Can you guys make a video explaining the whole TFSA while investing in stocks/bonds/etc? It would be awesome to understand how stock losses/gains affect our contribution room! You guys are amazing, so well researched and easy to understand. Thank you!!!
just recently found you guys and i’ve already learned so much! as a young adult i’ve never really been taught about how to invest money and how to do it right! thank you for this very helpful and educational content! keep up the good work :))
Your videos are awesome. Please consider making videos specifically for newcomers. Moving to Canada is exciting but also very challenging. We have to learn so much about everything. Many newcomers use all of their savings to immigrate and now have a new life - with new rules - ahead of them. Have a great 2021!
You want to hold US funds in your RRSP to avoid the 15% withholding tax. From my understanding, holding a canadian fund that holds US stocks still gets the 15% tax. You'd have to purchase & hold a US-listed stock / index fund etc from the US stock exchange.
I LITERALLY just called CIBC to ask about TFSA and how I can get it started. They had a great answer "Do it from the app." ... Well if I needed those instructions, I'd have done it myself LOL! Thanks for you two!
This is so helpful. I been thinking about opening a TFSA. I did some research online. This video brought it all together. Thanks a million. I love ur video on RRSP as well.👌🏽🤝🏽
Great video - Nick and I just opened up TFSA's over the holidays. Starting 2022 investing in our future. Thanks for all the info - always so informative!
I really want to start using my TFSA to invest but don’t know what to do. Your video helped me so much!! Thank you 🙏 I’m currently have an account at TD but to be honest, I don’t know if it’s a good one to choose. Should I open other bank or investments company one too? Which one do you use or recommend?
@@ココット-h2u I've had a TFSA account with TD for over five years, and it's worked out well for me. I have a trading account within my TFSA, and bought some dividend stocks. The TD TFSA trading account is good if you only want to buy or sell stocks occasionally, because they charge you a $9.99 fee whenever you buy (and, I think, sell) stocks, but there don't appear to be any management fees with the TD trading account. I typically re-invest my dividend income once or twice a year.
Thanks for sharing those videos, what happen if i bought $1000 in a stock and that stock crash and i sold for a value of 100 cad, but those 100 never i withdraw they are still in questrade, do i still lose my contribution room? thanks
Hi! Our video called 'How To Start Buying INDEX FUNDS With $500 For BEGINNERS' gives a step by step guide to investing in index funds! We'll continue to make more in the future, as well 😊
Let’s say you put in 5k, but the stock drops and when you sell, you only have 1k left. If you don’t withdraw the money from the TFSA do you still lose the 4K contribution room forever or does that only apply if you actually withdraw the money from the account?
I finally understand the changing contributions room! Thank you! Looking forward to the video about the fit between investment types and account types.
hello Guys, appreciate your video! it helps me to understand what a TFSA is, I immigrate to Canada in 2020 and am more than 18 years old, my question is, as a new immigrant in 2020, should I contribute from 2020 or from 2009? thank you so much for your answers in advance.
Hi! A few things - 1) the yearly limit isn't a set amount year over year (ie. the last three years it's been $6,000, but before that it was $5,500 and before that $10,000). 2) the room is cumulative, so if you haven't started using your TFSA yet and you're 30, you can fill up all of the room since you were 18 years old. 3) the TFSA is your tax advantaged account, meaning it's tax-free, but you can still invest the rest of your money in a personal/taxable account once your TFSA is maxed out. We hope all of that helps! 😊
So the contribution room for the students who came to Canada after the age of 18 yrs (for example 25 yrs) will still include the backlogs from the previous years?
Quick question! When you lose contribution room forever does the CRA take this into account letting you know what your contribution limit is at when you sign into your CRA account?
How about this, $44,000 then $4,000 invest = $40,000. next year i get that contribution room back plus the $5,000 for that year. So $40,000 + $4,000 + $5,000 = $49,000 contribution room? Do i still have my $4,000 invested and this new limit $49,000?
@@stephandden hey I have one question that just popped in my mind, I made a tfsa account using wealthsimple and linked my TD account but I'm curious, is that the same as a regular tfsa account, one that I would have made with a TD account in the bank? What's the difference
So I’ve been using my TD chequing account to transfer money to wealth simple for investing but realized it’s going to be taxed. I also have large amount of savings in my TD savings account but just not sure where to put it..in a TFSA or just high interest savings account like EQ bank? Thank you!
