📈📚🇨🇦 Join The Investing Academy Today - bit.ly/theinvestingacademy How much do you know about the TFSA? Be sure to let me know down in the comment section below!! Also, I'm so excited to be speaking on stage at The Moneyshow Conference LIVE in Toronto this September. It would mean so much to me and my dad to have you guys come out and support!! We'll have a booth to meet you all and take photos :) Best of all... It's COMPLETELY FREE to attend!!! There are so many talented speakers at the event and it will be a blast of a weekend so I hope to see you all there - conferences.moneyshow.com/moneyshow-toronto/speakers/adec2b68f2144b24ba2e06060e4f8348/brandon-beavis/?scode=056838
Great video! QUESTION: If a contribute every week $125 cad and I invest it right away is it considered frequent trading? Should I better do it every month? Or what is your recommendation? Thanks
@@DianaDiazEnglishTeacher Contributions are not the problem. It is the trading part that can be questioned. If you buy a stock, and sell it after 2 days, you've not invested - you have done trading which is considered a business. Trading is buying and selling a stock, not just buying a stock.
Thanks so much. This should be mandatory learning in high school. My daughter is turning 18 and I am going to be guiding her so she can be financially savvy for the rest of her life.
I think it's worth pointing out a couple of things which I haven't seen any TH-camr mention when they talk about TFSA: 1. If you're an immigrant, you only start accumulating contribution room on the year you become a tax resident of Canada. Not when you're 18. 2. In Quebec, you cannot designate a successor holder directly with your broker - you can only do so using a will.
You think this kind of people ever stop for a second to consider the immigrants' perspective and their lives? HAHAHA They'd first need to open their minds and be curious about things outside their insular little world.
Thank you so much for your videos Brandon! They have helped me immensely in starting out with investing in Canada. As an immigrant who can’t turn to her parents and such to explain these things I sincerely appreciate what you do! Keep up the good work man
I didn’t know about the in-cash transfer, in fact I recently withdrew one TFSA to open a different TFSA at a new institution. Who knew 🤷🏻♀️? I am still learning every day. The rest of the content was a great refresher. Thanks for the video Brandon!
Great Info Brandon, I think it is important to mention (and you did mention a bit) that all of the gains you earn in your TFSA, automatically increase your total Lifetime TFSA Room. Say like in your 10k to 50k example (@5:30), you were to withdrawal that 50k before adding any more money, to put down on a house, you would now have the Original 50k in Room plus an additional 40k of Room from your gains for a total of 90k in TFSA room that you could put back into your TFSA the next calendar year along with the new 6.5k for that new year all coming out of your Inheritance from your Grandmother . 😃 But as you did mention, all Loses in your TFSA reduces your Lifetime Room. If for example you Contributed all 50k (@5:30) into your TFSA and your investments went south and you lost 40k, leaving you with only 10K and then something came up and you wanted to withdraw the 10k. The next calendar year you can only contribute 10k + 6.5K of room, so you would have lost that 40k of room forever. I hope this isn't too confusing but it is important. Brandon you could do a better job of explaining this. Thx.
@@VictoriaMorhan diversify. And honestly r u really banking that significant of profit on those stocks. I also recommend not using all your securities of choice with your TFSA ACCOUNT. I have been learning by trial and error self directed, non managed and I have a blend of securities and digital currencies attached to my first TFSA that I started in 2021. Honestly, the app I use presents projected rtns on investments till my expected yr of retirement. It’s bloody dismal. I wouldn’t even be able to afford a damn box. And I am not having it!!!!!!! Then I started exploring. Learned that banks are in on this money making service. So I opened another with a traditional financial institution. And stepped it up. I have an entire limit of contribution available basically. It’s $95000 at this time. I also only have 12 yrs till expected full retirement. With nothing but the CPP. It’s extremely sad outlook for hard working people in Canada. It’s meant to be confusing my friend. You need to do some ground work and divide a strategy. Most importantly be honest with yourself. How much would I feel comfortable loosing if the markets cause losses. I bet Brandon has spend hundreds and hundreds hours. Getting educated. No quick fixes here. Hire a broker or portfolio manager. You keep yourself organized and open to improving your knowledge in this industry. Good luck!!
@@VictoriaMorhan If the let you recontribute your losses, then to make things equal, if you have gains they would reduce your room to compensate for those gains. Would you like that??
Same here, I’ll be switching that from having her as a beneficiary. I also thought I’d have to cash out to move to another Institution.. Transfer is the way to go, My concern is people that work at Banks have become pretty inept.
Just to clarify for anyone not born in canada and immigrated, a category my wife falls into. You have to be a resident of Canada with a valid SIN, not just be age of majority when you can enter into a contract. I think Brandon is coming from the perspective of a born and raised Canadian. You also need to be a legal resident of Canada, ie, spending more than 183 days of the year here. I think this is much needed information for new Canadians or those living as expats 😁😎
I'm in that boat too. My bank didn't even know that fact. Sadly I cannot put my money blindly into a banks hands. They'll cost me a 1% penalty a month for being a non resident with a TFSA that I contributed to.
@@markopolov2207 depends if you were considered a resident when you arrived. My wife came as a visitor, and it wasn't until the following year we applied for PR, so the year she arrived was not counted. You can check online with the CRA to see your contribution room currently.
Gotten to level 5- I don't make enough money to maximize my TFSA. I had a investment strategy laid out since 2020 by myself. It's been going extremely well. i still make investment mistakes but still moving forward and having the majority of my investments in the green. i am happy with the capital appreciation so far. i remembered during my first 6 months using my TFSA, I started to experience the joy of compounding interest.
