Adrian, I believe you didn't mention the rules on day trading in your TFSA account and I am not sure what is the window I can sell a stock I recently bought. Could you comment if selling a stock the next day is allowed, or how long should I wait to trade my stocks? My concern is if I create a Stop Loss order and the market crashes on the same day, or the next day, how that could cause me trouble. Thanks and keep up with these great videos!
@@Arthur-S I talk about day trading in your registered accounts in my RRSP videos but unfortunately, the rules that CRA publishes are intentionally vague.... they don't offer a threshold or limit since they don't want people taking advantage of that. But I would say that if you sell a stock after a few days, that's probably okay as a one-time thing but don't make a habit of it! If you're buying and selling stocks over the course of hours and you're doing this every week, then that's when you'll get taxed and penalized. I hope that helps! =)
@@jumbothompson Thanks Damian! Ya I hate people who try to show off how "smart" they are by using acronyms and terminology designed to intimidate and confuse people. I try to make my videos as accessible as possible for beginners =)
Biggest lesson of 2022 in the stock market: N.obody knows what is going to happen next, so practice some humility and follow a strategy with a long term edge.
Nobody knows anything; You need to create your own process, manage risk, and stick to the plan, through thick or thin, While also continuously learning from mistakes and improving.
@@yvonnejoordan ... it took me 5 years to stop trying to predict what bout to happen in market based on charts studying, cause you never know. not having a mentor cost me 5 years of pain I learn to go we’re the market is wanting to go and keep it simple with discipline.
I can't imagine how long it took you to learn all of this information you've jampacked into your videos. Your generosity is seriously appreciated dude, you would be an amazing professor
Thanks buddy! I really appreciate those kind words, you just made my day! 🙏 I actually create these videos in the style of how a professor would give a lecture so I'm glad that my style works! =)
Newcomers to Canada beware - your contribution room is calculated from the date you became a resident. Don't just consider your age. Verify your contribution room with CRA. Making a mistake on this can cost you a lot of money.
You are correct! You only start accumulating contribution room once you actually start living in Canada! I talk about this in greater detail in my TFSA Mistakes video here =) ua-cam.com/video/s4cBibLATOU/v-deo.html
OMG, jut found your channel and now going through all your content. As a big consumer of this kind of stuff, I wondered how I could possibly have missed your channel, then saw that you've only been around for, what, 8 months? It's soooo helpful! Thanks for all the great advice!
Thanks buddy! I've only been on UA-cam for almost 5 months so I'm still small but hopefully I'll keep growing at a good rate. There isn't too much Canadian focused financial content out there which is why I started this channel. I'm glad you stumbled onto my videos and welcome to the family! Please reach out if you ever have any questions or topics you'd like me to cover =)
That's a good basic rule of thumb! You don't have to strictly follow those rules, for example I still hold Canadian dividend stocks in my RRSP as well and occasionally some growth stocks in my tax sheltered accounts but those general rules above are a good template to follow! =)
@@nauman9002 If the US stocks are just growth stocks, you have nothing to worry about! But if the US stocks pay dividends, you WILL be charged an immediate 15% US Withholding tax on those dividends in a TFSA. That's why you should hold US dividends in your RRSP instead! =)
@@CanadianTShirt Thanks for clearing this up. 1/ As per the info, day trading is not allowed in TFSA, but short term trading , like buying and selling in a week or a month shouldn't be a problem i guess? 2/Let's say i invested my 2020 contribution $6000 and make some profit every time i trade(in a week or two or in a month). Now, If i keep withdrawing my profits ONLY every 2 weeks or every month as long my $6000 contribution is intact, the withdrawals have no impact on my TFSA, right?
I am awarding you the highest honour that I am able to bestow... You’re now officially the only youtuber I have notifications on for. Keep up the good work man
Same here literally the the first and only one and I've been on UA-cam longer than they've had the notification bell. We need more people like you Canadian in a T
Finally a clear and concise summary of foreign withholding taxes on investments and where to hold these types of investments. I’ve been trying to figure this out for years. Thank you!
Thank you and I'm really glad that I was able to help! I'll actually be making a whole video soon on where the best place your different kind of investments very soon so stay tuned for that! =)
Thanks so much for doing this. We're taught to go to school, get a "career" and then like magic, everything just works out? The education provided here is probably going to be the most important lessons in my life!
Thanks Drew! I'm so glad that my videos are actually having an impact. I agree 100%, there is NO EXCUSE why financial education is NOT covered in high school... That's why I started this channel!
That is a fact! schools will never teach these stuff. Because thats what the governments want, for you to only learn how to become an employee and be in the rat race.
If everyone knew finance and economics, they would lose votes and thus their power. It's a no-brainer why this stuff isn't taught at schools. If it was, it'd literally be a political suicide
Every single person immigrating to Canada should be watching your videos. I subscribed way before I landed here in TO and your videos made me understand things much easier. Peace and love brother.
I know how hard it was for me and my family to come to Canada and I can imagine it's even harder today! So I appreciate that my videos have been helpful and be sure to spread to word to anyone else who could find value in them! 😊
You are amazing - not only are you extremely knowledgeable, you're an excellent teacher. Your videos are to the point, clear, and make logical sense, especially in the order in which you have filmed them! I can't thank you enough! I hope that whatever you are doing with your career is capitalizing on your knowledge and skillset!
Thank you so much for those kind words! I really do appreciate that! I put a lot of effort into planning out these videos and making playlists in an order which will make sense to beginners so I'm happy that it's not going unnoticed! =)
Once again Adrian, you explain things so clearly that there is no doubt as to what I need to to. The TFSA contribution as opposed to the capital gains inside it was my main issue. As you said, I can have profits well beyond the contribution room and I won't be taxed. Thank you so much!
Absolutely! That's one of the best benefits of the TFSA! You are limited by how much you can put in but if you let your investments grow inside, they can far exceed your contribution limits! =)
Three years in Canada and seriously the knowledge I have gained in past one hour watching your videos is way above any university degree in Canadian Financial Systems and the financial advisors at the banks who overcomplicate all of it. Kudos to you Man
Wow - I'm not even half way through this video and I feel like all my questions and concerns are being lifted. Super helpful and encouraging now that it doesn't seem so complicated!
Make sure you check out my RRSP videos to learn how to invest with the RRSP: ua-cam.com/play/PLj8bU3AuW2qHOikk4VRpSDXCZTuH7eUhz.html Generally, I would suggest that any US dividend stocks and ETFs should be held in the RRSP to avoid the 15% US Withholding tax on those dividends. In the case of the S&P500, an ETF which tracks it like VOO doesn't pay too much in dividends, only with a yield of about 1.5%. Most of the profits you're looking at with the S&P500 is capital gains, not dividends and capital gains are totally tax free in a TFSA. That being said, it still sucks to lose that 15% tax on those dividends so I would still suggest that you hold it in your RRSP. I hope my playlist above helps! =)
I rarely comment, and then it's usually only to make a joke, but this is great content. Clear, to the point, energetic without sounding like a hype-man, and it's completely relevant to Canadians. Really great stuff.
Thank you. Good tip on increasing contribution room, tax implications of REITS vs dividend income, and good advice putting growth stocks outside TFSAs. So useful!
Canadian in a T-Shirt someone once told be that had I started investing 200$/month for 40 years, I would likely have close to 1 million dollar for my retirement in addition to whatever pension I’m getting (assuming I’m getting one). That’s amazing! My students need to know this!
