TFSA MISTAKES in Canada to AVOID! // Tax Free Investing Strategy // Canadian Tax Guide Chapter 9

[@CanadianTShirt]

Watch this video FIRST - TFSA EXPLAINED 🇨🇦👇 kzbin.info/www/bejne/n5DFiJlng96ImKc There I go over all the rules of the TFSA and what you SHOULD do in a TFSA. This video is all about what you should NOT do 😁

[@CanadianTShirt]

And check out my CANADIAN TAX GUIDE Playlist for more great tips! 🇨🇦 kzbin.info/aero/PLj8bU3AuW2qEA_ik7NOAIkBY02nt7KAPj

[@CanadianTShirt]

And my MILLENNIAL INVESTING GUIDE to help you get started from the beginning 👇 kzbin.info/aero/PLj8bU3AuW2qEVri8g-ErBL65ng98iAf5g

[@motivationshortsadda]

I have watched alsmost all of your videos. And, I know that the video recommends to hold US stocks, ETfs in RRSP but as I have invested some in TFSA, should I just leave those there and going forward for any other US ETF or stock should be put in RRSP. Thats my query? Thanks!

[@CanadianTShirt]

@@motivationshortsadda it depends on the dividends! If they are US growth stocks paying no dividend (LIKE Amazon or Tesla) then they are totally safe in your TFSA since capital gains are always 100% tax-free in a TFSA, even for US stocks! Or if they are growth stocks that pay a very small dividend like Apple which pays less than 1% yield, it's fine to keep in your TFSA since a 15% tax on a tiny dividend will be negligible. But if the US stock or ETF pays a dividend yield above 3%, I would definitely move it over to your RRSP to avoid that 15% tax! I have a WHOLE video tutorial showing you how to TRANSFER your US stocks from your TFSA into your RRSP, check it out! 😁 kzbin.info/www/bejne/jXPUe5R3e76WiLM

[@user-hm4jm1cy7m]

Does it make sense for me to take my 100 tesla shares out of my RSP and pay the tax on their current value now... then put them in my TFSA before they go up. Like what if they are worth $2000 a share one day.. wont i get nailed for income tax on all that money if i take them out of an RSP?

[@DivyangM]

You are literally the first person I know that mentioned that Capital Gains on US Stocks in TFSA are 100% TAX-Free. THANK YOU, man.

[@CanadianTShirt]

My pleasure Divyang! I'm glad that this video provided value! Make sure you check out my other videos for more great lessons! =)

[@newportnelson]

All those people who didn't have GME/AMC in their TFSA are kicking themselves, lol!

[@rafammbass]

yeah but not dividends so...

[@quixomega]

@@rafammbass True, but technically the IRS is not legally due that money, but good luck suing them.

[@johnpulawski35]

@@rafammbass dividends are also tax free

[@jambr911]

Bruh, your videos are next-level genius. They are so well glued together that my brain absorbs the information with such ease.

[@CanadianTShirt]

Wow! Thanks buddy! I really appreciate those kind words! I put a lot of effort into organizing and structuring these videos so that they flow together like a lesson. I'm very happy to hear that they're working! 😁

[@jimsmith7716]

@@CanadianTShirt Great videos as always. I know if you've never contributed to your TFSA you're allowed to put in up too $81,500. If you don't put that full amount in the first year , does that keep carrying over to each year, Say you only put in $2k,, so $79,500 would get carried over, Plus the $6000 that gets added on at the beginning of a new year?

[@CanadianTShirt]

@@jimsmith7716absolutely! You NEVER lose that unused contribution room! It always gets carried forward until you're ready! Plus you will continue to gain that $6K or now $6.5K worth of new TFSA room every year =)

[@jimsmith7716]

@@CanadianTShirt thank you!🍻

[@jimsmith7716]

@@CanadianTShirt Don't know if you saw my other question regarding to being in the red. Say I'm down $2k in my margin account, then I make $500 on a play. Would I owe capital gains on that 1 green play, or would that just lower my red to $1500? I would only begin to owe capital gains when I'm in the green?

[@Richard-hx6mi]

Wow, I never thought that I would be so engaged into learning about the tax system but your teaching style makes it so! 👍🏾

[@CanadianTShirt]

Thank you Richard! 🙏 That is EXACTLY why I started this channel in the first place! I know taxes and finance aren't always the most exciting topics but they are SO important to learn and understand so I'm glad that I'm able to convey this sometimes dry info in an engaging way! 😁

[@gwilding1]

Totally agree!!!

[@gwilding1]

This should be mandatory teaching in all schools!!!! And I went to an exclusive private school and we were taught NOTHING meaningful or useful... except in my case, which was typing!!!!

[@patriciafeng6617]

i like that you speak so slow and clearly like a kindergarten teacher because we are babies in terms of investment common sense lol

[@CanadianTShirt]

hahaha I wouldn't consider you a baby but a beginner! And I try my best to make my videos as accessible and digestible to beginners as possible =)

[@jordanpwatson1]

You need to frequently pump out more of these quality videos. You're the best Canadian KZbinr for investing!

[@CanadianTShirt]

Wow! Thank you Jordan for those kind words and that high praise! I really do appreciate that and I would love to make videos more frequently but it is a ton of work for a one man operation plus I am involved in so many other ventures... But thank you for supporting my channel! 🙏

[@stormtrop4]

I've been guilty for keeping my TFSA in boring savings accounts and GICs for way too long. So glad I started investing instead but I kick myself for not starting sooner. Thanks for letting me know what other mistakes I should avoid! :)

[@zitrone9181]

better late than never!

