BEST Investing Account? TFSA vs RRSP vs RESP vs FHSA // TAX-FREE Investing Accounts in CANADA
Вставка
- Опубліковано 26 лип 2024
- Where Should I Put My Money FIRST? Which INVESTING ACCOUNT Should I USE? Should I Focus on the TFSA, RRSP, RESP or FHSA? How Do I Lower My Tax Bill?
This can be confusing… There are many Investing Accounts available in Canada and it can be hard to choose between the TFSA, RRSP, RESP and FHSA! Ideally you want to use ALL of them but you have to be strategic and prioritize them in the right order. In this video, I’ll go over the step by step plan to make the most of your tax-sheltered accounts, minimize your tax bill and maximize your LONG TERM GROWTH! 🇨🇦
QUESTRADE REFERRAL 🇨🇦
If you’d like to sign up for Questrade: my favourite online broker, use my referral link to get $50 of COMMISSION-FREE Trade Rebates for the first 30 days!
That’s 10 free trades without any commission, $50 in savings! 👇
questrade.sjv.io/CANADIANTSHIRT
WEALTHSIMPLE TRADE REFERRAL 💰
Join Wealthsimple and get a bonus of $5 to $3,000 when you sign up with my link 👇
my.wealthsimple.com/app/publi...
Best SAVINGS ACCOUNT in 2024 - EQ BANK 🏦
Your emergency fund should be in a High Interest Savings Account and the best one in Canada right now is EQ Bank which offers up to 4% interest with no monthly fees and no minimum balance!
Use my referral link below to sign up 👇
click.linksynergy.com/fs-bin/...
CANADIAN TAX GUIDE 🇨🇦
• Canadian TAX Guide
RESP Explained
• RESP Guide
TFSA Guide
• TFSA Guide
RRSP Guide
• RRSP Guide
BLOSSOM SOCIAL 🌸🇨🇦
Follow me on Blossom to see my Portfolio & Trades for FREE 👇
blossomsocialapp.page.link/ca...
LOYALTY MEMBERSHIP ✨
Click the JOIN button or the link below to gain access to my exclusive content to see my full portfolio and what stocks I’m buying every month! 👇
/ canadianinatshirt
Thank you guys for supporting my channel, you’re the best! 🙏
SKIP AHEAD ⏩
-Investing Blueprint: 0:00
-#1 - Employer Matching RRSP: 1:34
-#2 - Credit Card Debt: 2:51
-#3 - Emergency Savings: 3:22
-#4 - RESP - Grants: 3:56
-#5 - FHSA - First Home: 5:28
-Questrade: 6:50
-TFSA vs RRSP: 7:13
-#6 - TFSA: 7:40
-#7 - RRSP: 8:26
-#8 - RESP - No Grants: 9:18
-#9 - Non-Registered: 11:01
WATCH NEXT ▶️
-2023 Tax Changes in Canada - • Important TAX CHANGES ...
-How Taxes Work in Canada - • HOW TAXES WORK IN CANA...
-TFSA Mistakes - • TFSA MISTAKES in Canad...
-Year-End Tax Saving Tips - • CANADIAN Year End TAX ...
-How to File Taxes in Canada - • How to FILE TAXES in C...
-RRSP Explained Part 1 - • RRSP Explained Part 1 ...
-How to Build Wealth - • How to BUILD WEALTH in...
-RRSP Mistakes - • RRSP MISTAKES in Canad...
-Norbert’s Gambit - Exchange Currency for Free - • Norbert's Gambit with ...
Be sure to subscribe to my channel for more videos on investing, Canadian taxes, personal finance and money saving strategies =)
FOLLOW ME HERE: 👋
FACEBOOK: / canadiantshirt
INSTAGRAM: / canadiantshirt
TWITTER: / canadianshirt
FINANCIAL EDUCATION BOOKS 📚
-Wealthy Barber Returns - amzn.to/2MJ9cIe
-How to Adult Money Canada Version - amzn.to/2F717ZT
-Beat the Bank: Canadian Guide - amzn.to/37uqe54
-Investing in Dividends - amzn.to/37mUnn3
-101 Tax Secrets for Canadians - amzn.to/2RrIuGS
-Millionaire Next Door - amzn.to/35ap253
-Intelligent Investor - amzn.to/3qoI5nV
-Making Money in Canadian Real Estate - amzn.to/2SKijw6
CAMERA GEAR 📸
-4K Camera - amzn.to/3aSHWEg
-HD Camera - amzn.to/3puBZkT
-Tripod - amzn.to/2Qf2Lid
-LED Ring Light - amzn.to/2MKLDyC
-Microphone - amzn.to/3aRdXMN
DISCLAIMER: I am NOT your financial advisor! My videos and the topics discussed are my opinions and are presented for entertainment purposes only. This information should not be construed as legal or financial advice. It is always up to YOU to do your own due diligence. It’s YOUR money so make YOUR own decision!
I will NEVER ask you to send me money nor will I ever provide my phone number or personal email address. If you see this, that is a fake account and please report any suspicious activity or scam accounts claiming to be me.
DISCLAIMER: Links included in this description may contain affiliate links.
I will only ever suggest services or products that I use myself and I personally believe in.
If you sign up using my affiliate link, I will receive a small referral bonus at no extra cost to you!
Thank you for supporting The Canadian in a T-Shirt! =)
#CanadianTaxes #CanadianInvesting #TFSA #RRSP #RESP #FHSA #RPP #CRA #CanadianFinance
Watch my CANADIAN TAX GUIDE to learn how taxes work and the rules & benefits of these investing accounts! 🇨🇦
ua-cam.com/play/PLj8bU3AuW2qEA_ik7NOAIkBY02nt7KAPj.html
I also have specific playlists for the TFSA, RRSP and RESP. View my playlists on my homepage. I included the RRSP playlist below 👇
ua-cam.com/play/PLj8bU3AuW2qHOikk4VRpSDXCZTuH7eUhz.html
@@CanadianTShirt What do you recommend to hold in RESP account ?
