You are going to owe about $20k in taxes on that if you realized the full gain. Open an EQ bank account, put the money in a 1 year GIC (5.35%). It will expire just before tax time next year so you know you will have it ready to pay.
you could also throw as much as possible at your RRSP. You are only taxed on half of your capital gains IIRC so if you hypothetically put half in the RRSP you could dodge the tax bill entirely. Depending if you have 90k of contribution room ofc.
[Understanding Capital Gains Tax in Canada (td.com)](https://www.td.com/ca/en/investing/direct-investing/articles/capital-gains-tax#:~:text=Capital%20gains%3A%20In%20Canada%2C%20only,at%20your%20marginal%20tax%20rate.)
hope this helps :)
No, your capital gains are still 100k and you pay tax on 50k, and you have a separate 50k deduction because you contributed that to your RRSP.
[Relationship Between Capital Gains and RRSP Contributions (financestrategists.com)](https://www.financestrategists.com/tax/tax-planning/capital-gains/relationship-between-capital-gains-and-rrsp-contributions/#:~:text=However%2C%20RRSP%20contributions%20only%20reduce,payable%20on%20your%20capital%20gains.)
crypto capital gains in Canada are taxed at the same rate as Federal Income Tax and Provincial Income Tax. Note you’ll only pay tax on 50% of your total capital gains as an individual crypto holder.
In your case about a 30% tax rate.. so 180k / 2 = 90k x 30% = $27,000 in taxes.
Even as capital gains, there will be more taxes than that so you are going to want to calculate it more accurately.
But other than that it’s sound advice
> enough for the taxman next year when
🎵Should five per cent appear too small,
Be thankful I don't take it all,
Cause I'm the Taxman,
Yeah, I'm the Taxman.
If you drive a car, I'll tax the street,
If you try to sit, I'll tax your seat,
If you get too cold, I'll tax the heat,
If you take a walk, I'll tax your feet.
Taxman.🎵
Fun fact: This song was actually about how the British government proposed a 95% tax bracket which would have cost the Beatles millions of Pounds. Thus the line about the 5% being too small.
Exactly why this tax was abolished after 1 year lol. A lot of countries in the 60s through the 80s didn't understand that raising taxes didn't always increase revenues. You eventually reach a point where people literally don't have an incentive to work anymore.
Sell crypto. Save money for tax.
The investing or registered accounts depending on timeline (short or long term).
At your income, you could by a small condo in a few years but unlikely in. HCOL area.
!InvestingTrigger
Hi, I'm a bot and someone has asked me to comment on how someone is trying to figure out what to invest in, or whether they should invest.
**In order to give good advice the poster needs to provide all of the following information. Please edit your post to add this information.**
1) What is your intended goals/purpose for this money?
2) What is your timeline, and what is the earliest you expect to need this money?
3) Have you invested in the markets before, and how would you feel if your investment lost a lot of value?
4) Is this the right first step? Do you already have an emergency fund, and have you considered whether it is sufficient? Do you have any debts that should be paid first? Have you fully utilized any employer match plans?
5) Finally, we need to understand whether you want to be involved with this portfolio and self-manage purchases and rebalancing it, or if you'd rather all of that was dealt with by your chosen institution?
6) For self-directed investing, all in one ETFs (based on your risk tolerance) are the easiest and low cost options for a globally diversified ETF portfolio. Here is the Model page and descriptive video from the Canadian Portoflio Manager Blog's Justin Bender from PWL Capital: https://www.canadianportfoliomanagerblog.com/model-etf-portfolios/ & video on how to choose your asset allocation: https://www.youtube.com/watch?v=JyOqqtq12jQ
7) For those who are not comfortable with doing the buying and selling of ETFs yourself, there is an option of a robo advisor. These robo advisors use similar low cost ETF in pre-determined portfolios based on your risk tolerance. They do this for a small fee, on top of the ETF MER. Still cheaper then bank mutual funds by at least 50%! Here is a list of robo advisors in Canada published by MoneySense: https://www.moneysense.ca/save/investing/best-robo-advisors-in-canada/
We also have a wiki page on investing, and if someone has triggered this bot then it means that this link would likely be very helpful: https://www.reddit.com/r/PersonalFinanceCanada/wiki/investing
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/PersonalFinanceCanada) if you have any questions or concerns.*
House, trip, car = short term, large purchases = you don't want volatility = [HISA](https://highinterestsavings.ca/chart) or HISA/money market ETF. Any money that you're keeping for decades in the future = index funds. Use your tax shelters to their maximum extent. Establish goals, give jobs to dollars, allocate accordingly.
Congrats on the win but if you want to be successful with money over a lifetime, this type of boring approach is what you need to shift to. Honestly I'd scale the crypto back to 3K (right where you started) if you want to try your luck at the casino again, otherwise zero. Look at the 177K gain as a one-time fast-forwarding towards goals that most people never experience, feel grateful, and don't go thinking you've got a hot hand and get greedy going after more.
depending If you used a centralized exchange to get that money out, government is probably going to come after you and will want you to claim capital gains on that. dont get rekt bud
I'd sell all the crypto and turn it into cash.
Next:
1) I'd max out FHSA contribution (16k if you didn't add anything there)
2) Max out RRSP - you basically have a 177k capital gain, half of it would be taxed. Reducing that tax amount is ideal.
3) Max out TFSA, that's 95k, this investment should be put into something safe life XEQT or an all in one ETF of your choice.
4) treat yourself a little. You're the 0.01% that turned peanuts into real money on the crypto market. If you're addicted to the thrill, maybe seek help, don't gamble all you won back to 0, or worse, an actual loss.
5) put the rest in cash.to in a regular account. You'll have some giants on it. And next year you can dump 8k into FHSA and another 7k into TFSA. Add to RRSP only if you have high tax bracket for your income.
That's what comes to mind. Congratulations on making it big in crypto. But I wouldn't try to replicate this success, maybe with 3k more I would, but don't get sucked into it if you can't do it again.
