17 TFSA Mistakes YOU MUST Avoid (Tax-Free Savings Account)

[@beaviswealth]

📈📚🇨🇦 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

[@DianaDiazEnglishTeacher]

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

[@orisaadele5852]

Facebook, Instagram sent you a message, looking forward to your reply, sir.

[@jupitereye4322]

@@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.

[@sicsempertyrannis4351]

Remember before Trudeau when TFSA's were actually tax free? Pepperidge farms remembers.

[@twomuchSWAGG]

Kk

[@rosezarco6347]

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.

[@esonsee]

I think it's worth pointing out a couple of things which I haven't seen any KZbinr 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.

[@acirka]

Exact!

[@haasan9360]

Thank you.. I was dreaming of the entire room possible :/

[@mpzeng]

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.

[@MatthiasAI]

@@mpzeng Damn man, you close minded as hell.

[@robertt9342]

⁠@@mpzeng. Please explain how it’s not a simple situation of largest target market

[@HolyTaterTot]

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

[@kylemundy8871]

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.

[@kdouglas4387]

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!

[@haroldspanier9185]

You got me. I did not know about "not naming spouse as sucessor holder", thank you! Great topic, well presented!

[@beaviswealth]

Definitely one of the more hidden tips! Thanks Harold, appreciated!

[@Russ-od2yy]

Same might have to look into setting that up!

[@andrewchengmusic4235]

​@@beaviswealth​ Learnt something new, thanks! Will look into this one someday!

[@GMan-t1s]

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.

[@mr.financial]

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 😁😎

[@michaelurbani85]

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]

Hey Igot here 2012 of October will I be eligible for 2012 contribution?

[@mr.financial]

@@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.

[@mr.financial]

@@001sander2 opening a TFSA account is entering into a contract technically. That's why you have to be age of majority.

[@markopolov2207]

@@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?

[@jhan094]

4:32 The picture that went with "do not rely on the government to do this for you" was a hilarious edit!

[@angelacarolinewiggins3054]

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.

[@darrensimms4215]

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

[@ricgunn1439]

$6500 asof 2023

[@robertt9342]

@@ricgunn1439. I wonder if they changed that due to general inflation, or because of the $250 a week part.

[@runescapefan0001]

Some companies pay periods are semi monthly

[@laed3520]

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.

[@sonjagatto9981]

I agree... and you explained it very well. 😉

[@renefaucher9441]

O​@@sonjagatto9981

[@VictoriaMorhan]

They should not allow stocks to be put in a TFSA because you cannot recontribute your losses. It’s to confusing.

[@Keepingitfr]

@@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!!

[@pargolf3158]

@@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??

[@n4tune8]

Thank you for #9 and #15, I learned something new today!

[@rebeccaklassen8272]

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

[@Chap17]

Congrats on being part of the Money Show. Great tips!! Transferring so importante!!! Thank you

[@Nivrad6Dmanindahouse]

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.

[@lloydmann]

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!!

[@bintajarju4128]

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

[@ohhellnooooo8233]

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.

[@wolphin732]

Welcome to Canada! You start making room when you become a permanent resident.

[@travisloewen6191]

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.

[@valp855]

Your kindness, knowledge and subtle humor give me life Brandon! Haha

[@mdriv9509]

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 !

[@beaviswealth]

Thanks DEL 👍🏻👍🏻🙏🏻

[@TheSkidrowyachtclub]

Great to see a terrific young man giving great advice to other young people. Kudos to you man!

[@ManTimeT.V.]

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!

[@georgefairclough1275]

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

[@itz.mariavicz]

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 : )

[@LHLK-q2v]

there is no difference a spouse can not hold 2 TFSA's.

[@youtubedeletedmyaccountlma2263]

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

[@momo35444]

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.

[@MrWawer]

great video, answering to your question - I am not using my TFSA at all. I am just learning about it thanks to you ! 🙂

[@renwick7740]

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.

[@willkeen5010]

Excellent video! Only one that I hadn’t considered was the in -kind transfer. Well done Brandon.

