Building A Million Dollar TFSA (Tax-Free Savings Account)
Вставка
- Опубліковано 20 чер 2024
- 📈📚 Join The Investing Academy ➤ bit.ly/theinvestingacademy
Let's talk about building a million dollar TFSA (Tax-Free Savings Account) in Canada! You may be wondering what the TFSA is? How the TFSA works? What the contribution limits are? I'll share my exact plans (with numbers) and how I plan to invest within this account, including the best stocks to buy to hit this goal!
-----------
Follow Me On My Socials:
Instagram ➤ bit.ly/3Oechgh
TikTok ➤ bit.ly/3PlNvfw
LinkedIn ➤ bit.ly/3RLndF7
Website ➤ www.theinvestingacademy.ca/
-----------
🏦🇨🇦 Sign Up Bonuses 💰💸:
► Blossom App (The Investor’s Social Network) - Follow My Trades & Market Insights (Download For FREE) - apple.co/3REtS4d
► Questrade Online Brokerage (Get $50 in commission-free trades) - bit.ly/3OhrRrK
► Wealthsimple Trade ($50 cash bonus when you deposit $150 or more) - bit.ly/3v1FBQt
► Wealthsimple Invest Robo-Advisor (Receive a $50 sign up bonus) - bit.ly/3Pm2g1Z
► NEO Financial (Cash Back Credit Card) - bit.ly/3yJqb4s
The above affiliate links are provided for your convenience, and if you click on a link and end up purchasing a product or service, this channel may receive compensation for the referral. We have personally vetted each of these companies and services and, in our opinion, we believe they provide value to our viewers, depending upon your individual circumstances.
Business Inquiries ► darwin@theinvestingacademy.ca
-----------
Disclaimer: The views and opinions shared on this channel are for informational and educational purposes only. Although previously licensed, the contributors are no longer industry participants and are not licensed to provide financial advice. They strive to provide you with educational information in an entertaining manner. Always do your own research and due diligence before investing. Generally speaking, you should consult a licensed investment professional before investing.
📈📚🇨🇦 Join The Investing Academy Today - bit.ly/theinvestingacademy
I'm so excited to be back! Thanks everyone for bearing with me on my little break off.. I hope you've all been doing well! :D
Very excited to see you back!!! Definitely deserved a break, especially with all that’s going on but it’s great to see you and your dad on UA-cam as always
I have retired a month before my 54 th birth using only TFSA .
Can I open TFSA and contribute 1000 cad in one year then skip 2 years without contributions and then contribute 2000 cad, skip 1 year without contributions, and so on? I hope you get the idea.
damn you weren't joking when you said you wanted to put out better content, you've certainly earned my like! hyped for this because i started investing in my tfsa when i was 18 so the numbers are looking good :)
Our TFSA account reached 1M already and still is growing
Great content Brandon!! The editing of the video looks very good!! Thank you so much!!
Well explained Brandon... welcome back. Nice to watch another video. Dividends are awesome. Thanks again
Essentially the perfect video. Nice simple and easy way to give us the type of interesting info that makes our mouth water to see how we can make more money, especially with all the volatility in our world today. Keep up the great work!
Loved it! You are my favorite Canadian financial youtuber 💗💗💗👍👍👍
Really high quality video buddy, could tell the break off refreshed ya
great video!! glad your back. thanks for the great knowledge
Thanks a lot for showing the power of compounding
One of the best videos you put so far . Thanks so much
Great video Brandon! Hope you had a great break!
Great content!!!
Love your channel
This is exactly they type of thing I'm into. I hope to do the same thing and am looking at a similar time frame. An interest free million dollar portfolio in retirement would be ideal, a source of tax free income, and a great inheritance for my kids
Great video Brandon! I have been DCA into CNR, TD and BAM for years now! Great picks :D
Hi! I just wanted to ask. Where did you buy these stocks? In Wealthsimple?
This video was very enjoyable!
As someone who had the same goals at your age, you are definitely on track.
Thanks Gary!!!
Merci beaucoup. Très intéressant!
Fantastic video! Really enjoyed this one bud!
Cheers Mike. Appreciate it
Welcome back dude. Love the RAPTORS shirt. Oh ya great video to. Wait is that a RAPTORS shirt????
Welcome back Brandon! Nice content
Thanks Benjamin :)
TD is priced AMAZINGLY right now :) No1 position for me but i continue to add to TD/RY and I sleep well.
Rounded second with the weakest 6 month stock market performance in 50 years. This is a great opportunity considering what happend the last time inflation took off. Found success with disruptive companies and mainly being focused on growth. There are many different paths to find financial freedom and you should gather as much information from as many different sources to make informed decisions on your portfolio. Great video!
WOW new intro song, fancy edits, and a fresh haircut! Good to see ya
Thank you so much for this detailed video. You've included tons of brilliant info in just 10 mins.
