Orange KeyCode 34431191S1 works!

Use 34431191S1 to register any new account with ING Direct and you'll get a $25 bonus!

If you have any problems just email me at simulationconsultant@gmail.com

TFSA Investment Strategy: Capital Gains Permanently Increase the Contribution Room

Currently you can only contribute $5000 a year to a Tax Free Savings Account (TFSA).  However, any capital gains to investments in a TFSA permanently increase the contribution room.  

So let's say one year you put $5000 in a TFSA, and it doubles to $10000 because of some clever investment picks. That $10000 is now your investment limit for the year.  The money can be completely withdrawn (without tax), and the full $10000 recontribute in the same year, or any year after.  

However, if your $5000 TFSA investment dwindles to nothing, then the contribution room is permanently lost.  

In conclusion, if $5000 doesn't mean much to you, then go for broke and invest in high-risk but high-gain equities for your TFSA - if you're lucky you might hit it big.  If the $5000 is a significant sum of money for you, then you might want to take it easier and invest in something that's lower risk (but still gives a reasonable return).

ING Direct Canada have three mutual funds you can invest in, all eligible for TFSA status.  They are (in order of increasing risk)

• Streetwise Balanced Income
• Streetwise Balanced
• Streetwise Balanced Growth

Increasing risk reduces the fraction of bonds, and increase the fraction of equities in the fund.  Read the fund prospectuses at http://www.ingdirect.ca/en/save-invest/mutualfunds/learningcentre/prospectus/index.html before you make any investment decisions.

If you're new to ING Direct Canada, then use Orange Key Code 34431191S1 when you open your account at http://www.ingdirect.ca.  This will give you a free $25 bonus when you make an initial deposit by cheque of $100.

$25 ING Direct Bonus with Orange Key: 34431191S1

If you're in Canada, ING Direct Orange Key code 34431191S1 will give you a $25 bonus when you open any new ING Direct account and fund it with $100.

The account can be a Tax Free Savings Account, Retirement Savings Plan, GIC, or any other account. You can even invest in ING's range of Streetwise Mutual Funds.  This offer is open to any Canadian.

*  Go to http://www.INGDirect.ca
*  Pick your account (TFSA, GIC, RSP or a Streetwise mutual fund)
*  Start the online application procedure
*  Specify Orange Key 34431191S1 when requested in the online application
*  Make an initial deposit by check of $100

You'll get $25 FREE credited to your account. You'll also get your own Orange Key so you can make your own referrals - both you and the account opener get $25. You could make up to $2000. Here's the rundown:

Refer 10 friends - get $25*10 + $50 bonus = $300
Refer 20 friends - get $25*10 + $100 bonus = $350
Refer 30 friends - get $25*10 + $150 bonus = $400
Refer 40 friends - get $25*10 + $200 bonus = $450
Refer 50 friends - get $25*10 + $250 bonus = $500
TOTAL = $2000

That's right - you could make $2000 simply by registering with ING Direct. You'll need to use Orange Key 34431191S1 to get your initial $25 and your own Orange Key.

Retirement Planning: should I invest in a TFSA or an RRSP

I've never been the most financially adept of people, and it's only recently I've given these matters more serious thought.  Retirement seems to be a nebulous time in the future but I know that it can creep up on you. The last thing I want is an impoverished old age so I seriously started planning my financial future.

So I recently started both a Tax Free Savings Account (TFSA) and a Retirement Savings Plan (RSP), both with ING Direct Canada.  They have different tax benefits

• Contributions to a TFSA are taken from post-tax income, and is tax-free when you withdraw money.
• Contributions to a RSP are taken from pre-tax income, and is taxed when you withdraw money.

This essential means that it's best to contribute money to

• a TFSA early in life, because you will have a low income (your tax bracket will be lower)
• an RSP later in life when your income grows (your tax bracket will be higher)

However, I don't necessarily think I should worry about these things too much as long as I am saving something.  The tax-benefits of either may change in the 30 years I have to retirement.

Holdings of the Streetwise Balanced Growth Fund

When I discovered the ING Direct Orange Key promotion, I googled an Orange Key, completed the online application form, and opened the Streetwise Balanced Growth Mutual Fund.

When you buy into this fund, you're buying into MANY different companies. The top 25 holdings are:

1. iShares MSCI EAFE Index Fund 2.6%

2. Royal Bank of Canada 2.0%

3. Government of Canada 3.75% Jun 01/12 1.5%

4. The Toronto Dominion Bank 1.5%

5. Suncor Energy, Inc. 1.4%

6. The Bank of Nova Scotia 1.2%

7. Canada Housing Trust 4.60% Sep 15/11 1.2%

8. EnCana Corporation 1.1%

9. Barrick Gold Corporation 1.0%

10. Canadian Natural Resources Limited 1.0%

11. Manulife Financial Corporation 0.9%

12. Research in Motion Limited 0.9%

13. Government of Canada 2.75% Dec 01/10 0.9%

14. iShares S&P 500 Index Fund 0.9%

15. Province of Ontario 5.00% Mar 08/14 0.8%

16. Exxon Mobile Corporation 0.8%

17. Province of Ontario 4.40% Mar 08/16 0.8%

18. Canada Housing Trust 4.55% Dec 15/12 0.8%

19. Government of Canada 3.75% Sep 01/11 0.8%

20. Goldcorp Inc. 0.8%

21. Bank of Montreal 0.7%

22. Potash Corporation of Saskatchewan Inc. 0.7%

23. Canadian Imperial Bank of Commerce 0.6%

24. Canadian National Railway Company 0.6%

25. Canada Housing Trust 3.55% Sep 15/10 0.6%

If you're about to open any  ING Direct account, use the Orange Key 34431191S1 for your $25 bonus. With this Orange Key, you'll even get your own Orange Key so you can make refer your friends and family. Both you and the account opener get $25, so it's a win-win situation.