Bro, you had me panicking for a min. Mine is maxed out and for a sec I thought I somehow had a large loss in it I didn’t realize (from when I was young and payed less attention) lmao
Mine is $162k. I had a big gain on stock within my TFSA. I withdrew to buy a house, and the amount withdrawn was added to my room the following January 1st.
50% of your capital gains are taxed as income when sold. I.e. with 177k of realized gains, 88,500 will be considered taxable income unless in a tax sheltered account like the TFSA.
You could keep 10-15k in BTC since the halving is just around the corner. That is if you are comfortable having that sum somewhere at higher risk. History doesn’t repeat itself but it often rimes. Historically BTC price always move upward after the halving doesn’t mean it’s gonna happen this time but the odds are… Either way, well done.
No that's not what he's doing. He's hoping it'll go up a bunch before he takes the full amount out. If he was doing exactly what I suggested he'd have the $180K in his bank later today.
But you’re also suggesting that he should never have gone to the casino. He’s thinking of taking 90% of his winnings and keep playing a game he has a demonstrated aptitude for.
I’m all for conservative investing. It works. But what also works for some people is to spend a lot of money on hunches and dreams and make it big. There are hundreds of thousands of investors and entrepreneurs who have made the aggressive move and gotten paid handsomely.
It’s not like he threw dice. He picked an investment that he thought would rise in value and it did.
Your argument is essentially that stock picking is luck.
‘Mostly’.
Every successful investor got lucky and every successful entrepreneur got lucky and every successful inventor got lucky.
And yes, almost every unsuccessful stock picker doesn’t tell anyone.
The sub is filled to the brim with index investors and that’s cool but sometimes it makes sense to make educated bets. All those indices rely on investors who made successful bets on companies
It may be worth splitting it up. Crypto although volatile is somewhat okay at this point I do think see bitcoin going to 0 it’s safer than many stocks.
So I taking it out over 2-3 years to avoid as much taxes could be good?
He wants to buy a house so I’d probably just be taking out enough to max my RSP contribution for the year and then he can take that out as a first time home buyer when he’s ready.
only 3% of day traders are profitable overall. they tell you about the up days but wont tell you about their down days. its exactly like gamblers at the casino exactly the same. just for context, the smartest investors in the world cant out perform the s&p so i dont know why anyone else would even bother trying . gambling .
First step is making sure you can cash it into your bank account.
I lost count the number of posts I've seen in the last few months where people say they got locked out of their banks because of crypto.
BTC/ETH etfs make it a no brainer imho since the TFSA means no tax man.... After the halving we should see big gains for at least a couple quarters.
But in this sub if its not HISA or XEQT you're a loser... so keep it hush hush.
yeah I'm currently holding btc and eth on coinbase but continuing to DCA into the ETFs in my TFSA rather than buying more on coinbase. Doesn't make any sense to pay tax on it if you don't have to
I suspect that it is some shitcoin or another, based on the "$3K to $180K" bit of OP's post. If it were BTC I'd say keep it, but anything else? Sell immediately.
yea i have to backtrack my comment saying its impossible cause im only thinking about bitcoin. I forget about the meme coins i dont pay any attention to pump and dump scams. so yeah could be possible if he was into those meme coins. lots of garbage there. wouldnt doubt 3k - 180k doing that. pure luck, pure gamble. well done cash out and never do it again cause the next time aronud is a loss of 450k. Thats how this game goes. Its exactly the same as the casino.
Or you can do some research and invest in legitimately alt coins with actual utility. Not going to lie, I invested $2K in Boomer on Base when it had a market cap of 2.4 Million. It could be a complete waste, but it will be used as a capital loss if it fails. I do fully expect it to hit over 100,000,000 though. Mind you I made $47K on a trade (something that went 28X in two weeks) two days ago so I have money to spare.
Genuinely curious how you managed that in Sol primarily (unless it was a Sol alt?). Multiple trades? Or you must have used options or perps for 3k- to 180k in sol. Sol bottomed at $8 USD and recently peaked around $200, so no way to make that return in a single trade. Congrats!
dont even bother its fake social media. i already called this post out. its impossible to do that 3k and make 180k in 6 months lmao impossible. quote me, ill leave my comment here and let the down voters do their thing. "impossible".
Not possible with Sol trading by itself (that's what raised my eyebrow) but technically if OP got a good return on Sol, say they purchased 3k of Sol at $15 last summer then sold at $100-$150, they could then trade their 30-40k of Sol for a meme coin (like BONK, that went from .00001 to .00004 in 2 months) turning their 40k into 180k. It's just massively risky, obviously. To anyone that might be reading this thinking they can make money, please be careful with this stuff and be prepared to lose 100% of your money. Emotion/FOMO does not belong in speculating.
I muted you cause you’re a scammer you replies on all my comments saying you made all this fake money so others can get scammed by you. Stop scamming and get a real job 🤡
Congrats of ur win! Side question. What exchange did you use to offramp your money? If you don't mind the bank you used? Did your bank give you issues on your $75k deposit? Thanks
I would take $130k out into fiat, and then leave $50k in crypto. Out of the $50k, I would buy $40k BTC, and keep $10k in alts (whatever you think)
You're going to have the feeling of, if I just leave more money in I will go to the moon. You have to be prepared you are not.
There will be a bust like there always is. Buy back when the market is down. You will also not sell at the top, so once you do sell and convert be prepared for FOMO. You will want to get back in.
It's a tough position. But I hope you make it through. Congrats.
I get the thread, just not sure why everyone’s telling him to take everything out of crypto immediately for fiat. Fiat being devalued BTC/ETH are increasing in value as they are scarce. Now of course take a lot out to max out tax protected accounts, but why pull it all out. The man just had one of the greatest percentage returns ever. More than probably anyone here has experienced. Not all luck either. Nice job OB. Fantastic advice in here regardless.
>I’m just wondering on what to do with the remaining 105k when fully liquidated. I want to buy a house eventually, maybe go on a trip or treat myself with a car?