[@CanadianTShirt]

You got it buddy! Most Canadians are making the same mistake and it's not your fault! The name itself is misleading and its true power is in tax free INVESTING! I'm glad my video provided value! 😁

[@sidakpreetvirk581]

Could you please tell how to start investing so i just found out that there was 12000$ in my bank in one section named as Tax free savings Does that means it is TFSA?. So how would you invest this internally from banking online. Any help would be appreciated

[@slautensach4720]

We started following your channel when it only had a few thousand subscribers; so happy to see the numbers increasing, you deserve all the applause - the best channel for investment info by far! When we retired we went to Questrade, also opened an online bank account (EQ), got cash back credit cards, and for the first time have TFSAs and RRSPs, all thanks to Adrian's ability to communicate and explain things in an easy to follow manner. Now that you are fully 'invested' (LOL) in this line of work, Adrian, we're going to sign up as members to extend our support of your you tube work. Thanks for all your help, you don't know how much we appreciate it!

[@CanadianTShirt]

Thank you SO MUCH for those kind words, it was a pleasure to read! 🙏 I'm so happy to hear that I was able to help you with your retirement goals and thank you for helping to support my channel by becoming a member! I'm loving that awesome membership badge next to your name! 😎

[@Sergio_Ro]

One of the things I like the most about your videos is that you always go to the point, don't wasting time on stuff that is not important like others, thanks for that!

[@CanadianTShirt]

Thank you Sergio! That's what I try to do! I hate the idea of wasting anyone's time, that's why I talk so fast and get rid of all the useless fluff =)

[@Sergio_Ro]

@@CanadianTShirt I honestly think t's great that you do it like that, useful information in every second of your video ;)

[@chrizohiks9954]

I can’t believe this info you’re dropping is free, I guess I have to pay by liking the video... solid info.

[@CanadianTShirt]

hahaha I'm not above receiving donations 😅 But if you give me a thumbs up and share it with a friend, we'll call it even 😁

[@ranger5705]

Your way of explaining a difficult subject in a simple way is great!

[@CanadianTShirt]

Thank you so much! That's what I try to do! 😁

[@akshayrana9351]

Request: A video on saving taxes for salaried employee after registering some business..

[@akshayrana9351]

@@CanadianTShirt yep saw that and was expecting a series of videos on the same topic. No other canadian youtuber is doing that.

[@CanadianTShirt]

@@akshayrana9351 you won't have to wait long! I'm working on the next video in my Business series as we speak! =)

[@cmair77]

Your tip on transferring rather than withdrawing and depositing was golden, thank you. Overall super helpful, thank you.

[@CanadianTShirt]

I'm happy to hear that! I have a step by step tutorial on how to Transfer your TFSA from your bank into your brokerage, without costing you a thing or affecting your contribution room so check that out =) kzbin.info/www/bejne/eJeUq6icg9GEic0

[@baitach]

I always give you the Like before watching the videos as they are always great and help us as Canadians. Thanks Adrian. Mohammed

[@CanadianTShirt]

Thanks Mohammed! I really appreciate that support and I hope that my videos always live up to that preemptive thumbs up 😁

[@krazykamikaze]

Great video again! My personnal biggest mistake with TFSA was... not having a TFSA at all. For the longest time, all my savings went to my RRSP account, mostly because i didnt correctly understood the difference/benefits of each registered account types. Now it all makes sense thanks to your guides.

[@CanadianTShirt]

I'm happy that my videos were able to help! Ideally, you want to max out both your RRSP and TFSAs if you have the money available! I will be making a video soon comparing the two and which one you should prioritize in different scenarios but the TFSA is never a bad move =)

[@ShameerRavji]

Thx for the vid. Just signed up for Wealthsimple recently as I was getting sick and tired of the $10 commissions holding down my portfolio and now in the process of transferring my investment accts from my bank I’ve to WS. Much easier now for me to cost average into positions.

[@burningdust]

Thank you very much for the great content; you’ve helped me clean up my portfolio, and you’ve explained TFSA’s more clearly than anyone else including CRA! Awesome!

[@CanadianTShirt]

Thank you! I really appreciate those kind words and I'm so happy to hear that my videos have made an impact! 🙏

[@LucianoClassicalGuitar]

And to think that a few years ago nobody could explain these things in a proper and clear manner xD Thanks!!

[@CanadianTShirt]

Thank you Luciano! I really appreciate that and I'm glad that my videos have finally broken through that frustrating barrier! 🙏

[@yashshah4830]

Great job buddy!! All your videos are amazing. I am an international worker in Canada very new to the economy and its taxing structure. Your videos really helped me understand it fundamentally!! Thank you very much!

[@CanadianTShirt]

Thank you Yash! I really appreciate that and I'm so happy to hear that my videos have provided value! 😁

[@susanwheeler-hall]

Really great mistakes to avoid, growth within the TFSA was what I was trying to figure out - thanks!

[@CanadianTShirt]

I'm happy to help Susan! Thanks for watching! =)

[@lricher11]

I like how fast yet comprehensive you are!

[@CanadianTShirt]

Thank you! That's what I try to do! I HATE wasting anyone's time that's why I speak so quickly and cut out all the fluff =)

[@carkarlaw]

Thank you for the explanation especially about the US tax and withdraw/re-contribution.

[@CanadianTShirt]

My pleasure! It's so important to understand all of the rules with the TFSA to make the most of that tax-sheltered room! 😁

[@clovalehr9385]

Appreciate this Canadian content in layman terms. Keep up the good work

[@CanadianTShirt]

Thank you so much Clova! That's what I try to do! 🙏

[@fanCHatee]

Great video!

