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

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  • Опубліковано 25 лис 2024

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  • @beaviswealth
    @beaviswealth  2 роки тому +11

    📈📚🇨🇦 Join The Investing Academy Today - bit.ly/theinvestingacademy
    How much do you know about the TFSA? Be sure to let me know down in the comment section below!! Also, I'm so excited to be speaking on stage at The Moneyshow Conference LIVE in Toronto this September. It would mean so much to me and my dad to have you guys come out and support!! We'll have a booth to meet you all and take photos :) Best of all... It's COMPLETELY FREE to attend!!! There are so many talented speakers at the event and it will be a blast of a weekend so I hope to see you all there - conferences.moneyshow.com/moneyshow-toronto/speakers/adec2b68f2144b24ba2e06060e4f8348/brandon-beavis/?scode=056838

    • @DianaDiazEnglishTeacher
      @DianaDiazEnglishTeacher 2 роки тому

      Great video! QUESTION: If a contribute every week $125 cad and I invest it right away is it considered frequent trading? Should I better do it every month? Or what is your recommendation? Thanks

    • @orisaadele5852
      @orisaadele5852 2 роки тому

      Facebook, Instagram sent you a message, looking forward to your reply, sir.

    • @jupitereye4322
      @jupitereye4322 Рік тому

      @@DianaDiazEnglishTeacher Contributions are not the problem. It is the trading part that can be questioned. If you buy a stock, and sell it after 2 days, you've not invested - you have done trading which is considered a business. Trading is buying and selling a stock, not just buying a stock.

    • @sicsempertyrannis4351
      @sicsempertyrannis4351 Рік тому

      Remember before Trudeau when TFSA's were actually tax free? Pepperidge farms remembers.

    • @twomuchSWAGG
      @twomuchSWAGG Рік тому

      Kk

  • @rosezarco6347
    @rosezarco6347 2 роки тому +62

    Thanks so much. This should be mandatory learning in high school. My daughter is turning 18 and I am going to be guiding her so she can be financially savvy for the rest of her life.

  • @esonsee
    @esonsee 2 роки тому +110

    I think it's worth pointing out a couple of things which I haven't seen any UA-camr mention when they talk about TFSA:
    1. If you're an immigrant, you only start accumulating contribution room on the year you become a tax resident of Canada. Not when you're 18.
    2. In Quebec, you cannot designate a successor holder directly with your broker - you can only do so using a will.

    • @acirka
      @acirka 2 роки тому

      Exact!

    • @haasan9360
      @haasan9360 2 роки тому

      Thank you.. I was dreaming of the entire room possible :/

    • @mpzeng
      @mpzeng 2 роки тому +7

      You think this kind of people ever stop for a second to consider the immigrants' perspective and their lives? HAHAHA They'd first need to open their minds and be curious about things outside their insular little world.

    • @MatthiasAI
      @MatthiasAI Рік тому

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

    • @robertt9342
      @robertt9342 Рік тому

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

  • @HolyTaterTot
    @HolyTaterTot 2 роки тому +51

    Thank you so much for your videos Brandon! They have helped me immensely in starting out with investing in Canada. As an immigrant who can’t turn to her parents and such to explain these things I sincerely appreciate what you do! Keep up the good work man

    • @kylemundy8871
      @kylemundy8871 2 роки тому +6

      Pfff most Canadians don't get this education from their parents. We're lucky we live in a world with youtube and videos like this.

  • @mr.financial
    @mr.financial 2 роки тому +165

    Just to clarify for anyone not born in canada and immigrated, a category my wife falls into. You have to be a resident of Canada with a valid SIN, not just be age of majority when you can enter into a contract. I think Brandon is coming from the perspective of a born and raised Canadian. You also need to be a legal resident of Canada, ie, spending more than 183 days of the year here. I think this is much needed information for new Canadians or those living as expats 😁😎

    • @michaelurbani85
      @michaelurbani85 2 роки тому +5

      I'm in that boat too. My bank didn't even know that fact. Sadly I cannot put my money blindly into a banks hands. They'll cost me a 1% penalty a month for being a non resident with a TFSA that I contributed to.

    • @markopolov2207
      @markopolov2207 2 роки тому +2

      Hey Igot here 2012 of October will I be eligible for 2012 contribution?

    • @mr.financial
      @mr.financial 2 роки тому +3

      @@markopolov2207 depends if you were considered a resident when you arrived. My wife came as a visitor, and it wasn't until the following year we applied for PR, so the year she arrived was not counted. You can check online with the CRA to see your contribution room currently.

    • @mr.financial
      @mr.financial 2 роки тому +4

      @@001sander2 opening a TFSA account is entering into a contract technically. That's why you have to be age of majority.