@@MrMcQuade this is true.... time is your greatest asset in growth. It doesn't take much. A little over a long period will by far out perform alot in a short period.
Investing is always better than not investing. However there’s one other thing that has to be factored in and that’s inflation. So one million dollars today will be worth a lot less in 40 years if we keep the same system of printing fiat money in place which has been around since 1913.
Thank you for making this video! I knew essentially nothing about TFSA's before watching this, and now I'm walking away with enough confidence to see a financial advisor so I can set up my TFSA!
That's amazing Rose! That's what I LOVE to hear! Before you meet with your advisor, I suggest learning even more by watching the rest of my Canadian Tax Videos (the silver thumbnails) and definitely watch my video on TFSA Mistakes right here! =) ua-cam.com/video/s4cBibLATOU/v-deo.html
Many people don't understand how to use the TFSA effectively and this is a great explanation of it. One point I disagree with is you loose the contribution room for ever when you take a loss on an investment. You can regain the contribution amount by withdrawing distributions earned from dividends especially reinvested dividend funds from the account. Dividends earned in the account are not considered contributions so if you reinvest them they pay more dividends. At a future time you can remove dividends and the amount removed will increase the contribution room for the following year .
Final comments on this video - man it's hard to comprehend all these rules and tips when you're new to investing! I had totally watched this video a while back, forgot most of the info, and now that I'm an active user on Questrade, a lot of this makes a LOT more sense! The USA investments not being held in the TFSA.. you're really good at explaining things ! I'm totally going to get my TFSA started tomorrow and drop only Canadian goodies into it :)
I wish they would teach kids at school about TFSA, they would save up their first minimum wage job earnings up to their first contribution eligibility year of ~6k. They'd be so happy.
I'm so glad i watched this i just set up an i-trade account with a TFSA this year , I bought dividend stocks so far averaging 7% dividends it was a great year to get into established businesses lol I didnt know about growing or losing contribution room , very interesting the government allows such an opportunity
Unfortunately, not a lot of people are aware of these government provided tax-sheltered accounts and even fewer people are using them to their full potential! Make sure you check out my videos on other tax-sheltered accounts like the RRSP and RESP in this playlist =) ua-cam.com/play/PLj8bU3AuW2qEA_ik7NOAIkBY02nt7KAPj.html
Man. U have nailed it. Watching all ur videos now. In can since 2016. Had no idea how tax and financial system works. Trying to understand. Haven’t used my Tcs a 28500 room checked last night. The info is u provide helped me understand. It’s good man. Met many people read so many things but complexity grew every time. Anyway thanks. God bless u
That sound excellent about TFSA. But when you go to the bank to open a TFSA account, what they really do or offer to you is a simple saving account called TFSA. Nothing about dividend stocks or ETF or REITS, so where should I go to do that?
Ya the banks will just try to sell you their products so a TFSA savings account which is a waste since you will barely earn any income with that or a TFSA Mutual Fund which will cost you a ton of money in annual fees. To invest in stocks, ETFs or REITs you would need to open an account with an online brokerage. Each of the big bangs have their own version of online brokers but they are expensive, I recommend Questrade as the best Canadian online broker for beginners since they charge half the commission compared to banks when you buy a stock and they charge ZERO commission when you buy ETFs. Check out my Questrade video to see how it works =) ua-cam.com/video/_V2yBWwOZX4/v-deo.html
This was so incredibly useful! Wish we were taught this in school or at least had resources like this to learn everything you mentioned. Would you be able to make a video on a large list of Canadian Dividends to invest in beyond the 3 you made a video? I’d watch the whole video even if you covered top 20😂
Thank you Ryan! I'm glad that my videos are helpful and I agree. There is NO excuse why the fundamentals of taxes and finances are not taught in high school..... I've actually made many videos of my favourite dividend stocks to invest in, I actually have a WHOLE PLAYLIST, check it out! =) ua-cam.com/play/PLj8bU3AuW2qFD4sCsCxXdaAADlyiP8bqB.html
This is amazing content! As a fellow Canadian I'm glad I found another Canadian who could explain the TFSA to me in such a clear manner (and wearing a t-shirt at that aha!). I only wish I found your channel before I bought some blue-chip AMERICAN dividend stocks in my TFSA - I was not at all pleased with that 15% withholding tax ugh! You have definitely inspired me to put REITs in my TFSA account and I will be following through with this strategy. What really blew my mind however was your example with the withdrawals and the resulting contributions. Are you certain that if I contributed $10,000 into my TFSA which eventually grew to $30,000 within my TFSA and then I withdraw that $30,000, I will be allowed to contribute $30,000 into my TFSA next year (as opposed to just $10,000 which was what I originally contributed)? I want to verify this because I feel like I came across an amazing revelation that was not explained to me. Thank you for your time good sir!
Thank you for those kind words! It's really unfortunate that the government and schools don't teach people enough about how investing works. I'm glad that people are actually using their TFSA's but SO many people don't know about the 15% US Withholding tax and that can really add up! I promise you, the CRA doesn't care about what happens inside your TFSA (as long as you aren't day trading... you WILL get fined if you day trade in your TFSA). All the CRA cares about is what goes in and what comes out. Whatever amount you withdraw this year, can be recontributed next year. Whether that's $5000 or $50,000: the same rules apply =)
Shobith Raju Agreed this is incredible content. Simple language and easy to understand for someone new to investing like myself. Like you, I too have just invested in US dividend stock via my TFSA, and was surprised to hear I should have done so through my RRSP. Ugh. That said, i was thinking more of a long-term strategy, which it seems is not the best my to utilize my TFSA anyway.(I purchased AAPL stock, which does pay a dividend but was thinking more long term with it anyway.). After seeing this video, Ill definitely need to rethink my strategy. Moreover, the increased contribution room from growth was also something I hadn’t heard before, but would be incredible incentive for continued investing. I’d also want this confirmed by my financial advisor just to be sure. Looking forward to more on this channel.
@@CanadianTShirt Like Shobith Raju, I was unaware of the whole holding US Stocks within my TFSA. Is there a way to remedy this situation such as transferring these holdings to an RSP account within Questrade and not suffer the wrath of the CRA etc?
@@divadivad9164 you can definitely transfer stocks between your TFSA and RRSP accounts! Just click on the top right panel Requests and then select Transfer Investments. Note that this will be considered a TFSA withdrawal and an RRSP contribution so make sure you have available room! =)
@@CanadianTShirt Wow thanks for the quick response! Sorry to bug you as I'm very new to this but after transferring the stocks to an RRSP account, will I still be affected when filing taxes since I initially bought the US Stocks within my TFSA?
But yes, that's why I would NOT suggest risky, speculative assets in your TFSA like crypto ETFs, IPOs, penny stocks etc. If you lose that money, you have essentially permanently lost that precious contribution room! If you want to play a risk, do it in a non-registered account. At least if you lose money, you can actually benefit from a capital loss to reduce your tax bill (which you can't do in a TFSA) =)
So much information - Thank You. What is the recommended balance of contributing to TFSA and RRSP? The end goal would be to max out and top up both every year, but I am nowhere near that. Would it be a good idea to take the tax-free profits and balance of the TFSA, withdrawal, put into the RRSP to get the deferred tax and then reinvest the tax refund into the TFSA?