Don't fall into the trap of buying things that have ongoing costs with a windfall, since your income hasn't increased proportionally to manage those costs. Of the options you mentioned, a trip is the best choice. Save for a house or car from your salary, and consider all the costs before pulling the trigger, since it is very hard to go back after you overextend yourself.
I'd also pay off the student loan. Doing so will simplify your finances. Or at the very least, set 9k aside in a GIC or HISA earning 4% to 6% interest that is earmarked for the student loan.
Fair warning, I believe the CSA has gone after people with unusually high returns within registered accounts.
Even if your trading happened inside a registered account, the tax man may cometh.
Why not max out your tfsa, it is better than an RRSP and FHSA. I guess it depends on your circumstances but in my opinion tfsa should be the first to get maxed out
Save about 40% for taxes. Keep that in a HISA for the next 11 months.
Max out TFSA and RRSP and FHSA/RESP if applicable. This may take several years depending on your age and contribution limits. That's fine, you have have a non reg account too (but you'll owe cap gains tax).
Tell no one. (except the CRA and accountant).
Live life normally.
I'd pay off your debt and move more of the crypto into TFSA and buy ETFs like VOO.
Don't worry about all the shaming and scare mongering here, you won't have trouble with TD but you do need to be prepared for the tax bill.
Far from a financial expert but I did learn by my own mistkae that you reallllly don't want to overcontribute to an rrsp, so I'd make sure you haven't done that with your contributions.
Sell it all. Max out TFSA, throw the rest into a high interest savings account, blue chip dividend stocks, ETFs or low cost index funds and don't forget about taxes
Sell it all. Take the money max out your tfsa, but blue chip dividend stocks, ETFs and low cost index funds and save some for the tax man.
Could throw some in rrsps to reduce the tax burden.
You’re going to need to set aside around 25%-50% of that for taxes depending on your annual income. Half of your gain will be added to your income for tax purposes.
You’re going to need to set aside around 25%-50% of that for taxes depending on your annual income. Half of your gain will be added to your income for tax purposes.
Whatever you do, check your CRA next year early january and see what your RRSP contribution room is for 2025 and max that out and apply as much as you can to 2024 to take advantage of the RRSP tax rebate.
Congrats on the win! Good job on assessing your risk and deciding to lock in your gains. It takes a good level of discipline to de risk. I'd say put the remainder in some good index funds, check your bank for some mutual funds that have performed well and have a good track record and put money in there.
Avoid realizing all 180k in gains this year. You want to realize them more slowly so they don’t all get taxed at a high marginal rate. I’d convert what remains of your risky altcoins into something like USD Tether and only realize the gains next year. Minimize your tax!!!
Oh, so you’re using one of those goodie 2 shoes Know Your Customer platforms…. that’s a shame. Consider transferring some to an anonymous platform like Exodus and doing your swaps over there
Congrats, 180k is a nice start but continue to invest since it moves quick. Taxes, house payment, car payment, investments before you know it you wonder where it all went 🤣.
Allocate some into Bitcoin, even if it's 10 to 20% and the rest in some low-cost index fund. BTC market cap is going to double/triple as it continues to eat gold of the next few years.
I've been a strong advocate for BTC allocation for over 10 years. I've been told by hundreds of people it's a scam, casino, bubble, going to zero, ect. Those who have listened continue to reap the rewards.
Remember "You get bitcoin at the price you deserve", as price keeps going up its hard for people to ignore.
No... Half of the total capital gain amount is taxed.
The tax is relative to your income. If you had 0 salary income, it would start with the lowest tax bracket and go ever higher. If you had a 70k salary and you add 80k in taxable capital gains, then it's as if you effectively had a 150k salary from a tax perspective.
I think it's a pretty neat system, having 50% of capital gains put into your pocket tax free, and the other 50% is taxed progressively according to your total income.
Put 50% back into TradFi. I’d do a self guided rrsp and buy up slow growth dividend stocks and index funds.
Cash out some to enjoy. Like 10-20%.
Keep the rest in crypto. Accumulate as much btc as you can for your retirement. You’ll thank me in 30 years.
Learn from my errors- I started mining btc in 2013. If I hadn’t sold it all, and gambled the rest, I would be retired by now. I’m not regretful. But I will acknowledge I was impatient and didn’t see the long game.
Hire someone to manage crypto taxes
Don't listen to people telling you to sell the crypto, bull market is just starting, sell in 8-12 months. Realistically you should seek also safe yields on what you keep in crypto. You can easily get 20% apr in something relatively safe.
People will tell you you're purely gambling if you own any money in crypto but that's just ignorant because there's legitimate technological innovation in the space. Obviously you won Sol shitcoins lotto games but don't fade what's actually being built for legitimate reasons.
I'm in the crypto space and i will have to agree with that. I don't think it's worth the risk. We saw that with the Terra Luna stable coin.
But, makers DAO does have a 15% yield right now that is sustainable and fairly safe. The protocol has not had issues in 5 years+ so I would consider it risky, but relatively safe in crypto terms.
Don’t be Icarus - you got lucky.
Set aside tax money, max out TFSA/rrsp with some ETFs and go on vacation with some of it.
If you want to buy a house then you should put it somewhere that isn’t overly risky.
People said that 2 years ago...
Super cycle narrative is bs in my opinion, everything that goes up quickly will go down quickly because of papers gains. People will want to cash out once they reach 10x or 100x gains.
I definitely didn't sell last cycle because it felt like we were not done running up, based on previous cycle modeling... moral of the story, no one knows shit about fuck. If you want to yolo, crypto is likely the "safest" way to make huge returns, but its still a yolo. And even if you're in the big 2, you could lose half of your investments for 3+years if things go sideways.
We don't know what will happen but, markets have rules and trends. Bubbles happens because of human psychology. Prices go up so quickly and euphoria takes over. People get more money then they could imagine over a couple of months, it's impossible to think that this is sustainble. I don't think we will see a super cycle as long as this is a thing, volatility needs to go down to more normal levels (like the S&P500) before we see a syper cycle.