    • @markopolov2207
      @markopolov2207 2 роки тому +1

      @@mr.financial I'm landed immigrant on 2012 so I can get the 2012 contribution even I landed on October? and not on the start of the year?

  • @kdouglas4387
    @kdouglas4387 2 роки тому +10

    I didn’t know about the in-cash transfer, in fact I recently withdrew one TFSA to open a different TFSA at a new institution. Who knew 🤷🏻‍♀️? I am still learning every day. The rest of the content was a great refresher. Thanks for the video Brandon!

  • @laed3520
    @laed3520 Рік тому +17

    Great Info Brandon, I think it is important to mention (and you did mention a bit) that all of the gains you earn in your TFSA, automatically increase your total Lifetime TFSA Room. Say like in your 10k to 50k example (@5:30), you were to withdrawal that 50k before adding any more money, to put down on a house, you would now have the Original 50k in Room plus an additional 40k of Room from your gains for a total of 90k in TFSA room that you could put back into your TFSA the next calendar year along with the new 6.5k for that new year all coming out of your Inheritance from your Grandmother . 😃 But as you did mention, all Loses in your TFSA reduces your Lifetime Room. If for example you Contributed all 50k (@5:30) into your TFSA and your investments went south and you lost 40k, leaving you with only 10K and then something came up and you wanted to withdraw the 10k. The next calendar year you can only contribute 10k + 6.5K of room, so you would have lost that 40k of room forever. I hope this isn't too confusing but it is important. Brandon you could do a better job of explaining this. Thx.

    • @sonjagatto9981
      @sonjagatto9981 Рік тому +1

      I agree... and you explained it very well. 😉

    • @renefaucher9441
      @renefaucher9441 10 місяців тому

      O​@@sonjagatto9981

    • @VictoriaMorhan
      @VictoriaMorhan 8 місяців тому

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

    • @Keepingitfr
      @Keepingitfr 7 місяців тому

      @@VictoriaMorhan diversify. And honestly r u really banking that significant of profit on those stocks. I also recommend not using all your securities of choice with your TFSA ACCOUNT. I have been learning by trial and error self directed, non managed and I have a blend of securities and digital currencies attached to my first TFSA that I started in 2021. Honestly, the app I use presents projected rtns on investments till my expected yr of retirement. It’s bloody dismal. I wouldn’t even be able to afford a damn box. And I am not having it!!!!!!! Then I started exploring. Learned that banks are in on this money making service. So I opened another with a traditional financial institution. And stepped it up. I have an entire limit of contribution available basically. It’s $95000 at this time. I also only have 12 yrs till expected full retirement. With nothing but the CPP. It’s extremely sad outlook for hard working people in Canada. It’s meant to be confusing my friend. You need to do some ground work and divide a strategy. Most importantly be honest with yourself. How much would I feel comfortable loosing if the markets cause losses. I bet Brandon has spend hundreds and hundreds hours. Getting educated. No quick fixes here. Hire a broker or portfolio manager. You keep yourself organized and open to improving your knowledge in this industry. Good luck!!

    • @pargolf3158
      @pargolf3158 7 місяців тому

      @@VictoriaMorhan If the let you recontribute your losses, then to make things equal, if you have gains they would reduce your room to compensate for those gains. Would you like that??

  • @angelacarolinewiggins3054
    @angelacarolinewiggins3054 2 роки тому +43

    Thank you! One quick thought: if you want to only contribute the annual $6,000 to your TFSA (because you have used up all previous room), don’t contribute $250 biweekly as that will put you $500 over the limit. There are 26 pay periods if you are paid biweekly. Contribute $230.76 biweekly.

    • @darrensimms4215
      @darrensimms4215 2 роки тому +4

      I came here to say just that. If you’re going to do a contribution per pay, make sure you do the math to ensure you’re not going to go over the limit

    • @ricgunn1439
      @ricgunn1439 Рік тому +1

      $6500 asof 2023

    • @robertt9342
      @robertt9342 Рік тому

      @@ricgunn1439. I wonder if they changed that due to general inflation, or because of the $250 a week part.

    • @runescapefan0001
      @runescapefan0001 Рік тому +1

      Some companies pay periods are semi monthly

  • @Chap17
    @Chap17 2 роки тому +7

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

  • @Nivrad6Dmanindahouse
    @Nivrad6Dmanindahouse 2 роки тому +2

    Gotten to level 5- I don't make enough money to maximize my TFSA. I had a investment strategy laid out since 2020 by myself. It's been going extremely well. i still make investment mistakes but still moving forward and having the majority of my investments in the green. i am happy with the capital appreciation so far. i remembered during my first 6 months using my TFSA, I started to experience the joy of compounding interest.