Love that the solution to the title was in the first minute no long intro just straight to the point
That's what I try to do! I hate the idea of wasting anyone's time. That's why I talk fast, get to the point and cut out the fluff =)
FHSA is such a smart choice for anyone looking to build wealth through real estate. I've been fortunate to leverage these accounts to grow my savings and invest in my dream home. It's all about strategic financial planning and taking advantage of the right opportunities.I wasnt financial free until my 40’s and I’m still in my 40’s, bought my second house already, earn on a monthly through passive income and got 4 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing is a grand choice I made. Great video! Thanks for sharing!
No doubt real estate has performed very well particularly in the last few years but a lot of headwinds at the moment I would not be investing or over allocating investments into only RE at the moment. Glad I cashed out of my original apartment and moved to equities to catch the big covid dip and massive recovery.
Adrian's knowledge is not just impressive; it's delivered in a way that's relatable and easy to understand. Plus, the guy does it all in a T-shirt, which adds a touch of authenticity that I really appreciate. As a relatively new comer to Canada, these videos have been really helpful, making my transition to Canada smoother. So, huge thanks!
Thank you so much for those kind words! I really do appreciate it and welcome to Canada! 🙏
And yes I will always trust a guy in a t-shirt more than a sweater.... you never know what they've got up their sleeves 😆
Love your channel! From one Canadian in a t-shirt to another.
You got it buddy! T-Shirts all year long! 😎
Absolutely great video on the many investment accounts / options! Your simple lay-person's explanation makes it very easy to understand and apply! I say "great video" about most of your videos, but this surely is one of your best on investing accounts!
Thanks for your continuing commitment to making Canadians financially literate!!
Thank you so much Kimmy! I am VERY proud of this video! It certainly wasn't easy to make... I had to rewrite the script so many times to get it right. It's hard to summarize 5 different investing accounts in a 10 minute video but I'm happy with how it turned out! 🙏
Love your content. So much information that can be learned here. It's unfortunate that such knowledge is not taugh in schools. Keep these vids coming
I couldn't agree more! There's no excuse why these fundamentals are not taught in high school but I know that some jurisdictions are starting the incorporate personal finance in their curriculums so that is great news! =)
Wow thanks so much for the Canadian-specific educational content! I immigrated here 5 years ago and behind on my retirement plan, so this is super helpful.
I'm so happy to hear that! I'm glad you found my channel and I hope you make the most of your retirement fund! 😁
I absoluttley love this. Thank you for making these things so easy to understand and the best steps to take advantage of each account!
I'm happy to hear that Dale! It can be confusing keeping track of all the different accounts and their benefits but I'm glad this video was helpful! =)
So many useful information that is just crucial for every Canadian to know. I hope all the best for you and your channel!
Thank you so much for those kind words! I'm so happy to hear that my videos have been helpful! 🙏
I love that you covered the RESP, too many forget about it :-)
I don't know why.... the RESP is SUPER powerful if you use it right and max out those grants! 😁
Great Scott! Fantastic video, thanks Adrian!
Thanks Jason! I can always count on you for support! 🙏
Looking forward to the RRSP vs TFSA debate video. My buddies and I are always fighting over this topic. Your videos are some of the most that I share with friends and family. Thanks man.
Thanks for spreading the word! I really appreciate that! 🙏
Ya those debates can get heated and there is a TON to discuss! I did a short condensed version in this video but there are SO many scenarios to consider when deciding between the two so stay tuned! =)
Thank you was about to open a RRSP and u changed my mind. I got TFSA’s no way close to its limit. This was really well done. Fast and simple.
I'm happy to help! And remember you can certainly do both! Invest a portion of your money in the TFSA and some in the RRSP! This breakdown will depend on your tax bracket and other factors =)
I'm Canadian and I love wearing t-shirts. You're also very good at explaining how we should be saving our money here. Thanks for your service.
It's my pleasure Jack! As one Canadian in a T-shirt to another! 😁
Awesome content. Thanks for the guidance, Adrian!
My pleasure! I'm so glad you are finding my videos helpful! =)
Very helpful vid. amazing work!
Thank you! I'm glad you found it helpful! =)
I just found your videos on UA-cam after listening to other Canadian finance podcasts for a few months as I am newer to investing and taxes, I first heard you as a guest on the more money podcast and I wish you had your videos available in podcast format as they would be great to listen to in the car. You’re videos are by far the best Canadian finance videos because you talk about important and useful topics and get to the point right away. I wish I found your videos sooner because I would have learned a lot more a lost faster. I look forward to going through all your videos and future videos. Thank you Adrian!
Thank you so much for those kind words and I'm glad you found my channel! Yes Jessica is AWESOME and I had such a fun time on her podcast! I hope to join her again! 😁
One of my goals for 2024 is to convert my videos into audio-format podcast so I hope I can get that launched soon. I'll keep you posted! =)
Although I do find that the visual component of my videos is very important (the notes I put on the screen etc)
Thank you for the video, really helpful ✨
I'm happy to hear that! This video was a BEAST.... it's not easy to summarize 5 different investing accounts in a 10 minute video but I'm glad it was helpful! 🙏
Awesome info here man!
Thanks buddy! I appreciate that! 🙏
Fantastic information. You earned a subscriber in me.
Thanks man! I appreciate those kind words and welcome to the channel! 🙏
Your videos are pure GOLD thank you for everything I couldn't make it to MTL to meet you with the rest of the Blossom team I hope you will come back soon
Thank you so much! I really do appreciate those kind words! Yes the Montreal even was so much fun! Don't worry, I will definitely be back! 😁
Thanks man!
My pleasure! I'm glad you found it helpful! =)
Great Video
Thank you! I'm glad you found it helpful! =)
Great video! I haven't been able to contribute to my investments as much as I had during the lock-downs. Now with my higher expenses but also higher tax bracket, I tend to only focus on my RRSP. But I really should contribute, even if just a little, to my other investing accounts. RRSP seems to be one of the last things on your list, unfortunately my job doesn't offer RRSP matching haha.
