BEST Account To Hold US & Canadian DIVIDEND Stocks (TFSA/RRSP/FHSA)

Рет қаралды 15,461

Күн бұрын

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Today we'll talk about holding US dividend stocks in your TFSA vs RRSP. We'll also discuss the 15% withholding tax.
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Пікірлер: 57

@MountainFinance 8 ай бұрын

I still can't get over just how much I love this new background ;-)

@AceVenturaXii 8 ай бұрын

I’ll share a personal story. At a particular time I had money on my TFSA to invest but didn’t have money in an RRSP. I did my research and wanted to invest in Costco. But the tax issue came to mind. I took your advice about Dont Let The Tax Tail Wag The Dog and I pulled the trigger and bought 3 full shares of Costco in my TFSA because that’s where I had the money. It’s my best investment with the best growth in that account. I know they don’t pay a huge dividend, but the tax thought tried to stop me from buying it. Thankful for your advice!

@robertk5441 8 ай бұрын

Here's the alternative approach. Keep US dividends paying stocks in RRSP to avoid withholding tax. In the TFSA account, keep US stocks like Berkshire Hathaway. When the time comes and you start selling small bites, you don't pay capital gains. Or buy stocks paying small dividends like Microsoft. It's more about value appreciation than dividends. This is a long-term. strategy, but it works.

@cirodirosa6752 8 ай бұрын

Yes. BRK.B is the best under a TFSA as Berkshire-hathaway shelters the dividends.

@MarVista90066 8 ай бұрын

Not accurate in my opinion and a bit misleading the info in the video. Well done video, it is great but.... U.S. dividends in RRSP are not "tax free". The distinction is that there is "no withholding tax" by the IRS. However, one has to understand that this is not a tax free account, but a "differed tax account". Canada Revenue Agency will tax ALL moneys inside the RRSP that one will withdraw later, including all dividends from U.S., at the same tax level as interests, not even a reduced dividend tax.... An argument could however be made that until then, those IRS dividend tax saving received can make babies, if you are really nitpicking. So tax free US dividends in an RRSP is not accurate. It is tax differed like the rest, but no IRS withholding tax. In a TFSA it is subject to withholding tax, however, it is tax free to take out... do the maths, maybe you will actually pay less income taxes in a TFSA than an RRSP! What do you think Brandon?

@MoementumFinance 8 ай бұрын

Great video Brandon! Good reminder on not letting the tax tail wag the dog 😁 I also appreciate you sharing the Credit Suisse Report 👌 The background is so slick 😉👏

@jordonhope3408 8 ай бұрын

Hey Brandon thanks for doing what you do. Question on dividends: If holding a US dividend-paying ETF in a TFSA, you would be able to avoid the witholding tax by selling it right before the ex-dividend date and buying it back the next morning... you miss the dividend but buy back more units at the new price (which is lower by the amount of the dividend). Do you think CRA would tax this amount as "day trading" in the TFSA?

@smallmj2886 8 ай бұрын

I think it depends a bit on how much of the growth you expect to come from the dividend and how much comes from capital appreciation. I would have no problem holding McDonalds, Coke, Pfizer, etc in a TFSA, but I would be less eager to hold a US based covered call ETF in one. I might still do it, but I would think longer about it.

@randomguy9113 8 ай бұрын

Dividends and capital gains are two different things, Berkshire Hathaway would be perfect for the TFSA. However would you recommend CDRs for dividends rather than the US listed stock?

@pejmanat6576 8 ай бұрын

Totally agree with you.

@user-hm4jm1cy7m 8 ай бұрын

I have 100 TSFA stock in my TFSA and 100 in my RSP. Now Im wondering if I should pull the ones out of the RSP, pay the income tax on their current worth (if thats how that works) then put them in my TFSA.. I worry the stock will 10x then ill be paying a load more income tax on those 100 stocks compared to if I had them in my TFSA. Say they are worth 30g now.. should I pay income tax on it now before they are potentially worth 300g... if they are in the TFSA when they go up wont I just have to pay 15% to the US when I sell them instead of a higher income tax rate?