What is the platform/app you're using at 6:45?
Hey Brandon good to see a new video. Thank you
Thanks Rob :) thanks for watching
quality video bro, hope the break served u and ur family well
Appreciate that bro 🙏🏻🙏🏻
This guy is good. Merci beaucoup !
Awesome Video❤
usually the reason for the dividends increases is the share price appreciation. The dividends get too low and buyers of the stock go away.... so the dividends go back up to reclaim the buyers. Buy banks when dividends are high and sell when they are low.... if you want to trade per say
Nice video. One can simply hold one of the Dividend Aristocrats funds like NOBL. Has a little more of a management fee (expense ratio = 0.35), but still not outrageous. They do all of the stock picking for you.
Welcome back!
Thanks Ruskin! :)
Welcome Back! EXCELLENT VIDEO!!! All your videos have always been a valuable resource! Video request: A video of growth/value stocks for both Canada & US markets for companies that focus on investing back into company, instead of paying dividends? Like BRK.A, BRK.B. Reasoning would be if retiring early with an excellent work pension, RRSP/Spousal RRSP, non registered investments, etc... in addition to an always maxed out TFSA with all dividend stocks, that already includes the ones you mentioned here btw :) Reasoning is with income splitting, I would like to control selling stocks when I choose and pay the capital gains, instead of paying tax yearly on the dividends & further increasing yearly income. Am I overthinking it because tax on dividends is even lower than capital gains? We have not retired yet, but planning....Keep up the excellent work, and take time off as you need it, for yourself & your lovely family or before you realize your newborn will be 20 years old! Memories and family are what is priceless. Kindest regards!
which software are you using at 6:46 I really like the CAGR feature for this one! manythanks its amazing million dollar video in itself I hope you get 1 million views on this! love it!
Great education Brandon! 👍
Thanks Kim :)
Already own all 3 of the stocks mentioned. Just wish I had started earlier!
Thank you! - new sub
Looks good. I like to see you focus more on the TD's and CNR's of the world, solid long term dividend growth companies that most Canadians should be buying.
Hey Brandon, I didn't know you were a DGI! I noticed your other portfolios you made with your dad included mainly growth stocks. Is there a reason for this change?
Hey Brandon Great video's thanks for the knowledge where do I find the information on what dollar amount you have to have to start receiving your dividends in a stock
Great video! A challenge of dividend investing in Canadian stocks is to make sure you have adequate balance in your portfolio. The highest dividend payers are financials, telecoms and energy stocks. If you want to diversify, you will necessarily need to accept lower ROR. Do your research on the highest dividend payers that cut dividends in times of crisis. Since most investors are there for lucrative dividends, this will send the share price plummeting and will wipe out your dividend returns (think CPG in 2014 after the oil boom). Lastly, Canadian companies that pay USD dividends further amplifies your earnings but avoid holding US stocks in TFSA because you lose 15% to withholding tax.
Can you elaborate on losing 15% withholding tax on US stocks inside your tfsa? I have CVS stocks in my tfsa 😬 should i let go of it? Its been paying dividends consistently
@@mikee8734 when dividends from a US company are paid to a foreign account, 15% of the dividend is withheld as tax. For Canadians, this means that if you hold US dividend stocks in your TFSA, you lose 15% of your dividend. You don't need to ditch any stock that you're happy with which is paying a consistent dividend. Just realize that you're losing 15% by holding a US stock in a Canadian TFSA. The exception is if you hold the stocks in an RRSP, the dividend is exempt from this tax and you keep the whole dividend. Perhaps transfer it to RRSP if you're keen to hold CVS long term?
Good video, I can't wait to see a series possibly made on it on youtube.
--- Question ---
I know people use leverage for investing in their taxable account but I was wondering if the CRA there would get mad/audit a person if they pulled money from a credit card/mortgage/line of credit to put into their TFSA to buy stocks?
No issue there. Borrowed money is not extra income, as far as the CRA is concerned, because you have to pay it back. The only risk is if you over-leverage yourself and can't pay it back, especially in a period of rising interest rates and diminishing returns in the stock market.
You can see however how this is a powerful strategy in a recession to grab tons of liquidity to inject into your portfolio when the market is low. This is how the pros supercharge their investments...
This is also the pro tip used by the super wealthy to avoid paying taxes entirely. Granting themselves a salary would have them paying taxes like schmucks. Selling off their stocks to cover their expenses would trigger capital gains, on top of reducing their investments. What they do instead is declare no source of revenue at all, and live on borrowed money.
-Hello Mr banker. I would like a loan for 20 millions, please.
-I see. What leverage could we get for this loan?
-I own 5 billions in stocks.
-Here's your money, sir!
