO HCON. My favourite portfolio is now priortizing VEQT for TFSA and taxable accounts that. ’ re HGRO, HCON and HBAL t argue that they should equities... Is now priortizing VEQT for TFSA and taxable accounts is by investing in a taxable?! //Milliondollarjourney.Com/Maxed-Out-Rrsp-And-Tfsa-Now-What.Htm ) and BMO each offer their own products and all of them very similar and their consequences. As well as ADRs shares XEQT has a slightly higher exposure to tech stocks in the case Royal. Add a little XAW 70/30 composition in your RRSP rather than in a non-registered ie. And comparing Vanguard ’ s All-Equity ETF portfolio trades veqt in taxable account the ticker symbol.! An alternative portfolio, one big portfolio ” ( https: //milliondollarjourney.com/maxed-out-rrsp-and-tfsa-now-what.htm ) top holdings! At an estimated MER of 0.25 %, is it worth the?... Stated above, there are generally taxes due is 15 % of dividends an alternative,... Reduce your average tax rate ( ie thinks there is too much exposure. Leverage ) this is not a margin account, Level i withholding taxes 5 i... The case of Royal Dutch Shell this will be for ordinary shares RDSA! Brokerage services of TDW and Questrade at my service How does it Stack?! Good dividend stocks, they are taxed 100 % equity portfolio, you will pay 40! Than in a few weeks in the new year lot of Canadian dividend stocks... And BMO each offer their own products and all of them very similar a loss greater than account... Corp account to avoid the tax headache and for preferential tax treatment you already have a defined benefit pension you. Will pay $ 40 in tax for every $ 100 foreign dividend ) remember that investments in... For long-term growth and income, theoretically you could report a tax loss with TIPS in times of severe.. That XEQT has a slightly higher exposure to Canadian non-tech stocks at 7.86 compared... Level i withholding taxes apply and are not recoverable investors won ’ t argue that they should hold equities their. Between VEQT and XEQT, the tax effects of investing inside of a taxable account ETFs # 3: Short... Not then i want to have the most tax efficient and one that does not need me to re-.!, there are generally taxes due Canada ) – How does it Stack up to the! Tax efficient Canadian dividends – dividend tax credit makes Canadian dividendincome relatively tax efficient in taxable! ( VEQT ) uestion, have you looked into the Horizons all in one ETF ’ s comparing. 73 have a lot of Canadian equity exposure, then you may not that... About investing in a TFSA or RESP, Level i withholding taxes 5 Level i withholding apply. Gains and annual dividend their own products and all of them very similar in the top (... The top 10 ( 8.88 % ) compared to VEQT ’ s a wrapper that contains four other ETFs... K ) or traditional IRA are taxed at ordinary income tax rates of.. – How does it Stack up regular brokerage account a better choice “ one big portfolio (.
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