Each account offers different benefits and some accounts will favour individuals with higher incomes etc. It's a shame that your job doesn't offer RRSP matching but I'm glad to hear that you are creating your OWN retirement portfolio! 😁
Keep it up buddy! 🙌
Thank you 😊 so helpful
That's what I love to hear! I'm happy to help! 😁
FHSA is hilarious. Max $8k per year is a joke. These days, the average detached home costs $1M. You need $200k min down payment to afford that home. Capping the FHSA at $40k is laughable.
Agreed.
It's not supposed to buy a house on its own, it's 40k double tax free allowance, take it
@@SirTylerGolfabsolutely gotta take what you can get. All adds up
Buying a house in TO, VAN, OT. XD
Excellent video.
Thank you! I'm glad you found it useful! =)
This is simply great....
I'm glad you found it helpful! Happy investing! =)
Thanks Adrian! This is the best video I watched on the YouTub regarding tax free investing account. Besides those tax free accounts, would you be so kind to share you view whether it’s better to invest in participate life insurance (tax free) or to invest in high dividend stock/ETFs in own non registered accounts?
Thanks for this intro. I will replay it several times and make notes. Right now taking McGill U's mini-course to get a better understanding of personal finance.
However, in addition I think I need to see a financial advisor since my situation might not be cookie cutter: very low income (so far never pay any income taxes), retired, have TFSA and just started an RRSP, not a property owner, intend to give up Canadian residency within five years, etc.
I see pluses and minuses to TSFA vs. RRSP. Bottom line: while the federal governments of both Canada and USA (relevant if getting dividends or distributions) make it advantageous to organize and plan, it's not a tax-free free for all system like Dubai or Brunei. And there are some complexities. So for the little guy with very little wealth it is less complicated but not super simple.
Thanks!
Wow! That is incredibly generous of you! I have never received a super thanks like that before! 🙏
I'm happy to hear that you found this video so helpful! You're the best!
Thanks 😮
You're welcome! I'm glad you found it helpful! =)
Gradually plowing through your videos, thank you so much for all the info! Still learning. You mention RRSP a lot, obviously. I have an RSP mutual-fund acct with TD. Does everything you say about RRSP also go the same for RSP accounts?
I work in film so this couldn’t have come at a better time 😊
It was meant to be! I hope you find my blueprint helpful to strategize and prioritize where to put your money first! 😁
By the way, I am a HUGE movie nerd!!! What have been your favourite film projects? If you don't mind me asking 😊
@@CanadianTShirt I don’t mind at all. Here’s a few movies (not necessarily great), and TV projects:
- Suits
- Handmaid’s Tale
- It
- See 3
- Slumberland
- Jupiter’s Legacy
- Locke & Key
So many, but that’s just a few of them!😉
@@donnapugWow! That is certainly an exciting career! Really cool stuff! 😁
Nice video. Please guys get find time to spend and enjoy your money as well. It’s not all about savings. 😊
Absolutely! You gotta find balance in life! Enjoy today but prepare for tomorrow! 😁
What a great video to start the weekend! I was actually debating over which tax sheltered account to use up first. So thank you for making this video! ❤
Now that we are in a recession, it would be very helpful to know which ETFs and Reits are worth buying. So it would be great if you can make a video addressing this topic. As always, thank you for enlightening us with such great content! 😊
Thank you! I know not everyone wants to start off a Saturday morning with a tax video but that's how I roll! 😆
All of the stocks, ETFs and REITs that I buy during good times, I continue to buy during market downturns! Check out my STOCKS TO BUY playlist to see why I invest in these companies =)
ua-cam.com/play/PLj8bU3AuW2qFD4sCsCxXdaAADlyiP8bqB.html
Many stocks and industries are being hit hard especially REITs since they are particularly susceptible to higher interest rates. But as long as these REITs have quality tenants, high occupancy rates, they will continue to be profitable and I have no doubt they will recover! And in the meantime, I'm happy to lock in those higher dividend yields 😊
There's one more consideration when it comes to holding eligible dividend payers (TD, Enbridge, CNR, etc). You want to hold these types of stocks in your taxable account rather than your RRSP, if you can. There are tax credits for receiving eligible dividends, but you only get credit if they're in a taxable account. If you hold these in your RRSP you won't pay tax now, since it's deferred, but you wont benefit from the tax credits. When you go to pull that dividend income from your RRSP later then you will be taxed. The tax credits on eligible dividends vary from province to province, so you'll want to play around with a tax program to figure your personal situation out, but it seems that roughly the first $50,000 of eligible dividends per year is laxed at a very low rate after credits, and tapers off going up to $100,000 per year. That's a lot of tax savings you'd be missing out on if these are in your RRSP. This scenario doesn't account for capital gains if your share prices appreciate significantly, however capital gains become one of the most tax efficient sources of income as your income level rises.
Great video.
Can you please make a video on RPP - rules and tricks.
Thanks.
I can certainly make a whole video on the RPP but I have spoken about it in detail in my RRSP Mistakes video here =)
ua-cam.com/video/I8k95_R_L_Q/v-deo.html
As well as some of my other RRSP Explained videos, make sure you watch the whole RRSP playlist =)
Great video. Do you have any videos or are planning any regarding using low-interst loans to fund an RRSP? For example, using a 7% or 11% line of credit to fund a 6% limited-time available RRSP financial product, but that you could pay back the credit in maybe half a year. Are there implications, is it worth it or not? Thanks
Again, great advice for the long-term investments. Are you planning advice for short-term for individuals who started out further on years. i.e. 8 to 12 years before retirement.