Perfectly legal! The rich live off these loans and only pay back the interests. When the money runs out, they simply get a new loan from the bank. They can keep doing this forever as long as their holdings don't drop below their debt.
No problem at all, you just can’t write off the interest expense like you would on a taxable account. As a 40 year old, this is something I wish that I did with my TFSA. While the money itself would of course be valuable, what I truly envy is all of the extra TFSA room I would have by now. That is something that you can’t make up for with extra contributions in the present or future. Building up that room is worth a small amount of leverage if you can manage the payments and invest responsibly.
this is awesome! Only one question though, how would it change if say you didnt contribute the max $ per each year?
First! Welcome back!!!!
#1 fan!!! ❤️❤️
@@beaviswealth LOL!!!
Nice
woohoo lets goo
I really liked this one. Glad your break is nto as long as I expected.
Can you link the calculator please?
www.getsmarteraboutmoney.ca/calculators/compound-interest-calculator/
@@beaviswealth Hey Brandon! I feel so silly to ask but would you be able to do a video on how to use this calculator? Like give some stock examples so we know what to put in for the interest rate and compounding time etc?
@@beaviswealth this link should be added into the description or in your first comment
Hey Brandon what are other stocks that have been increasing their dividends ?
Thank you for the video- great information - Question: Are you re-investing the dividends: (DRIP's)
The contribution amount can change as well evenutually.
Hi Brandon, can
I share your video to my friends?
What software/service do you like to view and rate stocks?
What website did Brandon use for showing the total return?
According to inflation history, $1 million dollars today will worth equivalent to 500,000 dollars or less 30 years in the future so, if we are willing to reach $1 million in buying power after 30 years, we actually have to achieve about 2 million dollars 30 years from now
I don't see a link to the investment calculator in the description :O
Great video, we did the same TFSA calcs😁. Do you invest also in US ETFs?. I do. Even have some TECL and TQQQ, investing from Canada. Your thoughts ?
If be buys USA stocks there is a 15% withholding tax on any dividend payouts so its not always the most tax efficient way to do it.
Always talk to a tax professional and don't just listen to a person on any site due to the different tax law differences.
Us stocks that pay dividends is not a great strategy for your tfsa for that very reason.
What program are you using to view the stocks?
nice stock :)
I’m here
Any thought on the horizons CHPS semiconductor ETF?
Great advice...you might want to increase that goal though! Even now, $1 million is not that much if you want to count on it for a retirement income! Inflation will eat up average of 2-3% of your 7% return goal. You didn't account for that. Use a calculator to determine how much you will need per month to live on and include inflation. I bet the number will be much higher than $1 million. But I will give you kudos for your passion and the video quality.
Anyone who is not investing now is missing a tremendous opportunity.
Unfortunately I maxed it out last year when I was 25 and withdrew it all to buy a house, now I have to start over…
Hi, can I trade credit spread in tfsa? Or that's possible only in margin account?
I have a question. Where do you buy this ETF’s? Is it in Wealthsimple or questrade.
1 million dollars doesn’t go as far today as you’d think. Townhomes where I live in Vancouver are over a million. Imagine in 33 years from now how far 1 million will go.
Thank you for the video. You are talking about S&P500 but the IRS taxes the earnings and you speak about Canadian stocks, it's not really accurate OR I got something wrong which is very possible :D
Good, now do a video for someone who is 53 years old, lost most in a divorce last year, has a mortgage (because much cheaper than renting), and only has now $30 000 across all investments.
Yeah! I need that info
I have 100 TSLA stock in my TFSA and 100 in my RSP. Now Im wondering if I should pull the ones out of the RSP, pay the income tax on their current worth (if thats how that works) then put them in my TFSA.. I worry the stock will 10x then ill be paying a load more income tax on those 100 stocks compared to if I have them in my TFSA before they go up. Say they are worth 30g now.. should I pay income tax on it now before they are potentially worth 200g... if they are in the TFSA when they go up... wont I just have to pay 15% to the US when I sell them?
Once you buy a stock through WS are there any fees I have to pay
why do dividend growth stocks vs just do like index fund (s&p 500)???
Considering CNR, do you guys genuinely think it’s a good buy?
Being 27 is the ultimate hack. Live long and prosper that's s lot of tasty compound interest.
Are the returns taxable in tfsa if it outgrows contribution limit???
should i put US dividend stocks in my tfsa even knowing they will get taxed %15?
Great goal/video, enjoy watching your content however this one does leave me wondering why you left out a key component when "compounding stocks"
This goal of 1Mil is only going to work for you if your investments are set up with a DRIP correct? If the dividend is not being reinvested, there will essentially be no compounding, and i think that would be useful information for people watching this type of content.
What will the buying power of $1M be in 33 years in today’s dollars?
This is the real question
Not enough. Aiming for 2-3M is probably better.
Would require drastically increasing income and perhaps real estate.