  • @haroldspanier9185
    @haroldspanier9185 2 роки тому +24

    You got me. I did not know about "not naming spouse as sucessor holder", thank you! Great topic, well presented!

    • @beaviswealth
      @beaviswealth  2 роки тому

      Definitely one of the more hidden tips! Thanks Harold, appreciated!

    • @Russ-od2yy
      @Russ-od2yy 2 роки тому

      Same might have to look into setting that up!

    • @andrewchengmusic4235
      @andrewchengmusic4235 2 роки тому

      ​@@beaviswealth​ Learnt something new, thanks! Will look into this one someday!

    • @GMan-t1s
      @GMan-t1s 5 місяців тому

      Same here, I’ll be switching that from having her as a beneficiary.
      I also thought I’d have to cash out to move to another Institution.. Transfer is the way to go, My concern is people that work at Banks have become pretty inept.

  • @travisloewen6191
    @travisloewen6191 2 роки тому +10

    Great video, I was aware of most of it, bit it's always nice to refresh that knowledge.
    I currently contribute my maximum limit per year but I have a lot of room from previous years to utilize. Tax returns typically go straight into the TFSA to help me catch up.

  • @rebeccaklassen8272
    @rebeccaklassen8272 2 роки тому +2

    Thank you for clarification on the USD stock in TFSAs. One person said you Should NEVER have any USD in TFSA and I was feeling bad because I have 2 stocks of Rio Tinto before I learned that RRSPs would be a better place for foreign investment. I did appreciate you saying “it’s not a reason to not have any there, just be aware you kiss out in 15% of the dividend” I’m so happy to hear that there is no tax receipts come tax time for the missing 15%. Thank you again

  • @lloydmann
    @lloydmann 8 місяців тому +2

    My strategy has been to do a minimum annual withdrawal (MAW) from an RRSP or RRIF on the first business day of a new year and immediately input your TFSA contribution using some of the MAW funds (In RRIF Accounts)and other savings to make the annual contribution to the TFSA in the first business days of a New Year. This strategy may help to maximize returns in the TFSA and returns in RRSP\RRIF accounts are fully taxable. Your video was very good and I did not know about the jurisdictions where you were required to be age 19. Good job!!

    • @bintajarju4128
      @bintajarju4128 8 місяців тому

      Can you please explain more in depth I really want to start investing but don’t understand any of these acronyms like I’m a beginner

  • @ManTimeT.V.
    @ManTimeT.V. Рік тому +5

    This is some GREAT info! Thank you. I learned a few things for sure. Time to take my TFSA more serious. I stepped up my savings and investing in 2022. Now, I will once more do the same...step it up this 2023. I watch your videos and Adrian's as well. You 2 are big inspirations for me and I'm sure for MANY others too. Thanks again!

  • @itz.mariavicz
    @itz.mariavicz 2 роки тому +20

    I would love to see more videos explaining the technical differences between your spouse being a beneficiary vs. a successor, as in what can one do vs. not the other? and also explaining the spousal account too would be awesome! I'd look forward to that video also : )

    • @LHLK-q2v
      @LHLK-q2v 9 місяців тому

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

    • @youtubedeletedmyaccountlma2263
      @youtubedeletedmyaccountlma2263 3 місяці тому

      I mean spousal account is just the same... Open a new account for your spouse and use your money to contribute to that account. Don't forget to use referal code

  • @mdriv9509
    @mdriv9509 2 роки тому +7

    Nice video Brandon, I like the white board video style, you should do more videos like this one ! TFSA is so underrated, young canadians must invest asap in it !

    • @beaviswealth
      @beaviswealth  2 роки тому +1

      Thanks DEL 👍🏻👍🏻🙏🏻

  • @ohhellnooooo8233
    @ohhellnooooo8233 8 місяців тому +3

    I'm new in Canada, and this video was sooooo effective at quickly building my knowledge of TFSAs... thank you so much. liked and subscribed! I'll be watching your other videos.

    • @wolphin732
      @wolphin732 7 місяців тому

      Welcome to Canada! You start making room when you become a permanent resident.

  • @n4tune8
    @n4tune8 8 місяців тому +3

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

  • @AnotherBradGuy
    @AnotherBradGuy 2 роки тому +5

    Thanks to folks like you, I've been using the TFSA correctly and knew about all of the common mistakes. The last one is maybe the only one I've made. I'm in my 30's now and only started putting money into my TFSA a little under two years ago. With a full contribution limit available to me and the limit expanding by $6000 a year, it can feel like the contribution cap is almost out of reach at least at my current income level. Not a bad problem to have I guess, I'll take all the tax free gains I can get! Highlighting some of these mistakes though is a good refresher on why it is still important to track contributions. Great video, and may make the trek to the city see you guys in September!