Absolutely I will! The shorter the time horizon, the trickier it gets and the more factors you have to consider. Generally speaking, the closer you get to retirement, the more conservative you want your investments. So focus more on the well established, blue chip dividend stocks and ETFs and even fixed income products like bonds or bond ETFs =)
If you are in a high tax bracket I would say RRSP>TFSA because setting aside money in RRSP gives you a bigger tax return which you can put in TFSA
That's a great point and a very popular strategy! Contribute to the RRSP and then use those tax refunds to contribute to your TFSA. You get the best of both worlds =)
I would like to request a bit more technical video where you explain how to analize and understand a long earnings report. For instance from TD Bank last quarter (came out on August 23rd 2023). It would be nice to know what to focus on as well as understanding the more relevant terms. Thank you for your great videos
Absolutely! I have made a few videos on how I analyze stocks but I haven't made a dedicated one on earnings reports. There is a TON to discuss so it might have to be a series of multiple videos =)
Thanks for the great suggestion! =)
Well if you make a series on that we will be very happy! Please choose stocks from different industries then. For banking TD would be amazing but it would also be great to add some tech stock. Thank you very much for your great videos!
NICE
I'm glad you found it helpful! =)
Is the FHSA still the way to go if you’re unsure about ever buying property and have a DB pension plan? Thanks!
Ur a great person bro.
Wow! Thanks buddy! I appreciate that! 🙏
I am new immigrant moved to Canada. Recently started ur content, followinng u on blossom. The way u passionately explain things especially in Canadian style, is just great and quality educational content. God Bless Brother.
Thanks buddy! That is so kind of you to say! 😊
And welcome to Canada! 🇨🇦
That's a great comparison video. We will appreciate if you make one video every 6 months, if there is any updates in rules since your previous videos. I,e: before on RRSP, we were able to withdraw up to 40k to buy a home, but now because we have FHSA, we can not do same thing with RRSO anymore. I am following you for majority of my investment research, and also watching your 2 or 3 years old videos. So if there is quick update./changed rules video there, it will be helpful for all followers.
You are referring to the Home Buyer's Plan with the RRSP! Don't worry, the FHSA does NOT prevent you from using the HBP! You can use BOTH the FHSA and the Home Buyer's Plan together!
And just to clarify with the Home Buyers Plan, you can withdraw up to $35K from your RRSP, not $40K. But don't worry, you can combine this with your FHSA to really help out with that down payment =)
@@CanadianTShirt Thank you so much! for quick reply back. Your channel is so helpful, I am sharing with all my friends and families!
Thanks buddy for spreading the word! =)
Thanks for all the videos. I didn’t get one thing about FHSA, so when we say it’s also combination or RRSP and TFSA, does it mean that we contribute to FHSA from our gross salary before tax, not net income like in case of TFSA?
Amazing content as always Adrian! A lot of your active followers like myself are trying to act in a way to retire earlier in life, in one way or another. Would you still recommend the use of the RRSP for us? If so, what are some strategies we should be considering?
Absolutely! I'm in the same boat! My goal is to be able to retire sometime in my 40s! 🤞
And using the RRSP is a big part of that plan!
"Retirement" isn't set at a fixed age like 60 or 65, retirement is just when you stop working and so your taxable income will be much lower. So if you are trying to retire early, your income will be lower for that year so withdrawing a portion of your RRSP would be a great idea. Since you would likely be in a much smaller tax bracket than you were when you made that initial contribution so you'd be left with an overall net gain in taxes =)
Hi Adrian, if by some chance I over contributed to my TFSA for 2022, should I withdraw the overage or can I leave it there to act as my investment for 2023? Thanks!
Can you please explain the Withdrawl and direct - Indirect transfer / deposit forms for FHSA ?
I'll be making more specialized videos on the FHSA but the withdrawal forms should be fairly self explanatory. What specifically is your question?
Hello. Are you able to give more details about the RDSP? tks
I can certainly make an RDSP video, I haven't done it yet since it doesn't apply to the majority of Canadians but there is certainly a lot to discuss! =)
Can you make a video of what to invest in the FHSA account?
Absolutely that video is certainly coming! It really depends on many things, primarily your time horizon. If you are buying a house in 2 years vs 15 years, that makes a big difference so I will cover various scenarios in that video =)
Hey @CanadianTShirt - My employer has a DC account program that provides contribution matching (50% first 2 years then 100%). Is it same and falls under RRSP?
Can you make a video just for the RDSP - registered disability savings plan ?
I haven't made that video yet since it isn't applicable to as many people but it's certainly coming! =)
What's the best strategy for a non-registered cash account - best things to put there from tax point of view? I assume it's again Canadian dividend stocks since that's the lower tax, together with lower capital gains tax on growth?
Great video as always. Thanks for making these 😀
Regarding FHSA, would it be possible to open one by someone who has purchased a first home which is currently on mortgage and use the returns of the fhsa to pay down the already existing mortgage?
Unfortunately no. In order to open an FHSA, you must not have lived in a house you own within the past 5 years
The whole point is to help you buy your first home so if you already live in a home, you won't be able to open this account. But I like where your head it at! =)
Awesome video, Adrian! After seeing you at the Montreal event, it's clear that your enthusiasm for investment remains consistent whether in your YT videos or in person, showcasing your genuine passion. One question for you: I had previously maxed out my tax-sheltered account and started a margin account two years ago. With the introduction of the new FHSA room, do you think it's wise to transfer stocks from my margin account to FHSA, or should I just deposit cash into the FHSA?
Thank you for those kind words, it was a pleasure meeting you as well! The Montreal event was so much fun! 😁 Excellent question! I cover this in detail in my video on Transferring BETWEEN Accounts here:
ua-cam.com/video/WBqJaAFYcRQ/v-deo.html
This video is a few years old, before the FHSA existed but the same applies when going from the Margin to TFSA or Margin to FHSA
You can certainly transfer up to $8K worth of stocks from your margin into the FHSA just remember that this WILL be a taxable event! It will be treated as if you sold those stocks, so you will be taxed capital gains on that "profit"
If you have the cash, I would just contribute cash into the FHSA to avoid triggering those capital gains taxes. But it's up to you, you might want to do a mix of both! Contribute some cash and then to max out the rest of the FHSA, transfer from your Margin. Just be prepared to pay some taxes in April on those capital gains =)
@@CanadianTShirt Thanks for the clear explanation Adrian. Makes total sense.