Thank you! One quick thought: if you want to only contribute the annual $6,000 to your TFSA (because you have used up all previous room), don’t contribute $250 biweekly as that will put you $500 over the limit. There are 26 pay periods if you are paid biweekly. Contribute $230.76 biweekly.
Thank you for clarification on the USD stock in TFSAs. One person said you Should NEVER have any USD in TFSA and I was feeling bad because I have 2 stocks of Rio Tinto before I learned that RRSPs would be a better place for foreign investment. I did appreciate you saying “it’s not a reason to not have any there, just be aware you kiss out in 15% of the dividend” I’m so happy to hear that there is no tax receipts come tax time for the missing 15%. Thank you again
My strategy has been to do a minimum annual withdrawal (MAW) from an RRSP or RRIF on the first business day of a new year and immediately input your TFSA contribution using some of the MAW funds (In RRIF Accounts)and other savings to make the annual contribution to the TFSA in the first business days of a New Year. This strategy may help to maximize returns in the TFSA and returns in RRSP\RRIF accounts are fully taxable. Your video was very good and I did not know about the jurisdictions where you were required to be age 19. Good job!!
I'm new in Canada, and this video was sooooo effective at quickly building my knowledge of TFSAs... thank you so much. liked and subscribed! I'll be watching your other videos.
Nice video Brandon, I like the white board video style, you should do more videos like this one ! TFSA is so underrated, young canadians must invest asap in it !
Great video, I was aware of most of it, bit it's always nice to refresh that knowledge. I currently contribute my maximum limit per year but I have a lot of room from previous years to utilize. Tax returns typically go straight into the TFSA to help me catch up.
Ive literally only heard of TFSA's, I had no idea how they work! Thank you, it's still above my head...do you put the money in and then invest? Also I'm 45 years old, were TFSA's around when I was 19? Do I have 26 years of room?
Welcome back . Love your vibe, confidence, how you sounded.. and the video creativity. As always great content Thank you so much ! AND It will be awesome to see you on the stage and finally meet you :) can't wait !
This is some GREAT info! Thank you. I learned a few things for sure. Time to take my TFSA more serious. I stepped up my savings and investing in 2022. Now, I will once more do the same...step it up this 2023. I watch your videos and Adrian's as well. You 2 are big inspirations for me and I'm sure for MANY others too. Thanks again!
Thanks to folks like you, I've been using the TFSA correctly and knew about all of the common mistakes. The last one is maybe the only one I've made. I'm in my 30's now and only started putting money into my TFSA a little under two years ago. With a full contribution limit available to me and the limit expanding by $6000 a year, it can feel like the contribution cap is almost out of reach at least at my current income level. Not a bad problem to have I guess, I'll take all the tax free gains I can get! Highlighting some of these mistakes though is a good refresher on why it is still important to track contributions. Great video, and may make the trek to the city see you guys in September!
I was hoping he would answer this. I too am in my 30s and starting now. I have no way to max it out. Likely never will. But the best I can do is start with the $500 per month rule
ive been watching you for so long, i actually knew everything already... but i havent maxed out my TFSA. not there yet. thanks for the great videos Brandon.
I would love to see more videos explaining the technical differences between your spouse being a beneficiary vs. a successor, as in what can one do vs. not the other? and also explaining the spousal account too would be awesome! I'd look forward to that video also : )
I mean spousal account is just the same... Open a new account for your spouse and use your money to contribute to that account. Don't forget to use referal code
As a much older Canadian I should also mention that utilizing many years of unused contribution room is a great way to get the maximum benefit out of such windfall money as inheritances to help generate tax-free retirement income.
that was a hell of a good video! Put 40$ a week and all the extra and unnexpected money in that accont for one day have a dividen snoowball. keep up the work
Great video, very comprehensive. Got all right the most crucial points are 1. Successor holder and fully fund this account before making any other investment.
I have a TFSA and learned many new things from this video. Also like the white board style too. Didn’t know about setting a success holder and will definitely do this soon
So glad this came across my feed. It just proves my phone is listening to me talk to my wife.😂 Learned alot from this short blurb than i have since tfsa started.❤
This was eye opening, especially when the CRA can skin the regular person alive. So the message here is be very careful and find a good financial advisor
If you have excess contribution space in the TFSA account to accommodate the withdrawal within a calendar year, you may contribute the amount of the earlier withdrawal without penalty. But the new excess contribution limit will obviously now be reduced & will be regained only the next calendar year. This part you did not mention. And I hope my line of reasoning is right.
You make some great points here Brandon! I would suggest,(quite strongly actually) that the TFSA should NEVER be used as a penny stock Hail Mary account. The tfsa is most powerful when used as a blue chip compounding tool for long term wealth. I would say to any young investor out there,if you want to gamble,go to Vegas …and see how that works out for ya. Don’t squander the best investing tool the government of Canada has ever alighted upon the lowly masses.
Hi there world!! I'm late to this party, but I still wanted to leave a comment, and I'm a new sub too!! Thank you so much to this young man taking the time to create and then post this video. You are a ROCK STAR!!! I'm sure you are an avid reasercher, or the very least, you read...always!! Either way, I'm grateful to you for learning all this necessary material and then graciously sharing your knowledge, too. You are a great teacher!! Breaking down this information and making it clear to the viewer is not something everyone is gifted at being able to do. Just know, I believe you are helping so many. Yes, I learned so much, too. Thank you. God bless you for your kindness and sharing with Canadians, who should all be taking your advice!! 🙏🐾
I was surprised about the CRA nailing you if you do day trading in the TFSA. I was asking the CRA about if I buy and sell stocks within my TFSA often if that would create issues but was never told it could be flagged for it
One investment that you didn't mention are Options. If you have 100 shares or more of any particular stock, you can sell covered calls and greatly increase the cash flow that these accounts can produce.