    • @zeronomon
      @zeronomon 10 місяців тому +1

      I was hoping he would answer this. I too am in my 30s and starting now. I have no way to max it out. Likely never will. But the best I can do is start with the $500 per month rule

  • @Carol8693
    @Carol8693 2 роки тому +3

    Welcome back . Love your vibe, confidence, how you sounded.. and the video creativity. As always great content Thank you so much ! AND It will be awesome to see you on the stage and finally meet you :) can't wait !

  • @willkeen5010
    @willkeen5010 2 роки тому +5

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

  • @wylerhunt9067
    @wylerhunt9067 2 роки тому +5

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

  • @nancyfloressantos9999
    @nancyfloressantos9999 9 місяців тому +1

    My daughter working in US is allowed to buy tfsa?

  • @TheSkidrowyachtclub
    @TheSkidrowyachtclub 8 місяців тому +2

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

  • @nicolasboukas6491
    @nicolasboukas6491 11 місяців тому +2

    what I do is contribute to my RRSP 18% and I take my return and I deposit it to my TFSA , been doing it for a while, and now the new FHBA

    • @AltimusSafi
      @AltimusSafi 2 місяці тому

      what? is it possible to take out your return from RRSP?

  • @robertpearson8798
    @robertpearson8798 Рік тому +1

    As a much older Canadian I should also mention that utilizing many years of unused contribution room is a great way to get the maximum benefit out of such windfall money as inheritances to help generate tax-free retirement income.

  • @renwick7740
    @renwick7740 Рік тому

    Great video, very comprehensive. Got all right the most crucial points are 1. Successor holder and fully fund this account before making any other investment.

  • @robertmanship
    @robertmanship 2 роки тому +2

    I was surprised about the CRA nailing you if you do day trading in the TFSA. I was asking the CRA about if I buy and sell stocks within my TFSA often if that would create issues but was never told it could be flagged for it

  • @flavourpunchh
    @flavourpunchh 2 роки тому +5

    Hi Brandon, I have been contributing to my TFSA minimally over the years then stopped for a couple years but that was before I stumbled across your channel and am learning how important it is to make full use of it. My question is, I am not sure the best way to figure out the exact TFSA contribution room I have. What do you suggest I do to find out the exact amount of room I have since I have been contributing sporadically over the years? This video was brilliant and you hammered home nuggets of gold 🙏

    • @nancymarion3417
      @nancymarion3417 2 роки тому +3

      Sign up to the CRA (Canada revenue) online and it tells you your exact contribution room on your personal home page. It takes a few minutes to set it up and authenticate you, but it’s worth it.

    • @rontelford6211
      @rontelford6211 Рік тому

      Goto ur income statement for tfsa it will tell how much u deposited and withdrew

  • @brianrosa4400
    @brianrosa4400 2 роки тому +1

    One investment that you didn't mention are Options. If you have 100 shares or more of any particular stock, you can sell covered calls and greatly increase the cash flow that these accounts can produce.

  • @joanballiram420
    @joanballiram420 8 місяців тому +2

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

  • @valp855
    @valp855 2 роки тому +1

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

  • @delijs
    @delijs 2 роки тому +3

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

  •  2 роки тому +1

    my main issue is maxing it out. We learned about it really late, were barely breaking even on my grad student income with having a very frugal lifestyle. When we had kids, our priorities shifted to saving for them, so RESP and life insurance...that's over 300$ per month all together, and adding 250$ per person (and even for just one person) per pay period would put us in the negative. We want to provide opportunities for our kids so they have a few extra curriculars that would be cut if we had to but that would really mean we are in a tough spot. I might never see it maxed out, unfortunately. We also want tax breaks so we do 2-3 TFSA and 1-3 RRSP when we do put aside.

  • @momo35444
    @momo35444 2 роки тому +2

    ive been watching you for so long, i actually knew everything already... but i havent maxed out my TFSA. not there yet.
    thanks for the great videos Brandon.

  • @MayerKyle
    @MayerKyle 2 роки тому +1

    Level one would have got me I guess...because I didn't know you had to be 19 in provinces I don't live in. Outside of that, the successor holder got me. Great info. Love the Trudeau pic for the "government". How I understand it - If I withdraw but am under my contribution limit, I can still contribute in the same year as long as I don't go over the contribution limit. I.e. I took out $5000 to pay my taxes but I have $30000 in contribution room remaining for the year, I just lose the $5000 of space until next year.

