Based on what I usually see on TH-cam, I was expecting simplistic advice and a thinly disguised sales pitch for your services. What I got was some good solid financial tips. Nice work!
@@ParallelWealth First, absolutely love the show! I'm wondering if you guys would consider if index investing makes sense going forward, consider this: If you were making $21.50/hr at the lows of the great recession, you could by 1 share of spy for around 4 hours worth of work ($86). Now, say you are making around $35/hr, 1 share of spy is going to cost you about 13 hours of work. Is the risk-reward ratio too high, as Peter Lynch seems to suggest? I used a nominal wage tracker to get the rough average hourly US wages for the low of the great recession and current. Obviously, wages have not even come close to keeping up with the increases in the market, and therefor the relative risk of the market is multiple times as high as it once was.
Correct but he failed to mention the RC 240 form from the CRA to rectify (the situation) in the same calender year when the annuitant becomes deceased.
@@boricuadetorontocanada that would be dealt with upon death when adjudicated! His video is awesome and too much detail just adds confusion… as long as it doesn’t impact taxes/limits, he didn’t fail to mention any details in my view… but good to know 👍
Great video and informative, thank you for being very clear. As for some viewers, a positive comment is more appreciated than a negative one. It takes a lot of time and effort to put these videos out to inform us Canadians, for those who are not aware of all this find it valuable like myself. Thank you so much. 👍🙏
@@boricuadetorontocanada ey Boricua, anything you can add to increase our knowledge is welcome. Just make it in a positive way, remember we are Canadians, we are polite 😀
TL:DR 1. Don't do a TFSA Beneficiary Designation, make a successor holder instead 2. Don't use your TFSA as a 1-3% savings account, make it a 3-100% investment account 3. Don't put money into your TFSA when you owe money at a high interest rate to someone else, like a credit card company, pay them off first 4. Don't contribute and withdraw from your TFSA in the same year, only let your TFSA money flow in one direction per year 5. Withdraw TFSA money in December this year if you know you need it next year to buy something
The TFSA is my favourite account. By the time I retire it’s my plan that it’ll be worth several hundred thousand and have significant dividend income for me to withdraw tax free to help fund my retirement
I am a teacher and I definitely appreciate well-communicated, thorough and accessible information when the subject matter can be hard to grasp. You are an excellent resource and I want to thank you! Please keep it up.
For folks who don't need cash from RIF minimums, these can be scheduled at he end of a year in order to fund a TFSA contribution at the start of the new year.
Great information! My wife and I just this week set up TFSA's at our bank. The advisor there made absolutely no mention of the "successor holder" designation.
On point one: if you are listed as a beneficiary but are a spouse you can actually just apply to have it changed. Yes it's a bit more work but you don't actually lose that opportunity simply because it was filled out poorly. Though I do agree with you getting it right from the start is just better.
I thought I was relatively proficient on how best to use the TFSA, but have to admit I learned a few more key things. I did not know about Successor vs Beneficiary. I don't even recall seeing that option being offered on any of my (or my spouses) TFSA accounts. I'll need to call them to find out where we can make that designation. The end-of-year withdrawal strategy is also a great tip. Your YT channel (and the solid advice/tips it provides) deserves more views / subscribers. Well done!
Hi Adam! Thank you for all this informative videos you put out. I am learning more than ever. I am wondering if you could make a video about US penny stocks and delisted US/international stocks in registered accounts (TFSA, RRSP, RESP). What happens to my high risk investments and what should I do? Can I just transfer the US stock(s) over to my Margin account and continue to see if their values go up? What would be the best solution for my situation? What would CRA in this case? Thank you in advance.
The option to leave your TSFA is on your mailed form which shows your latest deposit. If you call the 1800 on your bank card where you have a TSFA they will guide you to where these options are so it will show on your forms. Leaving it to your estate etc.
Great video!! Especially the beneficiary part. A lot of people including me, did not know about the successor rules. I am going to scroll through your videos for anything else of interest to my situation.
If I could like and subscribe 1000 times I would. Just found your channel and binge watching your vids. I have an investment advisor that I meet with yearly and I'm happy with, but you just add a whole other level of knowledge while I watch and learn sitting on my couch having an adult beverage.