I'll be making several videos comparing the TFSA and the RRSP, you're right, the ideal case is to maximize both but if you have to choose between them, it really depends on the circumstance. I'll go over detailed scenarios in my upcoming video but a general rule of thumb is: if you currently have low income and thus a low tax bracket, then TFSA is the best choice. If you have a high income and are in a higher tax bracket (above $70K per year), then RRSP is likely the best option. There are definitely more factors to consider which I will discuss in my video but I hope that helps for now =)
Nope! Capital gains are 100% tax free in a TFSA, whether they come from US or Canadian stocks! So if your US stock doesn't pay dividends, you don't have to worry about any taxes at all in a TFSA =)
So how do you pay tax on these dividends? You send payment to IRS??? Again, just to confirm, you can buy and sell US and Canadian stocks as often as you wish in a TSFA even if you have capital gains, correct? Only US stocks dividends are taxed?
These videos are so helpful!!! I'm 17 and this is the stuff they barely touch on in school. Binging your videos rn, thanks so much for the knowledge!!!!!!
That's what I LOVE to hear! Major props for getting interested in finance and investing at the age of 17! I WISH I had started when I was your age! Back then, I only cared about school and sports and video games 😅
Thanks for explaining. I moved back to Canada after absence for 13 years and this is all new to me. People talking about TFSA and I never heard of it or any benefits. Unfortunately I’m not eligible to have the acct because of not living here in the last 13 yrs
So in a non-registered account, when you sell a stock you will have to pay capital gains tax on the profits you made but you don't pay that tax right away! You pay it when you file your taxes! But in an TFSA, you don't have to worry about capital gains tax. It's tax free! =)
One question: Do I loose permanent room from my TFSA if I just sell the stocks that went down in value???? Or is it if I sell the stocks AND withdrawal the money from my TFSA??
Another question, please.Suppose I have invested 6k this year in my TFSA in jan. Now stocks prices went down and I hold 3k in my TFSA. Im not allowed no add 3k back to my TFSA due to the stock loss, right?? What matters is the first 6k contribution that already set up my limit. Is my logic right? Thanks for you videos by the way. They are really helping me a lot. Congratulations for your great work!
You only lose the contribution room when you WITHDRAW. But even if you sell without withdrawing.... it will be very difficult to recover from that loss since you might not be able to add more money in if your TFSA is maxed out. For example, let's say your TFSA is maxed out and your stocks dropped 30% in value. If you decided to sell, your stock is now worth only 70% of what it once was. To return to the point you started at, you would have to obtain a return of 43%.... that is very difficult and it will probably take multiple years so in a way, it's almost like you have lost contribution room
Yes your example is correct. The CRA does NOT care what happens inside your TFSA. If you lose money or gain money inside the TFSA, it doesn't affect your contribution room. The ONLY thing that affects your room is contributions going into your TFSA and withdrawals coming out
great explanation. One caution for would be stock traders re: TFSAs ... don't carry on too much "day trading" within the TFSA, because the gov't might well determine that you be designated a "professional trader", and the profits that you have accrued within the TFSA will be subject to taxation. (Happened to someone I know). "Tax-free savings account holders will now be ultimately liable for any tax owing on income earned in a TFSA if the Canada Revenue Agency (CRA) determines that the holder has been carrying on a business of day trading in the account" "if the CRA determines that a taxpayer has been carrying on a business in a TFSA, that account is liable for tax owing on income earned in the account".
This Canadian in a T-shirt deserves to be a consultant. Dude you know so much stuff, I'm jealous. You are now my best friend. Thanks for your information.
But seriously, thanks for the kind words. I really do appreciate it! And make sure to send my videos to your family or friends if they can find it useful =)
I would actually love to teach teenagers and college kids about finances! It's mind boggling how the education system doesn't value basic finances and understanding of taxes as part of their curriculum.... =(
@@CanadianTShirt Absolutely agree with you. Your enthusiasm towards the topics discussed are a blessing. Will spread your channel among friends & family. Very valuable information, keep up the great work & stay healthy. Cheers
Capital gains from U.S. stocks like Tesla are NOT taxed because they are non-dividend paying stocks. Yes, it's a growth stock but it's up 200% for the year and therefore it makes a world of sense to hold it in my TFSA instead of my RRSP, assuming I want access to it before I retire and even then - I would pay a boatload of tax on those gains eventually, which I don't by realizing those gains in the TFSA.
Only detailed video I found that explains: ‘losing contribution room forever’ and why not to invest in risky securities in your TFSA. Thank you 🙏 you earned yourself a sub!
Thanks Edward! I am actually planning on making a more detail video just on the risk of permanently losing contribution room since a lot of people don't fully appreciate the risks involved! =)
Took me a good hour to watch this video. Taking notes, and revisiting content until I'm certain I know what you're talking about, and looking up definitions of certain phrases or words helped me HUGE. I think you just gained a new favourite follower. Glad I found this. Thank you.
Hey Adrian, thanks for sharing the knowledge. Just to be clear: in you example your max contribution limit was $44k which hypothetically grew to 100k. Now assume you withdraw this 100k in Dec 2021. Based on the formula you shared at the onset: Contribution room = Lifetime limits (44k) - Contributions (44k) + withdrawals (100k) = 100k
Exactly! But remember you do NOT have to withdraw that money to gain the benefit. You ALREADY have that extra contribution room inside your TFSA because your $44K investment grew to $100K so now you have $100K inside your TFSA to invest in tax-free! Whether you withdraw it or keep it inside, you've basically doubled your available room! Just that if you keep it inside, you can't add anything more to it until next year! I hope that helps! =)
Got email from Wealth simple today referring to some of my US holdings in TFSA & RRSP that "As of January 1, 2023, when Canadian residents sell certain types of securities (Publicly Traded Partnerships), the Internal Revenue Service (IRS) requires a 10% withholding tax to be applied. Generally, the affected securities are classified as partnerships for U.S. tax purposes. Such securities can include securities generally referred to as Master Limited Partnerships, Publicly Traded Partnerships, and Exchange Traded Funds."
I know this is an old video, but I just want to thank you for sharing all of this information. I grew up in a family that did not invest whatsoever beyond RRSP’s and real estate. This new information is simply freeing.
Thank you sooooo much for a clear and concise explanation on investing in TFSAs and RRSPs. None of the banks were able to explain it this clearly. Love your videos !
I appreciate your videos. Extremely knowledgeable and incredibly articulate. So much useful information with no bullshit intros and beating around the bush
I know i'm commenting late but there is one very important catch to a TFSA. The CRA gets to decide what is considered taxable or not. Say if you use your TFSA "in the nature of a trade" then then CRA can tax you however they choose to classify your case. It's a very complicated matter.
you are the man and some seriously crucial information regarding holding U.S stocks in your T.S.F.A at the end, that was a new piece of information for me.
I'm happy to hear it was helpful and you're right... unfortunately not a lot of people know about the US Withholding taxes and since it comes right off the top when you receive the dividend, most people don't even notice that it's happening!
Thank you Tarvinder! I really appreciate those kinds words and make sure you check out my TFSA Mistakes video as well for even more important lessons! =) ua-cam.com/video/s4cBibLATOU/v-deo.html
I don't know anything about investments, but after watching your video on TFSAs, what to do and what not to do I had a clear understanding of how TFSA, work. Thank you for the good job of explaining things in a lay- mans terms. I will be watching more of you videos to further my curiosity on how the stock market works. Thank you.