[@CanadianTShirt]

Thank you! I hope you found value in this video! =)

[@khanaviation7202]

You've clarified soooo much information which the useless reps at TD can't even do.. Thank you

[@CanadianTShirt]

I'm so happy you found this video helpful! In their defence, sales reps at TD or any bank aren't allowed to give you unbiased, financial advice. They are ONLY allowed to offer you TD products like mutual funds or GICs.... I'm not saying that banks can't be useful, they definitely can be! Just be wary and cautious when asking them for advice... at the end of the day, they are salesmen but still ask them questions and learn from anyone you can! =)

[@MammothG643]

~13:42 Options... Options are way to sophisticated, and to easy to get over your head.

[@CanadianTShirt]

I agree.... I do NOT recommend options trading, especially for beginners! It is SO easy to lose your money if you don't know what you're doing. Not only are the fees much higher than regular stock investing but you can lose MORE than you put in! With stocks, the worst case scenario is you lose 100%. With options, you could potentially lose far more than that and even end up in debt... Be careful!

[@Roberto-1]

Bravo, this is an excellent video in explaining the TFSA mistakes to avoid. 👍👍

[@CanadianTShirt]

Thank you Roberto! I know this video was really dense and crammed with a ton of info but I'm happy to hear that you found it helpful! 😁

[@Roberto-1]

@@CanadianTShirt Yes and thank you, keep it up pal!

[@makrisgio]

My friend watching your videos is the first time that I understand how the TFSA is working. You are fantastic. Keep up the simple good work. Thank you

[@CanadianTShirt]

Thank you for those kind words! I'm happy to help! 🙏

[@DN-mo8fz]

Your videos are very helpful! Keep doing what you're doing

[@theadoresnibblegoober6258]

If you want to live off the dividend investment where to do put your investments. Max out your TFSA and get monthly dividends or RRSP and collect dividends or do your put your investments into non registered. My challenge is I have money but I am 60 years

[@CanadianTShirt]

You DEFINITELY want to max out your TFSA, there's no reason to invest in a non-registered and pay taxes on investment income when you have tax-sheltered room just waiting for you!

[@CanadianTShirt]

Since you are 60 and likely looking to retire in the next 5-10 years an RRSP might still work for you if you are working and in a high tax bracket but it will likely be less valuable to you at this point compared to someone in their 20s to 50s

[@jigneshrohit]

I was looking for something like this. Your content is incredibly easy to understand and useful. Thank you!!!

[@CanadianTShirt]

Well I'm glad you found me Jignesh! Thank's for watching! =)

[@jorawarsingh5271]

Love the way you explain! Thank you so much.

[@CanadianTShirt]

Thank you so much! I'm happy to help! =)

[@annonm6634]

I am trying to get my Canadian residency as a UK citizen, I really thought I’d be charged 1% every month if I opened a tfsa, thankfully I watched this video and realised it’s just for over contributions 😅!! Anyways I am super excited to open my tfsa!! Now I just need to convince my Canadian boyfriend to open one too!

[@CanadianTShirt]

That's awesome to hear and welcome to Canada! 🇨🇦 That 1% penalty for foreigners is only if you contribute to your TFSA when you are NOT living in Canada (let's say you move away from Canada for a few years) But if you are living in Canada and you have a valid SIN, you can contribute to a TFSA worry free as long as you remain below your limit =)

[@itplop]

You are the channel I need starting my investing journey. There is so much information out there it is getting so overwhelming ! But you make it digestible and straightforward for my pea brain, so i thank you.

[@CanadianTShirt]

Thank you for those kind words! I'm glad you found me and I'm so happy that my videos have been helpful! I try to make my videos as accessible as possible, especially for beginners! 😁

[@CanadianTShirt]

I definitely recommend watching my playlists, I organize them and order them so that each lesson flows into the next! You may notice that I colour-code my thumbnails: silver = taxes, green = investing basics, orange = credit cards etc. Check out my MILLENNIAL INVESTING Guide (green videos) to learn everything you need to know about investing starting from square one! =) kzbin.info/aero/PLj8bU3AuW2qEVri8g-ErBL65ng98iAf5g

[@unkind4045]

I know it's a mistake not to max out TFSA, I just don't have that much money😢

[@CanadianTShirt]

I feel your pain... but you have to start somewhere! I didn't build my portfolio all at once! I started with a few hundred dollars. Consistency and discipline is the key to building wealth in the LONG TERM! =)

[@crowndroyal]

@@CanadianTShirt so question for you. I came into about 80k and have 75.5k available room. What type of investment can I do within my TFSA that will protect my principal ? With a return of at least 5% ? Also do you know if we can invest in cryptocurrency through a TFSA yet. Tangerine also offers 2.3% intrest although it is only a 5 month promotional period. If one has a wife etc you could get 2.3% for 10 months.

[@stevemccalla1072]

I think I have watched almost all of your videos, love them!! great job! A lot of Canadians including myself have you to thank for gaining a better understanding of the TFSA and how to maximize its use. Here is a question for you. Immigrants to Canada that has stocks that they purchase prior to coming to Canada, can they transfer it to their TFSA? I think that is a good topic for your next video.

[@CanadianTShirt]

As long as you now live in Canada, you can open a TFSA. Transferring shares in-kind from another country might be tricky... it depends on many things

[@CanadianTShirt]

Also keep in mind, you will have a very limited amount of TFSA room. If you came to Canada this year, you'll only have $7K worth of room

[@cney2125]

Older vid but maybe you will still see my question. Does trade commission essentially count as lost tfsa contribution room? $5-10 per trade can add up if they don’t count as a withdrawal in the eyes of CRA. 2 trades per month could be nearly $240/year making that year’s effective contribution room $5760….