Could you have 2 Successor Holders on your TFSA? Split evenly? as in your Kids? Quick Recap: 1. Don't do a TFSA Beneficiary Designation, make a successor holder instead 2. Don't use your TFSA as a 1-3% savings account, make it a 3-100% investment account 3. Investing while having HIGH INTEREST DEBT - Pay Down the Debt First 4. Don't contribute and withdraw from your TFSA in the same year - Do One or the Other 5. Withdraw TFSA money in December this year if you know you need it next year to buy something
Another mistake is to hold very risky individual securities in your TFSA in a hope to make a killing tax free. If it goes to zero (and you close position), you will have a permanent impairment of your TFSA room as the loss is not deemed a withdrawal.
So, this answers my question: “For my existing TFSA and my wife’s TFSA, can I change from beneficiary to successor holder after the fact?”. Adam, maybe you should confirm this is actually true. Going to make this change next time I meet with my FP. Great video Adam, as they all are!
Thanks for the Video. Regarding #5, I think you should clarify that this is for people that already have maxed out their tfsa. The contribution room is the same no mater what. Contribution room is added regardless of wether you take it out or not. If you have 65k in your Tfsa and you take out 10k you have 10k of room. Wether it’s before or after January, it doesn’t matter.
Thanks for an interesting educational video. Easy to understand with clear language. Didn't make me nod off or my eyes glaze over. Well done!! Thank you :)
Very new subscriber so I have some catching up to do, I'm off work construction worker and 56 watching older vlog. I get the retirement aspect and the working serino when you talk about money, just don't want you to forget about a segment of our population whose financial situation is more dynamic and unfortunately have to use retirement money now to pay the bills. Awesome information and I wasn't talking about myself but know of others that are struggling.
If your spouse is a “U.S. person,” name him or her as BENEFICIARY, not successor holder. Current U.S. tax law does not recognize earnings within TFSAs as tax-free and characterizes them as “foreign trusts,” adding yet another layer of onerous reporting requirements on the surviving US spouse.
Confusing.. they haven’t told me about the successor holder. They asked me who i like to be my beneficiary., but it is good info.. thank you for this video.
Thanks for your great videos! Another TFSA mistake: our financial planner told us years ago that we should open a TFSA which we thought was a great idea. Unfortunately, he didn’t realize that non-residents cannot contribute so we were faced with a big bill…which we had to pay even though it was a mistake our FP made!
@@christelschmidt7468 Raise a complaint with provincial financial authority (for example, in Quebec "Authorite des Marches Financiere"), at least, for amount of penalties.
@@christelschmidt7468 That's disturbing and testament to the importance of understanding CRA's rules in tandem with getting advice. It seems to me that this firm/individual should be culpable for loss or at least have licensing reviewed. I have no idea how it works beyond simply telling CRA to deal directly with the firm.
Thank-you, thank-you... been binging your videos over the weekend. Had never heard of a "Successor Holder". I've had a TFSA since they were created, and assumed that whenever I set it up the advisor would have "done the right thing"... but I called them and there was no such thing on my account. Need to get that fixed ASAP.
Fun thing I ran into is if you transfer securities in-kind to a TFSA from a non-registered account and the price of those securities dropped since the time of purchase then you can't claim a capital loss as the loss is considered superficial.
Something that seems to really confuse many people is the treatment of capital losses within the TFSA. Yes, for those that use it as an investment tool. Most find out through experience,but by then it's too late. You just don't repeat the same mistake with the potential of another capital loss. Especially with stock trading.
I guess I should have explained this better, but I was really referring to a capital loss not being treated the same as a withdrawal from a TFSA. You can't replace the contribution room as you can with a withdrawal from the TFSA.
Recently retired/medical reasons. Videos helpful in many respects . Married 32 yrs grown children . Money strategies not my forte, but we’ve done ok . The multiple income sources and how and when to initiate these is something I did not even think about . Thank you
Good Information. Also, the discussion about Successor Holder also applies when setting up your RRIF although some institutions may call it Successor Annuitant.
I have seen people who don’t understand TFSA’S just put money into them & leave it as such. Financial Institutions don’t pay anymore interest inside TFSA’S than in an ordinary savings account ($.06 on $10,000) & they still are raising their monthly fees. That is why it is a better idea to buy the banks stocks & get a dividend payment inside your TFSA. Buying products that generate streams of income returns like stocks, bonds, mutual funds, etc inside your TFSA also helps reduce your gross income/net income which reduces your tax bracket thusly lowering taxes to be paid. Also in provinces like Ontario that uses family gross income to calculate Senior Property or Energy Rebates (Trillium Fund) it therefore reduces the clawback or qualification. Anytime you can reduce that net income line on your tax return saves you money in all kinds of places.