I want to start trading. I never have tfsa. I want to open tfsa with questrade and open tfsa with wealthsimple. Will fund each account with 1000. I dont want to complicate my TXax procedure. Shall I just open only one account with only one of this companies. If I open 2 tfsa one from wealthsimple and one from questrade. How I do the tax on them. Big thanks for both of u
Hi! You can have multiple TFSA's (keep in mind the overall maximum contribution limit would then be split amongst both). Is there a reason you'd want to open one with both platforms? Like we said, you can if you have a specific reason, but if your goal is to keep things simple than it may not be necessary. 😊
@@stephandden I just opened with questrade t buy US STOCK. AND Want to open wealthsimple to buy Canadian stock as it has no trade fees. Do I things right? The whole contribution for both account will be 2000. For the coming tax year will j have to file any tax on them. Someone says as it is through tfsa and it is ur first time to contribute 2000 in total. So u will not file any tax on this tfsa. And down the road if the US stock has dividened, questrade will deduct 15% on the dividened value. As tax, and still u don't need to file any tax on my file.??? Is this right???!!!! Will my taxation procedure will change when I file it this year. Or it is just mention i have opened tfsa and as it is my first 2000 contribution so there is no effect on my tax file Thanks in advance And thanks for the information u gave
So lets say I was 18 before 2009 I should have $69,500 of contribution room I invested $20,000 in my tsfa since then that $20,000 has grown to $200,000 within tsfa investments I withdraw $150,000 (tax free) from those investments my only loss is $20,000 of contribution room so going forward into 2021 I should have $49,500+that years limit of contribution room? that right? One more question: At what point do you think CRA would flag an account for too much gains and or day trading? It's a grey area but there have been traders that have made 20x and CRA flagged the account as a business
Hello Steph & Den, I have a question for you. The contribution room limit that you are talking about, is it same for an immigrant/resident of Canada or is it only for a citizen of Canada/someone who is born in Canada? Thanks.
hello guys please answer this question for me.I opened my tfsa account last year in october.So how much money i can put in it.I am 25.Please help me understand the contribution thing in your way. :)
you said it, tfsa is tax sheltered account but a high interest savings account is not and interest earned is taxable and like most people its not about paying more tax but reducing tax
Question: If you have only put in say, $9,000 in a TFSA, but you're contribution room is up to $60, 000. Can you contribute UP to $60, 000 even if the limit this year is $6,000?
TFSA is probably best for international funds, quality growth stocks, and canadian income funds such as REITS (which are taxed at the marginal tax rate). If the TFSA is maxed out and someone wants to add CDN dividend stocks to their portfolio, probably best to hold it in a non-registered account versus RRSPs since anything taking out of an RRSP is taxed at the full marginal tax rate.
Love you guys, and I am not one to judge, but your couch has me distracted, it must be a super comfy couch to still get a pass in the condition it is in lol
Hey Aman! If this bluechip stock is a long term hold for you that's baked into your long term plan that you'll be dollar cost averaging into, then it doesn't really matter - but personally, we would max out the tax-advantaged/registered accounts first (including the TFSA) with your broad market portfolio (ie. a total market ETF for example). 😊
So if my goal is to save for an emegency fund/sinking fund, i should put it into a high interest savings account and be prone to paying tax on the interest earned, and break even? As supposed to tfsa where it grows tax free, unless my goal is to build wealth? Tfsa and high interest savings account have the same/similar interest rates?
Hey Kris! A TFSA has no interest rate in general - the TFSA is an investment vehicle - if you just place your money there, nothing will happen - you have to make investments within the TFSA to make a potential return (you could invest in index funds and lower risk investments - where you would likely earn more than a HISA - but you do have to consider that it's more of a risk, as well!). The downside with HISA's right now is that interest rates have dropped due to the economy - so timing is something to consider, too. Overall, you could either - it's up to you and what you prefer. 😊
Do you have any idea to switch your investment through wealth simple to a TFSA account. When I opened my investment account I did not select a TFSA and went ahead and purchased stocks. Rookie mistake.