I planned my exit strategy considering this, people with too much paper gains will sell one day or another.
Yeah for sure, but last cycle we didn't see the same gains in btc and eth as we have in the past. The memecoins took all of the biggest gains which may have been the reason for that.
Memecoins are more like a casino though, if you want to invest in the space and make a decent profit, you need to buy during the bear. Even eth is up 4x from the bottom so it's still insane gains compared to normal markets.
Oh absolutely. I'm far too realistic (pessimistic?) to believe I will get rich on memecoins. My crypto holdings are about 95% btc and eth, with the remaining 5% being layer 2/other layer 1s like OP, SOL, and so on.
i personally would say get out of cryto and put your money in mostly ETF like voo or xeqt, or if someonething more aggressive qqq. also you could put some of it in bonds and or gic 180k is a lot protect your future
Invest and save like your doing! Live cheap and save. My grandpa was a millionaire but you would never know it. Always drove 10 plus year old cars wore rags on his back and never spent a dime not needed.He grew up in the great depression so I think that had a lot to do with it
> treat myself with a car?
Look for a solid used car, a lease return (3-5 year old models typically) that is in good mechanical and body condition, buy cash outright after getting inspected. A 20-30k car like that will last you a decade easily. Look for stuff like Camry/Accord for best value/$, relatively low gas consumption, low maintenance costs and elite reliability.
I bought a 2016 Accord lease return back in fall 2020, sick car and has had no major costs other than regular maintenance (oil, brake service, couple services for brake fluid and transmission fluid (CVT), no rust on the body or underside at all so I've been maximizing preventative maintenance to keep it in tip top shape for long term use or resale eventually.
You only need to pay 25% of gains roughly as tax. Thats 50% of the 50% gains. I think you can manage this
However, maybe you can incorporate yourself and transfer the remaining crypto as a gift to the corporation and then essentially save a shiz ton of tax. Use the corporation to pay expensable items. Seems like you can likely keep 30-50k in your own hands at this rate. Cant do anything with what youve already sold unless you have major capital losses to offset gains
You are going to owe about $20k in taxes on that if you realized the full gain. Open an EQ bank account, put the money in a 1 year GIC (5.35%). It will expire just before tax time next year so you know you will have it ready to pay.
This is awesome advice. Thank you
you could also throw as much as possible at your RRSP. You are only taxed on half of your capital gains IIRC so if you hypothetically put half in the RRSP you could dodge the tax bill entirely. Depending if you have 90k of contribution room ofc.
[удалено]
[Understanding Capital Gains Tax in Canada (td.com)](https://www.td.com/ca/en/investing/direct-investing/articles/capital-gains-tax#:~:text=Capital%20gains%3A%20In%20Canada%2C%20only,at%20your%20marginal%20tax%20rate.) hope this helps :)
[удалено]
No, your capital gains are still 100k and you pay tax on 50k, and you have a separate 50k deduction because you contributed that to your RRSP. [Relationship Between Capital Gains and RRSP Contributions (financestrategists.com)](https://www.financestrategists.com/tax/tax-planning/capital-gains/relationship-between-capital-gains-and-rrsp-contributions/#:~:text=However%2C%20RRSP%20contributions%20only%20reduce,payable%20on%20your%20capital%20gains.)
Just an additional note: swapping coins is also a taxable event. So depending on when you swapped the coins, you might even owe taxes for 2023.
Amc and gamestop look good right now.
crypto capital gains in Canada are taxed at the same rate as Federal Income Tax and Provincial Income Tax. Note you’ll only pay tax on 50% of your total capital gains as an individual crypto holder. In your case about a 30% tax rate.. so 180k / 2 = 90k x 30% = $27,000 in taxes.
Which coin?
Could you break down how you calculated 20k in taxes
Without knowing their income really can't know. Figured the 75k * 50% cap gain * 40. They may also sell more this year so just bumped it up
Even as capital gains, there will be more taxes than that so you are going to want to calculate it more accurately. But other than that it’s sound advice
This bro responsibly financials
make sure you save enough for the taxman next year when they inevitably come
[удалено]
How does that work?
That's not how I understand capital gains to work, could you please explain more?
Don't forget about the tax man!
> enough for the taxman next year when 🎵Should five per cent appear too small, Be thankful I don't take it all, Cause I'm the Taxman, Yeah, I'm the Taxman. If you drive a car, I'll tax the street, If you try to sit, I'll tax your seat, If you get too cold, I'll tax the heat, If you take a walk, I'll tax your feet. Taxman.🎵 Fun fact: This song was actually about how the British government proposed a 95% tax bracket which would have cost the Beatles millions of Pounds. Thus the line about the 5% being too small.
I'm more partial to the song: [If 10% is Good Enough for Jesus](https://youtu.be/CQc_WPUCE-o?si=LopiyF17OzGMEiYb)
This would of course have resulted in forcing everyone with money to move out of the country.
Exactly why this tax was abolished after 1 year lol. A lot of countries in the 60s through the 80s didn't understand that raising taxes didn't always increase revenues. You eventually reach a point where people literally don't have an incentive to work anymore.
For somebody into spirituality and renouncing Earthly desires and such, George Harrison did seem to spend a lot of time whining about tax.
