Comments on: Corporate Class Funds; How To Avoid Taxes For The Next Ten Years http://www.thefinancialblogger.com/corporate-class-funds-how-to-avoid-taxes-for-the-next-ten-years/ This is where your finance takes place Mon, 15 Mar 2010 01:50:05 +0000 http://wordpress.org/?v=2.9 hourly 1 By: The Financial Blogger | Are Corporate Class Funds Are Threatened By The Tax-Free Savings Account (TFSA)? http://www.thefinancialblogger.com/corporate-class-funds-how-to-avoid-taxes-for-the-next-ten-years/comment-page-1/#comment-3380 The Financial Blogger | Are Corporate Class Funds Are Threatened By The Tax-Free Savings Account (TFSA)? Tue, 23 Sep 2008 10:00:59 +0000 http://www.thefinancialblogger.com/corporate-class-funds-how-to-avoid-taxes-for-the-next-ten-years/#comment-3380 [...] recently wrote a post about Corporate Class Funds. This special type of funds is using a corporate structure instead of the regular mutual fund [...] [...] recently wrote a post about Corporate Class Funds. This special type of funds is using a corporate structure instead of the regular mutual fund [...]

]]> By: The Financial Blogger http://www.thefinancialblogger.com/corporate-class-funds-how-to-avoid-taxes-for-the-next-ten-years/comment-page-1/#comment-3193 The Financial Blogger Thu, 04 Sep 2008 22:20:22 +0000 http://www.thefinancialblogger.com/corporate-class-funds-how-to-avoid-taxes-for-the-next-ten-years/#comment-3193 Jineshwar, CCF include all kind of funds (including bonds funds). since you are not holding a share or the mutual fund but a "stock" of a corporate structure, the source of income of the "corporation" don't affect your tax rate. Since you will be saving roughly 20% in taxes, what is the importance of the MER's? Preet, thx for these additional information! Jineshwar,
CCF include all kind of funds (including bonds funds). since you are not holding a share or the mutual fund but a “stock” of a corporate structure, the source of income of the “corporation” don’t affect your tax rate.

Since you will be saving roughly 20% in taxes, what is the importance of the MER’s?

Preet,
thx for these additional information!

]]> By: WhereDoesAllMyMoneyGo.com http://www.thefinancialblogger.com/corporate-class-funds-how-to-avoid-taxes-for-the-next-ten-years/comment-page-1/#comment-3157 WhereDoesAllMyMoneyGo.com Mon, 01 Sep 2008 22:46:09 +0000 http://www.thefinancialblogger.com/corporate-class-funds-how-to-avoid-taxes-for-the-next-ten-years/#comment-3157 Hey FB - hope you are/have enjoyed the long weekend! Couple of points: 1. Corporate class funds can make taxable distributions from time to time - I believe many did in 2007. 2. Being setup as a mutual fund corporation as opposed to a mutual fund trust is the structural difference between Corporate Class Funds and "regular" funds, but is separate from the T-SWP ability (the option to get withdrawals as ROC). Many class funds do not have the ROC option. 3. The ROC option will grind the ACB down to zero at which point all withdrawals will be a distributed capital gain - but still this is more tax effective. Consideration needs to made, or communicated, that if planning for cashflow later this will have a significant impact down the road. 4. I believe Fidelity's class funds are the exact same MER as the non-class versions of the same fund. Hey FB – hope you are/have enjoyed the long weekend!

Couple of points:

1. Corporate class funds can make taxable distributions from time to time – I believe many did in 2007.

2. Being setup as a mutual fund corporation as opposed to a mutual fund trust is the structural difference between Corporate Class Funds and “regular” funds, but is separate from the T-SWP ability (the option to get withdrawals as ROC). Many class funds do not have the ROC option.

3. The ROC option will grind the ACB down to zero at which point all withdrawals will be a distributed capital gain – but still this is more tax effective. Consideration needs to made, or communicated, that if planning for cashflow later this will have a significant impact down the road.

4. I believe Fidelity’s class funds are the exact same MER as the non-class versions of the same fund.

]]> By: jineshwar singh http://www.thefinancialblogger.com/corporate-class-funds-how-to-avoid-taxes-for-the-next-ten-years/comment-page-1/#comment-3151 jineshwar singh Sun, 31 Aug 2008 22:06:28 +0000 http://www.thefinancialblogger.com/corporate-class-funds-how-to-avoid-taxes-for-the-next-ten-years/#comment-3151 Does Corporate class fund include bond fund? If yes, then how do you avoid annual interest accrued on the investment in the bond fund? is it worth paying 0.3% more in MER? Thanks, Does Corporate class fund include bond fund? If yes, then how do you avoid annual interest accrued on the investment in the bond fund? is it worth paying 0.3% more in MER?
Thanks,

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