Hi Michelle! What type of account are your investments currently held in? After a quick search this doesn’t seem to be something that is supported by Wealthsimple, but they might add this functionality in the future. 😊 Here is a link for more info: tradehelp.wealthsimple.com/hc/en-ca/articles/360026618073-Can-I-transfer-cash-or-assets-between-my-Wealthsimple-Trade-accounts-
Hey Laine! When you use platforms like Wealthsimple, Questrade or your bank, you have the option of opening either a TFSA, RRSP, etc (it’s an account within the platform) - so essentially you’re buying stocks through the platform you choose, and indicating that you want them held within a TFSA. 😊
How long after you put money let’s say $1000 in your TFSA , and after you have invested can you take it out ? Let’s say if you put it tomorrow then invest it and make $5000 profit, can you take the $6000 within 2 day lapse time? Without being taxed? Where does the line get drawn
I would check but I’m pretty sure you can do that! Withdrawing increases your contribution limit the next year too. Just want to make sure you’re not doing this all the time by doing day reading because it can flag your account and you will get taxed for this because a tfsa is meant as a investment acc not a day trade account!
Sorry 😓 I need further clarification. As long as I dont withdrawal my money at a loss. I wont lose my contribution limit forever? Say the 5000 went down to 1000 but came back up to 5000. I'll be fine? I just have to withdrawal more then what I originally put in to keep my contribution limit?
Hey! Yes, that’s right. As long as your investment was not withdrawn at a loss you’ll be okay. You typically don’t want to purchase your more riskier investments within your TFSA, but we’ll touch on that in an upcoming video 😊
Quick question- (sorry I’m listening to this while at work so I may have missed the answer-This may be a dumb question with a super obvious answer but I blame the education system in Canada for not teaching us 😂) What does it mean to ‘use a TFSA to protect investments from taxes’.. what happens if our money is in a regular chequing acct I.e they are not protected?! I’m focusing on the meaning of protected essentially. Many thanks !!
To my knowledge if you trade to often in your TFSA , you can be taxed on capital gains. There seems to be a large grey area with no definitive answers. I would greatly appreciate any insight/advice that you may have wrt this.
I just have 1 quick question after watching this: if I gain, say, 3000 in the TFSA account and reinvest that 3000, would that 3000 count towards my contribution limit? Or the limit only goes down when I fund the account from the outside? Thank you so much for the incredibly helpful video explaining these accounts!
You can reinvest that 3000 as long as it remains in your tfsa. If you take it out you have to wait until the next calendar year to put it back in and also take advantage of the next years contribution room.
Thanks for the video, I have a question what if you gain money as dividends in your tfsa and use it to buy stocks inside the tfsa, will it use contribution room ?
I opened aTSFA for the first time last year and contributed 2500. According to the CRA is have 69000 contribution limit. If I withdraw the 2500 and transfer it to my wealthsimple Tfsa account, do I have to wait till Jan 2022 to contribute the $2500?
You do still gain interest in a TFSA just like a high interest savings account (though with current situation, it is quite low right now). It does not 'just sit there' as initially applied, but more can be done with that money via investment within the TFSA. Also, you can have more than one TFSA but cannot go over your personal contribution room overall (ex. If your limit is 40,000 - all your contribution room is max 40,000 (plus investment gains and interest gains) but you cannot have multiple TFSAs with 40,000 each. You will get taxed on over contributions.
Typically TFSA's (and the majority of registered products) have much lower interest rate than a HISA. Of course this isn't always the case. The key point is that it's more optimal to invest in your TFSA to get the most gain out of it. & yes, we talked about the contribution limit remaining the same even if you have multiple accounts at 8:57. 😊
You missed a crucial point about TFSAs and any registered investment: designation of beneficiaries. Upon death, the investment can be transferred to beneficiaries and this is not subject to estate taxes or probate process. And it can happen right after death too (can take a couple weeks to complete a transaction). That’s a key estate tax savings. If no beneficiaries designated, then it’s subject to rules governing the estate such as if there’s a will.
We have a NEW and updated TFSA video ‼️ - ua-cam.com/video/BfDA-i_ldts/v-deo.html
Your content is so easy to understand and we need more channels like yours in Canada!
Thanks so much, Sam! 😊
@@stephandden we don't need more we need yours :)
@@anonymoususer7119 deff could do without the fake persona this individual puts on... but it's alright for actual information quality
@@stephandden There is a limit on contribution amount. Is there a limit on profit as well?