[@behuman5725]

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

[@anthonywong3750]

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.❤

[@avaichmei2582]

I didn’t know about the in -kind transfer, thank-you for pointing it out.

[@MayerKyle]

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.

[@editatrix1]

Thank you so much! This info gave me two action items to take to my Credit Union rep.

[@robertpearson8798]

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.

[@AnotherBradGuy]

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!

[@zeronomon]

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

[@flavourpunchh]

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 🙏

[@nancymarion3417]

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.

[@rontelford6211]

Goto ur income statement for tfsa it will tell how much u deposited and withdrew

[@harshivgajjar5888]

at 8 mins in video timeline when you're talking about allowed investment options in TFSA, you didn't mentioned crypto. So crypto is allowed to be hold and staked in TFSA ?????? btw so much helpfull video. Loved it. Big thumbs up !!!!!!!!!!!! :)

[@brianrosa4400]

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.

[@robertmanship]

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

[@cheynebest7028]

This is something that every Canadian needs to take advantage of that so many don't. Great video

[@cheynebest7028]

@@Mitch-ui8ps to buy consumer products you can definitely live without?

[@cheynebest7028]

@@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.

[@chadpenton2071]

@@Mitch-ui8ps lol then investing is clearly not for you right now

[@Carol8693]

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 !

[@nancyfloressantos9999]

My daughter working in US is allowed to buy tfsa?

[@ScreamingMeadows]

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?

[@johnhouseman3546]

I noticed your $250 per pay period amount would add up to $6500 per year (52/2=26 x $250) assuming your pay period is biweekly, which is the most common for Canadians. This means, to reach your max contributions, you only need to contribute about $230 per pay period, which makes it even easier to wrap your head around! Love your videos! Been a big fan since sept 2020

[@jeffreyturcotte420]

Love your picture of the "government." 😅

[@mirellaabballe6947]

I can truly say I was aware of all these. But I love finance so it was easy. ❤

[@TT3TT3]

👍 Did not know about the spouse thing and that if an investment goes to zero that that contribution room is gone.

[@blairgill8799]

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.

[@lw1405]

You would get the room back NEXT year, not at the "end of the year" you pulled it out.

[@derekcox6531]

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.

[@Robert-u8r8y]

Thanks supper infomative...itsbeen on my Radar to max my TFSA and will follow up with my bank manager...

[@nicolasboukas6491]

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

[@AltimusSafi]

what? is it possible to take out your return from RRSP?

[@martycurtis7090]

Answered my question about DRIPing in a TFSA. Thanks

[@Chap17]

Thanks Brandon ..I didn't know it was possible to lose contribution room in the TFSA account....good reminder to be Mindful !!!!

[@beaviswealth]

Very important one Deb :)

[@420troll4]

the things i learned: spouse as a successor account holder and in kind/in cash transfer. i was 100% on everything else.

[@Kbailie27]

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.

[@bonanza06]

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.

[@SoKrayzie]

@@bonanza06 did he got audited because he widtdrawn the money ?

[@relaxwhitspacemax5921]

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

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.

[@leckmanj]

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

[@superjedi14]

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 👌

[@ParallelWealth]

The pic after point #7!!

[@vivekratanpara9360]

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.

[@moreykowalenko583]

I know now what i did't know then. Thanks so much ,very informative and inspiring.

[@j.h.d.2153]

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!! 🙏🐾

[@trentswinarchuk3881]

only thing i didnt know was that i wouldnt have been able to open a TFSA back when i was 18, since i live in BC. great video tho!

[@wylerhunt9067]

I always love the content you put out, it was a great refresher for me. Keep up the awesome work Brandon!

[@jayr8134]

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😅

[@PeterBlackmore-i9n]

Thankyou! Most instructive - even tho I knew most of this, there was a point or two than I needed to be reminded of. Yes - certainly do not overcontribute: A couple years back when I got my Statement from the CRA, I mistook the < > (overcontributed) for Contribution Room. My mistake cost me ever $4000 in additional taxes. Be aware.

[@marianatb3082]

I've come across your channel recently and I'm loving the content. This video in particular helped me A LOT. Thank you!