Calling it a savings account is the problem. Most people don't know how to take advantage of it properly. It's too bad it was launched in 2009, my Dad could barely make use of it before he retired and was forced to use RRSP
I was trying to become a financial planner in 2008 / 2009 when the TFSA just came out. It was a horribly named tool that I would have to tell people know it wasn't just a bank account.
I have had tried to explain this to countless people at work, but most still don’t get it. Most people just think it’s a higher interest savings account.
I used my TFSA account right off the bat as an investment account, investing in the stock market and I only have grade 12 education. You don't have to be a genius to figure that out. I made my share of mistakes investing in the stock market in my TFSA account mostly because I listened to so called experts on the business channel saying you should invest in high risk companies to make more money in a TFSA. The last 3 years I've only invested in high dividend stocks and have totally turned around my TFSA and have tripled the amount in it.
There is some debate about holding stocks within as a TFSA. It would be great to see you do a video on this. If the stock gains, that gain is tax free. Dividends are tax free. However, if there is a loss, this is not a stock that can be written of as it could be in a non-registered account. So IMO, a mistake may be to hold to risky of stock. It would be interesting to hear your take on this. Great video.
Thank you so much for explaining this so well, I can follow what you are saying and it makes sense. I am going to watch your videos to help me and my job, I'm in finance.
EQ Bank gives you 3% interest just using TFSA as a savings. It's not the best use of it, but still offers tax free earning and 0.5% more than Hisa they have. If you lock in money for a year and use it for a GIC it goes to 4.30%.
I am going to have to look at TFSA Beneficiary Designation vs., make a successor holder instead. If memory serves me correct I do not recall this successor option when asked for a beneficiary designation when setting up a TFSA. I will pass on to a few friends who have both spousal TFSA accounts at max contribution.
Great advice. I will send the video to my Sister and she can make my BIL as a Successor. I subscribed also and sent them the link to your channel as well. Keep up the good work,
I didn’t understand the 5th tip - pulling out cash before the end of the year to be able to put it back in the new year - why does this save you 100s or thousand $ in taxes? The taxes part confused me. Yes, definitely good tip about withdrawing at the end of the year so it’s not a long wait to put it back. Great TFSA points
One of the better TFSA videos I have run across - well done. Question: I max out my TFSA at say $75,500 and it grows to $100,000 --- when I withdraw $20,000 from it does that $20,000 come from my contributions or from the growth? In other words can I withdraw only the money that my TFSA has earned and leave the contributions alone or is it always considered to be the contributions that are being withdrawn?
It's really neither....or a combination of both. It doesn't matter at the end of the day. If you take out $20k you will get that contribution room back the following calendar year.
The size of the TFSA is not predetermined, the only think you need to know is you can put x ammount of money in your account each year, and if you remove Y ammount, you can put the same ammount again + your yearly contribution. If your TFSA worth 2M and you completely withdraw the 2M then you will be able to put 2M again the next year + your 6k yearly contribution. A large TFSA is quite powerful!
Adam, I found this excerpt about the beneficiary vs SH situation after a quick search (I asked my guy and he said the SH is not required for transfer); If defined as a beneficiary, A spouse or common-law partner can transfer assets from their deceased spouse’s TFSA to their own TFSA, as long as this occurs during the ‘rollover period’. This period begins the day of death and ends on December 31st of the following year. Transfers during this rollover period may be deemed to be ‘exempt contributions’ and as such do not affect your TFSA contribution room.
Damn! It's been a while since I've seen something in the personal finance space that was completely new to me. I knew the last 4 mistakes, but that first one on the successor holder was some pretty valuable information that I was completely unaware of.
Correct but he failed to mention the RC 240 form from the CRA to rectify (the situation) in the same calender year when the annuitant becomes deceased.
@@ParallelWealth but the beneficiary option must have some other value - otherwise why does it exist ? Sounds like a pretty significant difference between the two options - why ever would one choose beneficiary ?
@@boricuadetorontocanada what with the constant use of failed in your comments, same in most! What’s your point? I’ve been in this business over 35years and can honestly say I don’t know this man but he hasn’t FAILED sat anything… amazing job and happy he mentioned how the banks mislead tons of people too! Guessing that’s your occupation lmao
Great advice on successor holder for TFSA! What about RRIF's and RRSP's? How would you add your adult children in case both parents are killed together in crash etc. for any of these investments?