Can you guys make a video explaining the whole TFSA while investing in stocks/bonds/etc? It would be awesome to understand how stock losses/gains affect our contribution room!
You guys are amazing, so well researched and easy to understand. Thank you!!!
Thanks for the suggestion, Paola! & for watching 😊✨
finally- a Canadian channel ! Thanks for your easy to understand/straight forward content & insightful videos 🙌🏻
Thanks so much, Karen! ✨
just recently found you guys and i’ve already learned so much! as a young adult i’ve never really been taught about how to invest money and how to do it right! thank you for this very helpful and educational content! keep up the good work :))
Thanks so much, Elyza! 😊✨
Your videos are awesome. Please consider making videos specifically for newcomers. Moving to Canada is exciting but also very challenging. We have to learn so much about everything. Many newcomers use all of their savings to immigrate and now have a new life - with new rules - ahead of them. Have a great 2021!
Thanks Juliana - Happy New Year! 😊 Thank you for the suggestion - that’s a great point and idea!
Omg you guys are life savers!! Studying up on investing can get so overwhelming but you guys make it so simple. Thank you :)
Yay, we’re so glad we can help break it down!! Thanks, Natalie 😊
Thank you Stephen Harper for the TFSA!!
Wow you guys are amazing, i'm a beginner in all this and your explinations are so easy to understand!!
So glad you found the video helpful and easy to understand! That's the goal 😊
Please cover other risky investments in TFSAs and their penalties. Also are there drawbacks or cons to purchasing US index funds in TFSAs vs RRSPs
Hey Meagan! Absolutely - we can cover this in our future RRSP video! 😊
You want to hold US funds in your RRSP to avoid the 15% withholding tax. From my understanding, holding a canadian fund that holds US stocks still gets the 15% tax. You'd have to purchase & hold a US-listed stock / index fund etc from the US stock exchange.
Excellent post. I have a tfsa for two years with no idea why my money wasn't growing and now i know.
Yay, thanks for watching! 😊
You literally have the absolute BEST explanations! Thanks for making this so easy to understand!
Thank you!! ✨
This video is so great! As a newcomer to Canada, this made understanding investments in a new country so easy. Love it.
Yay, so glad you found it helpful, Shreya! 😊✨
How do I find out about taxes for options trading in Canada? Does the 30 day rule apply to options in Canada?
I LITERALLY just called CIBC to ask about TFSA and how I can get it started. They had a great answer "Do it from the app." ... Well if I needed those instructions, I'd have done it myself LOL! Thanks for you two!
Hahaha! It’s always a redirection - thanks for watching! 😊
This was so well done! You break everything down so well :)
Thanks, Reni! 😊
The easiest explanation ever. Wish I saw this video 5. years ago. Thanks!!
Thanks Shawn! 😊
This is so helpful. I been thinking about opening a TFSA. I did some research online. This video brought it all together. Thanks a million. I love ur video on RRSP as well.👌🏽🤝🏽
Thanks Trish, so glad you found this video and that it was helpful! 😊
ok all your videos are literally so helpful, especially the Canadian perspective cause many personal finance channels are from the states!! thank youu
Thanks Monica - so glad that they’re helpful! 🙌🏻🙌🏾
Great video - Nick and I just opened up TFSA's over the holidays. Starting 2022 investing in our future. Thanks for all the info - always so informative!
Woo that's awesome! The year of investing 🙌🏿🙌🏻 we have lots of investment content coming up!
@@stephandden amazing - cant wait to follow along!
This literally came just in time - I just opened a TFSA!
Yay, amazing! 👏🏾👏🏻
Can you withdraw dividends from your TFSA account for monthly expenses without affecting your contribution room? Thank you.
Wow! Thank you for pointing out that lower limit for riskier investments, you're both so kind to lay things out so simply THANK YOU!
Thank YOU for watching! 😊
Do you use a TFSA to invest?! Let us know in the comments below! ⬇️
I definitely want to know more on strategies to utilize my newly opened TFSA... expand on the options of how to grow the money inside a TFSA
I really want to start using my TFSA to invest but don’t know what to do. Your video helped me so much!! Thank you 🙏 I’m currently have an account at TD but to be honest, I don’t know if it’s a good one to choose. Should I open other bank or investments company one too? Which one do you use or recommend?
