📈📚🇨🇦 Join The Investing Academy Today - bit.ly/theinvestingacademy How much do you know about the TFSA? Be sure to let me know down in the comment section below!! Also, I'm so excited to be speaking on stage at The Moneyshow Conference LIVE in Toronto this September. It would mean so much to me and my dad to have you guys come out and support!! We'll have a booth to meet you all and take photos :) Best of all... It's COMPLETELY FREE to attend!!! There are so many talented speakers at the event and it will be a blast of a weekend so I hope to see you all there - conferences.moneyshow.com/moneyshow-toronto/speakers/adec2b68f2144b24ba2e06060e4f8348/brandon-beavis/?scode=056838
Great video! QUESTION: If a contribute every week $125 cad and I invest it right away is it considered frequent trading? Should I better do it every month? Or what is your recommendation? Thanks
@@DianaDiazEnglishTeacher Contributions are not the problem. It is the trading part that can be questioned. If you buy a stock, and sell it after 2 days, you've not invested - you have done trading which is considered a business. Trading is buying and selling a stock, not just buying a stock.
Thanks so much. This should be mandatory learning in high school. My daughter is turning 18 and I am going to be guiding her so she can be financially savvy for the rest of her life.
Thank you so much for your videos Brandon! They have helped me immensely in starting out with investing in Canada. As an immigrant who can’t turn to her parents and such to explain these things I sincerely appreciate what you do! Keep up the good work man
I think it's worth pointing out a couple of things which I haven't seen any RU-vidr mention when they talk about TFSA: 1. If you're an immigrant, you only start accumulating contribution room on the year you become a tax resident of Canada. Not when you're 18. 2. In Quebec, you cannot designate a successor holder directly with your broker - you can only do so using a will.
You think this kind of people ever stop for a second to consider the immigrants' perspective and their lives? HAHAHA They'd first need to open their minds and be curious about things outside their insular little world.
Same here, I’ll be switching that from having her as a beneficiary. I also thought I’d have to cash out to move to another Institution.. Transfer is the way to go, My concern is people that work at Banks have become pretty inept.
Just to clarify for anyone not born in canada and immigrated, a category my wife falls into. You have to be a resident of Canada with a valid SIN, not just be age of majority when you can enter into a contract. I think Brandon is coming from the perspective of a born and raised Canadian. You also need to be a legal resident of Canada, ie, spending more than 183 days of the year here. I think this is much needed information for new Canadians or those living as expats 😁😎
I'm in that boat too. My bank didn't even know that fact. Sadly I cannot put my money blindly into a banks hands. They'll cost me a 1% penalty a month for being a non resident with a TFSA that I contributed to.
@@markopolov2207 depends if you were considered a resident when you arrived. My wife came as a visitor, and it wasn't until the following year we applied for PR, so the year she arrived was not counted. You can check online with the CRA to see your contribution room currently.
I didn’t know about the in-cash transfer, in fact I recently withdrew one TFSA to open a different TFSA at a new institution. Who knew 🤷🏻♀️? I am still learning every day. The rest of the content was a great refresher. Thanks for the video Brandon!
I would love to see more videos explaining the technical differences between your spouse being a beneficiary vs. a successor, as in what can one do vs. not the other? and also explaining the spousal account too would be awesome! I'd look forward to that video also : )
I mean spousal account is just the same... Open a new account for your spouse and use your money to contribute to that account. Don't forget to use referal code
Great video, I was aware of most of it, bit it's always nice to refresh that knowledge. I currently contribute my maximum limit per year but I have a lot of room from previous years to utilize. Tax returns typically go straight into the TFSA to help me catch up.
Nice video Brandon, I like the white board video style, you should do more videos like this one ! TFSA is so underrated, young canadians must invest asap in it !