[@stepannovotny4291]

This is one of the better introductory videos. It starts off slow, even goofy, and then rapidly gets good. Watch it though!

[@beaviswealth]

Thanks Stepan :)

[@jiveshupadhyay6845]

Very well articulated. Found it extremely helpful. 👍🏻

[@beaviswealth]

Thanks

[@delijs]

Wow Brandon, these were so helpful!! Thank you for all of your videos. They've helped so much in my financial journey.

[@Gengingen]

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.

[@virginiaalarcon4359]

Thank you for your info I never knew before! This will help a lot!

[@patsybrown4509]

thanks for simplifying the 15% withholding tax (dividend tax)

[@zapbeeblebrox1053]

#15 was the only one I didn't know about. I will be looking into that for sure. Thank you!

[@Chap17]

Hi Brandon...I didn't realize one could loss contribution space, if their stock did poorly in your TFSA....thank you

[@Alexcai9528]

Thanks for tips 15, 16, 17. Planning to implement them right away.

[@km.83]

Great video! How is the CRA going to know we are over our limit when they don't do a good job of tracking our contributions over the years? The limit of my cra account does not appear to be accurate, not even close. I've had so many tfsa's over the years, I could not add up the contributions I've made

[@saifchowdhury3581]

Great Video. After RRSP and FHSA, it's not possible for most people to add to TFSA. If buying a home is not a goal, then invesring in TFSA is better than FHSA.

[@MrEnky007]

Hmm if someone were to put 18% in a RPP, have TFSA maxed and FHSA maxed. What should he do with the rest? Open a non registered account and invest with it?

[@SonneCreations]

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.

[@joanballiram420]

Thankyou for the information, very knowledgeable. Can't wait to hear more.❤

[@Frogger23xx]

I liked your video! I did know most of what you explained I made the mistake of haveing meme duds when i first started. but I do find it frustrating trying to max out tfsa I make low 6 figures and still struggle to meet half my contribution room.

[@ComputerSystemTweeks]

Thanks Beavis, I did k now alot but refreshed and learned

[@candicerozario5302]

Thank you for the action plan to max out the TFSA!

[@stevenwolfe2279]

Hey Brandon, I really appreciate your videos. We all need someone who knows this financial advice to pass it on to us. Good job. If I understand you, when buying a U.S. ( or foreign stock) in a TFSA, the dividends that it pays suffers a 15% loss to foreign taxation. If the stock doesn’t pay dividends, but simply increases in value, then the gains are not taxed…. Is this correct? Also, how would I find out iff a particular stock is paying a dividend or not? Thanks again for your content. It’s one of the most useful things on KZbin.

[@jamesthompson7282]

Apparently there's 15% withholding on foreign dividends. Period. Increases in value of an investment are considered capital gains & are sheltered from tax within the TFSA. So if you're going to purchase foreign stocks in a TFSA, don't buy stocks that declare dividends - or at least, factor in a loss (overhead) of 15% on any dividends you expect. Given that you would (should) look to minimize overheads & would therefore chose ETFs over mutual funds (reducing management fees from 2-5% to a maximum of 1.5%), a 15% hit is significant - probably enough to deter you. Of course if you anticipate significant stock price appreciation that might cancel out concerns. And your loss is 15% of your dividend received, itself a pretty small amount compared to your total investment. Buy dividend-declaring stocks in Canada. That's probably less of a disadvantage than it appears. Yes, there are some great US dividend-declaring stocks, and the Canadian stock universe is considerably smaller than that in the US. But Canadian stocks that DO declare dividends frequently do so at considerably higher rates than US stocks. US stocks touted for increasing their dividends consistently over decades do so often at a fraction of a percentage point each year (who cares?) & still only declare 2-4% dividends. You can find Canadian blue-chips like the major banks & utility companies paying dividends of 5, 6 & 7%. Those stocks are also generally less volatile: won't likely jump up 10% overnight, but won't collapse much in a market decline. For example: JPMorgan Chase (NYSE:JPM) pays 3.1%; Goldman Sachs (NYSE:GS) pays 3.1%; Bank of America (NYSE:BAC) pays 3.2%. Meanwhile TD Bank (TD) pays 4.93%; Bank of Montreal (BMO) pays 5.28%; Scotiabank (BNS) pays 6.99%. In the utility sector, Entergy Corp (ETG) pays 4.54%; Duke Energy (DUK) pays 4.29%. In Canada, Enbridge (ENB) declares 7.74%; Brookfield Renewables Partners (BEP) paid 5.42%. So it doesn't appear that you're much hurt by sticking to Canadian stocks when you seek dividends. Of course you are subject to some exchange rate risk: to the extent that you limit overseas investments you tie yourself to the fate of the Canadian dollar. You can still diversify using investments for capital gains. It can be frustrating, but the goal of the TFSA is to shelter capital gains, not income. The CRA treats dividends as income earned, not investment returns. For the same reason, if you treat your TFSA as a daily trading account - trading in & out of the same stocks within a month on a regular basis - you're flagged by the CRA as a day trader. You can do that in your RRSP or non-sheltered accounts, but if you do it in your TFSA your TFSA can lose its sheltered status, & will be subject to tax as income. Probably not what you're looking for.