[@CanadianTShirt]

I try my best to answer questions from ALL of my videos, even the older ones! 😁 If you want to look at it like that, ANYTIME your portfolio loses value whether from capital loss or commission fees, this can be viewed as "lost TFSA room" And no, if you pay $5 in commission fees this is NOT a withdrawal, this is just money lost so you don't regain that contribution room

[@CanadianTShirt]

But that's why I always recommend people to buy at least $500 worth of stocks at once so that the $5 commission fee will only represent less than 1% which you will most likely recuperate in a matter of weeks. Likely, your very first dividend received will already make up for this so don't worry about this! The $5 commission fee is basically negligible compared to HUGE losses you can face if you hold a risky stock that plummets or the huge currency conversion fees you could face with other brokers. I hope that helps! =)

[@cney2125]

@@CanadianTShirt Thanks!

[@reyvimendoza1229]

This is awesome!!! Every Canadian should see watch and learn from this. 👏👏👏

[@CanadianTShirt]

Thank you Reyvi! I really appreciate that! And if you'd like to share this video with any other Canadians who could use it, I would appreciate that! 🙏

[@paob7580]

I'm a little bit confused regarding the withdrawal side for the TFSA. Let's say, for example, that you turned 18 on year 2020. So this year 2021, you'll have $12,000 contribution limit. As an example, if I invested all that money on high yielding stocks that pays $1200 per year ($100 per month), and if I reinvested those money back to those stocks, will my contribution limit for next year 2022 be $6000? (if gov't decided that it is). However, I'm confused in regards when I DO NOT reinvest my $100 every month, and let's say that I withdraw it every month from my investment account (which is my TFSA), will my contribution limit for next year 2022 be $7200? (if gov't decided that contribution limit next year is $6000). Thank you in advance to people who read this post and replied!

[@sorting_it_out]

I'm pretty sure that yes, you'll be able to contribute $7200! So cool! Hopefully someone else will confirm. 😊

[@sorting_it_out]

Plus, you can always login to your "CRA My Account" the following year to see your available contribution room.

[@CanadianTShirt]

Thanks Kelcy for stepping up for me! You are absolutely correct! If you receive $100 worth of dividends in your TFSA every month, that money is fully tax free and does NOT affect your contribution room, whether you receive the dividend as cash or reinvest it through a DRIP! But if you decide to withdraw that $100 every month, then you will have withdrawn $1200 throughout the year. So next year on January 1, you will have $7200 worth of room ($1200 + $6000) =)

[@billfrete8487]

I've noted that RRSP's DO have a withholding tax in a TSX listed ETF fund that contains US listed Holdings. Just FYI

[@CanadianTShirt]

Absolutely! I have a WHOLE video on that very topic, where I discuss the tax implications of Canadian dollar ETFs that hold US stocks =) kzbin.info/www/bejne/f522dppse9qrlaM

[@magodeoz1989]

Thanks master!

[@CanadianTShirt]

hahaha I will only accept that word if you call me a "Jedi Master" 😅

[@magodeoz1989]

@@CanadianTShirt Deal!

[@_Greens_]

Very well explained! Thank you very much!🙏🏻

[@CanadianTShirt]

You're welcome! =)

[@caqc7351]

Hi Adrian, superb content as usual!! Do you or anybody here know if you will surpass your TFSA contribution limit once you receive dividends in a TFSA account with WEALTHSIMPLE? In other words, once you receive dividends in a TFSA account in Wealthsimple, do they keep it under your TFSA or do they go to a sort of 'deposit' account from Wealthsimple where you can reinvest or cash out that money? I haven't opened my account yet and apologise if that's too obvious! Thanks in advance. Much success everyone!

[@CanadianTShirt]

Nope! When you receive dividends from your TFSA account with WealthSimple or Questrade or any broker, that cash is received inside your TFSA and this does NOT count as a contribution so it doesn't affect your room! You can use that money to buy more stocks and it's totally tax free since it was earned inside the TFSA =)

[@CanadianTShirt]

Even if your TFSA is maxed out and you receive a dividend, it will NOT push you over the limit since the income earned (dividends and capital gains) does NOT count as a contribution =)

[@caqc7351]

@@CanadianTShirt Fantastic, thank you so much. Sometimes I feel like taking your time since you go through all the comments and give so much attention to our questions. I REALLY want you to blow +5M on youtube and get super rich! I appreciate all what you do Adrian, your financial videos have been helping me start with the right foot in Canada and as I bring my skilled friends over they'll darn surely go thru your videos so they can start with the right foot as well haha Thank you so much again!

[@CanadianTShirt]

@@caqc7351 haha sounds like a plan! 😄 And yes please! If you have any friends who could benefit from my videos please send them my videos! 😁

[@marctrottier3732]

...thanks for all your smarts...you have change my ways...

[@CanadianTShirt]

Thanks Marc! That's what I try to do! =)

[@redditchronicles3124]

Might be a dumb question but does re-balancing your TFSA affect the contribution room? Thanks. Great video btw.

[@CanadianTShirt]

Not at all! Nothing you do INSIDE the TFSA affects your contribution room at all! You can buy stocks, sell stocks, whatever, it doesn't affect your room. The CRA only cares about money coming into the TFSA and money going out! =)

[@redditchronicles3124]

@@CanadianTShirt Thank you very much!🙂

[@AndooDiep]

@@CanadianTShirt This answered my question too. In my head it made sense but I wasn't 100% sure. Thanks for the vid!

