Your 2011 TFSA contribution is going towards.....

[4DoorGTZ]

Lets hear what people are doing with this years $5k.... speculative, dividend paying, solid earnings.... what?

I myself have dedicated my tfsa to dividen paying companies. I'm leaning towards an income/dividend ETF for this year because right now my 10k from the previous 2 years is sitting in only 3 stocks.

[ExtraSlow]

I probably won't fill my TFSA this year. Not doing much "short term" saving, and I prefer my RRSP for the longer term stuff.

That being said, I'm a huge fan of dividend paying stocks.
SPB, GLD, PBH. CPG etc.
Check out the Long term investments thread, there are lots of good suggestions.

[tch7]

Going to put around half into an ETF or two, and then the other half will go toward playing with various stocks.

[davidI]

What's the logic in using an ETF for dividend stocks given that dividends are only taxed at 25% anyways? If you're chasing a dividend paying growth stock (CPG?) that's another thing...but to put the money in something like TA for the dividend is a waste.

Personally, I see three good uses for an ETF and it all depends on your aversion to risk.

Ballsy, gutsy, bet it all types: Invest in speculative stocks that you're hoping to triple or quadruple up. Junior extractive industry players (mining & oil) would fit this bill nicely. Of course, the risk is if you lose it you can't claim your loss under your TFSA.

Middle of the Road types: A couple ETFs. XIU (basically the TSX) if you just want something easy. Perhaps a small cap or sector index if you're a more active investor. They may win some years, and may lose others, but 10 years down the road you should be up.

Very Conservative types: Interest accruing investments. Interest is taxed at 100% so if you're going to hold any bonds or GICs or anything, they may as well be within your TFSA. No downside really, just less upside.

[Pacman]

My TFSA account is for trading options and other higher risk plays.

[ExtraSlow]

Originally posted by davidI
What's the logic in using an ETF for dividend stocks given that dividends are only taxed at 25% anyways? It really depends on what the rest of your portfolio looks like. For some people, they may have a pretty small total value of investments, and plenty of room in their TFSA. for them, it makes sense to shelter all the investments, regardless of tax rate.
If you are someone who has a large and diverse portfolio, then you would want to hold bands and such in your sheltered accounts, and dividends outside, just like you suggest.

[dawerks]

Capital gains baby!!

My future 10 baggers are hiding in TFSA's. I sure as hell don't want to pay the man 1cent when they come due. Or, I might just lose my 10Grand, either way, it's all good.

[el_fefes]

All of my TFSA is in the venture exchange. Haha. Going to keep it that way. SFF is one company I will invest in for sure. Still looking around for other opportunities.

[seer_claw]

Saving it for a down payment on a house, its all in pretty save mutual funds so that I don't lose it before I purchase the house. I'm keeping it safe but hopefully I'll start putting some of it into stocks once I get everything wrapped up with the house. . Tax free and going towards something that isn't rent. I'm pretty happy that I'll be able to move out of the place I'm currently renting. I can't stand roommates anymore.

[natejj]

Originally posted by el_fefes
All of my TFSA is in the venture exchange. Haha. Going to keep it that way. SFF is one company I will invest in for sure. Still looking around for other opportunities.

:werd:

All stock tips I get, go into TFSA. This is where I make the most gains, so I don't want to pay ANY tax on these puppies.

[bwling]

^ Same for me. My highest risk/reward investments are in my TFSA. Right now i've got IAE.V and PTA.V in there. Always looking for other opportunities as well.

[davidI]

^ Just remember that if you lose, you won't be able to claim those losses as deductions.

[natejj]

Originally posted by davidI
^ Just remember that if you lose, you won't be able to claim those losses as deductions.

I've got enough losses from other years to cover any gains I make :rofl:

[Hi-Psi]

Originally posted by dawerks
Capital gains baby!!

My future 10 baggers are hiding in TFSA's. I sure as hell don't want to pay the man 1cent when they come due. Or, I might just lose my 10Grand, either way, it's all good.

This.

[sexualbanana]

TFSA is all I understand in this thread. Anyone care to help me translate?

[holden]

Originally posted by dawerks
Capital gains baby!!

My future 10 baggers are hiding in TFSA's. I sure as hell don't want to pay the man 1cent when they come due. Or, I might just lose my 10Grand, either way, it's all good.

I also thought about this, using the TFSA on speculative stock plays, but I wasn't confident enough on my ability to pick a high enough ratio of winners. If a stock falls 50%, that contribution room isn't lost just that year, but forever. Having 20+ years of tax free gains and dividends was too tempting. Hopefully in 20 years I'll have $150K portfolio of tax-free steady income.

[Feruk]

I'm with most of you. TFSA is strictly for high risk high return TSX Venture "investing." More specifically, I'm only planning on holding the whole $5K sum in 1 or maybe 2 stocks (playing NVS now). Tight stop loss order of course. Go big or stay home. Also, capital losses on $5K really don't matter that much in the grand scheme.

Dividend stuff belongs in RRSPs in my opinion.

[holden]

Originally posted by Feruk
I'm with most of you. TFSA is strictly for high risk high return TSX Venture "investing." More specifically, I'm only planning on holding the whole $5K sum in 1 or maybe 2 stocks (playing NVS now). Tight stop loss order of course. Go big or stay home. Also, capital losses on $5K really don't matter that much in the grand scheme.

Dividend stuff belongs in RRSPs in my opinion.

But for Canadian dividend stocks, you miss out on the Canadian dividend tax credit when inside an RRSP and are instead charged at the marginal rate upon withdrawal.