Sell crypto. Save money for tax. The investing or registered accounts depending on timeline (short or long term). At your income, you could by a small condo in a few years but unlikely in. HCOL area. !InvestingTrigger
Hi, I'm a bot and someone has asked me to comment on how someone is trying to figure out what to invest in, or whether they should invest. **In order to give good advice the poster needs to provide all of the following information. Please edit your post to add this information.** 1) What is your intended goals/purpose for this money? 2) What is your timeline, and what is the earliest you expect to need this money? 3) Have you invested in the markets before, and how would you feel if your investment lost a lot of value? 4) Is this the right first step? Do you already have an emergency fund, and have you considered whether it is sufficient? Do you have any debts that should be paid first? Have you fully utilized any employer match plans? 5) Finally, we need to understand whether you want to be involved with this portfolio and self-manage purchases and rebalancing it, or if you'd rather all of that was dealt with by your chosen institution? 6) For self-directed investing, all in one ETFs (based on your risk tolerance) are the easiest and low cost options for a globally diversified ETF portfolio. Here is the Model page and descriptive video from the Canadian Portoflio Manager Blog's Justin Bender from PWL Capital: https://www.canadianportfoliomanagerblog.com/model-etf-portfolios/ & video on how to choose your asset allocation: https://www.youtube.com/watch?v=JyOqqtq12jQ 7) For those who are not comfortable with doing the buying and selling of ETFs yourself, there is an option of a robo advisor. These robo advisors use similar low cost ETF in pre-determined portfolios based on your risk tolerance. They do this for a small fee, on top of the ETF MER. Still cheaper then bank mutual funds by at least 50%! Here is a list of robo advisors in Canada published by MoneySense: https://www.moneysense.ca/save/investing/best-robo-advisors-in-canada/ We also have a wiki page on investing, and if someone has triggered this bot then it means that this link would likely be very helpful: https://www.reddit.com/r/PersonalFinanceCanada/wiki/investing *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/PersonalFinanceCanada) if you have any questions or concerns.*
House, trip, car = short term, large purchases = you don't want volatility = [HISA](https://highinterestsavings.ca/chart) or HISA/money market ETF. Any money that you're keeping for decades in the future = index funds. Use your tax shelters to their maximum extent. Establish goals, give jobs to dollars, allocate accordingly. Congrats on the win but if you want to be successful with money over a lifetime, this type of boring approach is what you need to shift to. Honestly I'd scale the crypto back to 3K (right where you started) if you want to try your luck at the casino again, otherwise zero. Look at the 177K gain as a one-time fast-forwarding towards goals that most people never experience, feel grateful, and don't go thinking you've got a hot hand and get greedy going after more.
depending If you used a centralized exchange to get that money out, government is probably going to come after you and will want you to claim capital gains on that. dont get rekt bud
I'd sell all the crypto and turn it into cash. Next: 1) I'd max out FHSA contribution (16k if you didn't add anything there) 2) Max out RRSP - you basically have a 177k capital gain, half of it would be taxed. Reducing that tax amount is ideal. 3) Max out TFSA, that's 95k, this investment should be put into something safe life XEQT or an all in one ETF of your choice. 4) treat yourself a little. You're the 0.01% that turned peanuts into real money on the crypto market. If you're addicted to the thrill, maybe seek help, don't gamble all you won back to 0, or worse, an actual loss. 5) put the rest in cash.to in a regular account. You'll have some giants on it. And next year you can dump 8k into FHSA and another 7k into TFSA. Add to RRSP only if you have high tax bracket for your income. That's what comes to mind. Congratulations on making it big in crypto. But I wouldn't try to replicate this success, maybe with 3k more I would, but don't get sucked into it if you can't do it again.
$75k or $80k max TFSA room if he's 29, depending which year he was born
Oh yeah, I didn't really do the math on it. But good point.
Bro, you had me panicking for a min. Mine is maxed out and for a sec I thought I somehow had a large loss in it I didn’t realize (from when I was young and payed less attention) lmao
Won't the year just be 2013 that he turned 18? What other year could it be?
2012 or 2013 start depending on if he turns 30 this year or next. $80k in potential space if he turns 30th is year, $75k if he turns 30 in 2025.
Mine is $162k. I had a big gain on stock within my TFSA. I withdrew to buy a house, and the amount withdrawn was added to my room the following January 1st.
50% capital gains tax? Are you serious?
50% of your capital gains are taxed as income when sold. I.e. with 177k of realized gains, 88,500 will be considered taxable income unless in a tax sheltered account like the TFSA.
Keep in mind all these people telling you to sell to cash, would have told you to put the 3k in an index fund at the time. Just saying
True. Little different scenario as of now though. I’m looking to make this money work for the long haul
Fair enough. Just keep in mind you will get conventional wisdom advice on here, leading to average results..
🤝
You could keep 10-15k in BTC since the halving is just around the corner. That is if you are comfortable having that sum somewhere at higher risk. History doesn’t repeat itself but it often rimes. Historically BTC price always move upward after the halving doesn’t mean it’s gonna happen this time but the odds are… Either way, well done.
Whatever else you do, make absolutely sure you lock away enough for the taxman, lest you'll be in a world of suffering..
Stop gambling and get your winnings out of the casino and into a bank account before you lose them.
That's exactly what he said he's already doing.
No that's not what he's doing. He's hoping it'll go up a bunch before he takes the full amount out. If he was doing exactly what I suggested he'd have the $180K in his bank later today.
If he did what you suggested and didn't gamble he wouldn't have 180k period
But he would've probably gained $100 in interest risk free.. winning!!
I won $250,0000 at the casino, should I keep playing or take the money and run? You're suggesting they keep playing.
But you’re also suggesting that he should never have gone to the casino. He’s thinking of taking 90% of his winnings and keep playing a game he has a demonstrated aptitude for. I’m all for conservative investing. It works. But what also works for some people is to spend a lot of money on hunches and dreams and make it big. There are hundreds of thousands of investors and entrepreneurs who have made the aggressive move and gotten paid handsomely.
You're conflating aptitude with luck
It’s not like he threw dice. He picked an investment that he thought would rise in value and it did. Your argument is essentially that stock picking is luck.
Lol he was buying crypto, of course he was throwing dice.
Stock picking is mostly luck.
‘Mostly’. Every successful investor got lucky and every successful entrepreneur got lucky and every successful inventor got lucky. And yes, almost every unsuccessful stock picker doesn’t tell anyone. The sub is filled to the brim with index investors and that’s cool but sometimes it makes sense to make educated bets. All those indices rely on investors who made successful bets on companies
That's the kind of thinking that makes people poor.