[@CanadianTShirt]

@@AndooDiep I'm happy to help! It's a very common question for sure! =)

[@JP-mj2el]

Hey, Dude! Love your channel!! Here's a question I can't seem to find an answer to. In my TFSA, if I have a stock I've been investing in for years and decide to sell it and reinvest it in a different stock, would that count against my TFSA cap? Let's say I originally put in 5,000 dollars, and that 5,000 grew into 10,000 after year's of growth. I sell that 10,000 within my TFSA and right away reinvest it in something . . . would that count against my TFSA limit?

[@CanadianTShirt]

Not at all! That's the beauty of the TFSA! Any gains you make INSIDE the TFSA (capital gains, dividends or DRIPs) do NOT count as contributions so they don't affect your available room at all! You get to enjoy that $5000 of profits tax free and worry free! =)

[@CanadianTShirt]

The contribution room only dictates money coming into the TFSA and money going out. Whatever money you earn INSIDE the TFSA is totally fine, there's no limit on that! =)

[@JP-mj2el]

@@CanadianTShirt So I could reinvest that $5000 profit along with the original $5000 I invested into another stock and not worry about that $5000 profit counting against my cap? As long as I do this within my TFSA? Thank you for the swift reply!

[@JP-mj2el]

@@CanadianTShirt It seems too good to be true. So, someone who makes one million off their stocks decides not to withdraw, instead sell and reinvest within their TFSA, would not exceed their limit. That's amazing, if so.

[@sunset986S]

I would rather deal with Vito Corleone than the CRA...17:00 proves this!

[@CanadianTShirt]

hahaha well they both give you an offer you can't refuse 😉

[@mohamednabeel9329]

Fantastic way of explaining. You made it easy to grasp and I’m your fan🫡

[@CanadianTShirt]

Thank you so much for those kind words! I'm glad to hear that my videos are helpful and easy to digest! 🙏

[@leilanejad7387]

I wish there was more than one like button for this video! Super helpful, Thank you!

[@CanadianTShirt]

I appreciate that! In the meantime, share my videos with a friend and we'll call it even! 😁

[@ananda350]

Thank you for your video. I would like to point out that not all institutions allow opening a TFSA account if you are a temporary resident. For eg, EQ bank does not allow opening a TFSA account even though they allow opening a regular savings and GICs. WealthSimple allows you to open a TFSA account with Temporary SIN (temp resident).

[@CanadianTShirt]

You are correct but that is a decision made by the BANK or broker! Not the federal government! The government allows anyone with a valid SIN who lives in Canada to open a TFSA. Each bank or institution may apply their own restrictions on top of that. But great point, thanks for pointing it out! =)

[@VenomPulse]

I recently found your KZbin. AND I THANK YOU GOOD SIR. I have a RDSP and after sitting down and talking with the company that deals with my RDSP it was recommended to open a TFSA, Sadly he did not explain everything related to the TFSA, Just to be on the save side I have crossed checked everything you have said. Its all right, from what I can see but you explain it way better then everything I have read and the people I have talked too.

[@VenomPulse]

Do you have a email where I could ask you some questions?

[@toad5364]

Thank you for helping Canadians get financially educated. So many finance videos out there are meant for Americans or are some bro trying to sell his get rich quick book!

[@CanadianTShirt]

You've got that right! That's literally why I started this channel in the first place 5 years ago!

[@CanadianTShirt]

Back then there was already a bunch of investing channels but they were all US based! We need some resources for us Canadians as well! 🙌

[@CanadianTShirt]

You got it! That's exactly why I started this channel in the first place, 5 years ago!

[@CanadianTShirt]

Back then, there was already a bunch of channels on investing but they were all for Americans! Us Canadians need some resources too! 🙌

[@CanadianTShirt]

Sorry for the duplicate replies... KZbin comments was glitching so I wrote them again 😅

[@rockerfeller9492]

SUPER BEST GREAT (information) in the shortest time savings video, EVER, some youtubers would take 5 hours to explain to gain viewing hours.... You DAAH best explainer out there and you respect viewers time.

[@CanadianTShirt]

Thanks buddy, that's what I try to do! I HATE the idea of wasting anyone's time... that's why I talk so fast and I try to cut out all of the useless fluff =)

[@lyndanickerson1373]

Most of Canada's Big Banks require a certain amount kept in your account each month in order get any Interest on your Savings account.

[@CanadianTShirt]

That's true! A lot of them have tiered interest brackets where you literally will make zero interest income unless you keep at least $5K in savings and even then, the savings will be pitiful! Focus on investing for your TFSA! But for your emergency savings fund, I recommend an online savings account like EQ Bank =)

[@tubetop123]

Good info. I wouldn't say you lost room if your investment dropped. You put in the amount before you lost it so the room wasn't lost

[@CanadianTShirt]

Technically the only thing that directly impacts your TFSA room is contributions going in and withdrawals going out. That being said, if you sell stocks at a loss inside your TFSA, you are effectively losing TFSA room even if you don't withdraw. Let's say you max out your TFSA with a $10K contribution and you put those all into a stock. Then 4 months later, you sell those stocks for a $4K loss. Now you ONLY have $6K of cash available inside your TFSA even though you put in $10K initially! The CRA does not care about this $4K loss, your TFSA is still maxed out as if you still had your original $10K so you CANNOT put in any more money into your TFSA until next year. So on paper, your contribution room hasn't been affected but in reality, you only have $6K of TFSA money to play with versus $10K which you would have had if you didn't sell at a loss. So now, you will always be $4K BEHIND someone else who didn't sell at a loss in their TFSA. This definitely isn't a simple, straightforward concept so I hope this makes sense.