  • @georgefairclough1275
    @georgefairclough1275 Рік тому +1

    This was eye opening, especially when the CRA can skin the regular person alive. So the message here is be very careful and find a good financial advisor

  • @johnhouseman3546
    @johnhouseman3546 2 роки тому +3

    I noticed your $250 per pay period amount would add up to $6500 per year (52/2=26 x $250) assuming your pay period is biweekly, which is the most common for Canadians.
    This means, to reach your max contributions, you only need to contribute about $230 per pay period, which makes it even easier to wrap your head around!
    Love your videos! Been a big fan since sept 2020

  • @behuman5725
    @behuman5725 2 роки тому +1

    I have a TFSA and learned many new things from this video. Also like the white board style too. Didn’t know about setting a success holder and will definitely do this soon

  • @derekcox6531
    @derekcox6531 2 роки тому

    You make some great points here Brandon! I would suggest,(quite strongly actually) that the TFSA should NEVER be used as a penny stock Hail Mary account. The tfsa is most powerful when used as a blue chip compounding tool for long term wealth. I would say to any young investor out there,if you want to gamble,go to Vegas …and see how that works out for ya. Don’t squander the best investing tool the government of Canada has ever alighted upon the lowly masses.

  • @marianatb3082
    @marianatb3082 4 місяці тому

    I've come across your channel recently and I'm loving the content. This video in particular helped me A LOT. Thank you!

  • @virginiaalarcon4359
    @virginiaalarcon4359 8 місяців тому +1

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

  • @vivekratanpara9360
    @vivekratanpara9360 4 місяці тому +1

    Hey buddy, I want to highlight one mistake: If you pay 250 PPC (Biweekly), then it would be 6500 CAD. because there are 52-week and 26 bi-weekly paychecks. please add it in the description or in the video so that people don't get misguided.

  • @MrWawer
    @MrWawer Рік тому +1

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

  • @Gengingen
    @Gengingen 8 місяців тому +1

    If you have excess contribution space in the TFSA account to accommodate the withdrawal within a calendar year, you may contribute the amount of the earlier withdrawal without penalty. But the new excess contribution limit will obviously now be reduced & will be regained only the next calendar year. This part you did not mention. And I hope my line of reasoning is right.

  • @blairgill8799
    @blairgill8799 2 роки тому +1

    Great video!
    So just to confirm, if you pull out say $10k from TFSA, you would get $10k in contribution room back at the end of the year no matter how much you have in there. I always wondered about this but just assumed it was prorated.
    Also, very interesting that if your stocks are aggressive and they crash, that you dont get that contribution room back. I'm guessing because they cant track any withdraws to give you back the room.

    • @lw1405
      @lw1405 2 роки тому

      You would get the room back NEXT year, not at the "end of the year" you pulled it out.

  • @Kbailie27
    @Kbailie27 Рік тому +2

    Good video to explain proper strategies for TFSA usage. I think the biggest confusion points I experienced when getting to know the rules was how withdrawals affected maximum contribution limits and what constitutes as "day trading". You covered all the bases it seems and then some! Good work.

    • @bonanza06
      @bonanza06 Рік тому +1

      there are no black & white set guidelines for what constitutes "day trading". A friend of mine got audited in the 2nd year of the TFSA, and he posed that exact question to the gov't appointed auditor. He was told exactly that, and that it was a judgement call, based on the nature of your trading. In the case of my friend, he was buying, flipping, buying back, flipping again, often dozens of times a day.
      He had increased the value of his TFSA from the $10k he had started with over the starts of the first 2 years (I think it was $5k per year then, can't remember exactly), to over $150,000 before the 2nd year was even completed.
      Suffice to say, the audit & gov't ruled against him, and determined that he was using the TFSA trading as a "job", and he would have to pay tax on it as if it was regular income.

    • @SoKrayzie
      @SoKrayzie Рік тому

      @@bonanza06 did he got audited because he widtdrawn the money ?

  • @jhan094
    @jhan094 6 місяців тому +2

    4:32 The picture that went with "do not rely on the government to do this for you" was a hilarious edit!

  • @editatrix1
    @editatrix1 7 місяців тому +1

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

  • @SonneCreations
    @SonneCreations Рік тому

    100% aware of all 5 levels. If people don’t want to bother tracking their TFSA contribution room they should sign up for a Service Canada and CRA account, because if anyone is tracking what you are owed (or they are owed), it’s the government. You can track your RRSP and TFSA contrbution room very easily and accurately.

