My TFSA Contribution Limit for 2022: $16,405 | My TFSA Routine as a Income Investor! TFSA Hacks!
ฝัง
- เผยแพร่เมื่อ 9 ก.ค. 2024
- 00:00 INTRO
02:22 TFSA Routine
08:50 Summary
TFSA Contribution limit formula:
Your unused contribution room from last year + Any withdrawals from last year + The new Government allowance
Create Your Own Dividend Passive Income Investing Portfolio.
Ideal for growth investors, income investors, balanced investors, beginners and expert seasoned investors, this package is for you.
Ultimate DIY Investing Package:
passiveincomeinvesting.ca/pro...
Free Tools & Resources:
(downloads problematic on Firefox, try another browser)
Free Portfolio Download : $732,000 Dividend Portfolio, $6648 /month of Passive Income passiveincomeinvesting.ca/fre...
Report Card: My Dividend Stock Picks - 1 Year Later Review
passiveincomeinvesting.ca/fre...
Our RRSP Portfolio free download
passiveincomeinvesting.ca/fre...
TFSA Contribution Limits free download
passiveincomeinvesting.ca/fre...
Monthly Budget Tracker free download
passiveincomeinvesting.ca/fre...
For Beginner Investors: 5 Portfolio Samples free download
passiveincomeinvesting.ca/fre...
Book a One on One with Adrian:
www.passiveincomeinvesting.ca/
Facebook: / 249796403036406
Instagram : / passive_income_investing
Our mission is to help people gain confidence in DIY investing, create their own source of dividend passive income, enhance quality of life and reach Financial Independence.
Show your support for the channel and help us dedicate more time to create added value content by making a donation:
www.paypal.com/donate/?hosted...
Disclaimer:
Not a licensed investment advisor, videos are educational.
#passiveincome #investing #dividendincome #financialfreedom #livingoffdividends
I keep getting Questions about WHY I withdraw from the TFSA only to put it back in the following year? - Sorry I did not really discuss it in the video... but you need to understand that my wife and I are RETIRED and Financially FREE, living off Passive Income from our Investments ! So we do it BECAUSE WE LIVE OFF THE INCOME! In addition, We only "WITHDRAW" the Dividends/Distributions from the TFSA accounts every month to pay our bills. We do the same thing with our 2 Cash accounts (Non-Registered ) . Then when the new year begins , we once again MAX out our TFSA's to increase the AMOUNT OF tax-free INCOME WE GENERATE. We never touch the "Principle" we only extract the Interest. If you don't need the Income (because you're still working at a dumb JOB you hate), you can simply reinvest it manually within the account or DRIP it :) OF course just leaving it in the TFSA on drip is more “efficient” but please stop thinking only about money and accounting . Of course I can just leave it in the tfsa and make it grow more efficiently! But I want to live life to the Fullest and the more passive income I have the better my life is ! I’m retired at 36 in Panama right now : if you don’t see that as a “benefit “ there’s something wrong with you .
But, if you're cashing out some of your non registered account to max out your TFSA, it's the same in the end as just withdrawing the non reg as "income" right?
Mark has a good point.
My TFSA is maxed out all year long,, not just in January
@Mark Vanderhelm, take this case: 1. Someone’s annual spending is $70K; 2. Annual Investment income is 100K total (50K from cash account; 50K from TFSA). In this case, the person would need to withdraw 20K from TFSA every year, because 50K income from cash is not enough. The following year, the person would transfer cash account investments to TFSA. Eventually, all the cash investments would be moved and all 100K investment income would be tax free
No , it’s a transfer of shares “in kind “from one account to another so that the income generate fork whatever I transferred is now tax free .
Dude, loving your content and channel! It's literally transformed my investing strategy. I no longer have sleepless nights worrying about a market correction or "bad news" coming out 😁. Thanks for all the hard work you put into this channel!
Be careful, this is still investing in stocks and stocks are not fixed-income investments. They are intrinsically risky. One could well get their cash flows but lose the principal. This would be a problem because one would need to sell all of their positions eventually.
The true upside of this style of investing is convenience instead of stability. Because it frees you from manually selling the growth of your stocks for cash incomes. Of course, this comes with costs like management fees and fewer growth potentials.