[@tubetop123]

@@CanadianTShirt yes agreed. I would also say yours your stock loss did not help reduce any taxable profits like it would if it was in a non-registered account. Since TFSA profits are not taxed

[@jessiesantos547]

thank you thank you! i got all the answers to my Questions!!!!

[@CanadianTShirt]

My pleasure Jessie! That's what I LOVE to hear! 😁

[@cheeseman1127]

Bro you are a champion! Thank you for all this information

[@CanadianTShirt]

Thanks buddy! I'm really happy to hear that you found this video useful and thanks for the support! 🙏

[@russtyruss_i-Invest]

Great info. US dividends may be immediately taxed in the TFSA, I thought I read it was 12% though, but that tax is withheld directly prior to payment of said dividends, adversely, any dividends you collect in your RRSP will be income taxed upon withdrawal by whatever percentage depending on what revenue you declare which will set the bracket of taxation, sometimes it will be much higher taxed than what you would have paid through holding it in the TFSA. That could be significant in the long run.

[@CanadianTShirt]

No the US withholding tax rate is 15%, it's been that way for a long long time. And yes you will be taxed on RRSP withdrawals but that's why you should ONLY withdraw when you retire and are in a much lower tax bracket! Yes being taxed on your withdrawals is annoying but you're missing one of the BIGGEST benefits of the RRSP, you get to reduce your tax bill during your high income years! If you use your RRSP correctly (watch my RRSP videos) you will save a HUGE tax bill while you are working and pay a much smaller tax bill decades later during retirement. And since you save that money in taxes, or get a refund, you will have MORE money to invest with upfront than with a TFSA. The TFSA is easier no doubt but if you use the RRSP correctly, it can be more powerful =)

[@russtyruss_i-Invest]

@@CanadianTShirt Thanks, it may have been an old or misinformed article, I think I got that info over 4 years ago. Appreciate your reply and your channel is awesome. I'm 55yo, early retired thanks to my investing for over 25 years and my strategies, specially the last 4 years. These last two years have been tough though. Take a look at my stuff, all free. Cheers!

[@russtyruss_i-Invest]

@@CanadianTShirt BTW your channel is linked on my multimedia page ;)

[@davidandrews8007]

Make sure consider probate. If you have no beneficeries there is a estate tax.

[@CanadianTShirt]

Excellent point! It's not fun to think about your death and transfer of assets to your kin but it is important to consider and plan ahead for it! =)

[@mysjackson88]

I have learned a lot from this video. I did not know about the day trading subject nor the limit to drop into it. There should be disclaimers when opening those accounts. This video is extremely useful.

[@CanadianTShirt]

I'm happy to hear that you found so much value in this video! Make sure you check out my other videos in my Canadian Tax Guide to learn all of the rules with different investing accounts! =)

[@mysjackson88]

@@CanadianTShirt I will certainly do. I am risk tolerant and invested heavily in the "meme" stocks during the rona. I made substancial amounts and almost got screwed because of those rules. I am certainly going to study those videos. Maybe transfer stocks between accounts from TSFA and RRSP... if they let me do that. You have no idea how important those videos are.

[@lstephen]

Thank you for this video clarifying US growth stocks with no dividends in TFSA. Please disregard question in the other video comment.

[@CanadianTShirt]

haha I already answered your previous question in case other people were wondering as well but I'm glad I could help! 😁

[@lstephen]

@@CanadianTShirt you are amazing!

[@evafernandez1237]

You are simply incredible. Thanks for sharing this.

[@CanadianTShirt]

Awww thank you Eva! Right back at you! 😊

[@LucianoClassicalGuitar]

You should make a vide of best growth stocks in Canada without too many dividends!

[@CanadianTShirt]

You got it Luciano! That video is definitely coming! =)

[@enkhsaruultorguud9293]

Best of the best explanation Adrian Thank you very much

[@CanadianTShirt]

Thank you! I really appreciate that and I'm happy that you found it useful! =)

[@irinic9546]

Excellent video! Very informative!

[@CanadianTShirt]

Thank you Irini! I'm glad you found it valuable! 😁

[@thespiritsafe]

Would be great to see a video on common employee benefits and how they can affect your tax/financial position e.g. car allowances/parking permits/transit subsidies/takehome vehicles/share purchase schemes

[@porkyrocks]

This is super helpful my man. Very grateful for this video!

[@CanadianTShirt]

It's my pleasure buddy! I'm so happy that you found this video helpful! 🙏

[@Amondice]

Thank you Adrian! I started investing and discovered your videos a week ago. I think nobody asked this: what happens if you have two TFSA accounts? imagine you are 18 years old. Do you have 6K limit in one and 6K limit in the other? Or will you have 6K distributed in two accounts? I thought of having two, one for CAD with Wealthsimple and the other for USD with Questrade.

[@CanadianTShirt]

I think I covered this in the video! You can have as many TFSA accounts as you want but they all SHARE the same TFSA room! For example, I have 3 TFSA accounts (one with Questrade, TD and WealthSimple) but my $6000 worth of TFSA room is shared between all three!

[@CanadianTShirt]

Otherwise, you would be able to gain infinite TFSA room just by opening a new account!

[@AnafreObtera]

Hello Adrian, I learned a lot on your videos :) thank you. In the future, will you be able to make a video about ESPP?