Great Info Brandon, I think it is important to mention (and you did mention a bit) that all of the gains you earn in your TFSA, automatically increase your total Lifetime TFSA Room. Say like in your 10k to 50k example (@5:30), you were to withdrawal that 50k before adding any more money, to put down on a house, you would now have the Original 50k in Room plus an additional 40k of Room from your gains for a total of 90k in TFSA room that you could put back into your TFSA the next calendar year along with the new 6.5k for that new year all coming out of your Inheritance from your Grandmother . 😃 But as you did mention, all Loses in your TFSA reduces your Lifetime Room. If for example you Contributed all 50k (@5:30) into your TFSA and your investments went south and you lost 40k, leaving you with only 10K and then something came up and you wanted to withdraw the 10k. The next calendar year you can only contribute 10k + 6.5K of room, so you would have lost that 40k of room forever. I hope this isn't too confusing but it is important. Brandon you could do a better job of explaining this. Thx.
@@VictoriaMorhan diversify. And honestly r u really banking that significant of profit on those stocks. I also recommend not using all your securities of choice with your TFSA ACCOUNT. I have been learning by trial and error self directed, non managed and I have a blend of securities and digital currencies attached to my first TFSA that I started in 2021. Honestly, the app I use presents projected rtns on investments till my expected yr of retirement. It’s bloody dismal. I wouldn’t even be able to afford a damn box. And I am not having it!!!!!!! Then I started exploring. Learned that banks are in on this money making service. So I opened another with a traditional financial institution. And stepped it up. I have an entire limit of contribution available basically. It’s $95000 at this time. I also only have 12 yrs till expected full retirement. With nothing but the CPP. It’s extremely sad outlook for hard working people in Canada. It’s meant to be confusing my friend. You need to do some ground work and divide a strategy. Most importantly be honest with yourself. How much would I feel comfortable loosing if the markets cause losses. I bet Brandon has spend hundreds and hundreds hours. Getting educated. No quick fixes here. Hire a broker or portfolio manager. You keep yourself organized and open to improving your knowledge in this industry. Good luck!!
@@VictoriaMorhan If the let you recontribute your losses, then to make things equal, if you have gains they would reduce your room to compensate for those gains. Would you like that??
Thank you! One quick thought: if you want to only contribute the annual $6,000 to your TFSA (because you have used up all previous room), don’t contribute $250 biweekly as that will put you $500 over the limit. There are 26 pay periods if you are paid biweekly. Contribute $230.76 biweekly.
My Dad lost a bunch of money in a RRSP. He said “I wish I could write off the losses” I said you did. He got to write off the income when he put it in there. Now lucky for him it went to zero. No taxes. So the moral of the story is don’t be risky with your investments but if you really want to be risky do it in an RRSP. At least you will get a tax break for your stupidity.
Hi Brandon, I have been contributing to my TFSA minimally over the years then stopped for a couple years but that was before I stumbled across your channel and am learning how important it is to make full use of it. My question is, I am not sure the best way to figure out the exact TFSA contribution room I have. What do you suggest I do to find out the exact amount of room I have since I have been contributing sporadically over the years? This video was brilliant and you hammered home nuggets of gold 🙏
Sign up to the CRA (Canada revenue) online and it tells you your exact contribution room on your personal home page. It takes a few minutes to set it up and authenticate you, but it’s worth it.
This is some GREAT info! Thank you. I learned a few things for sure. Time to take my TFSA more serious. I stepped up my savings and investing in 2022. Now, I will once more do the same...step it up this 2023. I watch your videos and Adrian's as well. You 2 are big inspirations for me and I'm sure for MANY others too. Thanks again!
Hey buddy, I want to highlight one mistake: If you pay 250 PPC (Biweekly), then it would be 6500 CAD. because there are 52-week and 26 bi-weekly paychecks. please add it in the description or in the video so that people don't get misguided.
Thanks to folks like you, I've been using the TFSA correctly and knew about all of the common mistakes. The last one is maybe the only one I've made. I'm in my 30's now and only started putting money into my TFSA a little under two years ago. With a full contribution limit available to me and the limit expanding by $6000 a year, it can feel like the contribution cap is almost out of reach at least at my current income level. Not a bad problem to have I guess, I'll take all the tax free gains I can get! Highlighting some of these mistakes though is a good refresher on why it is still important to track contributions. Great video, and may make the trek to the city see you guys in September!
