Weekend reading: TFSA overcontributions, dogs of the Dow, and more

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Hi everyone and welcome to weekend reading, where we share some of the best posts we read over the past week. We hope you enjoy them as much as we did. If you haven’t already, please consider following us on TwitterFacebook, and Google+, where we share the latest in personal finance, debt, retirement, insurance, tax and investments.

Personal Finance

Barry Choi at Money We Have doesn’t put much stock into reports that show Canadian households’ net worth are up. With various studies by different groups showing vastly different numbers for debt and net worth level, which study are you to trust?

Although the TFSA was introduced to Canadians as a tax-efficient savings vehicle back in 2009, warnings are still being sent to Canadians for overcontributions. Investors are mainly caught for contributing an amount in the same year of a withdrawal, without realizing that their personal contribution room does not increase immediately after a withdrawal. Instead, the contribution room is added back on January 1 of the next year. Be aware when you’re making frequent contributions and withdrawals and you’re near the TFSA contribution limit. Big Cajun Man has some case studies that explains is well.

Dan, the Canadian Couch Potato, shows you how to manage multiple family accounts. He argues that all family accounts should be combined when considering asset allocation, and to put tax-inefficient investments in registered accounts, even if those accounts are all with one spouse. Tax-efficient investments should be left in non-registered accounts. Doing so will ensure that the overall family tax bill is lowered.


Mark at My Own Advisor explains the differences between the book value and net asset value of REITs. While beginner investors probably don’t need to worry about the differences, advanced investors will need to use it as part of their analyses.

Roadmap2Retire applies a contrarian method to his investments by buying the dogs of the Dow. These companies have fallen out of favour with investors and thus have the highest yield, but since they are part of the DJIA, their chances of going bust are very low.


Here at AAFS Insurance, we looked at the kinds of changes you can make to your policy once it’s in force. Although many people view insurance policies as rigid products, this is not true as there are many ways to alter your policy to fit your evolving needs.

Since many people are now working at least part-time after retirement, is it necessary to keep their life insurance policy in force? If your spouse is still dependent on your income after your normal retirement age, you should think about retaining your policy.

We hope you enjoy the reads this weekend and be sure to check back next week for a new post. Subscribe to our weekly newsletter on the right side of the page so you don’t miss a single post!