Is It Better to Invest in RRSPs or TFSAs?

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Both the registered retirement savings plan (RRSP) and tax-free savings account (TFSA) can help you to save taxes, but depending on your situation, investing your hard-earned money in one or the other may be a better way to go.

Save taxes in your TFSA

Generally, the TFSA is well-suited for all investors. Almost everything earned inside is tax free, including interest, dividends, and capital gains. The one exception is tax withheld on foreign dividends.

For example, if you invest in a U.S. dividend stock that yields 3% in your TFSA, there will be a 15% withholding tax, which will be lost. Your effective yield for the investment would be 2.55%. Therefore, it makes more sense to invest in foreign stocks with high growth inside your TFSA.

Any withdrawals you make from your TFSA are free of taxes. So, your TFSA can also act as a secondary emergency fund. Ideally, though, you’d want to leave your money in the account to compound for tax-free returns for a long, long time.

If you do end up withdrawing money, make sure to remember that the withdrawal amount can only be recontributed to your TFSA in the following year or later.

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Save taxes in your RRSP

Whereas it makes sense to maximize your TFSA contribution every year, it doesn’t make sense for all investors to contribute to their RRSPs.

Making RRSP contributions reduces your taxable income for the year. Therefore, the higher your tax bracket, the more you’ll benefit from your RRSP contributions.

It follows that if you’re in a relatively low tax bracket, it’d make more sense to contribute to your TFSA first so that you can save more RRSP contribution room for future years when you’re at a higher tax bracket.

In RRSPs, you can invest in U.S. corporations and get the full dividends from them. Yes, there’s no 15% withholding tax on U.S. dividends. So, if you buy Coca-Cola stock for a 3% yield, you’ll get the full 3% yield.

Foolish takeaway

In summary, consider investing in your TFSA first unless you’re in a high tax bracket, which generally means that you’re earning $60,000 or more each year.

Ideally, you want to invest your money for decades inside your TFSA or RRSP so that you’ll benefit from long-term compounded returns in a tax-favourable environment.

Since stocks offer the best long-term returns among a range of investments, you should aim to buy quality businesses and hold their stocks for a long time.

If you’re a more active investor, you can also shelter your capital gains inside your TFSA or RRSP when you make short-term trades.

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Bath & Body Works Promotion July 2019: Buy Two, Get Two FREE Candles, $10 Off $30 Coupon

Find the latest Bath & Body Works promotions, gift cards, and discount deals here.

Bath & Body Works offers a variety of scents and body care items. Use this chance to stock on your favorite products, because the more you spend the more you save! These offers last only for a limited time or while supplies last, so don’t wait to get your massive savings!

Note: If you’re looking for a credit card that rewards you on all your purchases at Bath & Body Works, I recommend checking out the Wells Fargo Cash Wise card, the Chase Freedom Unlimited card, or the American Express Cash Magnet card to earn rewards on all of your purchases! See more credit card bonus offers here.

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About Bath & Body Works

Bath & Body Works is an American retailer under the L Brands umbrella, along with big retailers like Victoria’s Secret. Founded in 1990 in New Albany, Ohio, the company has grown and spread across the United States, Canada, Chile and Peru. In 1997, Bath &Body Works was deemed the largest bath shop chain in the United States.

Bath & Body Works is usually located inside of malls and shopping strips but the brand also has numerous stand-alone shops as well. A go-to stop for gifts and goods, there is a large various of items to choose from including candles, soaps, and lotions.

Current Bath & Body Works Promotions

Buy 2, Get 2 Free Candles

Bath&Body Works Promotions

Buy two, get two free candles.

For the first time ever, Bath & Body Works is offering a buy two, get two candles free promotion! Take advantage of this offer while it lasts since they do go by quick!

  • Offer expiration: July 29, 2019
  • What you’ll get: Two candles free when you buy two candles!
    • Free items are the 2 lowest priced in each set of 4
  • Where it’s available: Offer available online, nationwide
  • How to earn it:
    1. Head online to Bath & Body Works promotional page, See link below
    2. Purchase two candles, get two free. Must add four candles to cart.
  • Terms: Offer may not combine with other site offers.

(Click the link above to start shopping for two candles!)