Dear Sir, Thank you for a very clear, concise and easy understanding of commonly made TFSA mistakes. I believe that giving practical examples and showing calculations is a simple way of learning. Please add another example in your 4th mistake (Deposit and withdrawal in the same year or withdrawal from a different Institution). Question: Person A started Contributing to TFSA in 2009 and made maximum contribution every year. In the year 2021, he had $75,500 of his contributions and $9750 iNTEREST EARNED over the period, making a total of $85,250 in his TFSA Account. If he takes out $9750 in December 2021, WHAT WILL BE HIS LIMIT IN 2022, assuming a $6000 contributing limit of 2022? Will it be $15,750 (Interest $9750+$6000) or $6000, only $2022 contribution. Thanks
Thanks for the information about TFSA , I have some money in the Bank but I think the interesting is too low, What do you suggesting for me is better buy some stock thanks for your answer.
remember if you put it in an investment account, you have to have 15K in there or see fees. you can put some rrsp stuff in there if you dont have the 15 at first
@@ParallelWealth a direct investing, need min 15K or quarterly fees, so you have to put any other stuff in there to get up to it when your starting out
I am 60, retired from my job, I have a small pension. To supplement the pension I work and make $25,000. I have room in my TFSA. Is it better to put into RRSP for the tax break, or should I put the money into TFSA? This would be a good video topic!
Based on what I usually see on TH-cam, I was expecting simplistic advice and a thinly disguised sales pitch for your services. What I got was some good solid financial tips. Nice work!
Lol we will pitch you eventually 🤣🤣🤣.
Just trying to help Canadians 1 video at a time.
Awesome job
@@ParallelWealth First, absolutely love the show! I'm wondering if you guys would consider if index investing makes sense going forward, consider this: If you were making $21.50/hr at the lows of the great recession, you could by 1 share of spy for around 4 hours worth of work ($86). Now, say you are making around $35/hr, 1 share of spy is going to cost you about 13 hours of work. Is the risk-reward ratio too high, as Peter Lynch seems to suggest? I used a nominal wage tracker to get the rough average hourly US wages for the low of the great recession and current. Obviously, wages have not even come close to keeping up with the increases in the market, and therefor the relative risk of the market is multiple times as high as it once was.
@@ParallelWealth llllllĺqwertyuiop
His advise is always this good!
Great comment!! I never hear about the Successor holder.
Correct but he failed to mention the RC 240 form from the CRA to rectify (the situation) in the same calender year when the annuitant becomes deceased.
@@boricuadetorontocanada that would be dealt with upon death when adjudicated! His video is awesome and too much detail just adds confusion… as long as it doesn’t impact taxes/limits, he didn’t fail to mention any details in my view… but good to know 👍
Great video and informative, thank you for being very clear. As for some viewers, a positive comment is more appreciated than a negative one. It takes a lot of time and effort to put these videos out to inform us Canadians, for those who are not aware of all this find it valuable like myself. Thank you so much. 👍🙏
@@boricuadetorontocanada ey Boricua, anything you can add to increase our knowledge is welcome. Just make it in a positive way, remember we are Canadians, we are polite 😀
@@ginocolello4241 we definitely aren't that polite. Maybe in comparison to Americans lol
TL:DR
1. Don't do a TFSA Beneficiary Designation, make a successor holder instead
2. Don't use your TFSA as a 1-3% savings account, make it a 3-100% investment account
3. Don't put money into your TFSA when you owe money at a high interest rate to someone else, like a credit card company, pay them off first
4. Don't contribute and withdraw from your TFSA in the same year, only let your TFSA money flow in one direction per year
5. Withdraw TFSA money in December this year if you know you need it next year to buy something
You are hired
Step 2, That's why it really should be called a TFIA. I guess too complicated for some people.
This saved me 6 minutes of my life, thank you.
Need this in the video description.
wow, clarity at its peak.
No one has ever mentioned the Beneficiary vs the SH configuration to me before. Thank you very much for this.
You are very welcome
Does SH apply to spouses only? Can children be successor holders?
The TFSA is my favourite account. By the time I retire it’s my plan that it’ll be worth several hundred thousand and have significant dividend income for me to withdraw tax free to help fund my retirement
Used at it's best, the TFSA is the most valuable retirement tool in registered plans.
I am a teacher and I definitely appreciate well-communicated, thorough and accessible information when the subject matter can be hard to grasp. You are an excellent resource and I want to thank you! Please keep it up.
Thanks Lise, very kind of you to say.
You are doing canadians a great service with these videos. Thanks!
Thanks Peter
For folks who don't need cash from RIF minimums, these can be scheduled at he end of a year in order to fund a TFSA contribution at the start of the new year.
I had no idea about the first tip, thus made this mistake. Now calling my banker for an appointment. Thank you.