@@ココット-h2u I've had a TFSA account with TD for over five years, and it's worked out well for me. I have a trading account within my TFSA, and bought some dividend stocks. The TD TFSA trading account is good if you only want to buy or sell stocks occasionally, because they charge you a $9.99 fee whenever you buy (and, I think, sell) stocks, but there don't appear to be any management fees with the TD trading account. I typically re-invest my dividend income once or twice a year.
southgatescapital manages my funds, im up 77k
just this year already.
Love how you break down your information, keep it up :)
Thanks so much 😊
Thank you! Some Canadians, too. Love it. Thanks for all of this information.
Thanks, Jaden! 😊
Thanks for sharing those videos, what happen if i bought $1000 in a stock and that stock crash and i sold for a value of 100 cad, but those 100 never i withdraw they are still in questrade, do i still lose my contribution room? thanks
Hey, Tony 😊 Good question - yes, if you sell at a loss, you'd lose that contribution room.
Thank you for this info about TFSA. I'm not from Canada but this is interesting to learn about. Thank you for sharing!
Thanks, Donnie! ✨
if you lose that 4k room forever does it mean it is always subtracted from any new year cont room?
OMG, this video is so clear, simple, and helpful!!! Thank you
So glad it was helpful! 😊
for the maximum limit for people who were 18 before 2009. How does being a non-resident factor in?
You guys did such a great job at explaining this in detail. Awesome video very helpful!
Thanks so much! Glad you found it helpful 😊
Do you have a video on how to get started investing in your tfsa or just investing in general step by step?
Hi! Our video called 'How To Start Buying INDEX FUNDS With $500 For BEGINNERS' gives a step by step guide to investing in index funds! We'll continue to make more in the future, as well 😊
How does it work for someone who wants to invest in USD and already has a USD account in their Canadian Bank?
Amazing and clear video, thanks!
Thanks so much for this video! Found you guys on CNBC Make It & I'm so glad you're making content for fellow Canadians :)
Thanks, Natasha! 😊
Let’s say you put in 5k, but the stock drops and when you sell, you only have 1k left. If you don’t withdraw the money from the TFSA do you still lose the 4K contribution room forever or does that only apply if you actually withdraw the money from the account?
The limits apply to the actual money you withdraw from an account. Your loss or gain on the investment is not related to the contribution limit.
U guys are amazing :) quick clear and upbeat.
Thanks Ilan! 😊✨
you guys are awesome!!!
I just learned about TFSA and I won't forget a thing you said!!
Thanks!!
Allah bless you guys :)
So glad this was helpful! 😊
You guys are amazing. Just simple explanation with no jargon. 👍🏾
Thanks so much, Joel! ✨
I am not living in Canada (yet) but I live the energy. Will be useful once I complete my immigration process
Yay, thanks Philippe! ✨
loving your channel! great info
Thanks so much! ✨
I finally understand the changing contributions room! Thank you! Looking forward to the video about the fit between investment types and account types.
Yay!! Thanks so much for watching! 😊
You guys are lifesavers. Thank you so much for this series. Why is this not taught in Canadian schools!?
Thanks, Carrie! 😊 It definitely should be more of a focus in school!
will you recommend this to international students?
hello Guys, appreciate your video! it helps me to understand what a TFSA is, I immigrate to Canada in 2020 and am more than 18 years old, my question is, as a new immigrant in 2020, should I contribute from 2020 or from 2009? thank you so much for your answers in advance.
What if you want to invest more than your yearly amount for the tfsa like six grand a year's not very much.
Hi! A few things - 1) the yearly limit isn't a set amount year over year (ie. the last three years it's been $6,000, but before that it was $5,500 and before that $10,000). 2) the room is cumulative, so if you haven't started using your TFSA yet and you're 30, you can fill up all of the room since you were 18 years old. 3) the TFSA is your tax advantaged account, meaning it's tax-free, but you can still invest the rest of your money in a personal/taxable account once your TFSA is maxed out. We hope all of that helps! 😊
So the contribution room for the students who came to Canada after the age of 18 yrs (for example 25 yrs) will still include the backlogs from the previous years?
Sorry for writing you, just out of curiosity your page come up on my suggested friend lists so I was just wondering if I knew you from somewhere???
You provide very useful information here, and your videos are well-edited.
Thanks, Jaime! 😊
Quick question!
