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Gilbert Lawrence [EMAIL PROTECTED] wrote:
> The man's 'problem' was the shares were now priced at 70 dollars a share. If
> he sold his stock, he would pay the Capital Gains tax on the amount. So
> he did not sell the stock. So here is a retired / senior citizen living poor
> AND wanting the government to provide more. Yet his preferred to forgo 80% of
> his stock value because he did not want to pay the 20% tax to the
> government, from whom he expected financial help.
Ah! Gilbert,
You bring up one of my favourite subjects.
My first land lady in Canada came to me with this problem. Her late husband
made her promise that she would never sell her IBM or Bell Canada shares. Her
late husband had worked for IBM. In the year 1999 or thereabouts, Bell Canada
spun off Nortel. Nortel was trading at $110 dollars and my land lady wanted to
know what to do. My advice to her was to sell her Nortel shares and use the
proceeds to buy more Bell Canada shares.
Her son came to me and said, "NO."
Since it was a spin-off, her Nortel shares costed her $0. If she sold it for
$110.00, she would have to pay taxes of 30% on the profits and be left with $77.
Well, Nortel shares trade at $1.60 today.
Both Revenue Canada and my ex-land lady are much the poorer.
Strangely enough, the taxes we pay are for the services we use. In the case on
my ex- land lady, she used to get a pension of $1,000 per month from the
Canadian Govt. This pension is just for being over the age of 65 and living in
Canada. Such are the policies of a socialist country. When you become a senior
citizen, all your medical bills are paid for by the state AND you receive a
state pension. My ex-land lady could not see this.
Mervyn3.0
PS. I know a lot of people who choose to migrate to Canada because of the
pensions. Just imagine, you have both your parents at home, they each get a
thousand dollars a month pension even if they have never worked in Canada. In
addition, the Canadian Govt pays for ALL their medical expenses. If there is no
paradise in the next world, there surely is one here.
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