Does the successor holder have to be the spouse/common law partner or anybody being designated?
Great information! My wife and I just this week set up TFSA's at our bank. The advisor there made absolutely no mention of the "successor holder" designation.
Not surprised.
We've since had that designation added.
This is because....banks are horrible. They don't really work for you. They work for themselves.
On point one: if you are listed as a beneficiary but are a spouse you can actually just apply to have it changed. Yes it's a bit more work but you don't actually lose that opportunity simply because it was filled out poorly. Though I do agree with you getting it right from the start is just better.
I thought I was relatively proficient on how best to use the TFSA, but have to admit I learned a few more key things. I did not know about Successor vs Beneficiary. I don't even recall seeing that option being offered on any of my (or my spouses) TFSA accounts. I'll need to call them to find out where we can make that designation. The end-of-year withdrawal strategy is also a great tip. Your YT channel (and the solid advice/tips it provides) deserves more views / subscribers. Well done!
Thanks Jax! Appreciate the kind words and always good to hear our efforts are making a difference.
Hi Adam! Thank you for all this informative videos you put out. I am learning more than ever. I am wondering if you could make a video about US penny stocks and delisted US/international stocks in registered accounts (TFSA, RRSP, RESP). What happens to my high risk investments and what should I do? Can I just transfer the US stock(s) over to my Margin account and continue to see if their values go up? What would be the best solution for my situation? What would CRA in this case? Thank you in advance.
The option to leave your TSFA is on your mailed form which shows your latest deposit. If you call the 1800 on your bank card where you have a TSFA they will guide you to where these options are so it will show on your forms. Leaving it to your estate etc.
Great video!! Especially the beneficiary part. A lot of people including me, did not know about the successor rules.
I am going to scroll through your videos for anything else of interest to my situation.
If I could like and subscribe 1000 times I would. Just found your channel and binge watching your vids. I have an investment advisor that I meet with yearly and I'm happy with, but you just add a whole other level of knowledge while I watch and learn sitting on my couch having an adult beverage.
Thanks Ken. If you could sub 1000 times I would let you too!!
Succession holder. Never heard of this. You may have saved me a tonne of taxes. Thanks
Could you have 2 Successor Holders on your TFSA? Split evenly? as in your Kids?
Quick Recap:
1. Don't do a TFSA Beneficiary Designation, make a successor holder instead
2. Don't use your TFSA as a 1-3% savings account, make it a 3-100% investment account
3. Investing while having HIGH INTEREST DEBT - Pay Down the Debt First
4. Don't contribute and withdraw from your TFSA in the same year - Do One or the Other
5. Withdraw TFSA money in December this year if you know you need it next year to buy something
Successor holders can only be a spouse or CL partner....so good luck naming 2!! LOL.
Thank you I never heard of a Successor. Odd why my financial adviser didn't mention it or the Lawyer when he drew up my Will.
Thanks again.
Another mistake is to hold very risky individual securities in your TFSA in a hope to make a killing tax free. If it goes to zero (and you close position), you will have a permanent impairment of your TFSA room as the loss is not deemed a withdrawal.
@@adamjung6104 if you just open your eyes, you will see, that I said exactly that.
@@viacheslavsavateev6522 my apologies I read your statement incorrectly late last night, is it possibly it has changed since I see you edited it?
That last one, Great advice never heard that one before. Thank you for sharing.
This is an EXCELLENT video, clear and concise and great advice.
Such a good video. I didn't know about the Successor holder and have now changed the designation on my TFSA. Thanks so much!!!
😁
So, this answers my question: “For my existing TFSA and my wife’s TFSA, can I change from beneficiary to successor holder after the fact?”. Adam, maybe you should confirm this is actually true. Going to make this change next time I meet with my FP. Great video Adam, as they all are!
How did you make the change? I can’t get my bank to confirm if my husband is listed as beneficiary or successor holder.
Excellent info. Short and directive and I guarantee that everyone will learn at least one thing.
Thanks for the Video. Regarding #5, I think you should clarify that this is for people that already have maxed out their tfsa. The contribution room is the same no mater what. Contribution room is added regardless of wether you take it out or not. If you have 65k in your Tfsa and you take out 10k you have 10k of room. Wether it’s before or after January, it doesn’t matter.
As a fellow Canadian ... Totally appreciate your advice!
Thank you!
As an advisor, you nailed it!
In Quebec, the designation of a beneficiary and/or successor holder can be made only in a will or marriage contract.
Honestly the biggest life hack in Canada, glad I bought tsla in my tfsa few years back 😁
thanks Adam again. Your financial wisdom is far better than I have ever seen.