This is what I am looking for
That's what I'm here for! =)
Check out the rest of my TAX videos, they will always have the silver-coloured thumbnails =)
ua-cam.com/play/PLj8bU3AuW2qEA_ik7NOAIkBY02nt7KAPj.html
I am learning a lot from your channel. Keep up the good work 👍
I'm happy to hear that! =)
Keep up the VIDEOS!!!!
You got it buddy! That's certainly the plan! 😁
Hi im 20 and I want to invest for the Long-term.
Trying to decide on which ETF to go heavy on: XEQT vs VFV
I didn't open an RRSP since im still a student so im using a TFSA. Otherwise VOO in RRSP.
I heard "XEQT is investing in the whole world, VFV is only investing in 1 country." so isnt it safer for me to do that?
Lake St. Martin First Nation Manitoba Canada 🇨🇦
I would love to visit one day! =)
I think it's important to note for long-term investing, the FHSA can only be opened for 15 years from inception, so it may be worth waiting 5 years to put in a lump sum of $40,000. You could put $8,000 into an RRSP and when you transfer it to the FHSA, your income from the withdrawal would be cancelled by the FHSA contribution. This way you get more time for tax-free gains on the $8,000 blocks :)
That wouldn't work.
You can use deposit 8000/year + a *maximum* of 8000/year of carryforward.
So you could do:
Open FHSA
2023: $0
2024: $0
2025: $16,000 ($8000 from 2025 and $8000 unused)
2026: $16,000 ($8000 from 2026 and $8000 unused)
2027: $8,000
So you'd save an additional 2 years.
But it should be worth noting that the carryforward doesn't exist until you open an account. So if you didn't open the account until 2025 you'd only be able to contribute $8000.
Also, you'd be missing out on 2 years worth of compound interest.
Hey thanks for the reply! The limit of RRSP is 18% of your last year salary. But is that gross salary or net salary? If I maxed FHSA and TFSA will it impact my RRSP year amount for the next year? (I added it as a new question so others can see it early) thanks
First, it was nice to see you and talk with you in person during social event in Montreal! My employer matches 45% of my RRSP contributions until I meet my CRA given RRsP contribution limit. Is it more beneficial to prioritize my RRsp contributions until it's maxed out?
It was a pleasure meeting you as well, the Montreal event was so much fun! 😁
A 45% match is still great so take advantage of that free money! I would suggest maxing out the employer matching amount and then stop there. After the matching is finished, the rest of your RRSP room should be in a self-directed RRSP where you buy your own stocks or ETFs and avoid paying those high management fees =)
But yes always keep in mind your available RRSP room (you will see your room from your Notice of Assessment from your most recent tax return) Make sure you do NOT exceed your limit! =)
Subject: Query Regarding Group Retirement Savings Plan (RSP) Contribution
Hi
I hope this message finds you well. I have a question regarding my RRSP contribution and the company's group retirement savings plan (RSP).
Given that my taxable income for 2022 was zero, my RRSP room for 2023 is also zero. However, my office offers a *% matching policy for the group RSP, which I understand can be used as an RRSP contribution.
I'm contemplating starting to invest in this fund from December 2023. Would there be any issues with this approach? Alternatively, can I report this investment in my 2024 return if there are any complications in including it in my 2023 return?
Your guidance on this matter would be greatly appreciated.
Thank you,
Adrain, please make a video on RDSP accounts (investing for a disabled child's future). Thank you
I can certainly make a video on RDSP, they have very powerful matching benefits! =)
@@CanadianTShirtThank you! And sorry I butchered your name in the first post!
haha no worries! I've seen a LOT worse! 😅
I would love the insight of your community, I'm hesitating between three options
1) Investing in my future child RESP (no grant part of 14,000$). I will contribute of course already top the 2,500$ amount elligible for grant
2) Putting the 14,000$ down on my mortgage renewal in 2024. (interest rate would probably be between 6-7%)
3) Giving this money to my parents. They could invest it in their TFSA and let it grow to cover future medical expenses. I would probably need to cover theses expenses in the future anyway, so why not let it grow tax free.
I’ll check back in 3 years once the credit card debt is paid off and the safety net is built up lol 😫
Getting out of credit card debt is HARD! The interest and the numbers are working against you but you absolutely have to focus on it! Every bit of money you can should go towards paying off that debt!
It's not going to happen overnight but stick with it and you'll come out the other end! Also look into a credit transfer! If you can transfer your credit card debt into another card which has a lower interest rate! That will make a big difference! Best of luck! =)
Can you make a video about the public pension plans
Yup! I've already got a video about CPP (canada pension plan) and the important changes for 2024!
ua-cam.com/video/rICT8RpVKS8/v-deo.htmlsi=NuY84McfRHF-R2Du
Hello, as a Canadian I love your videos and I got a lot of knowledge from them. I would like to ask: When I open a new TFSA account with a new brokerage firm and I want to transfer money to that account from another TFSA account, would that money transfer will reduce my available TFSA contribution limit? Thank you
Because you are transferring from an existing TFSA it would not change your contribution limit. If you transfer from any other account type to a TFSA, then it would count towards your contribution limit and reduce what room you have left.
Hi! I haven't been able to find these videos (I'll keep trying), but do you touch upon GICs?
I haven't made a dedicated GIC video yet but I have talked about them! I think they can be useful but only for short term goals where you can't afford any risk!
Anything longer than 2 years, and they are not worth it... you will be losing money due to inflation and missing out on significant returns in the market! Plus your money is locked in which sucks....
Hello. Just something that I am considering. Would like thoughts and opinions. A possible retirement income portfolio in my TFSA account..... 153000 shares of FIE, 8000 shares of CSAV and 6000 shares of ZWC. Just a foundation to start. Live off 50% of the income and reinvest the other 50% to add/expand the portfolio monthly.
