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

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In this video we'll cover 17 of the most common and COSTLY TFSA mistakes made by Canadian investors. The TFSA (Tax-Free Savings Account) is my favourite investing account in Canada and should be properly.
We'll cover things like contributions limits, the legal age to open a TFSA, designating your spouse as a successor holder, transferring TFSAs correctly, and many other common investment strategy mistakes made in the TFSA.
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[@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

[@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 :/

[@markop2024]

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]

@@markop2024 Damn man, you close minded as hell.

[@robertt9342]

⁠@@markop2024. Please explain how it’s not a simple situation of largest target market

[@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.

[@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?

[@Chap17]

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

[@wylerhunt9067]

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

[@willkeen5010]

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

[@TheSkidrowyachtclub]

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

[@delijs]

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

[@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

[@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 !

[@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.

[@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

[@valp855]

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

[@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!

[@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!

[@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.

[@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.

[@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!

[@biowellnesslifestyle5842]

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

[@zapbeeblebrox1053]

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

[@Alexcai9528]

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

[@joanballiram420]

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

[@jasonstupak4535]

Watched and liked, thanks Brandon! Only one I wasn't aware of was needing to be 19 in some provinces.

[@yknarfgnat]

Great video my man! Definitely needed some of these refreshers

[@ComputerSystemTweeks]

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

[@carolinap4150]

very clear - great video. thank you for putting all together.

[@avaichmei2582]

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

[@virginiaalarcon4359]

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

[@garfieldanderson4539]

Wow! Thanks for the excellent TFSA tutorial. Your straight to the point. Learned a lot.👍

[@yashgahlot6600]

Thanks for educating on this! I really learned a lot today 🙏🏻💯

[@payotimeRamsYT]

This is one of your best videos! Thank you!! Learned alot!

[@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.

[@n4tune8]

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

[@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.

[@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

[@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.

[@user-kx1te3tb1s]

Excellent advice and information. Will be moving forward with some of these tips 👍🏻

[@petervaneverdink448]

Nice job Brandon. A very coherent video!

[@laineym2237]

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

[@MrWawer]

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

[@mamabear579]

I really appreciated your education. Millions of thanks

[@simonkorpiela1454]

Thx man for the knowledge!

[@benlla1061]

Definitely helpful to know these mistakes for a beginner like me!

[@djdynieldaniel1395]

This is a quality video. I learned all of this in a couple of years.

[@CanadianDividendInvesting]

This is awesome, thanks for sharing! Great points!

[@jonisousa-guthrie3121]

I got perfect because I watched all your previous videos. Thank you Brandon.

[@beaviswealth]

👏🏻👏🏻

[@Goku_ssj]

This video was so much helpful, It made me subscribe instantly.

[@candicerozario5302]

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

[@thelucky0239]

i learned a few new things! thank you! Subbed and liked.

[@editatrix1]

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

[@ab.4425]

Amazing video Brandon!! Really appreciate it!!

[@beaviswealth]

Thanks AB 🙏🏻🙏🏻🙏🏻 appreciate you!

[@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 : )

[@user-fl1pc7zu7f]

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

[@suzannedavidson3708]

I was clued out! Thank you

[@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.

[@dwaynecunningham2164]

Great video, G. Learned a ton

[@rohits.7752]

Loved it man

[@maximedebicki]

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 👍🏻👍🏻🙏🏻

[@JackieCzerniak]

Learned good strategies and information. Thank you

[@benitaballagan3977]

Thank you for the informations.very interesting

[@Rob-ob3sh]

Nice throw back video on the basics of TFSA investing. Love it Brando. I made the effort to name my spouse as the successor on my accounts. Questrade was very simple but found Wealthsimple a little tricky and had to contact customer support to help me out but got it done.

[@jiveshupadhyay6845]

Very well articulated. Found it extremely helpful. 👍🏻

[@beaviswealth]

Thanks

[@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

[@ernestomiguelcredito3777]

Great information! Will there be a service charge if we want to do an investment "transfer" from an institution to a different one?

[@Averip]

Loved the video, especially the pun on Trudeau haha

[@jeffreyturcotte420]

Love your picture of the "government." 😅

[@mrsedo4273]

Best Video ever, thanks so much for this. Liked and Subscribed ASAP!

[@cutiecatboy]

damn this is like your best video on the channel the effort that went into this really pays off! i transfered my tfsa to wealthsimple invest to wealthsimple trade a while ago, and one thing that really sucked was that WS invest tracked my contribution but since i asked for a cash transfer, when the money got on the WS Trade account, the tracking didn't follow and so it started tracking at like $23,789 even though I had only contributed $18,000 so right now it's a mess to figure out how much room I have left. I didn't know what to do really, but after watching this video, I think the plan will be to sell everything and withdraw in december this year (if i'm in the green which might not be the case but we'll see lol) and then contribute the right amount in january of the next year just to start fresh and so that it actually tracks my contributions.

[@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 👌

[@user-bd4rc8xp2r]

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

[@natashanoble5045]

Love, love love. Thank you!

[@jmurad]

VERY WELL DONE...THANK YOU

[@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.

[@sunilgamage9605]

Thank you learn a lot!

[@patsybrown4509]

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

[@martycurtis7090]

Answered my question about DRIPing in a TFSA. Thanks

[@perkyb1213]

I knew all that you explained because you explained it a few years ago. Didn’t you? Anyway, thanks Brandon. I’ve learned a ton from you and I am setup pretty nicely now. ❤

[@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.

[@andrewbrisbane2831]

wow man great job on that video!

[@berg216]

Did not know about the 15% tax on US dividend. Thanks!

[@mustashfan1o198]

4:54 Thank you, I was trying to figure that one out.

[@xiuying6874]

great video man

[@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

[@ParallelWealth]

The pic after point #7!!

[@user-pv4rf8pt7t]

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.

[@pattymartin3339]

I'm old and I knew most everything . Enjoy yr information

[@MountainFinance]

Great job with the overview :-)

[@TT3TT3]

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

[@GottabKD777]

Hi, All good info thanks. I think I missed something. On #14, you said that contribution can be lost “forever”. What did you mean by that?

[@samspade1841]

Great video bud👍

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.

[@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

[@Chap17]

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

[@siuhhonkeung]

Great stuff. I sent your youtube program to my son.

[@tomsanuy]

Thank you so much!

[@reneetaylor8837]

This video was dope!!

[@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

[@dylanhagsauce8629]

Thanks buddy subbed!!!!! 🇨🇦

[@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

[@user-qu2bj3tq7j]

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

[@Keepingitfr]

@@user-qu2bj3tq7j 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]

@@user-qu2bj3tq7j 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??

[@Cookie0fPower]

Nice. Very helpful.