@@Mitch-ui8ps everyone has living expenses and there is no problem in treating yourself but the fact is many people live beyond their means and spend everything they make to improve what? and impress who? Time is most valuable and taking advantage of tax advantage accounts is a powerful tool to building your wealth. Most people are sucked into short-term fix and keep kicking that can down the road and that's how society has been wired.
Level one would have got me I guess...because I didn't know you had to be 19 in provinces I don't live in. Outside of that, the successor holder got me. Great info. Love the Trudeau pic for the "government". How I understand it - If I withdraw but am under my contribution limit, I can still contribute in the same year as long as I don't go over the contribution limit. I.e. I took out $5000 to pay my taxes but I have $30000 in contribution room remaining for the year, I just lose the $5000 of space until next year.
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my main issue is maxing it out. We learned about it really late, were barely breaking even on my grad student income with having a very frugal lifestyle. When we had kids, our priorities shifted to saving for them, so RESP and life insurance...that's over 300$ per month all together, and adding 250$ per person (and even for just one person) per pay period would put us in the negative. We want to provide opportunities for our kids so they have a few extra curriculars that would be cut if we had to but that would really mean we are in a tough spot. I might never see it maxed out, unfortunately. We also want tax breaks so we do 2-3 TFSA and 1-3 RRSP when we do put aside.
Good video to explain proper strategies for TFSA usage. I think the biggest confusion points I experienced when getting to know the rules was how withdrawals affected maximum contribution limits and what constitutes as "day trading". You covered all the bases it seems and then some! Good work.
there are no black & white set guidelines for what constitutes "day trading". A friend of mine got audited in the 2nd year of the TFSA, and he posed that exact question to the gov't appointed auditor. He was told exactly that, and that it was a judgement call, based on the nature of your trading. In the case of my friend, he was buying, flipping, buying back, flipping again, often dozens of times a day. He had increased the value of his TFSA from the $10k he had started with over the starts of the first 2 years (I think it was $5k per year then, can't remember exactly), to over $150,000 before the 2nd year was even completed. Suffice to say, the audit & gov't ruled against him, and determined that he was using the TFSA trading as a "job", and he would have to pay tax on it as if it was regular income.
Hey buddy, I want to highlight one mistake: If you pay 250 PPC (Biweekly), then it would be 6500 CAD. because there are 52-week and 26 bi-weekly paychecks. please add it in the description or in the video so that people don't get misguided.
I put mainly my interest earning investments like bonds, gic's in this account a bit of stocks to earn call premiums monthly. Interest is taxed in full.
Great video! So just to confirm, if you pull out say $10k from TFSA, you would get $10k in contribution room back at the end of the year no matter how much you have in there. I always wondered about this but just assumed it was prorated. Also, very interesting that if your stocks are aggressive and they crash, that you dont get that contribution room back. I'm guessing because they cant track any withdraws to give you back the room.
Hi Brandon, I have been contributing to my TFSA minimally over the years then stopped for a couple years but that was before I stumbled across your channel and am learning how important it is to make full use of it. My question is, I am not sure the best way to figure out the exact TFSA contribution room I have. What do you suggest I do to find out the exact amount of room I have since I have been contributing sporadically over the years? This video was brilliant and you hammered home nuggets of gold 🙏
Sign up to the CRA (Canada revenue) online and it tells you your exact contribution room on your personal home page. It takes a few minutes to set it up and authenticate you, but it’s worth it.
Please let me know if my understanding is correct on TFSA. Capital Gain thru US Stocks(i.e Profits Booked) will not be counted towards Contributions as long as they REMAIN in TFSA. ** However, if Capital Gains(NOT the original amount we contributed) are withdrawn from TFSA, NOT ONLY we will loose that contribution room for the whole year BUT ALSO when deposited back(next year) the same Capital Gain will be counted towards contribution? In other words, this capital gain we withdrew is the additional amount of contribution we have for the next year in addition to the room we already had? ** For e.g. TFSA 2022 Limit = $50k. Invested $30k and made $10k profit and withdrew it. Can Still contribute $20k for the remaining of the 2022 year. In 2023, i regain that $10k profit. I can now contribute $20k(from 2022) + $10k(Profit Withdrew in 2022) + $6k(2023 Amount) = $36k in total for 2023. Right?
What you meant by losing out on your contribution space forever. Let's say I invest a $100 in a stock through my TFSA. If it's price drops to $50. Does my total $6000(I am 18) TFSA limit change to $5950 forever since I can never withdraw that $50 back. Also, I am an international student who is not very financially literate and this video really helped me understand TFSA accounts better. Thanks you so much for making such amazing content.
I think it's worth pointing out a couple of things which I haven't seen any TH-camr mention when they talk about TFSA: 1. If you're an immigrant, you only start accumulating contribution room on the year you become a tax resident of Canada. Not when you're 18. 2. In Quebec, you cannot designate a successor holder directly with your broker - you can only do so using a will. Right now, derivatives trades are the only thing in my portfolio that is doing well and making me serious money.