Better late than never! I'm glad you found me Colin! And make sure you watch the follow up video, TFSA MISTAKES to learn how to get the most out of your TFSA =) ua-cam.com/video/s4cBibLATOU/v-deo.html
I feel like I owe you 10% of my retirement fund when I retire in around 30 years lmao , you're saving us crazy amounts of money with all this info. Honestly thank you!
hahahaha careful what you say buddy, I now have that offer in writing! 😆 Just give me a thumbs up and share my videos with a friend and we'll call it even! =)
Check out my CANADIAN TAX GUIDE to learn about Taxes, TFSAs and RRSPs 👇
ua-cam.com/play/PLj8bU3AuW2qEA_ik7NOAIkBY02nt7KAPj.html
Check out my CANADIAN CREDIT CARD GUIDE 👇
ua-cam.com/play/PLj8bU3AuW2qGixzriCuazZ1E5RznbhcFB.html
And check out my MILLENNIAL INVESTING GUIDE 👇
ua-cam.com/play/PLj8bU3AuW2qEVri8g-ErBL65ng98iAf5g.html
Canadian in a T-Shirt thanks man so much appreciate!!
Adrian, I believe you didn't mention the rules on day trading in your TFSA account and I am not sure what is the window I can sell a stock I recently bought. Could you comment if selling a stock the next day is allowed, or how long should I wait to trade my stocks? My concern is if I create a Stop Loss order and the market crashes on the same day, or the next day, how that could cause me trouble. Thanks and keep up with these great videos!
@@Arthur-S I talk about day trading in your registered accounts in my RRSP videos but unfortunately, the rules that CRA publishes are intentionally vague.... they don't offer a threshold or limit since they don't want people taking advantage of that. But I would say that if you sell a stock after a few days, that's probably okay as a one-time thing but don't make a habit of it! If you're buying and selling stocks over the course of hours and you're doing this every week, then that's when you'll get taxed and penalized. I hope that helps! =)
I love how you don't waste even one second of your subscribers' time
That's why I speak so fast!!! I hate videos that waste time with fluff...
Seriously, these videos are well made. Basic language(no weird investment terms) and easy to understand.
@@jumbothompson Thanks Damian! Ya I hate people who try to show off how "smart" they are by using acronyms and terminology designed to intimidate and confuse people. I try to make my videos as accessible as possible for beginners =)
legit words out of my mouth. He blitzes information and doesn't stutter for a second or even take eyes off camera. bam.
@@FlippedSociety Thanks bud! I appreciate that! 🙏
Biggest lesson of 2022 in the stock market: N.obody knows what is going to happen next, so practice some humility and follow a strategy with a long term edge.
Nobody knows anything; You need to create your own process, manage risk, and stick to the plan, through thick or thin, While also continuously learning from mistakes and improving.
@@yvonnejoordan
... it took me 5 years to stop trying to predict what bout to happen in market based on charts studying, cause you never know. not having a mentor cost me 5 years of pain I learn to go we’re the market is wanting to go and keep it simple with discipline.
Best would be to get a life insurance and run your infinite banking process while growing your money
I can't imagine how long it took you to learn all of this information you've jampacked into your videos. Your generosity is seriously appreciated dude, you would be an amazing professor
Thanks buddy! I really appreciate those kind words, you just made my day! 🙏
I actually create these videos in the style of how a professor would give a lecture so I'm glad that my style works! =)
It quite available to read on the CRA website
I agree!
I bet its not as interesting on CRA website as this dude's videos@@kampdavies
Newcomers to Canada beware - your contribution room is calculated from the date you became a resident. Don't just consider your age. Verify your contribution room with CRA. Making a mistake on this can cost you a lot of money.
You are correct! You only start accumulating contribution room once you actually start living in Canada! I talk about this in greater detail in my TFSA Mistakes video here =)
ua-cam.com/video/s4cBibLATOU/v-deo.html
As i am a new student here in canada in 2022. As I assume my limit would be 6000 cad only? Is this correct. Still i am on study permit
@@jadvatismail88 yes, I think so, but double-check with CRA. You can do it online.
Best thing happend to me in 2020: finding your channel
Cons: I found it too late...
haha it's never too late Allen! I'm happy you found me and welcome to the channel! =)
Allen, you found it amid pandemic. This volatility can be very good for beginning to invest as many stocks are trading below their usual rates.
@@kakarot1234567891234 I am also just a beginner here any advice on how to set up an account.
absolute gold content
Thank you! I'm glad I was able to help! =)
Agree with you 100%
Every Canadian should know this. Thank you for sharing and explaining in such a very clear and precise way. This is golden!
Thank you Dennis! I really appreciate that and I'm happy that this video was helpful and accessible! =)
OMG, jut found your channel and now going through all your content. As a big consumer of this kind of stuff, I wondered how I could possibly have missed your channel, then saw that you've only been around for, what, 8 months? It's soooo helpful!
Thanks for all the great advice!
Thanks buddy! I've only been on UA-cam for almost 5 months so I'm still small but hopefully I'll keep growing at a good rate. There isn't too much Canadian focused financial content out there which is why I started this channel. I'm glad you stumbled onto my videos and welcome to the family! Please reach out if you ever have any questions or topics you'd like me to cover =)
@@CanadianTShirt thanks man. Am also going through it
I had to rewatch this video to understand / confirm the rules for withdrawing from a TFSA. Thanks for the informative video, Adrian
You're welcome buddy! I always love to hear when viewers come back to rewatch my older videos! 🙏
today i learned:
- RRSP for US stocks
- TFSA for Canadian stocks
- regular account for growth stocks
That's a good basic rule of thumb! You don't have to strictly follow those rules, for example I still hold Canadian dividend stocks in my RRSP as well and occasionally some growth stocks in my tax sheltered accounts but those general rules above are a good template to follow! =)
@@CanadianTShirt What impact it will have if i hold my US stocks in TFSA?
@@nauman9002 If the US stocks are just growth stocks, you have nothing to worry about! But if the US stocks pay dividends, you WILL be charged an immediate 15% US Withholding tax on those dividends in a TFSA. That's why you should hold US dividends in your RRSP instead! =)
@@CanadianTShirt Thanks for clearing this up.
1/ As per the info, day trading is not allowed in TFSA, but short term trading , like buying and selling in a week or a month shouldn't be a problem i guess?
2/Let's say i invested my 2020 contribution $6000 and make some profit every time i trade(in a week or two or in a month). Now, If i keep withdrawing my profits ONLY every 2 weeks or every month as long my $6000 contribution is intact, the withdrawals have no impact on my TFSA, right?
I am awarding you the highest honour that I am able to bestow... You’re now officially the only youtuber I have notifications on for. Keep up the good work man
Thanks man! That really means a lot to me, I promise never to abuse this honour 🙏 By the way, I LOVE your lego Jango Fett display pic! 😎
Same here literally the the first and only one and I've been on UA-cam longer than they've had the notification bell. We need more people like you Canadian in a T
@@jacobpayne-corrado203 thank you! I really appreciate the support! 😃
Finally a clear and concise summary of foreign withholding taxes on investments and where to hold these types of investments. I’ve been trying to figure this out for years. Thank you!