Hey Adrian! Awesome video as always! Question on the RESP. What's your opinion on contributing a large sum (example $15,000) in the RESP in the first year. I'm thinking that the benefit of front-loading is at least you're letting a large amount of money grow for 14 years. True, you would only get $500 from the govt that first year, but letting $15K invest for ~14 years would be hugely beneficial. Can't beat the benefit of time in the market.
That would be a great idea but ONLY if your TFSA is already maxed out! The power of the RESP over the TFSA is the 20% government grants. You take those grants away, and the TFSA is just better than the RESP in every way, since it's more flexible and it is fully tax-free whereas the RESP is "mostly tax free" under your child's name
That's why I suggest putting in $2500 into the RESP to max out that $500 of grant money and then stop and move onto the FHSA / TFSA/ RRSP. Once those are maxed out, then come back to the RESP. At that point, if you have $15K, then sure put that $15K into the RESP to let it grow tax-free. From that point on every year, just put in $2500 into the RESP and continue to fill up the other accounts as you gain more room. Hope that helps! =)
@@CanadianTShirt Gotcha! That makes sense. Thanks man
Almost first
It's not about TIMING the market, it's about TIME IN the market! 😉
@@CanadianTShirt😂
Are TFSAs worth it for non-resident Canadians? I think there’s a 1% tax on them or something like that
Awesome video as always! Thank you!!
Do you know if we can contribute to FHSA this year (2023 for example) and claim the tax refund in the next year (for example 2024)?
Absolutely! Just like the RRSP, you do NOT have to claim the tax deduction right away! You can carry it forward to a future year. If you expect to be in a higher tax bracket next year, then this can earn you a significantly larger tax refund!
Check out my RRSP video all about carrying forward this tax deduction, the exact same thing applies with the FHSA =)
ua-cam.com/video/Wm2nOmqOqCQ/v-deo.html
Important point, it's only worth it to carry forward the deduction if you expect to be in a larger tax bracket! If your income increases but you remain in the same tax bracket, then you'll get the same tax refund so it's not worth waiting. In that case, you might as well get the money as soon as possible so you can invest it =)
Hey, Adrian. Thank you so much for the video. It helps a lot to understand banking system in Canada for newcommers. Great Job!
I have a quick question though, for international students who want to save some money for the future, what type of saving acount is suitable?
You don't have to be a citizen or a permanent resident to open these accounts! As long as you live in Canada and have a valid SIN, you can open ALL of these accounts! 😁
Of course the RESP is meant for your children and the FHSA only applies if you are a first time home buyer, make sure you watch my dedicated videos on the FHSA, RESP, RRSP and TFSA for all of the rules and requirements to follow 🙂
Again focus on your goals. If you have kids, the RESP is the winner for that extra 20% grant money. If you want to buy a house, then focus on the FHSA. Now between the TFSA and RRSP will depend on your goals, income bracket etc. But the TFSA is the most flexible =)
@@CanadianTShirt Awesome! Thanks for the insights :)
@@Amirhossein93my pleasure! =)
Can both of the parents open a RESP and maximize the government contribution for the same child?
Great content as usual 👏👌👍
As you mentioned in another video we can invest n buy stocks with the money we put in TFSAcan we do the same with RRSP every year we get some through TFSA so when we reach 65 then we withdraw RRSP without paying tax ?
I'm happy to help! And no no, that's the difference between the TFSA and RRSP. With the TFSA, you put money in, you DON'T get a tax refund but you can grow tax free and withdraw tax free
With the RRSP, it's the other way around. You put money in, you get EXTRA money from a tax refund upfront. Then your money grows tax-sheltered for decades and when you retire, you withdraw BUT you pay taxes on that withdrawal. The idea is that if you withdraw in retirement in a low tax bracket, the taxes you pay in retirement will be lower than the tax savings you earned today (plus the years of tax-sheltered growth etc)
Make sure you watch my RRSP Explained videos to understand how they work, especially Chapter 2 which is all about how RRSP Withdrawals are taxed =)
ua-cam.com/video/gcYlQl6hF6w/v-deo.html
What is the best investment strategy for maximizing growth exposure and minimizing taxes for the FHSA? Canadian/US dividend stocks, Cdn/US ETFs, CDN/US growth stocks. Keep in mind I'm already using my RRSP for US ETFs and dividend stocks, and my TFSA for Canadian dividend stocks. Thx
With the FHSA, the most important factor is your time horizon! If you are buying a home in 2-3 years, your investments will be very different than if you're holding the account open for 15 years! I'll break down multiple scenarios in an upcoming video =)
Bro my resp as i told you will charge me enrolment fee %9 if i withdrawal my money and it s a lot how i can complain to to government? Because they don't listen to me! This is my kids money why they should charge me
Love your videos!
Question: My employer doesnt match any of my RRSP contributions, I have a DC Pension Plan that they match and also an ESP that they match at 50%. What would you recommend in this scenario? Thank you!
There are several versions of employer matching incentives like RRSP matching, RPP, DCPP etc There are a few differences between them and always consult with your HR department to clarify your employer's specific policy. But whatever amount they match, try to max that out! That is FREE money that you don't want to leave on the table
But once the matching amount is maxed out, I would stop contributing. The real benefit is the free money through matching. Without that, you can get far better returns investing on your own since you can avoid those hefty fees!
So yes max out that matching amount but also consult with HR to make sure you understand their corporate policy! And ensure you remain within your RRSP limit since they all share the same contribution room =)
Thanks for your response!
im thinking of balancing my investments into both FHSA & TFSA. my FT doesnt do matching. whats ur take on splitting up the money invested between the 2 accounts? i want to save up for my first home but also wanna be invested in some stocks/ETFs in my TFSA. great video as usual
Ideally, you want to max out BOTH accounts every year but obviously that would take a lot of money: $14.5K is no joke.... ($8K FHSA + $6.5K TFSA)
If you are certain that you are buying a home in the next 15 years, I would prioritize the FHSA and try to put in that $8K every year. The FHSA has ALL the benefits of the TFSA plus you get the tax refund every year so it's the clear winner, as long as you are planning to buy a home
And the FHSA and TFSA face the same tax treatment (100% tax free for Canadian investments but face a 15% withholding tax on US dividends) So whatever investments you hold in a TFSA you can also hold in an FHSA. Just keep in mind your time horizon! If you plan on buying a home in the next 2 or 3 years, then you need to be far more conservative with your investments. I'll be making a whole video on FHSA investments based on different scenarios =)
@@CanadianTShirtooo can’t wait for that video, definitely looking forward to that one
🎉 As always, you have the best content regarding investing for Canadians!!!!