Another potential TFSA mistake relates to the 'designated stock exchanges' Brandon mentioned. CRA's website has a list of acceptable 'designated exchanges'. Basically they're saying if the stock you buy is on one of the designated exchanges it can be held in a TFSA (or RRSP, RESP, etc.). That seems straightforward but what isn't so clear is what happens when the stock you bought in your TFSA gets re-listed to another, non-designated, exchange. That can and does happen, and when it does CRA will fine you 100% of the value of the stock and insist on it being sold promptly. Unfortunately being forced to sell can come at a time when the stock has few buyers & you're are forced to accept whatever price yo can get. While most well-known stocks aren't likely to be re-listed to non-designated exchanges, it is relatively common with 'penny stocks' like gold-miners and mineral & energy exploration stocks listed on the CRA-acceptable 'Venture Exchange'. If those companies fall on hard times they may no longer meet the exchange's listing requirements & will re-list on another exchange (such as the 'over the counter' or 'pink sheets' to keep trading. Unless you are paying attention to such things, you may be burned and it can hurt real bad! Another scenario that can result in a re-listing is if the company whose stock you bought gets acquired by a company who lists on a non-designated exchange. The most common examples of this can be when small Chinese company buys the company you held in your TFSA. As part of the buy-out you'll get shares in the purchasing company or a new combined company but it may not be listed on a CRA-designated exchange. In both scenarios it really is just about being aware that re-listings can be problematic and react appropriately if it happens. If one of your stocks is relisted check that it's still on a designated exchange. If it isn't, sell it promptly and in all likelihood CRA will forgo the usual fine.
If I'm not mistaken, in the province of Quebec, you cannot name your spouse a successor holder. The spouse will be able to max out their own account only (without paying any taxes).
100% aware of all 5 levels. If people don’t want to bother tracking their TFSA contribution room they should sign up for a Service Canada and CRA account, because if anyone is tracking what you are owed (or they are owed), it’s the government. You can track your RRSP and TFSA contrbution room very easily and accurately.
Although I am not daytrading in my TSFA, there have been several cases where I've held an equity for 1 to say 14 days, then sold and reinvested shortly after. Accounting firm has not seen this as an issue, however, I had never heard about that rule before. Tks.
I was not maxing out. Plus I a older person learning about investments. $250 every month. Yes it's doable 😀 I was 75 dollar of the target so this is good stuff
1.okay take your example of the contribution room, max ceiling is 50k,you put in 10k,it grows to 50k,you still have 40k left to contribute,say you max is out and put 40k in for a total of 90k,you take that out this year,can you put 90k again in 2023? sorry if its a confusing question 2. i'm strictly a dividend investor now and i get them monthly on a drip and i do not intend on touching them whatsoever,do they technically grow my contribution room?
Thank you for enlightening me on #13 and #17..!! The withholding tax only applies to foreign dividends and not capital gains, correct..?? And if you purchase Canadian dividend ETFs/stocks, that is NOT taxed, correct..?? Also, are you able to automatically reinvest dividends into your TFSA account and does that affect your contribution room..??
very good video...many of my family and friends were not aware of point 13..I tell everyone I know about being aware of withholding tax on US dividends
Good day Brandon - On the Fina; part you stated that we should Max out on the TFSA - would you consider then that the TFSA is far more advantageous than the RRSP etc.
One way to hold a US stock in your TFSA, and avoid withholding tax, is to buy a total return stock such as BRK-B, where the tax is paid at source for the various holdings, and does not pay a dividend to shareholders
📈📚🇨🇦 Join The Investing Academy Today - bit.ly/theinvestingacademy
How much do you know about the TFSA? Be sure to let me know down in the comment section below!! Also, I'm so excited to be speaking on stage at The Moneyshow Conference LIVE in Toronto this September. It would mean so much to me and my dad to have you guys come out and support!! We'll have a booth to meet you all and take photos :) Best of all... It's COMPLETELY FREE to attend!!! There are so many talented speakers at the event and it will be a blast of a weekend so I hope to see you all there - conferences.moneyshow.com/moneyshow-toronto/speakers/adec2b68f2144b24ba2e06060e4f8348/brandon-beavis/?scode=056838
Great video! QUESTION: If a contribute every week $125 cad and I invest it right away is it considered frequent trading? Should I better do it every month? Or what is your recommendation? Thanks
Facebook, Instagram sent you a message, looking forward to your reply, sir.
@@DianaDiazEnglishTeacher Contributions are not the problem. It is the trading part that can be questioned. If you buy a stock, and sell it after 2 days, you've not invested - you have done trading which is considered a business. Trading is buying and selling a stock, not just buying a stock.
Remember before Trudeau when TFSA's were actually tax free? Pepperidge farms remembers.
Kk
Thanks so much. This should be mandatory learning in high school. My daughter is turning 18 and I am going to be guiding her so she can be financially savvy for the rest of her life.
I think it's worth pointing out a couple of things which I haven't seen any TH-camr mention when they talk about TFSA:
1. If you're an immigrant, you only start accumulating contribution room on the year you become a tax resident of Canada. Not when you're 18.
2. In Quebec, you cannot designate a successor holder directly with your broker - you can only do so using a will.
Exact!
Thank you.. I was dreaming of the entire room possible :/
You think this kind of people ever stop for a second to consider the immigrants' perspective and their lives? HAHAHA They'd first need to open their minds and be curious about things outside their insular little world.
@@mpzeng Damn man, you close minded as hell.
@@mpzeng. Please explain how it’s not a simple situation of largest target market
Thank you so much for your videos Brandon! They have helped me immensely in starting out with investing in Canada. As an immigrant who can’t turn to her parents and such to explain these things I sincerely appreciate what you do! Keep up the good work man
Pfff most Canadians don't get this education from their parents. We're lucky we live in a world with youtube and videos like this.
I didn’t know about the in-cash transfer, in fact I recently withdrew one TFSA to open a different TFSA at a new institution. Who knew 🤷🏻♀️? I am still learning every day. The rest of the content was a great refresher. Thanks for the video Brandon!