Glad to hear it’s working out for you
You don’t get the strategy at all my friend . There is never a reason to sell with the stuff I invest in …
@@stephfong4577 I thought the whole idea was to NEVER sell and live off the income. If the total capital value of the investment portfolio drops but the income stays put, there is nothing to worry about. If the income starts to drop and the capital value has already dropped that is when you could get pinched.
Man you rock! love your style of explanation and make things simple.
I don't have enough words to appreciate all this effort you do to make all theses videos and give us information for free....
Your information is so helpful thank you!
Fantastic as always! Love this content and I learn something new every day. Glad to be on this journey
You are good.thank you so much.I leaned so much to day.
So cool that TD has this feature RBC DS sux....
Very useful content. Love the Chanel
Another amazing video 👍
This is legendary!!!!!!!
Thanks again for your transparency. Thank you for your amazing and easy to understand investing strategies 🙏💕
I noticed the CRA updates your TFSA contribute room for the year pretty quickly too. At least they did for me.
You fooled me for a moment. I thought that you found a loophole in the tax law to allow you to increase the government set annual contribution ( $6000 for 2022). You just reinvested money you took out year before.
True , it’s no loophole , it’s my annual tfsa routine like the title says 😉
@@PassiveIncomeInvesting The title of your video is: How to BOOST your TFSA contribution room. This is slightly misleading.
That’s not the title of the video , it’s the thumbnail , and technically , it’s the truth
Thanks sir
This is what I've done for the last few years and have essentially depleted my cash account (nothing invested in it currently), to focus solely on the TFSA for its tax-free benefit. Unfortunately only started doing the PII approach in it, about 5 weeks ago (after discovering this channel - thank you, Adriano!). I'll be pulling the divs earned, to help pay down mortgage, which will free up more contribution room. We pulled a bunch out a few years ago for downpayment, so have some nice room from that, too. Looking forward to maxing it back out!
Thanks man!!!
Awesome video Adrian and Erika! Thank you
Hi! @passiveincomeinvesting, thanks for the interesting video! Question for you: I understand from the video that you increase your contribution room by withdrawing every year the distributions/ dividends, and then re-contributing that amount the following year. How do you increase your TFSA room if you do not withdraw the dividends and distributions yearly (i.e. if they are on drip or reinvested)?
the dividends that stay inside and reinvest also increases your TFSA technically.
Wow, TD's super easy! Thanks for the video 👌.
I was with TD before switching to Scotia iTrade 10 years ago. Very similar easy to use platforms.
Wow! Almost to good to be true. Checking with my accountant to see if this is real. Thx for the tip Adrian!
Lol of course it’s real . It’s what I do since I use the income to live off of
I needed this video!!! This is fantastic content!
Excelent video! Thank you.
Excellent video, very informative and helpful for my own situation. Thanks Adrian.
Great vid broski!
Thanks once again for this amazing tip.
Thank you so much for this great content!! Very Helpful and transformative!
This is so eye opening and scary at same time. I want to be able to learn to invest but feel what I’ve already started was all done wrong (by me in wrong accounts). Passive income would be ideal so could do things like, buy a car or pay off debts.
Would love to sit and pick peoples brains!
I think Adrian has some good beginner videos, but depending on the interest on your debt, it might honestly be better for you to pay down your debt before anything. The interest on the debt would have be lower than the gains of a portfolio before you should dive in.
@@CanadianFinanceSimplified I’m fortunate to have only one debt and it’s a mortgage so I’m not overly concerned about that. But I, like many, would love to have enough monthly disposable to be able to have extra for car payment
@@vanessas3415 my biggest regret was not investing sooner. Don’t wait. Start learning and you’ll be surprised how quickly you catch on. Research everything but Adriano has a wealth of knowledge on the channel.
Good one. very helpful thanks.
I was reading some funds cannot be in the tsfa like partnership units
Don’t know what those are or have any of them
Good video ! If you want to use a small capital losses from your cash account, you can just sell the shares and then complete your contributions from the cash following the sale. Doing that way, you will be able to use the capital loss against your capital gains...