@RD-ob6nf 8 ай бұрын

Great video

@esharaste 3 ай бұрын

Did you consider the conversion cost and commission charges I would have to pay to invest in US stocks (not index)? After considering that, does it still make sense to invest in US stock and not in Canadian ETFs

@filb 8 ай бұрын

I agree with you. I am on the lower tax bracket and will most likely stay there for my whole career, so if I listened to someone's advice in not holding any US holding in a TFSA, I would be 100% home bias and will miss out, not only in the growth the US has to offer, but also the diversification. For example, Canada doesn't have many companies in the Healthcare sector that is worth investing in.

@mayurnan7005 3 күн бұрын

I love your videos they are simple and easy to understand! Keep up the good work.

@Carol8693 8 ай бұрын

Yaaay they chose Beavis wealth ❤. I had a 1% in that choice 😅. So would you consider JEPY , QQQY on TFSA ? Food for my thought regarding high dividend ETF to grow tax free and having plenty of contribution room ?

@bernadofelix 8 ай бұрын

This is quite educational. It's crucial for newcomers to keep in mind that the financial markets are highly irrational in the short run. You should constantly be ready for the unexpected. That is how chance operates. Because of the inherent risks in the market, I always favor long-term investments.

@connletterio7764 8 ай бұрын

Great video as per usual!! Brandon you mentioned the link of Credit Suisse report but I don’t see it on your video at the bottom. I’m mistaken?

@beaviswealth 8 ай бұрын

Here Conn!! www.credit-suisse.com/media/assets/corporate/docs/about-us/research/publications/credit-suisse-global-investment-returns-yearbook-2023-summary-edition.pdf

@tr41l3rp4rkb0ys 5 ай бұрын

Slightly new invester here from canada i want to buy mcdonalds us stock and a us etf pays a dividend around 4% , will the 15% withholding tax come off those dividends, or will have to pay something extra come tax time maybe you mentioned this and i missed it Thanks and love the content !

@damonstrembiski2409 5 ай бұрын

Should i buy VFV for TFSA pr VOO for RRSP

@joyeeyang 8 ай бұрын

Don't let the tax tail wag the dog - LOVE this.

@ryanm7171 8 ай бұрын

QUESTION, Assuming a Canadian investor had very little to no employment/pension income, wouldn't it make sense to invest mostly in Canada because most of your dividend income received is practically tax free. Or do you believe the difference in return, the 2 per cent per year, more than makes up for paying taxes on all the dividend income received. I would love to know your opinion.

@huntergiguere01 7 ай бұрын

I dont like RRSP's because you never know when your time will come. You could be gone tomorrow so the TFSA is better

@782YKW 8 ай бұрын

Do we have to pay capital gains tax when we sell our U.S. stocks in our TFSA ?

@ryanreid5859 8 ай бұрын

No.

@markfountain3848 4 ай бұрын

@vvolfflovv 8 ай бұрын

Personally, I use my TFSA for TLT, GICs and SPY.

@PeanutButterPavement 8 ай бұрын

The audio is really quiet in this video. My volume is max on my headphones and it's hard to hear.

@Thewealthyinvestor-cn3sg 8 ай бұрын

When you want to withdraw your money from your RRSP you will pay at least 15% (minimum) probably even more than the 15% withholding taxes especially in Quebec on the total withdrawn. Am i missing something for US dividend? When i convert my usd dollars to canadian dollars from my TFSA i get like 30% more canadian dollars because the $ value is so low. Even usd dividend stock are a better deal right now.

@dwaynerudkavitch5307 8 ай бұрын

I have 3 accounts, and hold 2 canadian stocks and 24 US companies. Can't invest here with the gov't we have along with a small economy compared to other countries. Too much risk here. World class businesses in the US. I'll pay the 15% tax any day on the dividends.