Great Info Brandon, I think it is important to mention (and you did mention a bit) that all of the gains you earn in your TFSA, automatically increase your total Lifetime TFSA Room. Say like in your 10k to 50k example (@5:30), you were to withdrawal that 50k before adding any more money, to put down on a house, you would now have the Original 50k in Room plus an additional 40k of Room from your gains for a total of 90k in TFSA room that you could put back into your TFSA the next calendar year along with the new 6.5k for that new year all coming out of your Inheritance from your Grandmother . 😃 But as you did mention, all Loses in your TFSA reduces your Lifetime Room. If for example you Contributed all 50k (@5:30) into your TFSA and your investments went south and you lost 40k, leaving you with only 10K and then something came up and you wanted to withdraw the 10k. The next calendar year you can only contribute 10k + 6.5K of room, so you would have lost that 40k of room forever. I hope this isn't too confusing but it is important. Brandon you could do a better job of explaining this. Thx.
I agree... and you explained it very well. 😉
O@@sonjagatto9981
They should not allow stocks to be put in a TFSA because you cannot recontribute your losses. It’s to confusing.
@@VictoriaMorhan diversify. And honestly r u really banking that significant of profit on those stocks. I also recommend not using all your securities of choice with your TFSA ACCOUNT. I have been learning by trial and error self directed, non managed and I have a blend of securities and digital currencies attached to my first TFSA that I started in 2021. Honestly, the app I use presents projected rtns on investments till my expected yr of retirement. It’s bloody dismal. I wouldn’t even be able to afford a damn box. And I am not having it!!!!!!! Then I started exploring. Learned that banks are in on this money making service. So I opened another with a traditional financial institution. And stepped it up. I have an entire limit of contribution available basically. It’s $95000 at this time. I also only have 12 yrs till expected full retirement. With nothing but the CPP. It’s extremely sad outlook for hard working people in Canada. It’s meant to be confusing my friend. You need to do some ground work and divide a strategy. Most importantly be honest with yourself. How much would I feel comfortable loosing if the markets cause losses. I bet Brandon has spend hundreds and hundreds hours. Getting educated. No quick fixes here. Hire a broker or portfolio manager. You keep yourself organized and open to improving your knowledge in this industry. Good luck!!
@@VictoriaMorhan If the let you recontribute your losses, then to make things equal, if you have gains they would reduce your room to compensate for those gains. Would you like that??
You got me. I did not know about "not naming spouse as sucessor holder", thank you! Great topic, well presented!
Definitely one of the more hidden tips! Thanks Harold, appreciated!
Same might have to look into setting that up!
@@beaviswealth Learnt something new, thanks! Will look into this one someday!
Same here, I’ll be switching that from having her as a beneficiary.
I also thought I’d have to cash out to move to another Institution.. Transfer is the way to go, My concern is people that work at Banks have become pretty inept.
Congrats on being part of the Money Show. Great tips!!
Transferring so importante!!!
Thank you
Just to clarify for anyone not born in canada and immigrated, a category my wife falls into. You have to be a resident of Canada with a valid SIN, not just be age of majority when you can enter into a contract. I think Brandon is coming from the perspective of a born and raised Canadian. You also need to be a legal resident of Canada, ie, spending more than 183 days of the year here. I think this is much needed information for new Canadians or those living as expats 😁😎
I'm in that boat too. My bank didn't even know that fact. Sadly I cannot put my money blindly into a banks hands. They'll cost me a 1% penalty a month for being a non resident with a TFSA that I contributed to.
Hey Igot here 2012 of October will I be eligible for 2012 contribution?
@@markopolov2207 depends if you were considered a resident when you arrived. My wife came as a visitor, and it wasn't until the following year we applied for PR, so the year she arrived was not counted. You can check online with the CRA to see your contribution room currently.
@@001sander2 opening a TFSA account is entering into a contract technically. That's why you have to be age of majority.
@@mr.financial I'm landed immigrant on 2012 so I can get the 2012 contribution even I landed on October? and not on the start of the year?
Gotten to level 5- I don't make enough money to maximize my TFSA. I had a investment strategy laid out since 2020 by myself. It's been going extremely well. i still make investment mistakes but still moving forward and having the majority of my investments in the green. i am happy with the capital appreciation so far. i remembered during my first 6 months using my TFSA, I started to experience the joy of compounding interest.
Thank you! One quick thought: if you want to only contribute the annual $6,000 to your TFSA (because you have used up all previous room), don’t contribute $250 biweekly as that will put you $500 over the limit. There are 26 pay periods if you are paid biweekly. Contribute $230.76 biweekly.
I came here to say just that. If you’re going to do a contribution per pay, make sure you do the math to ensure you’re not going to go over the limit
$6500 asof 2023
@@ricgunn1439. I wonder if they changed that due to general inflation, or because of the $250 a week part.
Some companies pay periods are semi monthly
Thank you for clarification on the USD stock in TFSAs. One person said you Should NEVER have any USD in TFSA and I was feeling bad because I have 2 stocks of Rio Tinto before I learned that RRSPs would be a better place for foreign investment. I did appreciate you saying “it’s not a reason to not have any there, just be aware you kiss out in 15% of the dividend” I’m so happy to hear that there is no tax receipts come tax time for the missing 15%. Thank you again
Thank you for #9 and #15, I learned something new today!
My strategy has been to do a minimum annual withdrawal (MAW) from an RRSP or RRIF on the first business day of a new year and immediately input your TFSA contribution using some of the MAW funds (In RRIF Accounts)and other savings to make the annual contribution to the TFSA in the first business days of a New Year. This strategy may help to maximize returns in the TFSA and returns in RRSP\RRIF accounts are fully taxable. Your video was very good and I did not know about the jurisdictions where you were required to be age 19. Good job!!
Can you please explain more in depth I really want to start investing but don’t understand any of these acronyms like I’m a beginner
Great to see a terrific young man giving great advice to other young people. Kudos to you man!
I'm new in Canada, and this video was sooooo effective at quickly building my knowledge of TFSAs... thank you so much. liked and subscribed! I'll be watching your other videos.