$10 Off $30 Purchase

Bath & Body Works Promotions

Get $10 off $30 purchase

Save even more money at Bath & Body Works! Through July 29th, you can get $10 off any purchase of $30 or more, just enter promo code WILDFLOWER at checkout! Hurry and take advantage of this offer now!

  • Offer expiration: July 29, 2019
  • What you’ll get: $10 off $3 purchase or more
  • Where it’s available: Offer available online, nationwide
  • How to earn it:
    1. Head online to Bath & Body Works and start shopping
    2. Add at least $30 of merchandise to your shopping bag
    3. Enter promotion code WILDFLOWER during checkout
  • Terms: Offer cannot be combined with any other code-based offers.

(Click the link above to start shopping!)

Free up to $14 Value Item with a $10 Purchase (Expired)

Free up to $14 Value Item with a $10 Purchase

Bath & Body Works is celebrating moms this Mother’s Day season with some big savings! Get 50% off Aromatherapy or save $10 on a $20 or more purchase. Hurry in to the nearest store to grab the perfect gift for your mom or one for yourself!

  • Offer expiration: May 13, 2019
  • What you get: Free up to $14 Value Item with a $10 Purchase
  • Availability: In-stores or Online
  • How to get it (Online):
    1. Go online to Bath & Body Works.
    2. Add at least $10 worth of items to your cart
    3. Apply promo code “MOREDEALS” at check out.
  • How to get it (In-Stores):
    1. Click the link below to get your coupon
    2. Print of the coupon or show it from your phone to your cashier at check out

(Click the link above to start shopping)

50% Off Aromatherapy + $10 Off $30 Coupon (Expired)

50% off Aromatherapy, $10 off $30 or more

Bath & Body Works is celebrating moms this Mother’s Day season with some big savings! Get 50% off Aromatherapy or save $10 on a $20 or more purchase. Hurry in to the nearest store to grab the perfect gift for your mom or one for yourself!

  • Offer expiration: May 13, 2019
  • What you get: 50% Off Aromatherapy + $10 Off $30 Coupon
  • Availability: In-stores or Online
  • How to get it: 
    1. Go online to Bath & Body Works.
    2. Add at least $30 worth of items to your cart
    3. Apply promo code “HEYMOM” at check out.

(Click the link above to start shopping)

Bottom Line

Bath & Body Works offer a wide selection of items ranging from essential needs, such as shampoo and body wash, to luxury goods, such as fragrance candles. Make sure to check this page to find the latest way to save on these items.

Use this chance to buy gifts for you, your friends, and your family at an affordable price! Check out our list of the Best Gift Cards here, at HMB!

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The post Bath & Body Works Promotion July 2019: Buy Two, Get Two FREE Candles, $10 Off $30 Coupon appeared first on Hustler Money Blog.

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SPH’s shares drop to a 25-year low, becomes worst performer on MSCI Singapore

Singapore Press Holdings Ltd. is now deemed as the worst performer on the MSCI Singapore Index as its shares stand at a quarter-century low, following its attempt to diversify into real estate did not provide positive results forcing the company to offset sinking earnings from its media business.

The organisation – which is Singapore’s biggest media group – dropped 4.3% this year, as opposed to 12% increase in the 25-member MSCI Singapore Index.

As of 1.37pm on Friday (26 July), the shares of the media company dipped 0.44% more after dropping earlier as much as 1.3% – which brought their shares to the lowest in more than 25 years.

Besides SPH, Genting Singapore Ltd. and Sembcorp Industries Ltd. were other two companies that performed poorly as well.

For those who don’t know, more than half of SPH’s sales are derived from its media business, which has been suffering from digital disruption despite the increase in internet and smartphones users.

In an attempt to curb this problem, Chief Executive Officer Ng Yat Chung began expanding the organisation’s real estate and digital businesses.

Jarick Seet, head of small and mid-cap research at RHB Securities told Bloomberg that the move to broaden the business into real estate is helping, but “the core business is deteriorating at a much faster pace” and “other segments are not able to replace the drop in earnings” in the media business.

Based on a data gathered by Bloomberg, it is said that the net income at Singapore Press is set for a seventh annual decline in eight. In fact, the company’s statement on 12 July stated that the sales from media (including The Straits Times and The Business Times) for the nine-month period which ended 31 May dipped 12% to S$439.7 million from a year ago.