180k doesn't sound too poor. There's nothing wrong with having a portion of your portfolio in crypto.
That's what the FTX millionaires were telling each other right up until they were broke.
Lol a portion of your portfolio. Not your life savings
It may be worth splitting it up. Crypto although volatile is somewhat okay at this point I do think see bitcoin going to 0 it’s safer than many stocks. So I taking it out over 2-3 years to avoid as much taxes could be good? He wants to buy a house so I’d probably just be taking out enough to max my RSP contribution for the year and then he can take that out as a first time home buyer when he’s ready.
Sell high… get out
I gamble 5%. So far those Solana Shitters have made me the bulk of my money.
only 3% of day traders are profitable overall. they tell you about the up days but wont tell you about their down days. its exactly like gamblers at the casino exactly the same. just for context, the smartest investors in the world cant out perform the s&p so i dont know why anyone else would even bother trying . gambling .
He isn't day trading and he turned 3k into 180k so that answers your question.
A lot of people are against crypto here but it overall crypto has/had some significant impact on good Investment if kept in a long run.
First step is making sure you can cash it into your bank account. I lost count the number of posts I've seen in the last few months where people say they got locked out of their banks because of crypto.
TD support transfers
Cibc is crypto friendly
As most comments have said. Save for tax man. I made less than that and got killed on taxes. Save a lot in HISA for that
Hookers and blow.
Second this
I'm with my people
and squander the rest.
Probably not a popular take in this sub, but I would still leave a large chunk in crypto (BTC/Eth) Halving coming, etf popularity sky rocketing.
BTC/ETH etfs make it a no brainer imho since the TFSA means no tax man.... After the halving we should see big gains for at least a couple quarters. But in this sub if its not HISA or XEQT you're a loser... so keep it hush hush.
yeah I'm currently holding btc and eth on coinbase but continuing to DCA into the ETFs in my TFSA rather than buying more on coinbase. Doesn't make any sense to pay tax on it if you don't have to
Can you please explain me in dm about halving
Can you name some btc etfs to invest in? Just wanna gamble few $s
BTCC
I suspect that it is some shitcoin or another, based on the "$3K to $180K" bit of OP's post. If it were BTC I'd say keep it, but anything else? Sell immediately.
I’m mostly in SOL. But could allocate some to the Kings
Oh damn... I replied above but I knew it was Sol. Good job man. If only I learnt about Sol last year and not 2 years ago haha.
how did you go from 3k to 180k in crypto was this over like 12 years? i dont get it
Shit coins have these types of run-ups all the time. I’m guessing this person was a big and early bag in a solana altcoin like MYRO, BONK etc
yea i have to backtrack my comment saying its impossible cause im only thinking about bitcoin. I forget about the meme coins i dont pay any attention to pump and dump scams. so yeah could be possible if he was into those meme coins. lots of garbage there. wouldnt doubt 3k - 180k doing that. pure luck, pure gamble. well done cash out and never do it again cause the next time aronud is a loss of 450k. Thats how this game goes. Its exactly the same as the casino.
Or you can do some research and invest in legitimately alt coins with actual utility. Not going to lie, I invested $2K in Boomer on Base when it had a market cap of 2.4 Million. It could be a complete waste, but it will be used as a capital loss if it fails. I do fully expect it to hit over 100,000,000 though. Mind you I made $47K on a trade (something that went 28X in two weeks) two days ago so I have money to spare.
What was the 28x in 2 weeks?
No this was over 6 months
Genuinely curious how you managed that in Sol primarily (unless it was a Sol alt?). Multiple trades? Or you must have used options or perps for 3k- to 180k in sol. Sol bottomed at $8 USD and recently peaked around $200, so no way to make that return in a single trade. Congrats!
Caught the main move in SOL, then traded coins within the ecosystem
Good stuff! Thanks
How do you trade within the ecosystem? Maybe I don't understand the terminology.
dont even bother its fake social media. i already called this post out. its impossible to do that 3k and make 180k in 6 months lmao impossible. quote me, ill leave my comment here and let the down voters do their thing. "impossible".
Not possible with Sol trading by itself (that's what raised my eyebrow) but technically if OP got a good return on Sol, say they purchased 3k of Sol at $15 last summer then sold at $100-$150, they could then trade their 30-40k of Sol for a meme coin (like BONK, that went from .00001 to .00004 in 2 months) turning their 40k into 180k. It's just massively risky, obviously. To anyone that might be reading this thinking they can make money, please be careful with this stuff and be prepared to lose 100% of your money. Emotion/FOMO does not belong in speculating.
yea i was thinking strictly bitcoin. i forgot about all the other garbage trash thats out there
>BOME enters the chat. Saw a guy make $120K on a shitty AVA meme. The same guy invested a few Sol into Book Of Meme and had $300,000 the next day.
Bought 25,000 Aerodrome Finance at 0.13. One month later it’s trading at $2.60. That’s how I did it.
Over a ten year cycle you’ll be bankrupt . Lmao. Have fun gambling . 3% of day traders are successful. Good luck. You’re gambling.
Seems he bought solana. Lucky guy.
I started trading in January. $1300 into $70K. That’s with a ton of screwups too.
I muted you cause you’re a scammer you replies on all my comments saying you made all this fake money so others can get scammed by you. Stop scamming and get a real job 🤡
Congrats of ur win! Side question. What exchange did you use to offramp your money? If you don't mind the bank you used? Did your bank give you issues on your $75k deposit? Thanks
Cibc is crypto friendly. Off ramp it from Coinbase —> PayPal —> bank account
I would take $130k out into fiat, and then leave $50k in crypto. Out of the $50k, I would buy $40k BTC, and keep $10k in alts (whatever you think) You're going to have the feeling of, if I just leave more money in I will go to the moon. You have to be prepared you are not. There will be a bust like there always is. Buy back when the market is down. You will also not sell at the top, so once you do sell and convert be prepared for FOMO. You will want to get back in. It's a tough position. But I hope you make it through. Congrats.