Welcome to Canada! You start making room when you become a permanent resident.
Nice video Brandon, I like the white board video style, you should do more videos like this one ! TFSA is so underrated, young canadians must invest asap in it !
Thanks DEL 👍🏻👍🏻🙏🏻
Great video, I was aware of most of it, bit it's always nice to refresh that knowledge.
I currently contribute my maximum limit per year but I have a lot of room from previous years to utilize. Tax returns typically go straight into the TFSA to help me catch up.
Ive literally only heard of TFSA's, I had no idea how they work! Thank you, it's still above my head...do you put the money in and then invest? Also I'm 45 years old, were TFSA's around when I was 19? Do I have 26 years of room?
I max out every year, and we buy stock in our TFSA. Great video thanks, we self direct our investments RRSP,TFSA.
Welcome back . Love your vibe, confidence, how you sounded.. and the video creativity. As always great content Thank you so much ! AND It will be awesome to see you on the stage and finally meet you :) can't wait !
Dear Beavis, I really learned a lot from your TFSA video. Many thanks and keep me in the loop 🙂
Your kindness, knowledge and subtle humor give me life Brandon! Haha
Excellent video! Only one that I hadn’t considered was the in -kind transfer. Well done Brandon.
4:32 The picture that went with "do not rely on the government to do this for you" was a hilarious edit!
My daughter working in US is allowed to buy tfsa?
what I do is contribute to my RRSP 18% and I take my return and I deposit it to my TFSA , been doing it for a while, and now the new FHBA
what? is it possible to take out your return from RRSP?
This is some GREAT info! Thank you. I learned a few things for sure. Time to take my TFSA more serious. I stepped up my savings and investing in 2022. Now, I will once more do the same...step it up this 2023. I watch your videos and Adrian's as well. You 2 are big inspirations for me and I'm sure for MANY others too. Thanks again!
Thanks to folks like you, I've been using the TFSA correctly and knew about all of the common mistakes. The last one is maybe the only one I've made. I'm in my 30's now and only started putting money into my TFSA a little under two years ago. With a full contribution limit available to me and the limit expanding by $6000 a year, it can feel like the contribution cap is almost out of reach at least at my current income level. Not a bad problem to have I guess, I'll take all the tax free gains I can get! Highlighting some of these mistakes though is a good refresher on why it is still important to track contributions. Great video, and may make the trek to the city see you guys in September!
I was hoping he would answer this. I too am in my 30s and starting now. I have no way to max it out. Likely never will. But the best I can do is start with the $500 per month rule
ive been watching you for so long, i actually knew everything already... but i havent maxed out my TFSA. not there yet.
thanks for the great videos Brandon.
I would love to see more videos explaining the technical differences between your spouse being a beneficiary vs. a successor, as in what can one do vs. not the other? and also explaining the spousal account too would be awesome! I'd look forward to that video also : )
there is no difference a spouse can not hold 2 TFSA's.
I mean spousal account is just the same... Open a new account for your spouse and use your money to contribute to that account. Don't forget to use referal code
I always love the content you put out, it was a great refresher for me. Keep up the awesome work Brandon!
As a much older Canadian I should also mention that utilizing many years of unused contribution room is a great way to get the maximum benefit out of such windfall money as inheritances to help generate tax-free retirement income.
that was a hell of a good video! Put 40$ a week and all the extra and unnexpected money in that accont for one day have a dividen snoowball. keep up the work
Great video, very comprehensive. Got all right the most crucial points are 1. Successor holder and fully fund this account before making any other investment.
I have a TFSA and learned many new things from this video. Also like the white board style too. Didn’t know about setting a success holder and will definitely do this soon
So glad this came across my feed. It just proves my phone is listening to me talk to my wife.😂
Learned alot from this short blurb than i have since tfsa started.❤
This was eye opening, especially when the CRA can skin the regular person alive. So the message here is be very careful and find a good financial advisor
Thank you for your info I never knew before! This will help a lot!
If you have excess contribution space in the TFSA account to accommodate the withdrawal within a calendar year, you may contribute the amount of the earlier withdrawal without penalty. But the new excess contribution limit will obviously now be reduced & will be regained only the next calendar year. This part you did not mention. And I hope my line of reasoning is right.
You make some great points here Brandon! I would suggest,(quite strongly actually) that the TFSA should NEVER be used as a penny stock Hail Mary account. The tfsa is most powerful when used as a blue chip compounding tool for long term wealth. I would say to any young investor out there,if you want to gamble,go to Vegas …and see how that works out for ya. Don’t squander the best investing tool the government of Canada has ever alighted upon the lowly masses.
I've come across your channel recently and I'm loving the content. This video in particular helped me A LOT. Thank you!
Hi there world!!
I'm late to this party, but I still wanted to leave a comment, and I'm a new sub too!!
Thank you so much to this young man taking the time to create and then post this video.
You are a ROCK STAR!!!
I'm sure you are an avid reasercher, or the very least, you read...always!!
Either way, I'm grateful to you for learning all this necessary material and then graciously sharing your knowledge, too.
You are a great teacher!! Breaking down this information and making it clear to the viewer is not something everyone is gifted at being able to do.
Just know, I believe you are helping so many.
Yes, I learned so much, too.
Thank you.
God bless you for your kindness and sharing with Canadians, who should all be taking your advice!! 🙏🐾
I was surprised about the CRA nailing you if you do day trading in the TFSA. I was asking the CRA about if I buy and sell stocks within my TFSA often if that would create issues but was never told it could be flagged for it
great video, answering to your question - I am not using my TFSA at all. I am just learning about it thanks to you ! 🙂
I didn’t know about the in -kind transfer, thank-you for pointing it out.