  • @jiveshupadhyay6845
    @jiveshupadhyay6845 8 місяців тому +2

    Very well articulated. Found it extremely helpful. 👍🏻

  • @yknarfgnat
    @yknarfgnat 2 роки тому +1

    Great video my man! Definitely needed some of these refreshers

  • @superjedi14
    @superjedi14 2 роки тому +1

    Learned #7 and #10 the hard way a few years back haha
    I passed all your levels and maximizing at every beginning of the year 👌

  • @takko99
    @takko99 8 місяців тому +1

    🎯 Key Takeaways for quick navigation:
    📝 Mistake #1: Not calling it the "Tax-Free Savings Account" (TFSA) instead of "TSFA".
    💡 Mistake #2: Misunderstanding the age requirement for opening a TFSA; it's 18 in most provinces but 19 in others like BC, New Brunswick, Newfoundland, and the Northwest Territories.
    🔄 Mistake #3: Believing you can only have one TFSA account; you can have multiple accounts but the contribution room remains the same.
    🏦 Mistake #4: Thinking TFSA accounts can only be opened at banks; there are better options like online platforms such as Questrade, Wealthsimple, or EQ Bank.
    💰 Mistake #5: Viewing TFSA only as a savings vehicle rather than an investment tool; it's meant for growing and investing money, not just holding cash.
    📉 Mistake #6: Not understanding that unused TFSA contribution room accrues, even if you can't open an account immediately upon turning 18.
    📊 Mistake #7: Failing to track TFSA contribution limits independently; relying solely on government or brokerage tracking can lead to errors.
    📈 Mistake #8: Incorrectly assuming that gains within the TFSA affect contribution room; gains do not impact the amount you can contribute to the account.
    Made with HARPA AI

  • @chrisw1870
    @chrisw1870 2 роки тому

    I think it's worth pointing out a couple of things which I haven't seen any UA-camr mention when they talk about TFSA:
    1. If you're an immigrant, you only start accumulating contribution room on the year you become a tax resident of Canada. Not when you're 18.
    2. In Quebec, you cannot designate a successor holder directly with your broker - you can only do so using a will. Right now, derivatives trades are the only thing in my portfolio that is doing well and making me serious money.

  • @ComputerSystemTweeks
    @ComputerSystemTweeks 9 місяців тому +1

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

  • @jayyshahh
    @jayyshahh 11 місяців тому

    What you meant by losing out on your contribution space forever. Let's say I invest a $100 in a stock through my TFSA. If it's price drops to $50. Does my total $6000(I am 18) TFSA limit change to $5950 forever since I can never withdraw that $50 back. Also, I am an international student who is not very financially literate and this video really helped me understand TFSA accounts better. Thanks you so much for making such amazing content.

  • @avaichmei2582
    @avaichmei2582 8 місяців тому +1

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

  • @paull3179
    @paull3179 8 місяців тому

    I put mainly my interest earning investments like bonds, gic's in this account a bit of stocks to earn call premiums monthly. Interest is taxed in full.

  • @ScreamingMeadows
    @ScreamingMeadows 8 місяців тому

    Ive literally only heard of TFSA's, I had no idea how they work! Thank you, it's still above my head...do you put the money in and then invest? Also I'm 45 years old, were TFSA's around when I was 19? Do I have 26 years of room?

  • @cheynebest7028
    @cheynebest7028 2 роки тому +1

    This is something that every Canadian needs to take advantage of that so many don't. Great video

    • @cheynebest7028
      @cheynebest7028 2 роки тому +1

      @@Mitch-ui8ps to buy consumer products you can definitely live without?

    • @cheynebest7028
      @cheynebest7028 2 роки тому

      @@Mitch-ui8ps everyone has living expenses and there is no problem in treating yourself but the fact is many people live beyond their means and spend everything they make to improve what? and impress who? Time is most valuable and taking advantage of tax advantage accounts is a powerful tool to building your wealth. Most people are sucked into short-term fix and keep kicking that can down the road and that's how society has been wired.

    • @chadpenton2071
      @chadpenton2071 2 роки тому

      @@Mitch-ui8ps lol then investing is clearly not for you right now

  • @Alexcai9528
    @Alexcai9528 2 роки тому +1

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

  • @moreykowalenko583
    @moreykowalenko583 Місяць тому

    I know now what i did't know then. Thanks so much ,very informative and inspiring.

  • @relaxwhitspacemax5921
    @relaxwhitspacemax5921 2 роки тому

    that was a hell of a good video! Put 40$ a week and all the extra and unnexpected money in that accont for one day have a dividen snoowball. keep up the work

  • @ssenger009
    @ssenger009 2 роки тому

    Great video.... Question for you guys? I'm 40 with lots of room in both RRSP AND TFSA. Should I be contributing to both or the TFSA. Obvious answer is that if I make a bunch of money during the year RRSP contributions would lower my income taxes. Thank you in advance for your help 😊

  • @mirellaabballe6947
    @mirellaabballe6947 13 днів тому

    I can truly say I was aware of all these. But I love finance so it was easy. ❤

  • @cutiecatboy
    @cutiecatboy 2 роки тому

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

  • @biowellnesslifestyle5842
    @biowellnesslifestyle5842 9 місяців тому

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

  • @harshivgajjar5888
    @harshivgajjar5888 2 роки тому +1

    at 8 mins in video timeline when you're talking about allowed investment options in TFSA, you didn't mentioned crypto. So crypto is allowed to be hold and staked in TFSA ?????? btw so much helpfull video. Loved it. Big thumbs up !!!!!!!!!!!! :)

  • @mastertrader3491
    @mastertrader3491 2 роки тому +1

    Good day Brandon - On the Fina; part you stated that we should Max out on the TFSA - would you consider then that the TFSA is far more advantageous than the RRSP etc.