On top of that, the division’s profit before tax also dropped 32% to S$52.1 million.

SPH was once placed higher than the New York Times Co. in terms market capitalisation, but its value has shrunk in the last two years. Adding to the bad news, the company’s shares are also looking at a fifth yearly decline and the firm has lost almost half, which translates to S$3.2 billion, of its market value since the end of 2014.

Due to its poor performance, analysts are not entire happy with the firm’s solutions to grow digital revenues and acquisitions of possible profit-making and income generating real estate assets.

In April 2017, SPH bought a nursing home provider called Orange Valley Healthcare Pte for S$164 million and took a goodwill impairment of S$21.5 million in the third quarter of this year.

“The media business continues to be challenged on various fronts including the ongoing trade tensions and the slowing of the Singapore economy, but we remain focused on our digital transformation strategy,” Ng noted in a statement following the company’s third-quarter results on 12 July.


The post SPH’s shares drop to a 25-year low, becomes worst performer on MSCI Singapore appeared first on The Online Citizen.

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Buy These 2 Passive-Income Pipeline Stocks Today


Generating income from Canadian stocks hasn’t been this easy in a long time. Steady, stable companies have been the victims of flat stock prices for years, whereas their dividends have continued to grow year after year. The result is especially evident in the pipeline companies. Regulation challenges and an oppositional political environment keeps the share prices low, even as their cash flow generation has remained strong.

Two companies, in particular, Enbridge (TSX:ENB)(NYSE:ENB) and Inter Pipeline (TSX:IPL), are pumping more than oil. These two dividend-growth giants are currently spurting cash like crazy, with yields of 6.64% and 7.66%, respectively, as of this writing. As unbelievable as it seems, these dividends are sustainable and growing.

Enbridge, for example, plans to increase its dividend by 10% next year. It also plans more dividend increases after that, although at a slightly lower rate. The dividends are sustainable, backed by strong distributable cash flow (DCF) of $2,758 million in Q1 2019 — an increase of around 19% over the same quarter of 2018.

IPL uses funds from operations (FFO) as its measure of dividend sustainability. While FFO was lower in the first quarter of 2019 than the same period of last year ($211 million in Q1 2019 as compared to 254 in 2018), it still only represented a payout ratio of 85% of FFO. While that is getting high, the company does not believe that it will have any difficulty continuing to sustain and increase the dividend.

IPL has faced similar share price woes to Enbridge over the past few years. Oil prices and regulation issues have hit the shares hard, but that has not stopped it from pumping out cash to shareholders in ever-increasing amounts. Although its increases have been more modest — it increased it by 1.8% last November — it is still growing and strong.

You have to keep in mind, though, that debt is an issue for each of these companies. They are capital-intensive businesses that require upfront spending to build their projects. Enbridge, for example, still had $60 billion in long-term borrowings from acquisitions and capital projects. IPL had around $5.8 billion on its balance sheet as of the first quarter of 2019.

IPL’s $3.5 billion Heartland Petrochemical Complex has definitely added some debt to its balance sheet and is not yet generating cash for the company. But once it gets underway in 2021, you can bet that this will be an excellent source of revenue for the company.

The good news is that once these projects are underway, they tend to generate strong, steady cash flow for years. The spending will most likely be accretive for the companies, building their future income. The cash flow also largely comes in the form of long-term contracts, providing clear visibility for debt repayment.

Enbridge, for one, has also been actively pursuing non-core asset sales to bring down its debt. The sale of  Enbridge Gas New Brunswick Limited Partnership and Enbridge Gas New Brunswick to Algonquin Power and Utilities (TSX:AQN)(NYSE:AQN) in December, 2018 with $331 million for debt repayment. This was just one of the many asset sales made by the company, proving its commitment to driving its leverage down.

A great entry point

The uncertainties surrounding the oil sector have provided investors with more cash-rich dividend companies than have been available for years. These two dividend giants are great long-term additions to your income portfolio. Now is the time to get in.

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Fool contributor Kris Knutson owns shares of ALGONQUIN POWER AND UTILITIES CORP., ENBRIDGE INC, and INTER PIPELINE LTD. The Motley Fool owns shares of Enbridge. Enbridge is a recommendation of Stock Advisor Canada.

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