[@CanadianTShirt]

Hi there! I appreciate those kind words and I'm glad you have found my videos helpful! =)

[@CanadianTShirt]

Yes I can certainly talk about ESPP, it really depends on the job. Each company will have their own policy

[@CanadianTShirt]

But often times, it can certainly be a great option. Especially if it's a quality stock and they offer a generous discount =)

[@gwilding1]

Thank you !!! Appreciate it that.

[@CanadianTShirt]

My pleasure! Happy to help! =)

[@ashirmyratsaparov8049]

Thank you man for the great job 5⭐️

[@CanadianTShirt]

Thank you for binge-watching my videos! I'm glad you have been finding them helpful! =)

[@danielgale607]

ferrari t shirt. I'm on to something....look at that chart. Seeking newest videos for responsible investing advice. lol. Hope I'm not bothering you. Slow day in the markets. lol

[@CanadianTShirt]

nah man you're good! It's nice to see someone appreciate t-shirts as much as I do! 😁

[@coolasiandud3]

i love ur tfsa and rrsp series. still waiting for RRSP explained part 3. thanks again

[@CanadianTShirt]

Thank you Myka and you got it! I will be making more RRSP videos soon! =)

[@krichekkkk]

can you do a free video on options trading, selling put spreads out of the money using Questrade?

[@CanadianTShirt]

I personally don't invest in options and I don't recommend it for beginners. It is far more complicated and risky than buying and holding stocks and ETFs. If you don't know what you are doing, it is MUCH easier to lose money so don't blindly jump into it. Maybe in the future, I might play around with options but for now, I only want to make videos on things which I have extensive, personal experience with. I hope that helps! =)

[@sticq]

Hi from Quebec. Good quality content as usual and easy to understand.

[@CanadianTShirt]

Bonjour mon ami! Merci beaucoup! 😁

[@ArmandHuangSaberi]

Your advice is pure gold. The video is also so well organized, thank you!

[@CanadianTShirt]

Thank you Armand! I really appreciate that! I try to structure each video like a professor's lecture =)

[@ArmandHuangSaberi]

@@CanadianTShirt thank you so much for your wonderful content. I am subscribed and look forward to learning more from you!

[@manikvij225]

Very informative video thanks for the knowledge 👍👍

[@CanadianTShirt]

Thank you Manik! I'm happy to hear you found this helpful! =)

[@toluca56]

Thanks for the EQ Bank tip. Just opened an account using your affiliate link. :) Coolness.

[@CanadianTShirt]

That's what I LOVE to hear! I will also be making a video soon on the best savings accounts in Canada but EQ Bank has been my favourite for the past 4 years. Some banks will offer higher promotional signup rates but they're only valid for a few months. EQ always has the highest standard rate =)

[@alpinestar5496]

Just found your channel and so glad I did. I'm finally understanding. Thank you!!!

[@CanadianTShirt]

It's my pleasure! I'm glad you found my channel and I'm happy that my videos are helping you! =)

[@maggielei2915]

Really like your video, clear and very knowledgable.

[@CanadianTShirt]

Thank you Maggie! I really appreciate that and I'm glad you found them helpful! =)

[@SrikarAnanthula]

Thanks for explaining in simple words. Appreciate it !!

[@CanadianTShirt]

Thank you Srikar! That's what I try to do! 😁

[@Random.Adventures.]

Great video much appreciated

[@CanadianTShirt]

It's my pleasure! I'm glad you found it so helpful! =)

[@ravivasara2680]

It's a extremely helpful for me dear. Thank you soo soooooo much for this video.

[@CanadianTShirt]

My pleasure Ravi! I'm so happy to hear that this video was helpful! =)

[@sheilarementizoofficial7862]

Thank u Adrian ,u are always giving information to us ..

[@CanadianTShirt]

Thank you Sheila! I really appreciate that and I am happy to help! 😁

[@dandata8586]

Yet another well edited video..Full of useful knowledge!

[@CanadianTShirt]

Thank you Dan! That's what I try to do! 😁

[@syj4344]

You are totally right! I had a long conversation regards of tfsa at the bank but they never mention that I can invest. They only mention how much contribution I can deposit a year and how much interests I can get. 1~3%o interest can give me good saving result in the end.

[@CanadianTShirt]

Don't get me wrong, banks are incredibly useful but remember, they aren't your financial advisor, they're salesmen and they can only sell you their own products. Usually just savings accounts or mutual funds with high fees... that is a total waste of your precious TFSA room! =)

[@helengyorki7461]

@@CanadianTShirt Hi Adrian, I just discovered your content and new to investing. Do you have an email where I can ask you advice on my current tfsa situation?

[@CanadianTShirt]

@@helengyorki7461 send me a message on Instagram if you have a sensitive question 🙂

[@helengyorki7461]

@@CanadianTShirt DM you already, I got it sorted out but just wanted your input. I appreciate your content guiding me into my investing journey.

[@caroldanson5476]

The TD BANK SET my TFSA up with Web Broker and I told them I was day trading and they said nothing. I did not know it was considered a business as there is nothing in the rules listed under the TFSA. I consider this very sneaky of the government

[@CanadianTShirt]

Well in their defence, that's how the Canadian tax system works: it's based on the honour system. They will assume that everyone is following the rules by declaring their income, etc. Only when you are audited will they enforce those rules and penalties upon you. This makes is MUCH faster and less restrictive, imagine having to check off a dozen boxes or sign papers certifying that you are following the rules EVERY time you perform any financial action!