Yes of course
I might not get a reply(old post) but does the same rule apply for security transfers into RRSP that have a capital loss?
@@substanceo9335 yup In fact, you have to wait 30 days to re-purchase same stock according to CRA rules- CRA can refuse your losses... but they never refuse a Capital Gain 😉
Had no idea that's how that worked that's incredible thank you!
Great video as always. Thanks bro.
That is interesting, Thanks So Much
Another great video! thanks so much. I'm wondering if I should be cancelling the DRIP in my TFSA and withdrawing the dividend income so as to grow my contribution room the way you describe. That seems to make more sense than just accumulating DRIP income.
Drip is actually more efficient . It’s really comes down to this : so you want the passive income in order to enhance your quality of life? Do you need it to live off of , or supplement your income ? If not , drip is better
Awesome content 🔥🇨🇦
I prefer reinvesting my TFSA dividends to get the tax free compounding effect. As a result, I've built my TFSA to over $200K. But I see the point of removing tax free dividends, but I won't do that until I'm on a beach in Thailand...😁🍺
Great job ! What are you waiting for ?? You might die tomorrow bro . Hurry up !
@@PassiveIncomeInvesting Once I have ~$2.4 million invested, then I'm done...
You really don’t need that much to live in Thailand surely ??!! You want to have 6 wives or something ? 😂
@@PassiveIncomeInvesting lolz, no I have one good one already...
@@PassiveIncomeInvesting loooool
Lets say the 2022 tfsa limit is $100k for simple math.
Buy 100k in tesla jan 1 2022.
By oct 31 2022 tesla is up 100% and tfsa balance is now $200k. Sell half, 100k stays in tesla the other 100k is sold and transfered to a cash acct and sits in cash untill the next year. Jan 2023 tesla drops 50% and i now have 50k tesla and 100k to reinvest in PII
Tsfa balance 150k
Tfsa allowable contribution room 200k
=I gained 50k of additional room
Is this actually possible to grow my tfsa contribution room like this?
Yes but there is no need to transfer the money out of the tfsa . Why not leave in there and reinvest it right then and there ?
Seems counterproductive, ,,withdrawing, to make more contribution room
why not keep the money in the tfsa account and use that money to buy more inside the account?
It's very productive if you are withdrawing monthly dividends and distributions as Adrian noted, to fund your living expenses. If you aren't drawing income, then it would be counterproductive.
You don’t get the strategy , lifestyle do you ? I’m living off of it and I’m only taking out the “interest” I’m financially independent . How is that counter productive ?
You can , I live off the income! I’m financially free because of it
so you're using your TFSA as a day to day expense withdrawal account, And then topping it backup in January,, It seems to me you lost some tax free income potential inbetween there.
People really need to pay attention to the video before they comment !!!
You make it sound like this is some back-door way of getting extra TFSA room.
However if you don't need the income, then isn't it better to just leave your TFSA alone and keep re-investing the income immediately. Then add the annual contribution on January 1st. I know you are an income investor but I think you should emphasize this a bit more when giving advice.
Also a word of warning - It is easy to make a mistake when doing lots of TFSA transfers and you end up over contributing .
Made it sound no such way.
That’s your opinion … and thanks for the warning mom lol
TFSA should always be the last account to withdraw from, this is literally investing 101. That’s why chasing yield via Return of contributions never went mainstream.
I live off my yield bro and it’s a free country . You wanna be mainstream go for it 🐑
quick question. I printed off a list of your ETFs as well as Split share stocks. I see that you dont have ZWB but have split share SBC for Canadian Bank investments? I also see that the yield on your list shows SBC at 12.45% but when I go on line it shows 8 + percent. I am new to investing and just wondering if its 12.45 % or 8 % yield.
That’s my yield according to my book cost , not the current yield . Like I explained in the video 😉
Hi thanks for the video super informative. From my understanding, you still need to pay non resident tax in registered accounts for foreign income. Can you please clarify this?
Tfsa is still tax free even as a non resident, but I’ll clarify when I get there … not there yet
Excellent video Adriano..This really takes full advantage of your TFSA account, if you use it as passive income,and at the same time you keep up with inflation by contributing/growing your account…TAX FREE INCOME PAY RAISE.