One investment that you didn't mention are Options. If you have 100 shares or more of any particular stock, you can sell covered calls and greatly increase the cash flow that these accounts can produce.
This is something that every Canadian needs to take advantage of that so many don't. Great video
@@Mitch-ui8ps to buy consumer products you can definitely live without?
@@Mitch-ui8ps everyone has living expenses and there is no problem in treating yourself but the fact is many people live beyond their means and spend everything they make to improve what? and impress who? Time is most valuable and taking advantage of tax advantage accounts is a powerful tool to building your wealth. Most people are sucked into short-term fix and keep kicking that can down the road and that's how society has been wired.
@@Mitch-ui8ps lol then investing is clearly not for you right now
Level one would have got me I guess...because I didn't know you had to be 19 in provinces I don't live in. Outside of that, the successor holder got me. Great info. Love the Trudeau pic for the "government". How I understand it - If I withdraw but am under my contribution limit, I can still contribute in the same year as long as I don't go over the contribution limit. I.e. I took out $5000 to pay my taxes but I have $30000 in contribution room remaining for the year, I just lose the $5000 of space until next year.
my main issue is maxing it out. We learned about it really late, were barely breaking even on my grad student income with having a very frugal lifestyle. When we had kids, our priorities shifted to saving for them, so RESP and life insurance...that's over 300$ per month all together, and adding 250$ per person (and even for just one person) per pay period would put us in the negative. We want to provide opportunities for our kids so they have a few extra curriculars that would be cut if we had to but that would really mean we are in a tough spot. I might never see it maxed out, unfortunately. We also want tax breaks so we do 2-3 TFSA and 1-3 RRSP when we do put aside.
Learned #7 and #10 the hard way a few years back haha
I passed all your levels and maximizing at every beginning of the year 👌
Thankyou for the information, very knowledgeable. Can't wait to hear more.❤
Thank you so much! This info gave me two action items to take to my Credit Union rep.
the things i learned: spouse as a successor account holder and in kind/in cash transfer. i was 100% on everything else.
I know now what i did't know then. Thanks so much ,very informative and inspiring.
Thanks Beavis, I did k now alot but refreshed and learned
Wow Brandon, these were so helpful!! Thank you for all of your videos. They've helped so much in my financial journey.
Good video to explain proper strategies for TFSA usage. I think the biggest confusion points I experienced when getting to know the rules was how withdrawals affected maximum contribution limits and what constitutes as "day trading". You covered all the bases it seems and then some! Good work.
there are no black & white set guidelines for what constitutes "day trading". A friend of mine got audited in the 2nd year of the TFSA, and he posed that exact question to the gov't appointed auditor. He was told exactly that, and that it was a judgement call, based on the nature of your trading. In the case of my friend, he was buying, flipping, buying back, flipping again, often dozens of times a day.
He had increased the value of his TFSA from the $10k he had started with over the starts of the first 2 years (I think it was $5k per year then, can't remember exactly), to over $150,000 before the 2nd year was even completed.
Suffice to say, the audit & gov't ruled against him, and determined that he was using the TFSA trading as a "job", and he would have to pay tax on it as if it was regular income.
@@bonanza06 did he got audited because he widtdrawn the money ?
Hey buddy, I want to highlight one mistake: If you pay 250 PPC (Biweekly), then it would be 6500 CAD. because there are 52-week and 26 bi-weekly paychecks. please add it in the description or in the video so that people don't get misguided.
Very well articulated. Found it extremely helpful. 👍🏻
Thanks
Great video my man! Definitely needed some of these refreshers
I put mainly my interest earning investments like bonds, gic's in this account a bit of stocks to earn call premiums monthly. Interest is taxed in full.
I can truly say I was aware of all these. But I love finance so it was easy. ❤
Thanks supper infomative...itsbeen on my Radar to max my TFSA and will follow up with my bank manager...
Loved the video, especially the pun on Trudeau haha
Thanks for tips 15, 16, 17. Planning to implement them right away.
Great video!
So just to confirm, if you pull out say $10k from TFSA, you would get $10k in contribution room back at the end of the year no matter how much you have in there. I always wondered about this but just assumed it was prorated.
Also, very interesting that if your stocks are aggressive and they crash, that you dont get that contribution room back. I'm guessing because they cant track any withdraws to give you back the room.
You would get the room back NEXT year, not at the "end of the year" you pulled it out.
Hi Brandon, I have been contributing to my TFSA minimally over the years then stopped for a couple years but that was before I stumbled across your channel and am learning how important it is to make full use of it. My question is, I am not sure the best way to figure out the exact TFSA contribution room I have. What do you suggest I do to find out the exact amount of room I have since I have been contributing sporadically over the years? This video was brilliant and you hammered home nuggets of gold 🙏
Sign up to the CRA (Canada revenue) online and it tells you your exact contribution room on your personal home page. It takes a few minutes to set it up and authenticate you, but it’s worth it.
Goto ur income statement for tfsa it will tell how much u deposited and withdrew
Answered my question about DRIPing in a TFSA. Thanks
thank you so much for this detailed video explanation - so helpful, even though I'm coming to this later in life :)
Please let me know if my understanding is correct on TFSA.
Capital Gain thru US Stocks(i.e Profits Booked) will not be counted towards Contributions as long as they REMAIN in TFSA.
** However, if Capital Gains(NOT the original amount we contributed) are withdrawn from TFSA, NOT ONLY we will loose that contribution room for the whole year BUT ALSO when deposited back(next year) the same Capital Gain will be counted towards contribution?
In other words, this capital gain we withdrew is the additional amount of contribution we have for the next year in addition to the room we already had?
** For e.g. TFSA 2022 Limit = $50k. Invested $30k and made $10k profit and withdrew it.
Can Still contribute $20k for the remaining of the 2022 year.