Thank you and I'm really glad that I was able to help! I'll actually be making a whole video soon on where the best place your different kind of investments very soon so stay tuned for that! =)
Thanks so much for doing this. We're taught to go to school, get a "career" and then like magic, everything just works out? The education provided here is probably going to be the most important lessons in my life!
Thanks Drew! I'm so glad that my videos are actually having an impact. I agree 100%, there is NO EXCUSE why financial education is NOT covered in high school... That's why I started this channel!
That is a fact! schools will never teach these stuff. Because thats what the governments want, for you to only learn how to become an employee and be in the rat race.
If everyone knew finance and economics, they would lose votes and thus their power. It's a no-brainer why this stuff isn't taught at schools. If it was, it'd literally be a political suicide
I'm getting to a point that I think the school system should be charged with negligence for not teaching this!
Every single person immigrating to Canada should be watching your videos. I subscribed way before I landed here in TO and your videos made me understand things much easier. Peace and love brother.
That is so kind of you to say man! I truly appreciate that! 🙏
I know how hard it was for me and my family to come to Canada and I can imagine it's even harder today! So I appreciate that my videos have been helpful and be sure to spread to word to anyone else who could find value in them! 😊
Well…I got lost in many concepts due to my inexperience, but for sure this the best video I’ve seen so far. Thanks for sharing.
Thanks Daniel! I know there is a TON of info to cover regarding TFSAs but I'm glad my video was helpful! =)
This channel is way underrated.
So far it's one of the most informative and easy to understand channel on YT
Wow! Thanks buddy! I really appreciate that and I'm happy to hear that my videos have been providing value! 🙏
You are amazing - not only are you extremely knowledgeable, you're an excellent teacher. Your videos are to the point, clear, and make logical sense, especially in the order in which you have filmed them! I can't thank you enough! I hope that whatever you are doing with your career is capitalizing on your knowledge and skillset!
Thank you so much for those kind words! I really do appreciate that! I put a lot of effort into planning out these videos and making playlists in an order which will make sense to beginners so I'm happy that it's not going unnoticed! =)
Once again Adrian, you explain things so clearly that there is no doubt as to what I need to to. The TFSA contribution as opposed to the capital gains inside it was my main issue. As you said, I can have profits well beyond the contribution room and I won't be taxed. Thank you so much!
Absolutely! That's one of the best benefits of the TFSA! You are limited by how much you can put in but if you let your investments grow inside, they can far exceed your contribution limits! =)
Three years in Canada and seriously the knowledge I have gained in past one hour watching your videos is way above any university degree in Canadian Financial Systems and the financial advisors at the banks who overcomplicate all of it.
Kudos to you Man
This is my first time watching you and I have learned so much in a short time with no BS and things are explained simply - keep up the good work
Thank you so much for those kind words! I appreciate it! 🙏
If I can put more than one like, I would definitely put thousands of likes on this video. it's really informative and easy to understand.
Thank you Mostafa! I really appreciate that! 🙏
Imagine how better we off we would be if this one video was played in high school. Bravo man. Just awesome.
I couldn't agree more Joe! There really is no excuse why they don't teach this in high school....
Wow - I'm not even half way through this video and I feel like all my questions and concerns are being lifted. Super helpful and encouraging now that it doesn't seem so complicated!
So I should open an RRSP if I want to buy SP 500 for example???
Thank you Vanessa! I'm happy to hear that my video is helpful! =)
Make sure you check out my RRSP videos to learn how to invest with the RRSP:
ua-cam.com/play/PLj8bU3AuW2qHOikk4VRpSDXCZTuH7eUhz.html
Generally, I would suggest that any US dividend stocks and ETFs should be held in the RRSP to avoid the 15% US Withholding tax on those dividends. In the case of the S&P500, an ETF which tracks it like VOO doesn't pay too much in dividends, only with a yield of about 1.5%. Most of the profits you're looking at with the S&P500 is capital gains, not dividends and capital gains are totally tax free in a TFSA. That being said, it still sucks to lose that 15% tax on those dividends so I would still suggest that you hold it in your RRSP. I hope my playlist above helps! =)
I rarely comment, and then it's usually only to make a joke, but this is great content. Clear, to the point, energetic without sounding like a hype-man, and it's completely relevant to Canadians.
Really great stuff.
Thanks Shelby! I really appreciate that and I'm glad it helped! If you want to make a joke as well, that's always welcome 😆
Thank you. Good tip on increasing contribution room, tax implications of REITS vs dividend income, and good advice putting growth stocks outside TFSAs. So useful!
I'm glad you found it helpful! Make sure you watch the sequel video TFSA MISTAKES as well =)
ua-cam.com/video/s4cBibLATOU/v-deo.html
Power packed videos. One of the best I've seen on TFSA. No waste of time and to the point. Thanks and Keep it up!!!
Thanks buddy! That's what I try to do! I hate the idea of wasting anyone's time! =)
Omg you prevented me making so many mistakes!! Thank you so much!
That's what I'm here for! I'm glad it was helpful! =)
This is amazing. I wish someone had explained this to me YEARS ago. I think I will show this to my grade 12's!
Thank you McQuade! I really appreciate you spreading the word and I really hope this information resonates with your students! =)
Canadian in a T-Shirt someone once told be that had I started investing 200$/month for 40 years, I would likely have close to 1 million dollar for my retirement in addition to whatever pension I’m getting (assuming I’m getting one). That’s amazing! My students need to know this!
@@MrMcQuade this is true.... time is your greatest asset in growth. It doesn't take much. A little over a long period will by far out perform alot in a short period.
Investing is always better than not investing. However there’s one other thing that has to be factored in and that’s inflation. So one million dollars today will be worth a lot less in 40 years if we keep the same system of printing fiat money in place which has been around since 1913.
Thank you for making this video! I knew essentially nothing about TFSA's before watching this, and now I'm walking away with enough confidence to see a financial advisor so I can set up my TFSA!
That's amazing Rose! That's what I LOVE to hear! Before you meet with your advisor, I suggest learning even more by watching the rest of my Canadian Tax Videos (the silver thumbnails) and definitely watch my video on TFSA Mistakes right here! =)
ua-cam.com/video/s4cBibLATOU/v-deo.html
What an impeccable explanation.I am a beginner and don’t have much financial literacy,but this video eased my understanding.Hats off you brother 🤝.
I appreciate that! I'm glad my videos have been helpful! 😁
Check out my playlists, especially my TAX guide, the videos with the silver thumbnails 🙂
These videos are amazing. This is the investing info I've been searching for as a Canadian. Well done!
Thanks Josh! I really appreciate the support and I'm glad I was able to help! Happy investing! =)
1.82 million subscribers should have been there. I got shocked to see "k"
Good Luck
sameee
We'll get there soon enough, just a matter of time! Thank you for the support! 🙏
@@CanadianTShirt best things about you in a concise format
Knowledgeable
Compassionate
Solid communicator
Last but not the least "a true Canadian"
@@readingaddict Thank you John, that was so sweet! You made my night! 😁
@@CanadianTShirt Clear and concise explanation. Keep-up this great work.
I was about to sub to you but then I noticed that I already did .
You are explaining so good and straight to the point .
Keep up the Great work !
