So it only took until May for me to do some things I should have done back in January…yikes?!? But I finally dealt with our TFSA contributions for 2019.
I think perhaps my mental block on doing this is the fact I just don’t take the money out of main chequing bank account like I used to while I was working. Instead there is a series of steps to moving the money that sort of reminds me of a dance or shuffle and it now takes a bit longer to get everything sorted.
First up was the fact that with our withdrawals from our TFSAs in 2018 (reminder you regain contribution room on any withdrawals on your TFSA but you need to wait until the next calendar year to use them) we had increased contribution room to just under $10,000 for each my wife and I. So I have to wait until Jan 1, 2019 for that contribution room to reset which is why I should have done this back in January.
But after realizing I was close to getting my tax refund I decided to sit on my hands until May to start this. So after the tax refund arrived I pulled the rest of the money out of our high interest savings and we then made our contributions. We also had some cash in the TFSA accounts so we rolled those into our investments as we picked up some Preferred Shares ETF and ISV stock.
Also I forgot to mention that when I moved my unlocked pension to my RRSP I rebalanced the RSP account. Which sounds impressive but all it involved was buying ETF to get me back to my original percent target amounts (40% bonds, 20% US stock index, 20% TSX index, and 20% international index). It really just is some basic math and doing four trades and takes perhaps 20 minutes at most of my time.
And while we were cleaning up things, my wife decided to sell off some of her taxable investments and trigger some capital gains which she will owe tax on next year. We have previously discussed that we didn’t want to keep the taxable account for the long haul so she sells some investments off periodically (she did this last year as well) and pay the tax on the capital gains. That way we don’t see the tax hit all at once in a given year. The cash from that just ends up back in the high interest savings account making this entire thing feel like a waltz.
So long story short you will see various numbers shift in our next net worth post to reflect all this dancing. I rather like to get all of this done at once just so I don’t forget any of the shifting money around, but how do you prefer to manage your money? All at once or several times a year?