In 2023, i regain that $10k profit. I can now contribute $20k(from 2022) + $10k(Profit Withdrew in 2022) + $6k(2023 Amount) = $36k in total for 2023.
Right?
wow man great job on that video!
I added my wife as successor holder after listening to your channel & I wish I had the money to fill out my TFSA as of now😅
What you meant by losing out on your contribution space forever. Let's say I invest a $100 in a stock through my TFSA. If it's price drops to $50. Does my total $6000(I am 18) TFSA limit change to $5950 forever since I can never withdraw that $50 back. Also, I am an international student who is not very financially literate and this video really helped me understand TFSA accounts better. Thanks you so much for making such amazing content.
#15 was the only one I didn't know about. I will be looking into that for sure. Thank you!
Thank you!! I learned a bunch & subscribed!
Awesome! Thank you!
I think it's worth pointing out a couple of things which I haven't seen any TH-camr mention when they talk about TFSA:
1. If you're an immigrant, you only start accumulating contribution room on the year you become a tax resident of Canada. Not when you're 18.
2. In Quebec, you cannot designate a successor holder directly with your broker - you can only do so using a will. Right now, derivatives trades are the only thing in my portfolio that is doing well and making me serious money.
Another potential TFSA mistake relates to the 'designated stock exchanges' Brandon mentioned. CRA's website has a list of acceptable 'designated exchanges'. Basically they're saying if the stock you buy is on one of the designated exchanges it can be held in a TFSA (or RRSP, RESP, etc.). That seems straightforward but what isn't so clear is what happens when the stock you bought in your TFSA gets re-listed to another, non-designated, exchange. That can and does happen, and when it does CRA will fine you 100% of the value of the stock and insist on it being sold promptly. Unfortunately being forced to sell can come at a time when the stock has few buyers & you're are forced to accept whatever price yo can get. While most well-known stocks aren't likely to be re-listed to non-designated exchanges, it is relatively common with 'penny stocks' like gold-miners and mineral & energy exploration stocks listed on the CRA-acceptable 'Venture Exchange'. If those companies fall on hard times they may no longer meet the exchange's listing requirements & will re-list on another exchange (such as the 'over the counter' or 'pink sheets' to keep trading. Unless you are paying attention to such things, you may be burned and it can hurt real bad!
Another scenario that can result in a re-listing is if the company whose stock you bought gets acquired by a company who lists on a non-designated exchange. The most common examples of this can be when small Chinese company buys the company you held in your TFSA. As part of the buy-out you'll get shares in the purchasing company or a new combined company but it may not be listed on a CRA-designated exchange. In both scenarios it really is just about being aware that re-listings can be problematic and react appropriately if it happens. If one of your stocks is relisted check that it's still on a designated exchange. If it isn't, sell it promptly and in all likelihood CRA will forgo the usual fine.
Hey Ross. Good to see your comment up; thanks for taking the time to re-post it. Good information. - Marc
If I'm not mistaken, in the province of Quebec, you cannot name your spouse a successor holder. The spouse will be able to max out their own account only (without paying any taxes).
Thank you for the action plan to max out the TFSA!
Knew everything!!! Was surprised you didn’t mention about the December tfsa maneuver
I really appreciated your education. Millions of thanks
This is a quality video. I learned all of this in a couple of years.
This is the video I needed and was looking for. Thank you so much for that man
100% aware of all 5 levels. If people don’t want to bother tracking their TFSA contribution room they should sign up for a Service Canada and CRA account, because if anyone is tracking what you are owed (or they are owed), it’s the government. You can track your RRSP and TFSA contrbution room very easily and accurately.
Although I am not daytrading in my TSFA, there have been several cases where I've held an equity for 1 to say 14 days, then sold and reinvested shortly after. Accounting firm has not seen this as an issue, however, I had never heard about that rule before. Tks.
Definitely helpful to know these mistakes for a beginner like me!
I was not maxing out. Plus I a older person learning about investments. $250 every month. Yes it's doable 😀 I was 75 dollar of the target so this is good stuff
Thank you for the clarification. Great info. I got thru most levels but didn't know about the successor strategy
Thanks Brandon ..I didn't know it was possible to lose contribution room in the TFSA account....good reminder to be Mindful !!!!
Very important one Deb :)
Successor holder in QC is only if it is tied to an insurance policy or annuity contract.
1.okay take your example of the contribution room, max ceiling is 50k,you put in 10k,it grows to 50k,you still have 40k left to contribute,say you max is out and put 40k in for a total of 90k,you take that out this year,can you put 90k again in 2023? sorry if its a confusing question
2. i'm strictly a dividend investor now and i get them monthly on a drip and i do not intend on touching them whatsoever,do they technically grow my contribution room?
Thank you for enlightening me on #13 and #17..!!
The withholding tax only applies to foreign dividends and not capital gains, correct..?? And if you purchase Canadian dividend ETFs/stocks, that is NOT taxed, correct..?? Also, are you able to automatically reinvest dividends into your TFSA account and does that affect your contribution room..??
Could anyone please explain number 14? What do you mean you will lose the contribution space forever? 10:37 Thank you!
very good video...many of my family and friends were not aware of point 13..I tell everyone I know about being aware of withholding tax on US dividends
Good day Brandon - On the Fina; part you stated that we should Max out on the TFSA - would you consider then that the TFSA is far more advantageous than the RRSP etc.
One way to hold a US stock in your TFSA, and avoid withholding tax, is to buy a total return stock such as BRK-B, where the tax is paid at source for the various holdings, and does not pay a dividend to shareholders
How do you figure iut how much contribution room you have? I'm on questrade.
The pic after point #7!!
How about a Emergency fund within HISA, which is within HFSA?