Make a second account and subscribe again! 😆 Thanks for the support man! 🙏
Many people don't understand how to use the TFSA effectively and this is a great explanation of it. One point I disagree with is you loose the contribution room for ever when you take a loss on an investment. You can regain the contribution amount by withdrawing distributions earned from dividends especially reinvested dividend funds from the account. Dividends earned in the account are not considered contributions so if you reinvest them they pay more dividends. At a future time you can remove dividends and the amount removed will increase the contribution room for the following year .
Final comments on this video - man it's hard to comprehend all these rules and tips when you're new to investing! I had totally watched this video a while back, forgot most of the info, and now that I'm an active user on Questrade, a lot of this makes a LOT more sense! The USA investments not being held in the TFSA.. you're really good at explaining things ! I'm totally going to get my TFSA started tomorrow and drop only Canadian goodies into it :)
You got it buddy! That's what I love to hear! 😁
I wish they would teach kids at school about TFSA, they would save up their first minimum wage job earnings up to their first contribution eligibility year of ~6k. They'd be so happy.
Absolutely! It's so frustrating and really there is no excuse why these tax and finance fundamentals are not being taught in high school....
This channel is way more informative than the Careers and Civics course I took in Ontarian High School
Thanks buddy! I'm glad that my videos are helpful but I agree, there is no excuse why this isn't taught in high school.....
I'm so glad i watched this i just set up an i-trade account with a TFSA this year , I bought dividend stocks so far averaging 7% dividends it was a great year to get into established businesses lol I didnt know about growing or losing contribution room , very interesting the government allows such an opportunity
Unfortunately, not a lot of people are aware of these government provided tax-sheltered accounts and even fewer people are using them to their full potential! Make sure you check out my videos on other tax-sheltered accounts like the RRSP and RESP in this playlist =)
ua-cam.com/play/PLj8bU3AuW2qEA_ik7NOAIkBY02nt7KAPj.html
Love the way you concisely explained the TFSA yet so simple to understand. Thank you.
Thank you Yoda! When learning how to manage your money, always remember: do or do not, there is no try 😆
Man. U have nailed it. Watching all ur videos now. In can since 2016. Had no idea how tax and financial system works. Trying to understand. Haven’t used my Tcs a 28500 room checked last night. The info is u provide helped me understand. It’s good man. Met many people read so many things but complexity grew every time. Anyway thanks. God bless u
Thanks buddy! I am happy to hear that my videos have been helpful! =)
That sound excellent about TFSA. But when you go to the bank to open a TFSA account, what they really do or offer to you is a simple saving account called TFSA. Nothing about dividend stocks or ETF or REITS, so where should I go to do that?
Ya the banks will just try to sell you their products so a TFSA savings account which is a waste since you will barely earn any income with that or a TFSA Mutual Fund which will cost you a ton of money in annual fees. To invest in stocks, ETFs or REITs you would need to open an account with an online brokerage. Each of the big bangs have their own version of online brokers but they are expensive, I recommend Questrade as the best Canadian online broker for beginners since they charge half the commission compared to banks when you buy a stock and they charge ZERO commission when you buy ETFs. Check out my Questrade video to see how it works =)
ua-cam.com/video/_V2yBWwOZX4/v-deo.html
very thorough, so much love on this video!
Thanks Jayden! I appreciate that! =)
Your content is amazing. This was such a good breakdown and explanation just like the rest of your videos.
Thank you Robert! I really appreciate those kind words and I'm glad this video was helpful! =)
Me and the gf watched this video together and she appreciates all the wicked information, thanks from Vancouver B.C. 😊👍🏽
Thanks Walter! I'm so glad you were able to turn her to our side! You guys are going to be an investing power couple! 😎
@@CanadianTShirt haha yes that's the goal haha! 🦸♂️🦸♀️💰💸😁
been investing for 3 years, but your videos really help me better understand what I can do to get the most out of the TFSA. i really appreciate it :)
Thanks Jon! I really appreciate that! 🙏
You have very good mind bro, hats off to you for giving good content. You have bright future, keep it up 😀👍
Thanks buddy! I really appreciate those kind words! 🙏
This was so incredibly useful! Wish we were taught this in school or at least had resources like this to learn everything you mentioned.
Would you be able to make a video on a large list of Canadian Dividends to invest in beyond the 3 you made a video? I’d watch the whole video even if you covered top 20😂
Thank you Ryan! I'm glad that my videos are helpful and I agree. There is NO excuse why the fundamentals of taxes and finances are not taught in high school.....
I've actually made many videos of my favourite dividend stocks to invest in, I actually have a WHOLE PLAYLIST, check it out! =)
ua-cam.com/play/PLj8bU3AuW2qFD4sCsCxXdaAADlyiP8bqB.html
This is amazing content! As a fellow Canadian I'm glad I found another Canadian who could explain the TFSA to me in such a clear manner (and wearing a t-shirt at that aha!). I only wish I found your channel before I bought some blue-chip AMERICAN dividend stocks in my TFSA - I was not at all pleased with that 15% withholding tax ugh! You have definitely inspired me to put REITs in my TFSA account and I will be following through with this strategy.
What really blew my mind however was your example with the withdrawals and the resulting contributions. Are you certain that if I contributed $10,000 into my TFSA which eventually grew to $30,000 within my TFSA and then I withdraw that $30,000, I will be allowed to contribute $30,000 into my TFSA next year (as opposed to just $10,000 which was what I originally contributed)? I want to verify this because I feel like I came across an amazing revelation that was not explained to me. Thank you for your time good sir!
Thank you for those kind words! It's really unfortunate that the government and schools don't teach people enough about how investing works. I'm glad that people are actually using their TFSA's but SO many people don't know about the 15% US Withholding tax and that can really add up!
I promise you, the CRA doesn't care about what happens inside your TFSA (as long as you aren't day trading... you WILL get fined if you day trade in your TFSA). All the CRA cares about is what goes in and what comes out. Whatever amount you withdraw this year, can be recontributed next year. Whether that's $5000 or $50,000: the same rules apply =)
Shobith Raju
Agreed this is incredible content. Simple language and easy to understand for someone new to investing like myself. Like you, I too have just invested in US dividend stock via my TFSA, and was surprised to hear I should have done so through my RRSP. Ugh. That said, i was thinking more of a long-term strategy, which it seems is not the best my to utilize my TFSA anyway.(I purchased AAPL stock, which does pay a dividend but was thinking more long term with it anyway.). After seeing this video, Ill definitely need to rethink my strategy. Moreover, the increased contribution room from growth was also something I hadn’t heard before, but would be incredible incentive for continued investing. I’d also want this confirmed by my financial advisor just to be sure. Looking forward to more on this channel.
@@CanadianTShirt Like Shobith Raju, I was unaware of the whole holding US Stocks within my TFSA. Is there a way to remedy this situation such as transferring these holdings to an RSP account within Questrade and not suffer the wrath of the CRA etc?
@@divadivad9164 you can definitely transfer stocks between your TFSA and RRSP accounts! Just click on the top right panel Requests and then select Transfer Investments. Note that this will be considered a TFSA withdrawal and an RRSP contribution so make sure you have available room! =)
@@CanadianTShirt Wow thanks for the quick response! Sorry to bug you as I'm very new to this but after transferring the stocks to an RRSP account, will I still be affected when filing taxes since I initially bought the US Stocks within my TFSA?