[@Chris-fl2bt]

Smart guy, wonder if we ever met in D2 haha..

[@CanadianTShirt]

Possibly but I didn't play too much D2 online. I played mostly single player 🙂

[@ZigySpACe]

My only issue with this video is the talk of the risky stocks in a TFSA. Higher risk=higher reward which means if you gain a lot of capital off a riskier investment you take all of it tax free. I have a relative who made 100k off of pennystock within his TFSA. He paid no capital gains taxes. If you’re choosing to invest in risk just remember you have to be willing to lose all the money you put in.

[@tashadavid730]

Great video!👏🏽

[@CanadianTShirt]

Thank you! I'm glad you found it helpful! =)

[@kandi695]

Could you make a video on selling shares/ETF on questrade? Cover stuffs like when to sell or why to sell?

[@CanadianTShirt]

Honestly, I rarely sell stocks and ETFs because I only invest in companies that I believe to have a LONG TERM future! If I don't think the company has a future, I never buy it to begin with! That being said, selling stocks is the same as buying them, you will be charged a commission fee, usually about $5 with Questrade

[@CanadianTShirt]

The only times I've sold a stock are if something changed with the company itself or the industry and I no longer believe that the company will grow in the future but that is very rare since I avoid risky, speculative investments =)

[@ritabihari9496]

Very good information . Thanks for sharing this.

[@CanadianTShirt]

My pleasure! I'm so glad you found it helpful! Make sure you watch my RRSP MISTAKES video as well! =) kzbin.info/www/bejne/f2nOamiVh8R_lbM

[@jaimalsingh5201]

Great video as always. Thank you for sharing!

[@CanadianTShirt]

It's my pleasure Jaimal! I'm glad you find value in my videos! 😁

[@bobsperry4230]

I have learned alot for you. Thanks for the great explanations!

[@CanadianTShirt]

Thank you Bob! I'm happy to hear that my videos have provided value! Have a great weekend! =)

[@uneconomist]

I disagree regarding the risky investments. For example, if you invest in something that can generate a very high return, TFSA is golden. Of course, use wisely.

[@CanadianTShirt]

The point here is that with risky investments in a TFSA you lose out on ALL of the upsides if your stocks crash whereas in a non-registered account, you could recoup your losses with a tax benefit and PERMANENTLY losing that precious TFSA room is just devastating... sure if you had a crystal ball and you KNEW that this stock would triple in value, of course a TFSA would be best but if you crash and burn, the TFSA is literally the WORST account to hold it in.... You just lose and you get NO benefit....

[@uneconomist]

@@CanadianTShirt You dont lose anything on the upside. You lose contribution room and tax write-off if your investment goes down, but that's it. Of course you wouldn't want to gable away all your account room but if you profit in your investment, its 100% tax free. Its all about the size, type of investment and the holding period. Please dont buy penny stocks :)

[@CanadianDividendInvesting]

Awesome points Adrian, thanks for sharing!

[@CanadianTShirt]

It's my pleasure! I hope you found it valuable! 😁

[@CanadianDividendInvesting]

@@CanadianTShirt Love all the info you put out man, really appreciate it. I wouldn't be where I am today with investing if it wasn't for your educational videos

[@robertconway9732]

Thank you so much for pointing out the difference between holding a US Dividend stock between TFSA and RRSP! I have to explain this constantly and it really is not understood because it is just a stealthy tax.

[@CanadianTShirt]

It's definitely frustrating and something that not a lot of new investors know about! And then they get surprised when their dividend is 15% less than they expected! 😅

[@rufimn]

Adrian, I have a simple question about contributions. As you said in the Video that 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?

[@rossmacintosh5652]

I know its been a year but I see you didn't get an answer. Thought I'd answer to help you if you still need it, but also to potentially help anyone else confused by how the TFSA works. To simplify I'll use myself as an example. In my TFSA approximately 80% of my holdings are in US investments. If within my TFSA I sell any investment, whatever capital gain (or capital loss) I had doesn't have any affect on what contribution room I have. It's only withdrawals & deposits that affect contribution room. For them it doesn't matter if the withdrawn money came from a realised capital gain or if it derived from a US investment or a Canadian one. So if inside my TFSA I sell some Microsoft shares and then withdraw the money, it's treated the same as taking anything out of the TFSA. The money withdrawn is not subject to any tax (and is not considered earned income or investment income). In the year I withdraw the money it has no affect on whatever contribution room my TFSA had or has. That contribution room would be the same before and after the withdrawal, only affected by deposits to the TFSA. Adding money would reduce the contribution room. If after taking out that money I have second thoughts and redeposit it (within the same calendar year), that will count as a new contribution and decrease whatever contribution room I may have had. If the deposit was more than the contribution room I had it would be considered an over-contribution subject to penalties. However if I wait until the next calendar year I would find my contribution room will have been increased by the both the yearly allowance plus whatever I took out in previous years. It carries forward so you don't lose that new contribution room. Of course any deposits will reduce it. When you make a TFSA contribution they don't care where the money came from. If the money came from last year's withdrawal it will be treated the same as if it were new money saved under your mattress. Either way it will reduce your current contribution room. By waiting until at least the following year from the withdrawal you will have benefited by having your contribution room increased by the earlier withdrawal.

[@christinesabbagh623]

very helpful thank you!

[@CanadianTShirt]

My pleasure Christine! I hope you found this video helpful! =)

[@JohnDoe-ll7sg]

I just come to the comments to read Adrian's replies in his voice.

[@CanadianTShirt]

hahaha I'd love to hear an impression of me! 😆