- Canadian Marketplace: Happy New Year to all Investors. Beginning today, January 1st 2009, Canadians are offered a new savings opportunity called the TFSA. (Tax Free Savings Account). The Government of Canada calls this venue the single most important personal savings vehicle since the introduction of the RRSP introduced way back in 1957. Some rules apply.
1. Must be a Canadian resident aged 18 years or older
2. Deposit up to $5,000 per year.
3. TFSA deposits are not deductible for income tax purposes, but
investment income will not be taxed.
4. Unused TFSA contribution room can be carried forward and used
in future years.
5. Funds may be withdrawn from the TFSA at your convenience for
any reason. Amounts withdrawn are added back to the contribution
room allowed.
6. Amounts withdrawn can be deposited back to into the TFSA at any
time. However, the account holder may not re-contribute the
amount withdrawn by making a deposit in the same year (unless he
or she has unused contribution room available). The withdrawn
amount will be added to the available contribution room allocated
for the following year.
7. Eligibility for the federal income-tested benefits ie: the Guaranteed
Income Supplement and Child Tax Benefit will not be affected by
investment growth or withdrawals from the TFSA.
8. A Financial Planner at your financial institution will have all the
pertinent information available for this savings venue.
9. A great way to have more control and management of your money.
- Canadian Marketplace: More Canadian power heading south of the border.
For decades, Canadian politicians have had a fantasy, dreaming of an east-west electric transmission grid that would unite the country the way the railway once did. But while the politicians continue to dream, Americans are moving aggressively to lock up a secure supply of our clean Canadian electricity today and for decades to come.
Hydro-Quebec is negotiating with two New England customers to sign its first new long-term export contract of this invaluable resource. Such a deal would bind the provincially owned utility to sell to U.S. buyers for at least 20 years beginning in 2014, leaving it with less electricity to sell to power starved Ontario. Too bad for the have not province it seems, because New England is a favourable market from Hydro-Quebec’s perspective because of the region’s long-term need for power and high forecast market prices.
- U.S. Marketplace: U.S. SEC chief regrets short-selling ban. Under fire for regulatory missteps, top U.S. securities regulator Christopher Cox defended his agency’s record, but acknowledged some regrets over how he handled the worst financial crisis in decades. Mr. Cox said he had some regrets over a drastic action the agency took as markets were hurtling downward in September. For a few weeks, the SEC stopped investors from making bearish bets on financial stocks like Morgan Stanley and Citigroup.
Mr. Cox went on to say, that while the actual effects of this temporary action will not be fully understood for may more months, or possibly years, knowing what we know now, I believe on balance the commission would not take this action again. The costs appear to have outweighed the benefits.
- INTERNATIONAL NEWS: Russia to cut off gas supply to Ukraine. Today, Russia said it will switch off gas supplies to its neighbour Ukraine on New Years day, a step that could have a knock-on effect on deliveries to the European Union. European states have enough reserves to manage without Russian supplies for several days, but the cut-off could inflict new damage on Moscow’s standing as a reliable energy partner for the West and hurt a Ukrainian economy that is already in trouble.
Alexei Miller, head of Russian gas export monopoly Gazprom, said several days of talks with Ukrainian officials had failed to settle a dispute over unpaid gas bills and the price at which Ukraine will buy Russian gas next year.
European states depend on Russia for a quarter of their gas and most of it is shipped in pipelines that run across Ukraine’s territory.
…..Doug T