Finally somebody who gets it !! Take care bud 😉
Awesome Adrian ❣️
Great informative video.
Adrian, in your cash account, why not liquidate your investment to cash (enjoy the capital loss - carry forward indefinitely and/or pay the capital gain, or offset the capital loss)...and put the "cash" rather than the investments directly into the TFSA...and not miss out on the capital loss benefit? Just asking...
What ?? My tfsas are full bud
@@PassiveIncomeInvesting I guess that I was not clear on my point...I was not suggesting that you move more to your TFSA...but next year when you top up your TFSA and you want to move an investment (that has incurred a loss), go to "cash" first with that particular investment, capture your loss for tax purposes...and then move that cash to your TFSA...hence not giving up the capital loss by moving that investment (at a loss) directly into your TFSA...:)
It’s an option …
Hi!! Do you pay taxes because you take money from your personal account?
Everything is taxed in the cash account , whether you take it , or not .
You just basically butting back the value of what you took out, your not adding room. Why withdraw it? Unless you need it
Exactly.
On the one hand, if you took out ~$10k last year and contribute ~$16k in the new year, then you didn't actually need to take out that $10k. In fact, you could have grown EVEN MORE room by re-investing all dividend (or similar) income sooner, which would have produced even more in year dividends and capital growth.
On the other hand, psychologically I get the appeal. It feels like to have ACCESSIBLE passive income going into one's checking account. Personally I take out small loans on my line of credit to max out investment accounts. I then use the income to pay down that loan to bring down the amount of leverage. I get the appeal even if technically and mathematically speaking it makes more sense to keep all that income in the TFSA.
Thank you !!!
@@PassiveIncomeInvesting No problem, happy to comment. I hope that it is a fair analysis (I believe that it is). It is certainly more motivating to feel the flywheel effect of passive income by having it hit one's spendable checking account. Just makes me more motivated to plow it all back in to increase the flywheel effect.
Nice method for those who are using the income, and also able to keep transferring more in each year!!
With the $200 or so left over at the end, couldn't you transfer a few shares of another stock in your TFSA to equal $200 instead of contributing your own cash?
Yes you can
How does removing the interest portion and adding back next year = increase contribution room?
see my pinned comment
@@PassiveIncomeInvesting same age but decades behind you, if ever, on financial freedom. Eye opening
I didn't realize that I would be liable for capital gains tax when I transfer stocks from my non-registered account to my TFSA. Allthough, when I think about it, this is reasonable. However, I'm rather puzzled that I wouldn't be able to apply capital loss credit if I transferred losing position to my TFSA. I guess it doesn't matter, that's just tax law.
I'm guessing that if you wanted to "harvest" any loss, it would be better to sell the losing stock in your non-registered account and then transfer the cash to your TFSA (of course, keeping in mind brokerage fees and the 30 day requirement for re-purchase).
Does this make sense?
I’m wondering the same thing, would selling it in non registered account allow me to harvest losses? Not super familiar with capital gains as I’ve never maxed out my tfsa until now.
Yup !! 👌
@@jessebensen8009 sell the shares first to trigger the capital loss then just transfer the funds into your TFSA and rebuy shares
I have a quick question. Wouldn’t it be better to sell the shares of those that you have a loss on and then immediately rebuy those in the tfsa, doesn’t that trigger a capital loss you can use ? Or is there a waiting period?
Waiting period I believe
Hi Adrian, amazing video.
How much taxes we have to pay for having dividend income in non-registered regular account?
Depend on many things …. See my tax video part 2
This is really helpful, this is also one of the rich people problems 😆
I started at the bottom … if we can do it , so can you
I have a question about In Kind transfer. Eg. I bought 10 shares of Tesla in my Cash account for $700/share and now it's worth $1000/share. When I do the In Kind transfer, it moves the amount that the share is worth about the time of transfer say $10,000, so my TFSA contribution will be $10,000. I leave it in my TFSA for 2 more years and it grows to $20,000, do I have to pay the tax on it or is it totally tax free? Thanks
Tax free !! It’s called the tfsa for a reason 😂
Wow! That was simple!