Thanks, very much appreciate that. Glad the videos are helping!
Thanks for an interesting educational video. Easy to understand with clear language. Didn't make me nod off or my eyes glaze over. Well done!! Thank you :)
Great tips! Didn’t know about the successor holder. Will look into that. Thank you! Subscribed.
Thanks for the comment and sub.
I thought I knew the TFSA rules.
This video really cleared up some confusion.
Especially the first tip..had no clue
Well done and thanks!
Glad it was helpful!
Very new subscriber so I have some catching up to do, I'm off work construction worker and 56 watching older vlog.
I get the retirement aspect and the working serino when you talk about money, just don't want you to forget about a segment of our population whose financial situation is more dynamic and unfortunately have to use retirement money now to pay the bills.
Awesome information and I wasn't talking about myself but know of others that are struggling.
If your spouse is a “U.S. person,” name him or her as BENEFICIARY, not successor holder. Current U.S. tax law does not recognize earnings within TFSAs as tax-free and characterizes them as “foreign trusts,” adding yet another layer of onerous reporting requirements on the surviving US spouse.
Confusing.. they haven’t told me about the successor holder. They asked me who i like to be my beneficiary., but it is good info.. thank you for this video.
This is what I call knowledge is power. Thank you.
Glad it was helpful!
Thanks for your great videos! Another TFSA mistake: our financial planner told us years ago that we should open a TFSA which we thought was a great idea. Unfortunately, he didn’t realize that non-residents cannot contribute so we were faced with a big bill…which we had to pay even though it was a mistake our FP made!
We see this often. Stuck with US tax bill.
It is mistake you & your FP did. Your didn't tell him your very important circumstances, and he didn't do his due diligence.
@John Smith. Our FP knew we lived abroad…he just didn’t know the rules for the TFSA.
@@christelschmidt7468 Raise a complaint with provincial financial authority (for example, in Quebec "Authorite des Marches Financiere"), at least, for amount of penalties.
@@christelschmidt7468 That's disturbing and testament to the importance of understanding CRA's rules in tandem with getting advice. It seems to me that this firm/individual should be culpable for loss or at least have licensing reviewed. I have no idea how it works beyond simply telling CRA to deal directly with the firm.
Thank-you, thank-you... been binging your videos over the weekend. Had never heard of a "Successor Holder". I've had a TFSA since they were created, and assumed that whenever I set it up the advisor would have "done the right thing"... but I called them and there was no such thing on my account. Need to get that fixed ASAP.
Welcome and thanks for the binge watching!!
Great job and very well presented 👍👍nice to see some Canadian content that is valuable! Thank you
Many thanks!
Fun thing I ran into is if you transfer securities in-kind to a TFSA from a non-registered account and the price of those securities dropped since the time of purchase then you can't claim a capital loss as the loss is considered superficial.
Honestly thought this was gonna be one of those videos with the stupid easy, everybody knows tips. But this was actually really good info!
Lol thanks.
Something that seems to really confuse many people is the treatment of capital losses within the TFSA. Yes, for those that use it as an investment tool.
Most find out through experience,but by then it's too late. You just don't repeat the same mistake with the potential of another capital loss. Especially with stock trading.
I guess I should have explained this better, but I was really referring to a capital loss not being treated the same as a withdrawal from a TFSA. You can't replace the contribution room as you can with a withdrawal from the TFSA.
Recently retired/medical reasons.
Videos helpful in many respects .
Married 32 yrs grown children .
Money strategies not my forte, but we’ve done ok . The multiple income sources and how and when to initiate these is something I did not even think about . Thank you
Happy retirement William!
Great vid, looks like I avoided these mistakes by chance, not skill. Thanks for helping others meet their goals.
Thank you Adam, same as Kevin Jackson, I find your videos provide good solid financial tips in a humble and clear way; straight to the point.
Thanks! Appreciate the kind words.
Good Information. Also, the discussion about Successor Holder also applies when setting up your RRIF although some institutions may call it Successor Annuitant.
This is some solid info and recommendations. Great channel! Thank you for doing these videos for us!
Well done.
Successor TFSA beneficiary I did not know. Now I do.
Thank you.😃
Fantastic video and recommend everyone to watch!
Thank you!