When you lose contribution room forever does the CRA take this into account letting you know what your contribution limit is at when you sign into your CRA account?
THANK YOU ! That was so helpful ! Subscribed & notification on :)
Thanks, Tenla! So glad it was helpful! 😊
How about this, $44,000 then $4,000 invest = $40,000. next year i get that contribution room back plus the $5,000 for that year. So $40,000 + $4,000 + $5,000 = $49,000 contribution room? Do i still have my $4,000 invested and this new limit $49,000?
love your videos, will be a regular viewer, thank you for the info
Thank you! 😊
@@stephandden hey I have one question that just popped in my mind, I made a tfsa account using wealthsimple and linked my TD account but I'm curious, is that the same as a regular tfsa account, one that I would have made with a TD account in the bank? What's the difference
@@stephandden one more question, I have heard that if I invest in an etf or mutual fund in the US using my tfsa, I have to pay 15% tax on it
You guys are great! Thanks so much for the helpful info.
So glad you're finding the videos helpful! 😊
Love it and love the examples, Steph and Den.
Can’t wait for RRSP.
Thanks Sid! 🙌🏾🙌🏻
This is the best explanation of tfsa.
Thank you! So glad you found it helpful! 😊
Very similar to a Roth IRA! I love the way you explain things!
Thank you! 😊
So I’ve been using my TD chequing account to transfer money to wealth simple for investing but realized it’s going to be taxed. I also have large amount of savings in my TD savings account but just not sure where to put it..in a TFSA or just high interest savings account like EQ bank? Thank you!
+ 1 8 7 2 2 6 8 6 9 6 3
omg woooow thank you so much for this vid. I went from 0 knowledge to understanding TFSA
Thanks, Beatriz! So so glad it was helpful! 😊
I’m not even from Canada... but I enjoy listening to you guys break down info!!! 👍
Thanks Daniel! More non-Canadian specific videos are coming up too 😊
Can't you not make interest on a high yield savings account unless you have a certain amount in it?
Sorry for writing you, just out of curiosity your page come up on my suggested friend lists so I was just wondering if I knew you from somewhere???
I want to start trading. I never have tfsa.
I want to open tfsa with questrade and open tfsa with wealthsimple. Will fund each account with 1000.
I dont want to complicate my TXax procedure.
Shall I just open only one account with only one of this companies.
If I open 2 tfsa one from wealthsimple and one from questrade. How I do the tax on them.
Big thanks for both of u
Hi! You can have multiple TFSA's (keep in mind the overall maximum contribution limit would then be split amongst both). Is there a reason you'd want to open one with both platforms? Like we said, you can if you have a specific reason, but if your goal is to keep things simple than it may not be necessary. 😊
@@stephandden I just opened with questrade t buy US STOCK. AND Want to open wealthsimple to buy Canadian stock as it has no trade fees.
Do I things right?
The whole contribution for both account will be 2000.
For the coming tax year will j have to file any tax on them.
Someone says as it is through tfsa and it is ur first time to contribute 2000 in total.
So u will not file any tax on this tfsa.
And down the road if the US stock has dividened, questrade will deduct 15% on the dividened value. As tax, and still u don't need to file any tax on my file.???
Is this right???!!!!
Will my taxation procedure will change when I file it this year.
Or it is just mention i have opened tfsa and as it is my first 2000 contribution so there is no effect on my tax file
Thanks in advance
And thanks for the information u gave
So lets say I was 18 before 2009 I should have $69,500 of contribution room
I invested $20,000 in my tsfa since then
that $20,000 has grown to $200,000 within tsfa investments
I withdraw $150,000 (tax free) from those investments
my only loss is $20,000 of contribution room
so going forward into 2021
I should have $49,500+that years limit of contribution room?
that right?
One more question: At what point do you think CRA would flag an account for too much gains and or day trading? It's a grey area but there have been traders that have made 20x and CRA flagged the account as a business
Hello Steph & Den, I have a question for you. The contribution room limit that you are talking about, is it same for an immigrant/resident of Canada or is it only for a citizen of Canada/someone who is born in Canada? Thanks.
Sorry for writing you, just out of curiosity your page come up on my suggested friend lists so I was just wondering if I knew you from somewhere???