Investment loss will impact to TFSA contribution…it’s the first time I heard of it. Thank you
I go over this in greater detail in my TFSA MISTAKES video here:
ua-cam.com/video/s4cBibLATOU/v-deo.html
But yes, that's why I would NOT suggest risky, speculative assets in your TFSA like crypto ETFs, IPOs, penny stocks etc. If you lose that money, you have essentially permanently lost that precious contribution room! If you want to play a risk, do it in a non-registered account. At least if you lose money, you can actually benefit from a capital loss to reduce your tax bill (which you can't do in a TFSA) =)
Awesome video... I'm a newbie , from zero to understand 100% , so detail and easy understandable ... keep up the good work... 🙏🙏🙏🙏
Thank you Desmond! I really appreciate that! =)
MAN YOU JUST SAVE MY LIFE $$$ GOD BLESS YOU LOL ..
Thank you! I'm happy to hep! 😁
So much information - Thank You. What is the recommended balance of contributing to TFSA and RRSP? The end goal would be to max out and top up both every year, but I am nowhere near that. Would it be a good idea to take the tax-free profits and balance of the TFSA, withdrawal, put into the RRSP to get the deferred tax and then reinvest the tax refund into the TFSA?
I'll be making several videos comparing the TFSA and the RRSP, you're right, the ideal case is to maximize both but if you have to choose between them, it really depends on the circumstance. I'll go over detailed scenarios in my upcoming video but a general rule of thumb is: if you currently have low income and thus a low tax bracket, then TFSA is the best choice. If you have a high income and are in a higher tax bracket (above $70K per year), then RRSP is likely the best option. There are definitely more factors to consider which I will discuss in my video but I hope that helps for now =)
What if I’m holding a US stock in my TFSA, but the stock does not pay out dividends. Will I have to pay 15% of my gains when I choose to withdraw?
Nope! Capital gains are 100% tax free in a TFSA, whether they come from US or Canadian stocks! So if your US stock doesn't pay dividends, you don't have to worry about any taxes at all in a TFSA =)
My question exactly!! Now I know too! Thank you!
So how do you pay tax on these dividends? You send payment to IRS??? Again, just to confirm, you can buy and sell US and Canadian stocks as often as you wish in a TSFA even if you have capital gains, correct? Only US stocks dividends are taxed?
These videos are so helpful!!! I'm 17 and this is the stuff they barely touch on in school. Binging your videos rn, thanks so much for the knowledge!!!!!!
That's what I LOVE to hear! Major props for getting interested in finance and investing at the age of 17! I WISH I had started when I was your age! Back then, I only cared about school and sports and video games 😅
Thanks for explaining. I moved back to Canada after absence for 13 years and this is all new to me. People talking about TFSA and I never heard of it or any benefits. Unfortunately I’m not eligible to have the acct because of not living here in the last 13 yrs
Is it fine to hold US non-dividend growth stocks in TFSA? If you do sell, would you be taxed on capital gain? Great video btw!!
That's totally fine! Capital gains are 100% tax-free in a TFSA, whether they are Canadian or US stocks so you are good! =)
14:25 so I would pay tax for capital when I sell the stock or when I withdraw I am confused about that part
So in a non-registered account, when you sell a stock you will have to pay capital gains tax on the profits you made but you don't pay that tax right away! You pay it when you file your taxes! But in an TFSA, you don't have to worry about capital gains tax. It's tax free! =)
@@CanadianTShirt thanks for clarifying this, i was also confused. your videos have been very help! thank you so much.
One question: Do I loose permanent room from my TFSA if I just sell the stocks that went down in value???? Or is it if I sell the stocks AND withdrawal the money from my TFSA??
Another question, please.Suppose I have invested 6k this year in my TFSA in jan. Now stocks prices went down and I hold 3k in my TFSA. Im not allowed no add 3k back to my TFSA due to the stock loss, right?? What matters is the first 6k contribution that already set up my limit. Is my logic right?
Thanks for you videos by the way. They are really helping me a lot. Congratulations for your great work!
You only lose the contribution room when you WITHDRAW. But even if you sell without withdrawing.... it will be very difficult to recover from that loss since you might not be able to add more money in if your TFSA is maxed out. For example, let's say your TFSA is maxed out and your stocks dropped 30% in value. If you decided to sell, your stock is now worth only 70% of what it once was. To return to the point you started at, you would have to obtain a return of 43%.... that is very difficult and it will probably take multiple years so in a way, it's almost like you have lost contribution room
Yes your example is correct. The CRA does NOT care what happens inside your TFSA. If you lose money or gain money inside the TFSA, it doesn't affect your contribution room. The ONLY thing that affects your room is contributions going into your TFSA and withdrawals coming out
@@CanadianTShirt Thank you so much for taking the time to reply back!!
Really appreciated it!!!
great explanation. One caution for would be stock traders re: TFSAs ... don't carry on too much "day trading" within the TFSA, because the gov't might well determine that you be designated a "professional trader", and the profits that you have accrued within the TFSA will be subject to taxation. (Happened to someone I know).
"Tax-free savings account holders will now be ultimately liable for any tax owing on income earned in a TFSA if the Canada Revenue Agency (CRA) determines that the holder has been carrying on a business of day trading in the account"
"if the CRA determines that a taxpayer has been carrying on a business in a TFSA, that account is liable for tax owing on income earned in the account".
This Canadian in a T-shirt deserves to be a consultant. Dude you know so much stuff, I'm jealous.
You are now my best friend. Thanks for your information.
hahaha thanks Ejay! It's always nice to have a new best friend! 😉
But seriously, thanks for the kind words. I really do appreciate it! And make sure to send my videos to your family or friends if they can find it useful =)
Why weren't you a teacher at my highschool
I would actually love to teach teenagers and college kids about finances! It's mind boggling how the education system doesn't value basic finances and understanding of taxes as part of their curriculum.... =(
@@CanadianTShirt Absolutely agree with you. Your enthusiasm towards the topics discussed are a blessing. Will spread your channel among friends & family. Very valuable information, keep up the great work & stay healthy. Cheers
This tax guide is so helpful, im 16 and learning about taxes for when I need to start doing tax related stuff. Thank you
i made this user when i was 11, dont judge lol
No judgement at all buddy! I'm just amazed that you have taken an interest in taxes and investing at such a young age!
When I was 16, all I wanted to do was play Halo and basketball! 😅
Congrats buddy and keep it up! You're already so ahead of the curve! 🙌
Capital gains from U.S. stocks like Tesla are NOT taxed because they are non-dividend paying stocks. Yes, it's a growth stock but it's up 200% for the year and therefore it makes a world of sense to hold it in my TFSA instead of my RRSP, assuming I want access to it before I retire and even then - I would pay a boatload of tax on those gains eventually, which I don't by realizing those gains in the TFSA.
This is hard to understand but I'm glad these videos exist
These topics are not simple! That's one of the reasons I started this channel in the first place. To hopefully break it down =)
Only detailed video I found that explains: ‘losing contribution room forever’ and why not to invest in risky securities in your TFSA. Thank you 🙏 you earned yourself a sub!
Thanks Edward! I am actually planning on making a more detail video just on the risk of permanently losing contribution room since a lot of people don't fully appreciate the risks involved! =)
You wasted no time and got straight to the point good video man thank you
Thanks buddy! That's what I try to do! I don't want to waste anyone's time with fluff =)
Took me a good hour to watch this video. Taking notes, and revisiting content until I'm certain I know what you're talking about, and looking up definitions of certain phrases or words helped me HUGE. I think you just gained a new favourite follower. Glad I found this. Thank you.