  • @angermanagment01
    @angermanagment01 Рік тому

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

  • @stevenwolfe2279
    @stevenwolfe2279 2 роки тому +2

    Hey Brandon,
    I really appreciate your videos. We all need someone who knows this financial advice to pass it on to us. Good job.
    If I understand you, when buying a U.S. ( or foreign stock) in a TFSA, the dividends that it pays suffers a 15% loss to foreign taxation. If the stock doesn’t pay dividends, but simply increases in value, then the gains are not taxed…. Is this correct?
    Also, how would I find out iff a particular stock is paying a dividend or not? Thanks again for your content. It’s one of the most useful things on UA-cam.

    • @jamesthompson7282
      @jamesthompson7282 11 місяців тому

      Apparently there's 15% withholding on foreign dividends. Period.
      Increases in value of an investment are considered capital gains & are sheltered from tax within the TFSA. So if you're going to purchase foreign stocks in a TFSA, don't buy stocks that declare dividends - or at least, factor in a loss (overhead) of 15% on any dividends you expect. Given that you would (should) look to minimize overheads & would therefore chose ETFs over mutual funds (reducing management fees from 2-5% to a maximum of 1.5%), a 15% hit is significant - probably enough to deter you. Of course if you anticipate significant stock price appreciation that might cancel out concerns. And your loss is 15% of your dividend received, itself a pretty small amount compared to your total investment.
      Buy dividend-declaring stocks in Canada. That's probably less of a disadvantage than it appears. Yes, there are some great US dividend-declaring stocks, and the Canadian stock universe is considerably smaller than that in the US. But Canadian stocks that DO declare dividends frequently do so at considerably higher rates than US stocks. US stocks touted for increasing their dividends consistently over decades do so often at a fraction of a percentage point each year (who cares?) & still only declare 2-4% dividends. You can find Canadian blue-chips like the major banks & utility companies paying dividends of 5, 6 & 7%. Those stocks are also generally less volatile: won't likely jump up 10% overnight, but won't collapse much in a market decline. For example: JPMorgan Chase (NYSE:JPM) pays 3.1%; Goldman Sachs (NYSE:GS) pays 3.1%; Bank of America (NYSE:BAC) pays 3.2%. Meanwhile TD Bank (TD) pays 4.93%; Bank of Montreal (BMO) pays 5.28%; Scotiabank (BNS) pays 6.99%. In the utility sector, Entergy Corp (ETG) pays 4.54%; Duke Energy (DUK) pays 4.29%. In Canada, Enbridge (ENB) declares 7.74%; Brookfield Renewables Partners (BEP) paid 5.42%. So it doesn't appear that you're much hurt by sticking to Canadian stocks when you seek dividends. Of course you are subject to some exchange rate risk: to the extent that you limit overseas investments you tie yourself to the fate of the Canadian dollar. You can still diversify using investments for capital gains.
      It can be frustrating, but the goal of the TFSA is to shelter capital gains, not income. The CRA treats dividends as income earned, not investment returns.
      For the same reason, if you treat your TFSA as a daily trading account - trading in & out of the same stocks within a month on a regular basis - you're flagged by the CRA as a day trader. You can do that in your RRSP or non-sheltered accounts, but if you do it in your TFSA your TFSA can lose its sheltered status, & will be subject to tax as income. Probably not what you're looking for.

    • @mstefa007
      @mstefa007 9 місяців тому

      So if I buy SPY I pay 15% on dividends.. but if I buy XSP.TO, which is Canadian ETF for SPT500 do I still pay 15% on dividends?

  • @rufimn
    @rufimn 2 роки тому

    Please let me know if my understanding is correct on TFSA.
    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?

  • @PeterBlackmore-i9n
    @PeterBlackmore-i9n 10 місяців тому

    Thankyou! Most instructive - even tho I knew most of this, there was a point or two than I needed to be reminded of. Yes - certainly do not overcontribute: A couple years back when I got my Statement from the CRA, I mistook the < > (overcontributed) for Contribution Room. My mistake cost me ever $4000 in additional taxes. Be aware.