Question: (thank you in advance)
Since you get more room in RRSP and TFSA annually, in an effort to “course correct” past investments, can we simply transfer some of our investments in our marginal account (like US Dividend ETFs) into RRSP/TFSA when more room opens up? Are there any concerns or tax implications/reporting? We have to pay for any gains in the marginal account, but since we didn’t technically “withdraw” this money , is it accurate to say no taxes to pay in this transfer, even if this investment grew(while inside marginal account)? Does this need to be reported separately for tax filing..?
And also, the contribution limit of the registered account would be reduced by this transfer amount and if transferred to RRSP, the transferred dollars would be tax deductible?
Thank you so much for those kind words! I really do appreciate that! 🙏
I answer that question extensive in my video on How to TRANSFER Stocks BETWEEN accounts! =)
ua-cam.com/video/WBqJaAFYcRQ/v-deo.html
Also check out my YEAR END Tax Savings video where I discuss that exact strategy. Transferring stocks from your Margin account into your TFSA as soon as you get that new room! Yes it can be done but you will be taxed those capital gains as if you sold them. It's called a "deemed disposition" since they are moving into a tax-free account, they are considered to be sold first (so you'll owe a tax bill next year)
ua-cam.com/video/xLXup5L-S2Q/v-deo.html
And for your last question, yes! Transferring into an RRSP is treated the SAME as doing a regular RRSP contribution. It will take away your available room and that amount you transfer will be tax deductible. Hope that helps! 😁
Could you please make a video on the best investment strategies for TFSA to maximize its benefits, as I dont really know what to buy there. Like grow/divident stocks, ETFs or gics.
In one of your previous videos you said that it makes sense to put most of the divident stocks on TFSA. Is it so?
What will you suggest in such case? Im new to Canada and dont really understand the market yet
Great question! I talk about this in detail in my TFSA MISTAKES video so check that out!
ua-cam.com/video/s4cBibLATOU/v-deo.html
I would suggest CANADIAN dividend stocks, ETFs and REITs since they will be 100% tax free in a TFSA. Your US dividend stocks should go in an RRSP instead to avoid that 15% withholding tax on US dividends. And avoid the risky, speculative plays in a TFSA since if you lose your money, there's no way to salvage that with a capital loss tax credit (can't do this in a TFSA but can do it in a non-registered account) And even worse, if your risky stocks crash and burn in a TFSA you will permanently lose that precious contribution room! Watch my video above for more details but I hope that helps! =)
@@CanadianTShirt ok, thank you! Will watch it again more precisely
Thanks for refreshing. However, people are having difficulty in getting the job and in running normal life. These multiple lucrative accounts are fine and good for high paying jobs and for industrialized nation.
Of course everyone is in a different situation! In an ideal world, everyone would be able to max out all of these investing accounts!
But you can only invest what you can afford, which makes it even more important to be strategic and prioritize the accounts which will yield you the best returns and tax savings =)
"Thank you, Adrian, for your detailed insight. I have invested some money in a TFSA under SEG funds. Can it outperform mutual funds or stocks? Could you create a video on the pros and cons of SEG funds? As a first-generation immigrant, it's challenging to save money due to the increasing high cost of living and rising mortgage rates."
I can certainly make a video about SEG funds, there is a lot to discuss and a lot of misinformation out there so be careful...
And remember SEG funds usually cost even more... so please be aware of those high fees...
Adrian! Thank you for teaching me and so many people about investing. Can you tell me how one is taxed in margin account? I've max'd out all of my registered accounts. I own a house. No credit card debts.
Congratulations! I will be covering the taxation of a margin account soon so stay tuned!
But long story short: capital gains are taxed at HALF of your tax rate so very tax efficient!
Canadian dividends will be taxed more favourably than regular income because of the dividend tax credit (more complicated, will break down in the video)
US dividends and interest income from bonds and GICs will be fully taxed which hurts. That's why I avoid those in my Margin account =)
I am currently contributing 6% of my biweekly income to my RRSP and my company match 3% of the contribution. However my plan is to move to USA after 2/3 years. I am confused should I still continue to contributing to RRSP even I know that I won’t be living in Canada for long term? (Assumption only) please reply.😊
Hi Adrien, What are your thoughts on GICs?
I will be making a whole video on GICs! They can certainly serve a purpose but only if it's a short time horizon (less than 3 years) and if you NEED the money by a certain date and you cannot afford to take any risk with the principal
After 2 or 3 years, GICs will cost you since you are losing out on much larger long term returns with stocks and ETFs. And worse, that money is LOCKED-IN so you have very little flexibility. But in the short term, they can be great. Long term, don't do it. It would be the equivalent of using a savings account to build wealth... you are really just doing your bank a favour
Remember, how is the bank affording to pay you a 5% interest rate with the GIC? They are taking your money, investing it and making much MORE than that! They keep the profits and then they just pay you the small 5% as a thank you. So in the long run, do what the banks do and invest yourself =)
Love your content! May I ask if I can open either TFSA or RRSP on my own or I will need a bank to open them for me? Thanks
Do them on your own through an online brokerage! Questrade is my all time favourite and you can open ALL of the accounts on this list with Questrade. WealthSimple Trade is another great option but I only recommend them for Canadian investing (US investing will cost you currency conversion fees) and they don't support the RESP
You can certainly open a TFSA and RRSP with your bank as well but they are much more expensive.... Quetrade is literally half the price with commission fees and they don't charge any commission when you buy ETFs! See my video below on why Questrade is my all time favourite and how to open an account step-by-step =)
ua-cam.com/video/uoOBRUY8IXQ/v-deo.html
And make sure you use my referral link to get that $50 signup bonus! =)
www.questrade.com/?refid=CANADIANTSHIRT
Thank you again. I'm not very familiar with this subject but I understand them more just a bit now thanks to you. I have a friend who opened the TFSA account with his bank and it is a bit difficult for him to take the money out as he needs to go there every time.@@CanadianTShirt
@@HiepTran-pv9zrAny banks should have an online web account so there shouldn't be any reason to go there in person.... And you can hold MULTIPLE TFSA accounts! You can have one with your bank, one with Questrade, one with WealthSimple. That's fine! I personally own 3 different TFSA accounts just remember that they all SHARE the total available contribution room! =)
So we can transfer the money from FHSA to RRSP in case we dont buy a home. When can we do that? Once we reach the max ie 40k? And lets say if we have any capital gains on that, do we have to pay taxes while transferring to RRSP?