Thanks, Adrian. What if in 2020 I withdrew some amount from my TFSA and didn't deposit anything in 2021, can I deposit this amount in 2022?
Of course , it all Carries forward
Love this strategy and your videos. Can you do a video on how you invest the money made from your You Tube channel.
We’ll it’s just another source of income … it gets added to all my Katherine sources at the end of the month, I lag my bills , and invest the leftover usually in a stock pick of the month 😎
When you move your stocks that have losses to TFSA can you claim the loss when you do your taxes?
Nope
CRA does allow you to carry capital losses back up to 3 years so if you had a capital gain in any of those 3 years you can offset them which usually results in some tax back. Not sure if the IRS has a similar option. In addition, if you were also considering selling a position that would trigger a capital gain, doing it in the same year as selling a loss position would reduce the overall net capital gain/loss.
Cool I didn't know you were in Panama. Full time?
For the winter … stay tuned for more updates And follow us on insta
Very helpful Adrian. Margin account is what you call as cash account in TD, right? I moved a tiny position to TFSA following your video and it was on heavy loss. Question, what is the prinicipal transfer, the original amount X that was used to buy the Stock or the current price Y that was used during transfer?
Current price !
@@PassiveIncomeInvesting which means moving a loss ones give bit more room if we believe it a huge upsider :)
Yup 👍
@@YuginSkolov If you have a loss, you are better off to sell the security, take the capital loss to carry forward against any future gain and transfer the cash.
Adrians primary goal is PASSIVE INCOME - not CAPITAL GAINS. That is why he withdraws dividends from his TFSA and contributes again the following year. This purpose is expressed clearly in his channels name and he verbally states this in every video.
Thank you !! You’re my hero 😉
Brilliant! Always wondered how people had more contribution room than what was given. Thanks for this one!
Any news about EIT.UN about the special distribution of 0.44?
It’s a notional distribution, we won’t get anything
Have you checked Interactive Brokers fees? They have much oess expensive fees than banks, and their platform is very complete.
Excellent video and content! When you mentioned the withdrawal of your interests and/or dividends only by the end of December, which means you are not doing DRIP for your stock holdings? please advise and thanks!
Nope, and I withdraw once a month , not just in December
So with a portion of your investments in the TFSA, you are using drip and the rest is collecting interest which you withdrew…is this correct? Thanks Adrian you have made investing easy.
No I don’t drip , I’m withdrawing the dividends every month . Please read the pinned comment
Does anyone know if the same can be done (transfer in kind) in Questrade? I intend to transfer from RRSP to TFSA, which I know will incur a withholding tax (5% for
Yes you do need to have the cash. I just did that with a RRIF. If you transfer cash, you can use the % to figure out cash needed. If you transfer in-kind, the bank holds back a higher % for taxes. Phone the folks that look after your account and have them tell you how much for taxes.
Thank you! It is really interesting option of transferring investments in-kind between TFSA and unregistered account. I wonder that you use TD with its steep transaction fee (I pay $9.99 per transaction). Have you consideed moving to National Bank for example with no transaction fee? Another thing that make me wonder: you mentioned that you don't get tax decrease when moving losing position to TFSA. But then why not sell the losing position first at unregistered account, collect Tax refund and then move cash to TFSA and repurchase the same position? I probably miss something. Thank you again.
I like td 😉 been with them for years and transfers in kind are free . Yes you can always sell it first . But you gotta wait 30 days to buy it back in the tfsa I heard . So I just did it that way , no big deal for me
@@PassiveIncomeInvesting Got it, thanks!
I've ran the numbers in a few different ways, but I still can't see what the advantage is over just reinvesting the income within the TFSA initially and maxing the 6k per year. If you are thinking of it as a conversion strategy (from taxable to tax-free) it still doesn't work, as either you either withdraw the dividends (losing their earnings in the TFSA for the portion of the year removed), but then you are just restoring the room that already would have already been put to work when you do your transfer from the Non-reg to the TFSA. Obviously if you are using the TFSA income for living expenses, then it is consumed, but there isn't much of a tax-difference from reinvestment within the TFSA and having an outside taxed source of funds which is needed to create the funds in order to make the "extra payment". You could have grown the principle within the TFSA simply by leaving the funds in.