I have seen people who don’t understand TFSA’S just put money into them & leave it as such. Financial Institutions don’t pay anymore interest inside TFSA’S than in an ordinary savings account ($.06 on $10,000) & they still are raising their monthly fees. That is why it is a better idea to buy the banks stocks & get a dividend payment inside your TFSA. Buying products that generate streams of income returns like stocks, bonds, mutual funds, etc inside your TFSA also helps reduce your gross income/net income which reduces your tax bracket thusly lowering taxes to be paid. Also in provinces like Ontario that uses family gross income to calculate Senior Property or Energy Rebates (Trillium Fund) it therefore reduces the clawback or qualification. Anytime you can reduce that net income line on your tax return saves you money in all kinds of places.
Calling it a savings account is the problem. Most people don't know how to take advantage of it properly. It's too bad it was launched in 2009, my Dad could barely make use of it before he retired and was forced to use RRSP
I was trying to become a financial planner in 2008 / 2009 when the TFSA just came out. It was a horribly named tool that I would have to tell people know it wasn't just a bank account.
Couldn't agree more - it should be tax free investing account.
I have had tried to explain this to countless people at work, but most still don’t get it. Most people just think it’s a higher interest savings account.
I used my TFSA account right off the bat as an investment account, investing in the stock market and I only have grade 12 education. You don't have to be a genius to figure that out. I made my share of mistakes investing in the stock market in my TFSA account mostly because I listened to so called experts on the business channel saying you should invest in high risk companies to make more money in a TFSA. The last 3 years I've only invested in high dividend stocks and have totally turned around my TFSA and have tripled the amount in it.
There is some debate about holding stocks within as a TFSA. It would be great to see you do a video on this. If the stock gains, that gain is tax free. Dividends are tax free. However, if there is a loss, this is not a stock that can be written of as it could be in a non-registered account. So IMO, a mistake may be to hold to risky of stock. It would be interesting to hear your take on this. Great video.
Nice video. I'm familiar with several of these, but the whole beneficiary/successor holder distinction is entirely new to me! Thanks!
No worries. Glad you took something away from it.
Impressed. I need a tax advisor for retirement and would be happy to hear from you.
Thank you so much for explaining this so well, I can follow what you are saying and it makes sense.
I am going to watch your videos to help me and my job, I'm in finance.
Great advice! Just downloaded the forms to make sure my husband and I have each other set as Successors and not Benefiaries. Thank you!
Where did you find these forms?
EQ Bank gives you 3% interest just using TFSA as a savings. It's not the best use of it, but still offers tax free earning and 0.5% more than Hisa they have. If you lock in money for a year and use it for a GIC it goes to 4.30%.
Excellent video. I have seen a few now. I just subscribed. Yes, the successor holder mechanism was new to me. I'm going to rewatch. Thanks👍
Thanks for the view and sub
Love your videos. This has been really helpful. Very informative. Thank you!
Excellent Info appreciate your Amazing vloggs keep up a great work Merci for sharing
My pleasure!
Awesome info. So informative. Thanks a lot. I will keep & share it to people that I know have TFSA
I love that floor lamp (or is that a fake background?). Glad to know that I'm not making any of these TFSA mistakes.
Real background. Costco lamp from years ago
@@ParallelWealth Lovely background and great retirement planning advice. Thank you!
Always excellent advice !
I am going to have to look at TFSA Beneficiary Designation vs., make a successor holder instead. If memory serves me correct I do not recall this successor option when asked for a beneficiary designation when setting up a TFSA. I will pass on to a few friends who have both spousal TFSA accounts at max contribution.
Thanks ,have a good Day
Thank you for these wise advices.
God bless you.
Could never get a clear explanation on withdrawal guidelines. Thank you for a clear explanation.
You are welcome Ronald.
Love it. So we’ll explained. Thankx
Awesome information. Thank you.
Great advice. I will send the video to my Sister and she can make my BIL as a Successor. I subscribed also and sent them the link to your channel as well. Keep up the good work,
I didn’t understand the 5th tip - pulling out cash before the end of the year to be able to put it back in the new year - why does this save you 100s or thousand $ in taxes? The taxes part confused me. Yes, definitely good tip about withdrawing at the end of the year so it’s not a long wait to put it back. Great TFSA points
Great videos and channel overall!!
Thanks!
thank you!!! this video is just what i needed !!!
One of the better TFSA videos I have run across - well done.
Question: I max out my TFSA at say $75,500 and it grows to $100,000 --- when I withdraw $20,000 from it does that $20,000 come from my contributions or from the growth? In other words can I withdraw only the money that my TFSA has earned and leave the contributions alone or is it always considered to be the contributions that are being withdrawn?
It's really neither....or a combination of both. It doesn't matter at the end of the day. If you take out $20k you will get that contribution room back the following calendar year.
