11/13/2022 0 Comments Plotagon floating head glitch![]() ![]() Unfortunately I didnt know how to do the Long Volatility part until after the crash in March but I've since then had nothing but time to scour the internet and learn as much as I could. You can read it here: īetween it, his interviews and my mediocre options skills at the time my mind was blown. ![]() So as you can tell by the title, a lot of this is heavily inspired by Chris Cole's paper "The Allegory of the Hawk and the Serpent". Essentially, when it comes to the Maintenance Excess of the Margin Account QT doesnt care if its in the TFSA *or* the Margin! If you have a TFSA and a Margin account with them, you can link them together and have your securities in the TFSA collateralise your Margin account. The reason why all that babble is important is that my broker Questrade, which isnt as good as IB (the only real other option up here as far as Im aware) has one amazing feature that no other broker has: "Margin Power" Also physical PMs are treated differently and I'll fill that part in later once I have the details down. Theres no distinction between long term and short term. if its a loss, you carry that forward into the next year. So if I made 60k from the dayjob and 20k on my margin account that adds up to 70k that I get taxed on. If its a positive number, you cut that number IN HALF and add it to your regular pre-tax income. In so far as I understand it, you add all your gains and losses up at the end of the year. Non registered accounts ( or any other situation, such as selling commercial real estate etc) is subject to a capital gains tax. Its not relevant to this strategy but I included it for the sake of context. The strategy with these is that a youngperson entering the workforce is likely to be in a fairly low tax bracket and (hopefully) earns more money as they get older and more skilled so the RRSP has more value the greater your pre-taxincome is. You are however allowed to borrow against it for a down payment as a first time home buyer. Withdrawing early has huge penalties and isnt recommended. ![]() You deposit to lower your income tax burden (and hopefully drop below a bracket) but once you retire you will be taxed on anything you pull out. The RRSP is pre-tax deposits and is a tax deferred scheme. You can Buy to Open and Sell to Close call and put options as well as write Covered Calls. Theres a few limitations on what is eligable to be held in the TFSA such as bitcoin/bitcoin ETFs, overseas stocks that arent listed on NYSE, TSX, london and a few others. So lets say I maxed out my TFSA contributions and I take out 20k today, on January of next year I can put back in 20k plus the 5 or whatever they allow for that year. You can withdraw your gains at any time, and the amount that you withdraw is added to the "room" you have for the next year. TFSA is post tax deposits, with no capital gains or other taxes applied to selling your securities, dividends or anything else. The prevailing wisdom is that you should max out the TFSA first and you'll see why in a minute. That "room" accumulates retroactively, so if you haventdone anything and are starting today and you are 30 you have around 60k you can put in each of them. There is the TFSA "Tax Free Savings Account", and RRSP "Registered Retirement Savings Account"įor the sake of simplicity, from the time you turn 18 you are allowed to deposit 5k (it changes year to year based on inflation etc)in each of them. So here in Canada we have two types of registered accounts (theres actually more but whatver). Also, there might be mistake regarding what the laws are here so dont take my word for it and verify it for yourself please. Feel free to skip it if you dont care about that. This first section is a preamble describing the Canadian tax situation and why Im doing things the way that I am. I'm posting this here as opposed to investing or canadianinvestor (blech) because they're just gonna tell me to buy an index fund. Hopefully parts of it are useful to you, and also ideally you guys can point out errors or have a suggestion or two. I started writing this to summarize what Im doing for my friends who are beginners, and also for me to make some sense of it for myself Alright guys, Ive been working on this for a while and a post on here by a guy describing his portfolio here was the final kick in the ass for me to put this together. ![]()
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