Please read my pinned comment
@@PassiveIncomeInvesting I've read the comment (and thread) but the math still don't work unless you are in the pure drawdown phase. For instance, lets say you are 20 years in and taking out 30k out from the TFSA. In order to do the strategy you would need to have either 30k of old stocks (taxed) or actively earn 30k aftertax just to get back to zero. If you had all of those existing already taxed stocks, then you could have just liquidated them to pay for lifestyle.
This makes a bit of sense for those fully in their retirements, but its not for those actively earning their way up to retirement. Koodos to you for being retired at 36, but that doesn't change the math for those in the accumulation phase.
You could have sold the automotive finco in the non-reg to pay for life, and then as the dividends accumulated in the TFSA, then bought Automotive Finco to replace it. Same tax effect between the liquidation for lifestyle purposes (FMV less Adjusted cost base) as the in-kind contribution to the TFSA. So you could wind down your non-reg account for life purposes and reinvest the TFSA over a number of years and it would still work out to be the same (or less, due to the period of time of not being re-invested in the TFSA). Then finally once the non-reg hit zero, and the TFSA had X number of years to compound on itself, then you could take all of your lifestyle requirements solely from the TFSA and still possibly qualify for government programs based on income (which you'd have none).
You answered your own question . It makes sense for me , and this channel is all about how I invest . The title of the video says it all : it’s my annual tfsa routine .
@@PassiveIncomeInvesting Alright. i'm glad you infer that its only for you and not for the 99% of ppl watching. I walk three times around my house before I place any trade. Same same right, its only routine. No one should watch since the math doesn't work (show benefit) and they aren't you?
Just a question why do you move breakeven stocks to your tfsa?
I explain what I typically like to move and why in the video
@@PassiveIncomeInvesting you didn't say why you look for break even stocks in the video. You explained that is what your doing.
Because there no tax consequences, it’s the easiest thing . I like to move higher yielding stuff to the tfsa also
2 things
-I’m finding it hard to wrap my head around the concept of moving, example an etf, from your cash account (that has gains) to your tfsa so now it’s tax free? How does your gains all of a sudden become tax free gains? It legally disappeared?
-And secondly, once u max out your tfsa, what happened if u make Gaines past the maximum limit? Are u required to withdraw or u get hit with taxes on the difference?
Ok so I think u answered the first question at the end of the video
I think I get it now
Gains have nothing to do with contribution room
Sorry I don't understand what's a cash account Adrian is showing here?
Non registered account
Sorry I don't understand the strategy.Could you please explain?
Did you watch the video ??? I explain it
So, you transfer dividends earned out of your TFSA, tax free. Move investments from your cash account into your TFSA, and earn more dividends, tax free. Wow, what a great way to invest! Thanks Adrian! 😃👍
That’s because you don’t understand or living my life … it’s called financial freedom . I’m living off my income and am retired at 36 . Your comment is there for dumb and short sighted . How can you say there’s 0 benefit lol go to work dude .
You realize it would be the same (if not better) to reinvest those dividends instead of withdrawing them only to then re-contribute them.
Money is fungible. It's the same whether it comes from one account or another as long as the tax bill is the same, and in this case, it is.
Of course it’s “better and more efficient “ but I want to maximize my passive income and live life to the fullest . The more disposable income I have the better my life is , right ??? You gotta enjoy your money instead of just hoarding it … if not what’s the point ?
Hi Adrian what if I already maxed out my tfsa this January and I will make a contribution of for example 2k on December and withdraw it before end of the year, will I get 8k contribution room for 2023? Will I be penalized for over contributing?
If you are already maxed out in January, you should not contribute any more until 2023, otherwise this is an over contribution. In January 2023, you will get around another 6k in room (it can vary from year to year).
You can’t , that would be a 2 k over contribution for 1 month . That would result in a $20 fee or fine
Hi Adrian, thanks for the detailed breakdown. In your understanding, would premiums received from writing covered call options be treated in the same manners as interest and/or dividends where the annual income can be withdrawn and later contributed back the following year?