  • @llcoolchris_
    @llcoolchris_ 5 місяців тому

    This is the video I needed and was looking for. Thank you so much for that man

  • @thetiredlinecook
    @thetiredlinecook 2 роки тому

    1.okay take your example of the contribution room, max ceiling is 50k,you put in 10k,it grows to 50k,you still have 40k left to contribute,say you max is out and put 40k in for a total of 90k,you take that out this year,can you put 90k again in 2023? sorry if its a confusing question
    2. i'm strictly a dividend investor now and i get them monthly on a drip and i do not intend on touching them whatsoever,do they technically grow my contribution room?

  • @HamiltonRb
    @HamiltonRb 2 роки тому

    One way to hold a US stock in your TFSA, and avoid withholding tax, is to buy a total return stock such as BRK-B, where the tax is paid at source for the various holdings, and does not pay a dividend to shareholders

  • @theletterx8828
    @theletterx8828 2 роки тому

    If I'm not mistaken, in the province of Quebec, you cannot name your spouse a successor holder. The spouse will be able to max out their own account only (without paying any taxes).

  • @lemayelaine
    @lemayelaine 10 днів тому

    thank you so much for this detailed video explanation - so helpful, even though I'm coming to this later in life :)

  • @laurielovestheholidays
    @laurielovestheholidays 2 роки тому +1

    Hey Brandon great video. But I think if you did $250 a pay period it would actually put you over the contribution limit of $6000. There are 26 pay periods in a year (for most people who get paid biweekly) =$6500

  • @zapbeeblebrox1053
    @zapbeeblebrox1053 8 місяців тому

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

  • @Raquel96
    @Raquel96 4 місяці тому

    Thank you!! I learned a bunch & subscribed!

  • @Robert-u8r8y
    @Robert-u8r8y 8 місяців тому

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

  • @andrewbrisbane2831
    @andrewbrisbane2831 9 місяців тому +1

    wow man great job on that video!

  • @mamabear579
    @mamabear579 8 місяців тому

    I really appreciated your education. Millions of thanks

  • @carolinap4150
    @carolinap4150 10 місяців тому

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

  • @mrsedo4273
    @mrsedo4273 9 місяців тому

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

  • @leckmanj
    @leckmanj 7 місяців тому

    very good video...many of my family and friends were not aware of point 13..I tell everyone I know about being aware of withholding tax on US dividends

  • @km.83
    @km.83 8 місяців тому

    Great video! How is the CRA going to know we are over our limit when they don't do a good job of tracking our contributions over the years? The limit of my cra account does not appear to be accurate, not even close. I've had so many tfsa's over the years, I could not add up the contributions I've made

  • @Cespasbeau
    @Cespasbeau Рік тому

    Although I am not daytrading in my TSFA, there have been several cases where I've held an equity for 1 to say 14 days, then sold and reinvested shortly after. Accounting firm has not seen this as an issue, however, I had never heard about that rule before. Tks.

  • @Goku_ssj
    @Goku_ssj Рік тому

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

  • @benlla1061
    @benlla1061 9 місяців тому

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

  • @JoshWileyPaintings
    @JoshWileyPaintings 2 роки тому

    Great video. No surprises for me on any of the mistakes, but that’s partly due to watching earlier videos from you and clearing up some confusion already.

  • @TubeDeviant
    @TubeDeviant 7 місяців тому

    Thank you for enlightening me on #13 and #17..!!
    The withholding tax only applies to foreign dividends and not capital gains, correct..?? And if you purchase Canadian dividend ETFs/stocks, that is NOT taxed, correct..?? Also, are you able to automatically reinvest dividends into your TFSA account and does that affect your contribution room..??

  • @denisbeauregard2737
    @denisbeauregard2737 2 роки тому

    Successor holder in QC is only if it is tied to an insurance policy or annuity contract.

  • @saifchowdhury3581
    @saifchowdhury3581 11 місяців тому

    Great Video.
    After RRSP and FHSA, it's not possible for most people to add to TFSA.
    If buying a home is not a goal, then invesring in TFSA is better than FHSA.

    • @MrEnky007
      @MrEnky007 9 місяців тому

      Hmm if someone were to put 18% in a RPP, have TFSA maxed and FHSA maxed. What should he do with the rest? Open a non registered account and invest with it?

  • @jasonstupak4535
    @jasonstupak4535 2 роки тому

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

  • @djdynieldaniel1395
    @djdynieldaniel1395 8 місяців тому

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

  • @ab.4425
    @ab.4425 2 роки тому

    Amazing video Brandon!! Really appreciate it!!

    • @beaviswealth
      @beaviswealth  2 роки тому +1

      Thanks AB 🙏🏻🙏🏻🙏🏻 appreciate you!