[闲聊] Ontario Opportunity Bond

[oread]

用于建设基础设施。只限于安省居民。低风险，利息不用上税。
5月13日截止。

 

[Rabbit]

傻意思 给点具体的

 

[oread]

5-year fixed rate is 4.25%，maturity: May 6 2008.

2003 Ontario Opportunity Bonds Order Form including the Information Statement

 

[oread]

具体情况见：http://www.ontarioopportunitybonds.com/home.asp

 

[oread]

我觉得不错，跟5年GIC的回报率差不多，但可以免税，就比GIC要好了。唯一犹豫的是期限的限制，一存5年，万一需要大笔用钱就麻烦了。不太清楚bond提前取出有什么不利之处。

 

[sean]

For Tutu, you don't need care what kind of investment, the only 2 things for you, are the return and risk. I can tell you, return is not higher comparing to the 5 years term, ricky is almost 0%. However, you can take adventage of the your income dedut for Ontario provincial tax.
For Xiang
you can sell your Bond as you like like stock. I don't recommend this bond if you want to invest your money, because the rate is not high with 5 years term. Even you can find some 1 year term bond over 5% return. From my oppinion, $5000 is your minimum purchasing amount usually. And other point, it is only dedutable income for Ontario provincial tax. You still need to pay federat tax.

 

[CFCFAN]

好像延期了，本来从4/26到5/7结束！

 

[yh_abc]

I think diversification of investment is really important if you want to make long term investment. So it is not bad to invest in this bond if you do not need your money urgently.

 

[Hunter]

"Interest earned by investors in Ontario Opportunity Bonds will be exempt from provincial income tax".
Does this mean we have to pay the federal tax for the interest earned?

Also, "Opportunity Bonds will not be obligations of, and will not be guaranteed by, the Province of Ontario".
This is different from the regular GIC.

Anyone bought it?

 

[oread]

As explained clearly in "whoami"'s post, the bond is NOT garanteed by the provincial government. Municipal Economic Infrastructure Financing Authority (OMEIFA) is the issuer of the bond, therefore is responsible for it. The bond will be exempted from provincial income tax ONLY. Federal income tax still applies, however it is expected to be RRSP eligible. There is no risk since it is a bond (unless the inflation exceeds the return, but for the sake of the argument), the return is fixed at the rate of 4.25% per annum.

Note that corporations can also purchase this bond and can deduct the net income from this bond when computing its income in a taxation year.

A payment equivalent to your provincial income tax exemption will be paid to you in approximately 6 to 8 months after your tax filing due date, if you included the interest earned when filing your income tax.

Refer to Info Statement for details.

 

[yh_abc]

I decided to purchase $2000, because at the end of this month, we have another opportunity to purchase Ontario savings bond.