You can transfer at any time but my recommendation would be to keep it in the FHSA for the full 15 years, just in case you change your mind and end up buying a home =)
And luckily if you do transfer over to the RRSP, you can transfer the FULL amount! Your contributions PLUS the investment income (capital gains, dividends, etc) There is no tax on the transfer but that money becomes a regular RRSP so you will have to follow the RRSP withdrawal rules and taxes when that eventually happens =)
Hey! thanks for the video. What I dont get is... may I max all of them? If I have idk... 100k to save a year. Can I max TFSA, RRSP and FHSA? or there is a shared limit you cannot put more than 20% of your income in no-taxeable income
Not at all! You can and should strive to max out all of them! It's very hard to do and most people will never have that luxury but yes you can max them all out!
Generally speaking you want to take advantage of all the tax-sheltered room that you have before you start investing in a taxable account =)
I invest using contracts for difference (CFD) through Oanda Brokers. These are leveraged products 1:50. The broker loans money to trader and charges interest ONLY if positions are held overnight . It’s called holding costs or overnight financing charges. Do you know if these are tax deductible expenses?
In a non-registered account if you are using borrowed money to invest in dividend paying equity, then that interest is tax deductible
If there are other costs associated with investing such as commission fees, those will be baked into the cost basis. So not a tax deduction but it will reduce the capital gains tax you end up paying
I would speak to support at your brokerage and confirm the nature of those fees in your case =)
Wealth Simple Trade offers managed RESPs.....
That's not WealthSimple Trade. That is WealthSimple INVEST, their Robo-investing platform. Trade is a whole different product
Don't get me wrong, WealthSimple Invest is also great and a wonderful hands-off approach to investing, especially for beginners. But you won't be able to buy your own stocks or ETFs. If you want that, you will have to use WealthSimple Trade but then you can't open an RESP. Hopefully, they'll offer an RESP one day but it's been many years and nothing yet
Hi buddy I am really confused is Wealthsimple safe? If it is does it provide any interest for keeping the specific amount in the account
WealthSimple is very safe! They are federally insured with both CDIC and CIPF which is very important. That means that even if they go bankrupt, your money will be protected by the government
I go over the importance of this CDIC and CIPF insurance in my video on the US Bank collapses here =)
ua-cam.com/video/FZjOEIBM-_Y/v-deo.html
What about rdsp
I didn't include the RDSP since it doesn't affect the majority of Canadians. That being said, if you are eligible for the RDSP, it is incredibly powerful! The government matching grants are fantastic so I would probably place it at the top of the list =)
Hi Adrian,
I have followed your channel for some time now. I find it clear, constructive and up to the point with no un-needed fillers.
Thank you for covering RESP. We have got our PR cards and will be moving to Canada in a few months. My daughter is now 13 and per your suggestion that we should only put 2,500 into the RESP annually to get the $500 from the government. Does this still apply to my daughter or should I just put in 12,500 annually for 4 years and get the $500 per year as the time is limited and I would like the portfolio to grow faster.
Regarding TFSA, once the stock pays a dividend, am I allowed to purchase any stocks with it (I am not a big fan of DRIP)?
Lastly, I would love for you to do a video on BPA as I cannot find any Canadian UA-camr discussing about BPA. It’s somewhat confusing specially for us new immigrants.
Thank you for doing an amazing job of explaining about taxes better than any other channel. God bless!
Thank you for those kind words and welcome to Canada very soon! 🇨🇦 Yes your daughter will be eligible for those RESP grants as soon as she moves to Canada so contribute $2500 every year to lock in that extra $500. You won't be able to reach the maximum grant amount of $7,200 because she is already 13 but try to get as much free money as you can! =)
My priority would be to put $2500 into her RESP every year to get the max $500 of grants and then focus on the TFSA instead. Without the grants, the TFSA is just better than the RESP since it's entirely tax free. But since you are new to Canada you will only have $6,500 worth of TFSA so you can likely max it out right away
If that's the case then yes you can contribute even more into the RESP to gain the benefit of the tax sheltered room. So put in $2500 into the RESP, then max out the $6500 into your TFSA and then as you said, put in another $10K or even more into the RESP if you have it available
If you have a wife as well, remember that she can also contribute $6,500 into her TFSA this year so max that out as well. And yes, when you receive a dividend, it will come into your TFSA account as cash and you can choose what to do with it! You can manually reinvest it by buying whatever stock you want but I prefer DRIPs so that it automatically reinvests for me PLUS it will avoid commission fees when I reinvest with a DRIP =)
Finally I have talked about the Basic Personal Amount in a few of my tax videos, most specifically in my 2023 TAX CHANGES video here! =)
ua-cam.com/video/Zjfy_G1l5ok/v-deo.html
I wonder why he prioritized RESP over retirement plans, even if you have kids. I understand the grant money but why max it out and forego your own retirement accounts for kids college fund? On an airplane you put your own mask on first then you put your kids mask on.