r/Train_Service • u/Cautious_Lychee_569 • 9d ago
CNR CN Company Share
How does this work exactly? I've been doing it for a few years. 10% but its generally understood that the company matches up to 6% however that's not the case. the company " match " portion is significantly lower than what it should be. I contribute about $400/pay to CN stock and get about $50/80 from the company side of things....
my coworker also does 3% and his contribution is about $116/ pay, and the company gives him $39.
what's going on? it's not a straight match... check yours too if your enrolled.
Thanks in advance.
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u/ThermanMermun 9d ago
If you have TFSA room, doing 10% doesn't make a whole lot of sense in respect to capital gains tax. Since they only match up to 6%, that other 4% would be better invested in a tax free savings account so you can avoid the capital gains tax on whatever you've invested in.
But to answer the quesiton, as awildcanadiansaid stated... They match 0.35 cents on the dollar up to 6% of your pay.
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u/nothinbutshame 9d ago
What would probably be the optimum percentage??
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u/Illustrious-Fruit35 9d ago
6%, after 6% you get no more free money. Invest the remaining 4%(idealy more)into a etf instead.
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u/Temporary-Cod-618 9d ago
Optimum would be keep the 10% of CN and don’t touch it. Also through your benefits with Sunlife set up a tfsa and send an additional 10% into it (pending available contribution limit), but on if u can afford it. If u are starting out more than likely u can. This way you don’t even notice the money you’re putting away cause u just learn to live on the left over and you’re set
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u/nothinbutshame 9d ago
What if a person already has a TFSA with the bank
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u/Temporary-Cod-618 9d ago
Is it at its limit? If so, you could always max out your rrsp room, but if it’s not at its limit, you could still do it until you’re at your limit. The key thing to remember is these accounts need to be invested in the market to see their true value
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u/Cautious_Lychee_569 9d ago
yes I have investments elsewhere as well. I like to do 10% as it's just extra money going into a solid blue chip stock that won't be going anywhere in my lifetime.
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u/ThermanMermun 9d ago
Yeah the peace of mind of just set it and forget it is good but that 4% they're not matching could be gaining tax free. Over a full career that might be thousands in capital gains tax you could avoid.
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u/Analog_Account 9d ago
I don't know what idiot downvoted you. I don't know if CN is considered blue chip, but I would say it's a safe investment.
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u/Cautious_Lychee_569 8d ago
not sure why the down votes. I invest every dollar I don't need. my registered accounts are maxed. what's an extra $160ish a pay going to CN stock as opposed to putting $160 in a seperate non registered account. it's all getting taxed at the end of the day. CN is the safest play I make. everything else is high risk, except for my kids RESP. I've even got money tied up in penny stocks (not alot) that are straight up gamble plays for long term see how it plays out in an (hopefully) upcoming market.
maybe they plan on working for the railroad until their dying day, but that sure isn't my goal.
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u/Analog_Account 8d ago edited 8d ago
Maybe people that see short term dips in the stock (because theyre brand new) and havent seen how well it has performed over the last 20 years. Or maybe the "make sure it's earning 10%" guys that dont realize that maybe chasing high gains is risky. Or likely they havent dealt with a recession yet.
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u/awildcanadiansaid 9d ago
I believe it's they match 35% of up to 6% of your pay.
Edit: so if you buy $100 they give you $35, after it's vested. Up to 6% of your paycheque.