The size of the TFSA is not predetermined, the only think you need to know is you can put x ammount of money in your account each year, and if you remove Y ammount, you can put the same ammount again + your yearly contribution.
If your TFSA worth 2M and you completely withdraw the 2M then you will be able to put 2M again the next year + your 6k yearly contribution.
A large TFSA is quite powerful!
@@ParallelWealth thanks
@@vacciniumaugustifolium1420 thanks for the info
Very good Question!!🤙
Thanks for the excellent tips
Awesome informative video.thanks
awesome video, thanks for that ! good work !
Adam, I found this excerpt about the beneficiary vs SH situation after a quick search (I asked my guy and he said the SH is not required for transfer); If defined as a beneficiary, A spouse or common-law partner can transfer assets from their deceased spouse’s TFSA to their own TFSA, as long as this occurs during the ‘rollover period’. This period begins the day of death and ends on December 31st of the following year. Transfers during this rollover period may be deemed to be ‘exempt contributions’ and as such do not affect your TFSA contribution room.
Correct, it can be done with the RC420 but much more work. Best to just have the successor.
Excellent video
Damn! It's been a while since I've seen something in the personal finance space that was completely new to me. I knew the last 4 mistakes, but that first one on the successor holder was some pretty valuable information that I was completely unaware of.
Ya sometimes the small changes make the biggest difference.
Correct but he failed to mention the RC 240 form from the CRA to rectify (the situation) in the same calender year when the annuitant becomes deceased.
@@ParallelWealth but the beneficiary option must have some other value - otherwise why does it exist ? Sounds like a pretty significant difference between the two options - why ever would one choose beneficiary ?
@@boricuadetorontocanada what with the constant use of failed in your comments, same in most! What’s your point? I’ve been in this business over 35years and can honestly say I don’t know this man but he hasn’t FAILED sat anything… amazing job and happy he mentioned how the banks mislead tons of people too! Guessing that’s your occupation lmao
@@thisotherguy99 your kids could be your beneficiaries….I add am pretty sure they can’t be successor holders.
Very informative video
Great advice on successor holder for TFSA! What about RRIF's and RRSP's?
How would you add your adult children in case both parents are killed together in crash etc. for any of these investments?
Dear Sir, Thank you for a very clear, concise and easy understanding of commonly made TFSA mistakes. I believe that giving practical examples and showing calculations is a simple way of learning. Please add another example in your 4th mistake (Deposit and withdrawal in the same year or withdrawal from a different Institution). Question: Person A started Contributing to TFSA in 2009 and made maximum contribution every year. In the year 2021, he had $75,500 of his contributions and $9750 iNTEREST EARNED over the period, making a total of $85,250 in his TFSA Account. If he takes out $9750 in December 2021, WHAT WILL BE HIS LIMIT IN 2022, assuming a $6000 contributing limit of 2022? Will it be $15,750 (Interest $9750+$6000) or $6000, only $2022 contribution. Thanks
Just recorded this video and will be out in a few weeks! Great timing.
it will be 15,750. You can build your contribution room/limit by making big gains in your tfsa. Some people have million dollar tfsa's.
U
Informative and helpful. Thank you.
You're welcome!
Great advice!👌
Thanks Jade
This video would have saved me on TFSA fees if I watched this before starting to use my TFSA :)
Great info!
Nice video ...appreciate the effort you put in..🎉🎉😊😊
My pleasure 😊
Thanks. Important Stuff.
thanks for the clear explanations , keep up the great work!
Thank you. Very helpful
Great info on tfsa
Good Video , thanks
Thanks for the information about TFSA , I have some money in the Bank but I think the interesting is too low, What do you suggesting for me is better buy some stock thanks for your answer.
Great summary!
remember if you put it in an investment account, you have to have 15K in there or see fees. you can put some rrsp stuff in there if you dont have the 15 at first
You obviously use a bank...they love fees on fees on fees.
@@ParallelWealth a direct investing, need min 15K or quarterly fees, so you have to put any other stuff in there to get up to it when your starting out
I am 60, retired from my job, I have a small pension. To supplement the pension I work and make $25,000. I have room in my TFSA. Is it better to put into RRSP for the tax break, or should I put the money into TFSA? This would be a good video topic!
Do not treat your TFSA as a trade account buying and selling multiple stocks etc within or CRA will view you as a business and tax you
VERY good vid!
Thanks for the info. 😀
Fabulous!! Thank you sooooooooooooooo much!
You are welcome Rick.