For an Informal Trust Account, one could consider an ETF like HXS (S&P 500) or HXT (TSX 60) total-return index ETFs. There are no formal dividends paid out, but they are automatically re-invested. Only capital gains are triggered when you sell the ETF. There won't be any dividends to have to pay out in the meantime.
Can you please recommend the right financial institution to open informal trust account? I spoke to banks and no one seems to have a clue. They always think someone is dieng. Also I’ve heard banks put parents name on the T4 form at year end and parents get hit with the taxes instead of the child. Would love your clarification!
I'm just starting out now and my kids are almost 7 and 13 - what is the best thing for me to do to start them off (investing) to get them $$ for a house downpayment etc.? (and how can I start off my 13 fairly since the 7 year old will get a head start!)
@FinancialNirvanaMama in the investment plan you outlined, what type of account was your example based on was it an informal trust or just a cash investing account?
Having one tenant is definitely hard in major cities. Some people Airbnb the condo to make it work. I used to rent it out as a luxury rental with furniture to make it work. Other ways are having more tenants in the same unit (duplex, triplex)
@@FinancialNirvanaMama I have my house I rent the basement out but even then I had to give 40% down in Toronto just to be able to live with a tenant in the basement.
Thank you so much for sharing this. My ultimate struggle right now is trying to speak to my kids in a language that will make investing sound interesting for them. As soon I mention something about it or they see me watching investing videos, their eyes glaze over and they leave the room. I hope with the analogy you used at the end with that calculator for $6500 over 60 years will be incentive enough.
@@FinancialNirvanaMama the ad cycles on bnn Bloomberg (Canadian site). You are but one of the models that show up on ad (jeans, burgandy top, black leather jacket)…it was just cool to recognize you
Real estate if using leverage properly, picking the right property in the right location with the right tenants and doing the right Reno’s. Then yes strictly financially but there’s also other factors like energy and time involved
It's so hard to max contribution room as an adult let alone a kid, event the TFSA is hard to max out, I might be better putting it my TFSA for now, and moving into my child's TFSA when they are old enough. Please also update your video about getting your kids a supplementary card to build credit. In Canada or at least in BC that is not true.
And it's getting even harder while governments raise taxes and intervene to increase to cost of living. But hey, we need to keep paying our fair share right? We need to keep paying for those social programs. Interesting that those things keep getting more expensive..
To achieve a secure retirement, aiming to save at least 15% of your income in a 401(k) is advisable. Online tools can assist in calculating the best savings strategy for you, considering factors like age and income. Consistently saving this percentage can help build your retirement fund effectively, thanks to the benefits of compound interest.
With Roth IRA, the money you are contributing has already been taxed. At any time for any reason, you can withdraw your contributions tax-free and penalty-free. Additionally, any earnings on investments can also be withdrawn tax-free and penalty-free, Not sure how much to contribute, I'm still at a crossroads deciding if to liquidate my $338k stock portfolio.
Good video, but there is a much better way. If you were to buy $1000 of Bitcoin and put it on a cold wallet, you would have approximately $137 million conservatively. $1000 x (1+0.19)⁵⁰ =$137,000,000
For an Informal Trust Account, one could consider an ETF like HXS (S&P 500) or HXT (TSX 60) total-return index ETFs. There are no formal dividends paid out, but they are automatically re-invested. Only capital gains are triggered when you sell the ETF. There won't be any dividends to have to pay out in the meantime.
Yep for sure.
I’d love to see a detailed video about informal trusts and how to setup using Questrade. Thanks
Noted. ☺️
Trust laws in canada have changed, they will be taxed after 21 years. So all those gains will be fully taxed after 21 years..
Through Questrade, any capital gains or dividends will be taxed at the beneficiary's tax level. So nothing to worry about there
Can you please recommend the right financial institution to open informal trust account?
I spoke to banks and no one seems to have a clue. They always think someone is dieng.
Also I’ve heard banks put parents name on the T4 form at year end and parents get hit with the taxes instead of the child. Would love your clarification!
May I ask if Hxs and Hxq are more effective in saving US withholding tax in all of these accounts? Thank you.
I'm just starting out now and my kids are almost 7 and 13 - what is the best thing for me to do to start them off (investing) to get them $$ for a house downpayment etc.? (and how can I start off my 13 fairly since the 7 year old will get a head start!)
@FinancialNirvanaMama in the investment plan you outlined, what type of account was your example based on was it an informal trust or just a cash investing account?
I believe most people know about these. Might be more helpful if you can do a video about when/how to teach Kids Financial Literacy.
Ok, noted
These days you need way more then 5% down just to break even in Toronto I had to put 45% down on a condo to just break even every month.
Having one tenant is definitely hard in major cities. Some people Airbnb the condo to make it work. I used to rent it out as a luxury rental with furniture to make it work. Other ways are having more tenants in the same unit (duplex, triplex)
@@FinancialNirvanaMama I have my house I rent the basement out but even then I had to give 40% down in Toronto just to be able to live with a tenant in the basement.
Thank you so much for sharing this. My ultimate struggle right now is trying to speak to my kids in a language that will make investing sound interesting for them. As soon I mention something about it or they see me watching investing videos, their eyes glaze over and they leave the room. I hope with the analogy you used at the end with that calculator for $6500 over 60 years will be incentive enough.
I hope it helps!
Wow you are now face of TD as per ad I saw on BNN site! Congrats on that gig
Really! I had no idea, would love to see that:) could you send the link pretty please??
@@FinancialNirvanaMama the ad cycles on bnn Bloomberg (Canadian site). You are but one of the models that show up on ad (jeans, burgandy top, black leather jacket)…it was just cool to recognize you
So putting money in VOO after 65years it's not hedged against inflation, isn't its better to invest in real estate then ?
Real estate if using leverage properly, picking the right property in the right location with the right tenants and doing the right Reno’s. Then yes strictly financially but there’s also other factors like energy and time involved
It's so hard to max contribution room as an adult let alone a kid, event the TFSA is hard to max out, I might be better putting it my TFSA for now, and moving into my child's TFSA when they are old enough. Please also update your video about getting your kids a supplementary card to build credit. In Canada or at least in BC that is not true.
Not true? I know my friend had it twenty years ago. But the dad had to talk to the manager. I’ll check in on this..
And it's getting even harder while governments raise taxes and intervene to increase to cost of living.
But hey, we need to keep paying our fair share right? We need to keep paying for those social programs. Interesting that those things keep getting more expensive..
Can I transfer shares from my tfsa or rrsp to my kids?
You can sell and give it to your kids. I don’t think you can transfer the actual shares but maybe thru a trust, like paying out dividends.
Ive always wondered if Canada had something similar. Great video. Thanks!! 🙏
You’re very welcome!
Great video!
Glad it helped!!
Move out of Canada.
To achieve a secure retirement, aiming to save at least 15% of your income in a 401(k) is advisable. Online tools can assist in calculating the best savings strategy for you, considering factors like age and income. Consistently saving this percentage can help build your retirement fund effectively, thanks to the benefits of compound interest.
With Roth IRA, the money you are contributing has already been taxed. At any time for any reason, you can withdraw your contributions tax-free and penalty-free. Additionally, any earnings on investments can also be withdrawn tax-free and penalty-free, Not sure how much to contribute, I'm still at a crossroads deciding if to liquidate my $338k stock portfolio.
Nice shirt
Thanks!
@@FinancialNirvanaMama It’s really cool and great video 😜
Good video, but there is a much better way. If you were to buy $1000 of Bitcoin and put it on a cold wallet, you would have approximately $137 million conservatively.
$1000 x (1+0.19)⁵⁰ =$137,000,000