@MonsieurLabbe 8 ай бұрын

So holding Tesla stocks in my TFSa is okay?

@chadferreira6799 8 ай бұрын

Tesla don’t pay a dividend so no withholding tax

@willkeen5010 8 ай бұрын

If you sell it for a nice gain, then it’s great as you won’t pay any tax on that gain 👍

@sandronishiguchi5720 8 ай бұрын

Beavis Wealth.... I like it...👍

@NorthPoleInvesting 8 ай бұрын

Great video! As a young Canadian dividend investor it really provided some food for thought!

@mustanghunts 8 ай бұрын

When is the 15% on the US dividend stock taken? Do we receive the full dividend from the company and need to submit it to the US government or does the company automaticity withhold the 15% and send it in? Thanks

@bradleytalksmoney 8 ай бұрын

It's taken by the IRS before it hits your brokerage

@sandray7609 8 ай бұрын

It's withheld automatically

@mustanghunts 8 ай бұрын

Thanks @bradleytalksmoney and @sandray7609 👍🍻

@refixed 8 ай бұрын

Two things -- 1. If you're holding a CAD-denominated US market ETF like VFV, you're surrendering the 15% withholding tax on the dividend payers no matter what account you're holding it in, even your RRSP, because it is charged to the fund, not the unit holder. 2. I've often wondered if foregoing 15% of US dividends and their compounding over the years in a TFSA is more tax efficient than paying income tax on those US stocks and their dividends in an RRSP when withdrawn? This would obviously depend on your tax bracket at withdrawal, and possibly also your tax bracket when contributing to the TFSA...

@user-hm4jm1cy7m 8 ай бұрын

I have 100 TSLA stock in my TFSA and 100 in my RSP. Now Im wondering if I should pull the ones out of the RSP, pay the income tax on their current worth (if thats how that works) then put them in my TFSA.. I worry the stock will 10x then ill be paying a load more income tax on those 100 stocks compared to if I had them in my TFSA. Say they are worth 30g now.. should I pay income tax on it now before they are potentially worth 300g... if they are in the TFSA when they 10x... wont I just have to pay 15% to the US when I sell them? So much to learn.. scrambling my brain!

@HamiltonRb 8 ай бұрын

I have owned Berkshire Hathaway ( BRK.B) for years, and since the dividends collected by Buffet on the stocks in the company, are paid in the US, and Berkshire doesn’t pay out a dividend itself, there is no withholding taxes.

@jp8479 8 ай бұрын

Been watching your videos for a while and this video does not match to your usual content. You would normally demonstrate why (w/numbers) it makes sense to follow your recommended approach instead of just taking your word for it. This video lacks content, again, in comparison to your very own videos

@JAMGAR369 8 ай бұрын

My TFSA is at 120K and its all Canadian stocks My main account is 60% Canadian and 40% US and worth about 1.45 million now so it makes sense to have my TFSA all Canadian

@mena376 8 ай бұрын

what is the name of the(or an) etf that invests broadly in the Canadian market?

@HamiltonRb 8 ай бұрын

XIU

@valveman12 8 ай бұрын

JEPY Defiant S&P 500 Enhanced Options Income QQQY Defiance Nasdaq 100 Enhanced Options Income QQQY 65.78% JEPY 59.21% Monthly Dividends. I am thinking of putting JEPY and QQQY in my TFSA. Large monthly dividend, and even if 15% is taken away for taxes, you still have a huge dividend. Perfomance is based on Indexes, and their strategy, so I expect the Dividend to change as the Indexes changes.

@silas232003 8 ай бұрын

Yeah I bought like 100 shares of QQQY and JEPY respectively and I collected over $100 dollars in dividend NON-RES TAX WITHHELD for both etfs for like $2,500 invested respectively. If It maintains over $0.90 per share for the foreseeable year, its an ultra win.