Now he's only talking about 1M TFSA. Add that to any RRSP & non-registered accounts? 1M TFSA is a great start.
More than zero dollar could buy
That's a great question. One way to look at it - this video presents everything in today's dollars, so the $1MM target should theoretically be the same purchasing power 30+ years from now. That said, one needs to adjust returns for inflation, as 6-7% returns are "nominal", meaning not adjusted for inflation. So, try using 4-5% returns instead.
1m would lose 4K of value per year /4% 33x4k=132k 1m-132k =868k But with current inflation maybe more 750k
Hey Brandon... love the channel! I'm wondering what your take is on some of the Covered Call high yield dividend ETFs out there, for example the BMO funds like ZWU, ZWC, ZWE etc?
No one with give you a 7% interest in return. Your lucky two percent most the time
When you play with math, I will always be there lol.
Does anyone know the name of the app used to show the graph of TD, CNR and BAM.A ?
Brandon, do I get to use the unused TFSA space from previous years?? Is that what you are saying? I am 32 this year and you've inspired me to invest seriously. Thank you for your content.
Yes, you have all the space built up :) I’m glad! Good for you :)
@@beaviswealth I appreciate your reply Brandon! I've been binge watching your videos and am learning so much. You're so young but wise beyond your years!!
@@flavourpunchh He has a couple of videos on TFSA and RRSP, you should look them up. They cover pretty much all you need to know about these accounts
@@something44444 I definitely will, thank you!
where’s the link for the calculator??
My rate of return is not 6-7%. It's -11.6%. How fast will I get to 1 million dollars with that?
Good video. However, with a real inflation rate of 6-7%, that is, taking into account the deflation we should all be experiencing through technological advancements, you earn nothing in buying power. We should all know the official inflation numbers are manipulated lower, there’s too much incentive to do so. Could you do a video like this that is inflation adjusted?
I'm watching Brookfield like a hawk...can I get a fire sale please?
The funny thing is there are already people with a $1M TFSA... many with multiple 6 figures... mind blowing!
And there is even more people without a tfsa at all
Financial wealth is one aspect of life, but it's not everything, between a new-born abandoned at birth in a dumpster by his mother and Bill Gates or the recently deceased queen of England there is a lot of space and each of these are better than the other in their own way, with the bastard actually having the odds on his side as time is in his favor.
brookfield aint doing so hot rn lol
Question:
lets say my TFSA has now grown to say $150,000.00, if I withdraw the full amount for what ever reason would I be allowed to deposit back into my TFSA the full $150,000.00 say next year or, would I only be allowed to start again with my basic contribution limit ?
Whatever you withdraw will be your contribution room. In your example yes, you can contribute the full $150,000 the following year.
Thank god time is finite and we only need to prepare for 3 decades at most, some millionaires will not even get enough time to use their income, I know of several who kicked the bucket before 70 and even earlier. There is no armor against fate.
I’m 40 years old and you just made me login to my tfsa account and question my strategy. Have 20 years
You need to learn about selling options.
How many times did we hear that the tortoise wins the race and yet we still try to be the hare?
I guess this does not include living in the big cities since it is pretty much impossible to have any money left at the end of the month.
What happened in 2015 for contribution room to be 10k
I understand dividends as a way of getting paid while you wait. But shares of a stock don't compound. You buy 1 share of xyz for 10$ and sell that share 10 years later for 20$ you only gained 10$ total, not 10$ per years compouded.
initial contribution of $61,500?
You assume that the TFSA contribution room will be completely filled with money from the get-go! Assumption was your TFSA has $61,500 contribution room in it and you will have the same amount full of cash!
Isn't that assumption a bit unrealistic?
When I was 18 years old I bought my first 1 bedroom home for $1,300. At age 30 I bought my second home (3 Bedroom) for $75,000. At age 69 if I was to buy a new home now I would pay $750,000 for a 3 bedroom townhouse. When I was 18 $1M was a heck of a lot of money. Today it buys what I could buy for $75k at age 30. It seems to me that a young person today would need $100M at age 65 to be comfortable especially if we are going back into a high inflation cycle again like the 1970s when I was in my 20s. 😥
I have a question: if I have maximized my contribution limit of 82k, and that 82k grew to 1 million dollars in my tfsa, and then I withdrew $50k, would I be able to recontribute that 50k in the next year?
Short answer is yes. Here are a couple of links to our TFSA videos that will explain that in greater detail. Enjoy! - Marc
ua-cam.com/video/fcQVmZp0G-Y/v-deo.html
ua-cam.com/video/0AfSYbhSsFQ/v-deo.html
@@beaviswealth thank you! I’ve been trying to look for an answer to this question all over the internet and couldn’t find it. And thank you for this very inspiring video 🥳
My TFSA is at 150K right now.
😍😍