In a tfsa it’s all tax free , it doesn’t matter what it is .
@@PassiveIncomeInvesting Yes and no, CRA is actively attempting to restrict options activity in TFSAs as they deem it as business income (not eligible) not investing income, therefore there is a risk of reassessment that a portion of the TFSA is ineligible if you are engaged in options activities. Or generally any activity with a substantial amount of volume (day -trading, monthly call option writing, etc).
Yes yes , but this channel is about investing , not trading
dyou have to take money out of the tfsa account for the growth to work?
No you can leave it in there also of course
@@PassiveIncomeInvesting are you taking the dividends that come out of your cash portion of the account "buying power"
I take all dividends from all accounts I live off it
Another question. So if I withdraw 10k dividends money in 2022, does it count as a withdrawal/contribution to my TFSA?
Then for 2023, I have 6k extra + 10k contribution room?
Thanks!
I’m also from Montreal city by the way 👍 Currently living in Edmonton
Correct !
Great Video!!! I was doing this automatically, but I'm glad this video was shared !! This is such an easy way to increase the TFSA limit... imagine in 10 years time, what this will be!!!
The sky’s the limit !! I know people who have over 300k in their tfsa ! Imagine having all that tax free income !😉😉💵💵
Hi Adrian, lets suppose my max contribution room for the year is 6k, and I maxed it in Jan itself. I get dividends of around $300 per month which I reinvest to buy stocks for the rest of the year. Does that mean I have over contributed to my TFSA by $3600 and liable to penalties? Most brokerages allow the DRIP option. How do we track how much have we overcontributed in that case?
No , dividends don’t count as contributions !
@@PassiveIncomeInvesting Thanks for the clarification.
Sure
Hi Adrian, would I be wrong if I lived off my taxable cash account before drawing down my tfsa or am I splitting hairs here?
If you can afford to, I think that would be better. That way you can reinvest the TFSA dividends in the TFSA, and compound the tax free earnings throughout the year!
It’s not wrong ! Especially is you’re still working . Your benefit would be in the future instead of in the present ( if that makes sense)
Why take it out then put it back into tfsa 😂🤦♂️
Tax free income to live off of ? Financial freedom ? Hellooooo?!
@@PassiveIncomeInvesting no why take it out of your tfsa then put it back into your tfsa next year
To pay his monthly bills.
I’m Living off the income ! Do you know what passive income is ? ??? Or financial freedom ?
@@PassiveIncomeInvesting hi Adrian. I am your big fan. I think a lot of people asking why you take money for paying bill and living from the TFSA income rather than 100% from the non-registered account. I assume you are generating enough money even only from your personal account.
Is withdrawal amount cumulative? Let's say I withdrawal 5,000 in 2021 and I did not put any in 2022. Is 5,000 still the room in 2023?
You can put back in any money you took out the following year(s), and you also get around 6k in new room per year. So let's say in 2021 you were maxed out in the account, but then took out 5k. You can put it back the next year (2022) plus you get the additional 6k of room for it being a new year. So you can put in 11k in 2022. If you took out the money in 2021, but don't have it to put back in 2022, you can still put it back in 2023 or later.
Yes of course , you never lose the space because of time constraints
For clarity, any dollar you withdraw can be re-contributed in any SUBSEQUENT year, not only the following year. Just like if you don’t contribute $6,000 this year you can contribute it next year.
THX INVESTING IS SO MUTCH LESS STRESSFULL THX TO YOU
Sleep 💤 my friend 😴
I don't get it, I understand that you get the 700 + left over from 2021 and the 6000 from 2022 but the withdrawal being added to this years contribution is a wash, you pulled $9600+ is a wash.
You pulled it out in 2021 and put it back in 2022, how is that giving you more contribution room.
You end up with the exact amount of money in your tfsa.
Please read the pinned comment
He simply uses the TFSA income to pay the bills and expenses. you can sell your cash stocks also to make a living but then you trigger taxes and you reduce your cash income and you also pay hefty brokerage fees. This way he uses TFSA income tax-free and just simply moves stocks from cash to TFSA once a year. So it's NOT a wash. IF you don't need the cash, you can just leave it in there and reinvest to gain compound interest. Does it make sense now?
