Comments on: What Happens To My Income Trusts in 2011? Should I Sell Them Now?

By: JohnMathew

JohnMathew — Mon, 11 Oct 2010 08:19:36 +0000

Nice Blog. Keep posting more

Regards

By: AltonDelmote

AltonDelmote — Sat, 09 Oct 2010 04:53:38 +0000

Thank you for such an interesting post!

By: MoneyEnergy

MoneyEnergy — Mon, 15 Mar 2010 06:37:07 +0000

@FC – well, I’d judge the income trust on its own, first, to see whether it’s even a good investment or not. Then decide whether it should go in a TFSA. It could be a good idea for some trusts that spin off several types of taxable amounts, like EIT.UN does. Not being taxed on it would cut that paperwork down, if I understand correctly. I do own one income trust in my TFSA, I like letting the distributions accumulate for reinvestment purposes.

By: Financial Cents

Financial Cents — Fri, 12 Mar 2010 23:55:35 +0000

Hey ME,
What are your thoughts about holding ITs in your TFSA? Do you? I’m tempted, because of the yields, but also concerned about potential lower distributions given the upcoming 2011 changes. I already have HR.UN in my TFSA, I’m looking for a partner to split the $5,000 this year. Anyhow, keep the good posts coming, this one was a good read a few months back.

By: MoneyEnergy

MoneyEnergy — Thu, 10 Dec 2009 02:51:16 +0000

Best to check out the websites of the trusts you own, and read up on their news releases to see if they’ve publicly made any decisions yet about what they’ll be doing. Consensus is that the major changes will happen well in advance of 2011 – there won’t be anything drastic happening on Dec. 31 itself.

By: MoneyEnergy

MoneyEnergy — Thu, 10 Dec 2009 02:50:00 +0000

Some of the trusts may indeed reduce their distribution somewhat if they are switching to a corporation, but not necessarily. Some will keep the same amount, but it will be dispensed to shareholders on a quarterly basis rather than monthly – you’ll keep the same yield, you just won’t get it month to month.

By: Sunny

Sunny — Wed, 09 Dec 2009 13:47:56 +0000

Thank you for covering this topic. I hold many – maybe too much of income trusts in my portfolio. I hold them for their dividend… I am now almost at 3 000$ in annual dividend. Will my dividend be cut in half in 2011? If it happen, it’s going to be outrageously sad.