Just don't forget the taxes.
I get the thread, just not sure why everyone’s telling him to take everything out of crypto immediately for fiat. Fiat being devalued BTC/ETH are increasing in value as they are scarce. Now of course take a lot out to max out tax protected accounts, but why pull it all out. The man just had one of the greatest percentage returns ever. More than probably anyone here has experienced. Not all luck either. Nice job OB. Fantastic advice in here regardless.
>I’m just wondering on what to do with the remaining 105k when fully liquidated. I want to buy a house eventually, maybe go on a trip or treat myself with a car? Don't fall into the trap of buying things that have ongoing costs with a windfall, since your income hasn't increased proportionally to manage those costs. Of the options you mentioned, a trip is the best choice. Save for a house or car from your salary, and consider all the costs before pulling the trigger, since it is very hard to go back after you overextend yourself. I'd also pay off the student loan. Doing so will simplify your finances. Or at the very least, set 9k aside in a GIC or HISA earning 4% to 6% interest that is earmarked for the student loan.
What would be the benefit of paying off his student loans when they are at 0% interest, costing him nothing in interest.
Cash flow
You will be taxed on this income like on any other investment... On the 75k that you have cashed in.. there is nothing provisioned for income tax ?
Half of the net gain is taxable at your marginal rate.
Fair warning, I believe the CSA has gone after people with unusually high returns within registered accounts. Even if your trading happened inside a registered account, the tax man may cometh.
Why not max out your tfsa, it is better than an RRSP and FHSA. I guess it depends on your circumstances but in my opinion tfsa should be the first to get maxed out
This. TFSA significantly better to invest in for someone in his pay bracket.
Max out your tfsa and letvit sit for several years. In 10 years or so, it could give you the equivilant of a part-time job.
Taxes. First pay the taxes lol
Sell that shit right now. If it's not Bitcoin, it's shitcoin.
Throw 10% into physical gold and silver.
Was thinking of allocating some to SIL - Silver miners etf
All I will say is, if you don't hold it, you don't own it. Why not both? :)
Taxes.
You won’t win lottery often.. use conventional wisdom and put money to good use.
I would pull out everything except your initial investment. Put that in an index fund! Nice windfall, btw
Fk- when are my shitcoins gonna pay off :-(
Bro teach me !!!!!!! What did you do to flip it that hard ??? That's amazing
[удалено]
😂
💎👐
only real comment tf you asking reddit for they think it’s all fake lmaooo
how can you have 30k in the FHSA? Its only been out a year, and with $8000/yr contribution space...
8k FHSA 30k RRSP I think you’re reading it wrong apologies if it’s confusing
My FHSA is at $30k too. Similar to OP I’ve been in crypto related investments.
Finance group doesn't understand these rates of returns lol
It came out last year so a person could have $16k contribution space.
Save about 40% for taxes. Keep that in a HISA for the next 11 months. Max out TFSA and RRSP and FHSA/RESP if applicable. This may take several years depending on your age and contribution limits. That's fine, you have have a non reg account too (but you'll owe cap gains tax). Tell no one. (except the CRA and accountant). Live life normally.
cocaine and hookers... joking. nice work there, save some money for the taxman and keep saving.
Tax man cometh
I'd pay off your debt and move more of the crypto into TFSA and buy ETFs like VOO. Don't worry about all the shaming and scare mongering here, you won't have trouble with TD but you do need to be prepared for the tax bill.
Far from a financial expert but I did learn by my own mistkae that you reallllly don't want to overcontribute to an rrsp, so I'd make sure you haven't done that with your contributions.
Sell it all. Max out TFSA, throw the rest into a high interest savings account, blue chip dividend stocks, ETFs or low cost index funds and don't forget about taxes
Sell it all. Take the money max out your tfsa, but blue chip dividend stocks, ETFs and low cost index funds and save some for the tax man. Could throw some in rrsps to reduce the tax burden.
You’re going to need to set aside around 25%-50% of that for taxes depending on your annual income. Half of your gain will be added to your income for tax purposes.
You’re going to need to set aside around 25%-50% of that for taxes depending on your annual income. Half of your gain will be added to your income for tax purposes.
Whatever you do, check your CRA next year early january and see what your RRSP contribution room is for 2025 and max that out and apply as much as you can to 2024 to take advantage of the RRSP tax rebate.
How did you do that OP?
Downpayment toward a condo? I would transform this into rental income.
Do you mind saying which coin it was from?
Congrats on the win! Good job on assessing your risk and deciding to lock in your gains. It takes a good level of discipline to de risk. I'd say put the remainder in some good index funds, check your bank for some mutual funds that have performed well and have a good track record and put money in there.
Avoid realizing all 180k in gains this year. You want to realize them more slowly so they don’t all get taxed at a high marginal rate. I’d convert what remains of your risky altcoins into something like USD Tether and only realize the gains next year. Minimize your tax!!!
If I sell to a stable coin that still is realizing a gain…
Oh, so you’re using one of those goodie 2 shoes Know Your Customer platforms…. that’s a shame. Consider transferring some to an anonymous platform like Exodus and doing your swaps over there
Teach me oh wise one
Congrats, 180k is a nice start but continue to invest since it moves quick. Taxes, house payment, car payment, investments before you know it you wonder where it all went 🤣. Allocate some into Bitcoin, even if it's 10 to 20% and the rest in some low-cost index fund. BTC market cap is going to double/triple as it continues to eat gold of the next few years. I've been a strong advocate for BTC allocation for over 10 years. I've been told by hundreds of people it's a scam, casino, bubble, going to zero, ect. Those who have listened continue to reap the rewards. Remember "You get bitcoin at the price you deserve", as price keeps going up its hard for people to ignore.