Great job explaining this, but I was wondering if I ever buy a stock and that stock gets delisted from the stock exchange what happens then?Thank you
hello guys please answer this question for me.I opened my tfsa account last year in october.So how much money i can put in it.I am 25.Please help me understand the contribution thing in your way. :)
you said it, tfsa is tax sheltered account but a high interest savings account is not and interest earned is taxable and like most people its not about paying more tax but reducing tax
Why use TFSA if you already have regular Savings account? If I withdraw money from my savings, I don’t think I get taxed anyway.
For investing money! The TFSA is an investment vehicle 😊
Still not clear. Lol. Are tfsa only offered by the bank? How can the money grow or how does it becomes an investment? Sorry noob question 😅
Great video you guys! not many people touch on the loss of contribution room when you withdraw following a loss.
Thanks Devin! 😊
Does the contribution limit start from 0 if you are just moving to CA?
Question: If you have only put in say, $9,000 in a TFSA, but you're contribution room is up to $60, 000. Can you contribute UP to $60, 000 even if the limit this year is $6,000?
TFSA is probably best for international funds, quality growth stocks, and canadian income funds such as REITS (which are taxed at the marginal tax rate). If the TFSA is maxed out and someone wants to add CDN dividend stocks to their portfolio, probably best to hold it in a non-registered account versus RRSPs since anything taking out of an RRSP is taxed at the full marginal tax rate.
Fantastic video
Thank you! 🙌🏿🙌🏻
Thank you for explaining tfsa cad in detail! I’ve been researching and try to understand it in easy way so I can have my own tfsa at a young age 😅.
So glad you found it helpful! 😊🎉
This was awesome! Thank you!! Subscribed :)
Thanks for watching! 😊✨
The best explanation! now i know my limit!!
Love to hear it!!
Love you guys, and I am not one to judge, but your couch has me distracted, it must be a super comfy couch to still get a pass in the condition it is in lol
This video is from a few years ago - we've had a new couch for a while now 😊
would you suggest to buy a "bluechip stock" (USD) under "tfsa" or regular acc ?
Hey Aman! If this bluechip stock is a long term hold for you that's baked into your long term plan that you'll be dollar cost averaging into, then it doesn't really matter - but personally, we would max out the tax-advantaged/registered accounts first (including the TFSA) with your broad market portfolio (ie. a total market ETF for example). 😊
So if my goal is to save for an emegency fund/sinking fund, i should put it into a high interest savings account and be prone to paying tax on the interest earned, and break even? As supposed to tfsa where it grows tax free, unless my goal is to build wealth? Tfsa and high interest savings account have the same/similar interest rates?
Hey Kris! A TFSA has no interest rate in general - the TFSA is an investment vehicle - if you just place your money there, nothing will happen - you have to make investments within the TFSA to make a potential return (you could invest in index funds and lower risk investments - where you would likely earn more than a HISA - but you do have to consider that it's more of a risk, as well!). The downside with HISA's right now is that interest rates have dropped due to the economy - so timing is something to consider, too. Overall, you could either - it's up to you and what you prefer. 😊
2% a year? What bank has that? EQ is the highest non promo saving account interest rate at 1.65% that i know of
I liked this Video clip Thumbs up for educating the world about finance. Asante Sana!!!
Thanks George! 😊
Do you have any idea to switch your investment through wealth simple to a TFSA account. When I opened my investment account I did not select a TFSA and went ahead and purchased stocks. Rookie mistake.
Hi Michelle! What type of account are your investments currently held in? After a quick search this doesn’t seem to be something that is supported by Wealthsimple, but they might add this functionality in the future. 😊
Here is a link for more info: tradehelp.wealthsimple.com/hc/en-ca/articles/360026618073-Can-I-transfer-cash-or-assets-between-my-Wealthsimple-Trade-accounts-
How do you buy stocks using your TFSA?
Hey Laine! When you use platforms like Wealthsimple, Questrade or your bank, you have the option of opening either a TFSA, RRSP, etc (it’s an account within the platform) - so essentially you’re buying stocks through the platform you choose, and indicating that you want them held within a TFSA. 😊
Steph & Den okaaay! That’s good to know
How long after you put money let’s say $1000 in your TFSA , and after you have invested can you take it out ? Let’s say if you put it tomorrow then invest it and make $5000 profit, can you take the $6000 within 2 day lapse time? Without being taxed? Where does the line get drawn
I would check but I’m pretty sure you can do that! Withdrawing increases your contribution limit the next year too. Just want to make sure you’re not doing this all the time by doing day reading because it can flag your account and you will get taxed for this because a tfsa is meant as a investment acc not a day trade account!
