TFSA EXPLAINED: The Complete Guide to the Tax Free Savings Account🍁

[@BreakingBadDebt]

𝗧𝗼𝗽𝗶𝗰𝘀 𝗖𝗼𝘃𝗲𝗿𝗲𝗱: 0:00 - Intro 0:33 - TFSA is not a Savings Account 1:04 - How the TFSA Works 1:25 - Opening a TFSA 1:54 - TFSA vs FHSA / Saving for a Home 3:19 - TFSA Contribution Limits 4:28 - Growing the Tax Shelter room in the TFSA 6:38 - Daytrading in a TFSA 7:32 - What can you Invest in the TFSA? 8:12 - TFSA Investing Guide 9:36 - TFSA Transfer in Kind 10:03 - Overcontribution penalty of 1% 10:52 - Successor vs Beneficiary in TFSA 12:35 - Summary 𝗥𝗲𝘀𝗼𝘂𝗿𝗰𝗲𝘀: 1) FHSA EXPLAINED: kzbin.info/www/bejne/nJvVpnuAi55_aZYsi=e6k9Q241phPQkER1 2) All in One ETFS: kzbin.info/www/bejne/nJPJl6Spa9h7Z80si=v2625fISv7bmaDLX

[@BritheKop]

Thank you for the video! Very clear and concise 👍

[@BreakingBadDebt]

Thank you!

[@rextyro]

Very helpful, thanks!

[@danielmora2252]

Hey im new to investing and i've made the error this year of over contributing to my tfsa i deposit like 10k this year alone i started in march 2024 and im wondering what should i do know should i sold some of my stocks or should i stop investing in my tfsa account and wait to january to continue to invest in im kinda lost

[@zakiyaelmalika]

Csn you do private lending with a TFSA? Wouldn't that be considered real estate?

[@BreakingBadDebt]

Although you can't hold physical property in a TFSA, there are some Mortgage Investment Corporations (MICs) including publicly traded ones that are private lending mortgage companies that you can invest within the TFSA. While most big banks doesn't let you do private lending in a TFSA, there are 2 companies that I've read that do this (Olympia Trust and Canadian Western Trust). Things to be careful about is that you can't be seen as conducting business operations within a TFSA and the fees associated with MICs, as well as risk of mortgage defaults - these are important to ask about. Here is a good article about it: wowa.ca/mortgage-investor-canada

[@zakiyaelmalika]

Appreciate your response and resource, and overall content. Thank you.@@BreakingBadDebt

[@divjotsingh7151]

Do you think it would be a good idea to save in both tfsa and fhsa?

[@BreakingBadDebt]

For sure. If you have room available in both accounts and have extra cash, you should optimize the tax advantaged room in both!

[@cookbookgirl]

@BreakingBadDebt You're great, but I'm a bit slow and don't want to make a mistake. My TFSA is $85K. I maxed contributed the past few Jan firsts. In 2023 I withdrew almost 9K in dividends, distributions, etc...to pay bills. Jan 1 2024 I contributed 7K. Can I tomorrow (Aug 2024) replace the 9K that I withdrew in 2023? You're a terrific teacher, thanks!

[@BreakingBadDebt]

If you withdrew 9K from your TFSA before December 31, 2023, then in Jan 1, 2024 that 9K of room gets added to the usual 7K of room. So yes you can add it on Aug 2024.

[@cookbookgirl]

@@BreakingBadDebt Many, many thanks! I don't want to upset the CRA!

[@pacheco90]

Why do you lose contribution room if you sell at a loss?

[@BreakingBadDebt]

If you can gain contribution room with appreciation of your assets in a TFSA, it should go the opposite way too if you have depreciating assets that you sell. Note that you don't lose the new contribution room that you get in Jan 1 each year.