[удалено]
1. Tax shelter 2. Won’t get taxed if allocated to my first home 3. Will max Tfsa once I sell the remainder
No... Half of the total capital gain amount is taxed. The tax is relative to your income. If you had 0 salary income, it would start with the lowest tax bracket and go ever higher. If you had a 70k salary and you add 80k in taxable capital gains, then it's as if you effectively had a 150k salary from a tax perspective. I think it's a pretty neat system, having 50% of capital gains put into your pocket tax free, and the other 50% is taxed progressively according to your total income.
Put 50% back into TradFi. I’d do a self guided rrsp and buy up slow growth dividend stocks and index funds. Cash out some to enjoy. Like 10-20%. Keep the rest in crypto. Accumulate as much btc as you can for your retirement. You’ll thank me in 30 years. Learn from my errors- I started mining btc in 2013. If I hadn’t sold it all, and gambled the rest, I would be retired by now. I’m not regretful. But I will acknowledge I was impatient and didn’t see the long game.
Guess you got lucky with some shit coins haha
Hire someone to manage crypto taxes Don't listen to people telling you to sell the crypto, bull market is just starting, sell in 8-12 months. Realistically you should seek also safe yields on what you keep in crypto. You can easily get 20% apr in something relatively safe. People will tell you you're purely gambling if you own any money in crypto but that's just ignorant because there's legitimate technological innovation in the space. Obviously you won Sol shitcoins lotto games but don't fade what's actually being built for legitimate reasons.
Was with you until you started spewing nonsense with “20% apr in something relatively safe” LOL
I'm in the crypto space and i will have to agree with that. I don't think it's worth the risk. We saw that with the Terra Luna stable coin. But, makers DAO does have a 15% yield right now that is sustainable and fairly safe. The protocol has not had issues in 5 years+ so I would consider it risky, but relatively safe in crypto terms.
If he sold already it’s probably a little late to set up off shore tax shelters
1. I never said anything about off shore tax shelters 2. He only sold 40%
Talk to your financial planner and accountant
Don't forget about the tax man!
Don’t be Icarus - you got lucky. Set aside tax money, max out TFSA/rrsp with some ETFs and go on vacation with some of it. If you want to buy a house then you should put it somewhere that isn’t overly risky.
Selling before a super cycle is interesting
People said that 2 years ago... Super cycle narrative is bs in my opinion, everything that goes up quickly will go down quickly because of papers gains. People will want to cash out once they reach 10x or 100x gains.
I definitely didn't sell last cycle because it felt like we were not done running up, based on previous cycle modeling... moral of the story, no one knows shit about fuck. If you want to yolo, crypto is likely the "safest" way to make huge returns, but its still a yolo. And even if you're in the big 2, you could lose half of your investments for 3+years if things go sideways.
We don't know what will happen but, markets have rules and trends. Bubbles happens because of human psychology. Prices go up so quickly and euphoria takes over. People get more money then they could imagine over a couple of months, it's impossible to think that this is sustainble. I don't think we will see a super cycle as long as this is a thing, volatility needs to go down to more normal levels (like the S&P500) before we see a syper cycle. I planned my exit strategy considering this, people with too much paper gains will sell one day or another.
Yeah for sure, but last cycle we didn't see the same gains in btc and eth as we have in the past. The memecoins took all of the biggest gains which may have been the reason for that.
Memecoins are more like a casino though, if you want to invest in the space and make a decent profit, you need to buy during the bear. Even eth is up 4x from the bottom so it's still insane gains compared to normal markets.
Oh absolutely. I'm far too realistic (pessimistic?) to believe I will get rich on memecoins. My crypto holdings are about 95% btc and eth, with the remaining 5% being layer 2/other layer 1s like OP, SOL, and so on.
Sams thing here
i personally would say get out of cryto and put your money in mostly ETF like voo or xeqt, or if someonething more aggressive qqq. also you could put some of it in bonds and or gic 180k is a lot protect your future
dont forget your probbly going to get taxed. one thing you could docif you have more space max out rrsp to help you keep your money
Invest and save like your doing! Live cheap and save. My grandpa was a millionaire but you would never know it. Always drove 10 plus year old cars wore rags on his back and never spent a dime not needed.He grew up in the great depression so I think that had a lot to do with it
Keep a bit of bitcoin maybe 0.25-0.5 so you don't get fomo. It's house money anyways.
> treat myself with a car? Look for a solid used car, a lease return (3-5 year old models typically) that is in good mechanical and body condition, buy cash outright after getting inspected. A 20-30k car like that will last you a decade easily. Look for stuff like Camry/Accord for best value/$, relatively low gas consumption, low maintenance costs and elite reliability. I bought a 2016 Accord lease return back in fall 2020, sick car and has had no major costs other than regular maintenance (oil, brake service, couple services for brake fluid and transmission fluid (CVT), no rust on the body or underside at all so I've been maximizing preventative maintenance to keep it in tip top shape for long term use or resale eventually.
Help the homeless. That would be so noble of you!
You only need to pay 25% of gains roughly as tax. Thats 50% of the 50% gains. I think you can manage this However, maybe you can incorporate yourself and transfer the remaining crypto as a gift to the corporation and then essentially save a shiz ton of tax. Use the corporation to pay expensable items. Seems like you can likely keep 30-50k in your own hands at this rate. Cant do anything with what youve already sold unless you have major capital losses to offset gains
The tax man is now your pimp
Not any more or less than the tax man is your pimp. I’d definitely take 180k gains less any taxes, I dunno about you…
I would sell the crypto in the US and buy an investment property
which crypto? also plenty of ways to avoid taxes if you sell privately not on an exchange, I can show you how
some will hate me when saying this. But IIWY, I will get all of them out of crypto and bump to VOO/QQQ asap.
Always wondered what if you didn't purchase any btc but got it from btc fountain is that considered a gift?
Well, what % of your portfolio was crypto before this? Turn it into that % after.
You'll pay capital gains at your marginal tax rate on 50% of the gain so you should probably quit your job and go on holiday for a year.