I love you !!😉👌
What a great idea!!!!👏👏👏
Why not sell the fund that is at a loss, take the cash, realize the loss. Then deposit the cash and repurchase the same fund
You could do that too !
Just remember to wait 30 days before repurchasing the same fund, otherwise your capital loss claimed will be denied. You may also end up having to pay more for the fund to get back into it, than what it was at when you realized the loss.
A little off topic, Have you noticed your Projected income for EIT.UN is ridiculously high on you TD account? It’s like Doubled the amount which is very misleading, when I looked at my projected income I was smiling at the number I saw then looked closer and realized TD has a bug with its calculation for that stock!
Like I always say , never look at the td projected income …
Adrian, do my poor choice losses in the TFSA create contribution room?
Nope losses make you lose room 😢
Perhaps I missed something but why did you withdraw $9631.54 from the tfsa in 2021 only to put it back in 2022? Why not leave that amount in the tfsa to grow tax free?
Read the pinned comment ……………..
@@PassiveIncomeInvesting sorry didn’t notice your pinned comment. The title of the video shows how to boost your tfsa contribution in my opinion not what the video is about or can be done. Regarding your response it seems to me that you would be better off withdrawing the funds you need during the year for living from your non-registered account. Good luck
I withdraw from that account also
Adrian, do you do the same for your RRSP account?
No I don’t take anything out of there
I was not aware you could move stock from a non-registered account into a TFSA without having to sell it and re-buying it. Today, I just moved a bunch of AC stock into my TFSA from my non-registered account. I was told the transaction would go through at the previous day's closing price. Plus, if I transfer a Stock, and there were gains, It must be reported just as if you sold the stock. Thanks, Adrian for the video.😁
yeah, that's my big question too - if it was legal to buy something in a cash account and have it grow in value for any amount of time, and then slip it into a TFSA at the very end tax-free, wouldn't that basically imply that you could have infinite tax-free investments? I feel like that... can't possibly be how that works, legally.
EDIT: I just googled it, and you definitely pay capital gains disposition on stocks moved 'in kind' like this
Yup , I mentioned it in the video 😉
@@BrennanLetkeman
Yes, you will have to pay for any capital gains acquired. Just as if you sold the stock. No free lunch...😁
Are you only permitted to top up TSFA from the preceding year's unused cap? In other words, if a person had not contributed anything yet in 2020, 2021, or 2022, would they be allowed to contribute $18,000 this year?
Yes of course
@@PassiveIncomeInvesting what about cumulative withdrawals - can you add those up as well and add back ?
What do you mean by cumulative withdrawals? It’s simple , whatever you withdraw , can be put back in the following year
@@robertcheszes4347 you should access your mycra account to verify what your TFSA room was at the BEGINNING of last year, then do the math of last year’s withdrawals plus the new $6,000
@@PassiveIncomeInvesting i have the same question, what you withdraw can only be put back the following year or years? Like if i withdraw for a project 10k from my tsfa and can i put i back like 3 years later?
I dont have the currency to max my limit in any year.
Reduce expenses and increase your income !
Quick question
Would it not make more sense to just keep the dividends and distributions in the TFSA and use them to buy shares of stocks rather than withdrawing and then transferring from your cash account and paying some capital gains taxes?
See my pinned comment . Yes of course that makes sense if you don’t use the income like me
Great content but If you have enough assets outside of your TFSA to live off don’t withdraw any money from the TFSA so it all compounds tax free. The money you took out was not compounding and the money that is generating income outside of your TFSA and RRSP is taxed.
Yeah the pulling 9K in 2021 and putting it back in 2022 and calling it additional contribution room is ridiculous - it's a wash, it's not additional room.
Please read my pinned comment
Please read my pinned comment instead of criticizing. It’s a “wash”? So silly … I’m retired at 36 living for free . What about you Teresa ?
@@PassiveIncomeInvesting what's a pinned comment and where do I find it?
A pinned comment will be the first TH-cam comment in the video . Look below …
Would the value in MyCRA not take into consideration the previous years' withdrawals?
It should , it just takes a really long time for it to be updated there . That’s why I track it myself