Thank you Brendan! I'm happy to hear that you found so much value in this video and I hope my other videos are equally helpful! =)
It's amazing description, you did not leave any point off. Keep it up brother
Thank you Khaled! I'm so happy that you found this so helpful! =)
A very clear explanation! Thank you for making it simple.
My pleasure! That's what I try to do! Make sure you check out the sequel to this video, TFSA MISTAKES here =)
ua-cam.com/video/s4cBibLATOU/v-deo.html
All your videos are literally the most clearly explained finance vids UA-cam. GOD BLESS
Thanks buddy! I really appreciate that and I'm so glad that my videos have been accessible! =)
These videos are what every young canadian should be looking at. Brilliant
Thank you Hamza! I really appreciate that! =)
Hey Adrian, thanks for sharing the knowledge.
Just to be clear: in you example your max contribution limit was $44k which hypothetically grew to 100k. Now assume you withdraw this 100k in Dec 2021. Based on the formula you shared at the onset: Contribution room = Lifetime limits (44k) - Contributions (44k) + withdrawals (100k) = 100k
Exactly! But remember you do NOT have to withdraw that money to gain the benefit. You ALREADY have that extra contribution room inside your TFSA because your $44K investment grew to $100K so now you have $100K inside your TFSA to invest in tax-free! Whether you withdraw it or keep it inside, you've basically doubled your available room! Just that if you keep it inside, you can't add anything more to it until next year! I hope that helps! =)
Your videos are the best & most simple way to understand trading on questrade , we have to know so many things before we begin
Thanks Farzad! I'm happy to hear that my videos are helpful and providing value! =)
Got email from Wealth simple today referring to some of my US holdings in TFSA & RRSP that "As of January 1, 2023, when Canadian residents sell certain types of securities (Publicly Traded Partnerships), the Internal Revenue Service (IRS) requires a 10% withholding tax to be applied. Generally, the affected securities are classified as partnerships for U.S. tax purposes. Such securities can include securities generally referred to as Master Limited Partnerships, Publicly Traded Partnerships, and Exchange Traded Funds."
I know this is an old video, but I just want to thank you for sharing all of this information. I grew up in a family that did not invest whatsoever beyond RRSP’s and real estate. This new information is simply freeing.
Thank you for those kind words! It really means a lot to me when I hear that my videos are helpful and eyeopening, that's why I love doing this! 😁
As always very informative video. It enhanced more of my knowledge in regards of TFSA. Thanks
I'm glad I could help, thanks buddy! =)
Adrian, you a very precious person. Thank you and I hope that the views, thumbs ups, subscriptions, etc , are helping your UA-cam platform flourish
Thank you Sam for those kind words! I really do appreciate that and I'm glad my videos are providing value! 🙏
Valuable time-efficient practical knowledge. Thanks for making it so simple and organised.
I'm glad you found value in the video! Make sure you watch the rest of my Canadian TAX videos! They're my silver-coloured thumbnails =)
Starting with the sequel to this video: TFSA MISTAKES =)
ua-cam.com/video/s4cBibLATOU/v-deo.html
I just love your videos. No nonsence information and explanation on investing and taxes for CANADIANS.
THANKS!
Thank you Larisa! That's what I try to do! I HATE the idea of wasting anyone's time, that's why I talk so fast and cut out all the fluff =)
This is the best set of videos to growing wealth and handling money, i respect you and what you have done, wish I had this 10years ago
Thanks buddy! I really appreciate those kind words and I am really proud to hear that my videos have been helpful! 🙏
Nothing but raw stripped down good information! Subscribed.
That's what I try to do! I hate the idea of wasting anyone's time! I'm glad you enjoyed it and thanks for subscribing! =)
Thank you sooooo much for a clear and concise explanation on investing in TFSAs and RRSPs. None of the banks were able to explain it this clearly. Love your videos !
Thank you Rick! I'm glad my videos were accessible and that's why I started this channel in the first place! =)
I appreciate your videos. Extremely knowledgeable and incredibly articulate. So much useful information with no bullshit intros and beating around the bush
You got it Hakim! That's what I try to do! I HATE the idea of wasting anyone's time! That's why I talk so fast 😉
I know i'm commenting late but there is one very important catch to a TFSA. The CRA gets to decide what is considered taxable or not. Say if you use your TFSA "in the nature of a trade" then then CRA can tax you however they choose to classify your case. It's a very complicated matter.
You are a blessing for every Canadian who isn't a financial investment expert. Kudos to you 🥂!
Thank you so much for those kind words! I really do appreciate it! 😁
you are the man and some seriously crucial information regarding holding U.S stocks in your T.S.F.A at the end, that was a new piece of information for me.
I'm happy to hear it was helpful and you're right... unfortunately not a lot of people know about the US Withholding taxes and since it comes right off the top when you receive the dividend, most people don't even notice that it's happening!
Exceptionally amazing man. That's exactly what u need to know about TFSA when u r going to open and operate it. Thanks so much
Thank you Tarvinder! I really appreciate those kinds words and make sure you check out my TFSA Mistakes video as well for even more important lessons! =)
ua-cam.com/video/s4cBibLATOU/v-deo.html
Omg you literally didn’t waste a second on any bs, this video was pure content!
Thanks Ayman! That's what I try to do! I HATE wasting anyone's time that's why I talk so fast and cut out all of the fluff! =)
I have been looking for a channel like yours for a while and I am glad I found you!!
Thank you Christine for those kind words! I'm glad you found me and welcome to the channel! 😁
Holy smokes, this is crystal clear and engaging, unlike the gov of canada page! Thank you
I don't know anything about investments, but after watching your video on TFSAs, what to do and what not to do I had a clear understanding of how TFSA, work. Thank you for the good job of explaining things in a lay- mans terms. I will be watching more of you videos to further my curiosity on how the stock market works. Thank you.
You explain your video so well. I actually understand wht you are saying. Thank you
Thanks John! I'm glad that my videos are helpful! =)
This is an old video--but still very much a big help. You are my "go-to" in YT around this TFSA period of the year. Thank you!
Thank you so much for those kind words! Make sure you watch my more recent video on TFSA MISTAKES here =)
ua-cam.com/video/s4cBibLATOU/v-deo.html
By far the best channel I've found to help me adult
Wow! Thank you Hassam! I really appreciate that! 🙏
Perhaps the best channel for investment!
Wow! Thanks buddy! I really appreciate that! 🙏
THANK GOD!! i found this channel,
I'm glad you found me! Welcome to the channel and feel free to reach out if you have questions! 😁
I really should have watched tbis video 2 years ago, well thank you for this important information sir!!!
Better late than never! I'm glad you found me Colin! And make sure you watch the follow up video, TFSA MISTAKES to learn how to get the most out of your TFSA =)
ua-cam.com/video/s4cBibLATOU/v-deo.html
Amazing how easy you make it to understand all of this information! Much appreciated
Thank you! That's what I try to do! Investing and taxes don't HAVE to be confusing! =)
I feel like I owe you 10% of my retirement fund when I retire in around 30 years lmao , you're saving us crazy amounts of money with all this info. Honestly thank you!
hahahaha careful what you say buddy, I now have that offer in writing! 😆
Just give me a thumbs up and share my videos with a friend and we'll call it even! =)
@@CanadianTShirt sounds good 😂