[@mstefa007]

So if I buy SPY I pay 15% on dividends.. but if I buy XSP.TO, which is Canadian ETF for SPT500 do I still pay 15% on dividends?

[@laurielovestheholidays]

Hey Brandon great video. But I think if you did $250 a pay period it would actually put you over the contribution limit of $6000. There are 26 pay periods in a year (for most people who get paid biweekly) =$6500

[@adelinesimmons8152]

You skip Christmas.

[@MichaelIreland]

Excellent explainer. The only point that was "new" to me was the _successor_ step - I'd already put my wife down as the beneficiary, but clearly I need to put her down as the successor as well. I've been telling ALL of my peers who have children turning 18 (or 19) that they need to pound their TFSA hard. I really liked your breakdown at the end pointing out that it's (roughly) $250 per pay period which makes it much easier to digest for folks with limited incomes.

[@laineym2237]

Knew everything!!! Was surprised you didn’t mention about the December tfsa maneuver

[@titchglover2601]

wow I have to go back and remember my initial investments I contributed in my tfsa to figure out my contribution room. that is inpossible at this time.

[@jayyshahh]

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.

[@mastertrader3491]

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.

[@kurus223]

I was well informed already, good break down. But i think i knew it all already (30y/o for refference)

[@ssenger009]

Great video.... Question for you guys? I'm 40 with lots of room in both RRSP AND TFSA. Should I be contributing to both or the TFSA. Obvious answer is that if I make a bunch of money during the year RRSP contributions would lower my income taxes. Thank you in advance for your help 😊

[@Averip]

Loved the video, especially the pun on Trudeau haha

[@bruce4139]

Hey man, would you be able to do a video like this on DPSP's, DCPP and DBPP? I have a retirement planning account and this is actually very helpful

[@deaconblues3964]

Informative video. So what if you don't max out your TFSA and you withdraw say, $1K and then put it back in the same year (plus you still have contribution room from previous years - like most ppl). Do you still pay a penalty?

[@chrisw1870]

I think it's worth pointing out a couple of things which I haven't seen any KZbinr 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.

[@JoshWileyPaintings]

Great video. No surprises for me on any of the mistakes, but that’s partly due to watching earlier videos from you and clearing up some confusion already.

[@biowellnesslifestyle5842]

Thank you for the clarification. Great info. I got thru most levels but didn't know about the successor strategy

[@DiljitSinghPurewal]

I lost the challenge but won knowledge. So its a WIN WIN 😊

[@JustMurv]

Suuuper helpful. Me and my gf just started with TFSAs and mutual funds. Not gonna lie it’s super confusing for us but this helps a lot 👍

[@chadpenton2071]

I would strongly suggest staying away from any MF's. They are absolute money eaters as you're paying extremely high MER's that are hidden and not well laid out for the investor. They continue to line the coffers of the bank or whatever institution you're with