Fantastic vid guys! 👍🏽🇨🇦🔥😃
Thank you! 😊
Sorry 😓 I need further clarification. As long as I dont withdrawal my money at a loss. I wont lose my contribution limit forever? Say the 5000 went down to 1000 but came back up to 5000. I'll be fine? I just have to withdrawal more then what I originally put in to keep my contribution limit?
Hey! Yes, that’s right. As long as your investment was not withdrawn at a loss you’ll be okay. You typically don’t want to purchase your more riskier investments within your TFSA, but we’ll touch on that in an upcoming video 😊
Such a great channel and video, thank you!
Thank you! 😊
You guys explained this SO well thank you!
Thanks, Grace! 😊
Quick question- (sorry I’m listening to this while at work so I may have missed the answer-This may be a dumb question with a super obvious answer but I blame the education system in Canada for not teaching us 😂) What does it mean to ‘use a TFSA to protect investments from taxes’.. what happens if our money is in a regular chequing acct I.e they are not protected?! I’m focusing on the meaning of protected essentially. Many thanks !!
To my knowledge if you trade to often in your TFSA , you can be taxed on capital gains. There seems to be a large grey area with no definitive answers. I would greatly appreciate any insight/advice that you may have wrt this.
I just have 1 quick question after watching this: if I gain, say, 3000 in the TFSA account and reinvest that 3000, would that 3000 count towards my contribution limit? Or the limit only goes down when I fund the account from the outside?
Thank you so much for the incredibly helpful video explaining these accounts!
ooo this is a good question! i hadn’t thought of this
steph and dan pls help :)
You can reinvest that 3000 as long as it remains in your tfsa. If you take it out you have to wait until the next calendar year to put it back in and also take advantage of the next years contribution room.
Thanks for the video, I have a question what if you gain money as dividends in your tfsa and use it to buy stocks inside the tfsa, will it use contribution room ?
No, dividends that you get within your TFSA should not use up your TFSA contribution room. 😊
I opened aTSFA for the first time last year and contributed 2500. According to the CRA is have 69000 contribution limit. If I withdraw the 2500 and transfer it to my wealthsimple Tfsa account, do I have to wait till Jan 2022 to contribute the $2500?
Can you make part 2 of this video which you talked about near the end -- with the finer details?
Hello. Do you know if it's possible to invest in Canada if I'm a outsider?
Sorry for writing you, just out of curiosity your page come up on my suggested friend lists so I was just wondering if I knew you from somewhere???
@@jessicawiley9592 no
Oh... I'm Jessica Wiley from Palm 🌴🥥 Beach 🏖️⛱️ Gardens Florida 🇺🇲, I am a professional market analysis and expert binary trader 📈
How about you and where are you from?
You do still gain interest in a TFSA just like a high interest savings account (though with current situation, it is quite low right now). It does not 'just sit there' as initially applied, but more can be done with that money via investment within the TFSA. Also, you can have more than one TFSA but cannot go over your personal contribution room overall (ex. If your limit is 40,000 - all your contribution room is max 40,000 (plus investment gains and interest gains) but you cannot have multiple TFSAs with 40,000 each. You will get taxed on over contributions.
Typically TFSA's (and the majority of registered products) have much lower interest rate than a HISA. Of course this isn't always the case. The key point is that it's more optimal to invest in your TFSA to get the most gain out of it. & yes, we talked about the contribution limit remaining the same even if you have multiple accounts at 8:57. 😊
Thanks for doing this guys !
Thanks for watching! ✨
Great job! Well done
Thanks Julien! 😊
You missed a crucial point about TFSAs and any registered investment: designation of beneficiaries. Upon death, the investment can be transferred to beneficiaries and this is not subject to estate taxes or probate process. And it can happen right after death too (can take a couple weeks to complete a transaction). That’s a key estate tax savings. If no beneficiaries designated, then it’s subject to rules governing the estate such as if there’s a will.
Amazing video!!!😀😀
Thanks, Tim! 😊
I just love you guys.. keep spreading positivity ♥️♥️♥️
Thank you so much! 😊✨
@@stephandden Sending love from Nepal ♥️