I was hoping he would answer this. I too am in my 30s and starting now. I have no way to max it out. Likely never will. But the best I can do is start with the $500 per month rule
I was surprised about the CRA nailing you if you do day trading in the TFSA. I was asking the CRA about if I buy and sell stocks within my TFSA often if that would create issues but was never told it could be flagged for it
Welcome back . Love your vibe, confidence, how you sounded.. and the video creativity. As always great content Thank you so much ! AND It will be awesome to see you on the stage and finally meet you :) can't wait !
If you have excess contribution space in the TFSA account to accommodate the withdrawal within a calendar year, you may contribute the amount of the earlier withdrawal without penalty. But the new excess contribution limit will obviously now be reduced & will be regained only the next calendar year. This part you did not mention. And I hope my line of reasoning is right.
at 8 mins in video timeline when you're talking about allowed investment options in TFSA, you didn't mentioned crypto. So crypto is allowed to be hold and staked in TFSA ?????? btw so much helpfull video. Loved it. Big thumbs up !!!!!!!!!!!! :)
I'm new in Canada, and this video was sooooo effective at quickly building my knowledge of TFSAs... thank you so much. liked and subscribed! I'll be watching your other videos.
My strategy has been to do a minimum annual withdrawal (MAW) from an RRSP or RRIF on the first business day of a new year and immediately input your TFSA contribution using some of the MAW funds (In RRIF Accounts)and other savings to make the annual contribution to the TFSA in the first business days of a New Year. This strategy may help to maximize returns in the TFSA and returns in RRSP\RRIF accounts are fully taxable. Your video was very good and I did not know about the jurisdictions where you were required to be age 19. Good job!!
Level one would have got me I guess...because I didn't know you had to be 19 in provinces I don't live in. Outside of that, the successor holder got me. Great info. Love the Trudeau pic for the "government". How I understand it - If I withdraw but am under my contribution limit, I can still contribute in the same year as long as I don't go over the contribution limit. I.e. I took out $5000 to pay my taxes but I have $30000 in contribution room remaining for the year, I just lose the $5000 of space until next year.
ive been watching you for so long, i actually knew everything already... but i havent maxed out my TFSA. not there yet. thanks for the great videos Brandon.
A good informational-video would be about Excel formulas needed to account for the basic unused-room, new contribution-room, withdrawals when dealing with gains or (non-GIC) losses during the year so that the next-years figure is perfect. It is clear that losses whether realized or not REDUCE account-size which cannot be recouped with putting in new cash to compensate for the loss, while gains INCREASE it, so “investing” imprudently with higher risk-reward investment-vehicles like penny-stocks can seriously damage a TFSA account if it goes south on you. Agree? 😊
TFSA 2024 contribution room total is 95,000$. but lets say my 95K grew to be 140K. if I withdrawal 140K from my TFSA in 2024. On January 1, 2025 do I get back 140,000$ in contribution room, or only 95,000 of contribution room? this would make profits tax free, but taking them out destroys effective future tax free contribution room. Thanks
Great video! How is the CRA going to know we are over our limit when they don't do a good job of tracking our contributions over the years? The limit of my cra account does not appear to be accurate, not even close. I've had so many tfsa's over the years, I could not add up the contributions I've made
Thank you for enlightening me on #13 and #17..!! The withholding tax only applies to foreign dividends and not capital gains, correct..?? And if you purchase Canadian dividend ETFs/stocks, that is NOT taxed, correct..?? Also, are you able to automatically reinvest dividends into your TFSA account and does that affect your contribution room..??
Mistake #11: Thinking your RRSP is better because you get "money back" from the government. Mistake #12: Not realizing that $8000 growing in a TFSA is identical to $10,000 in an RRSP (assuming a 20% tax bracket during Deposit/Withdrawal)
Losses do not INCREASE contribution room as well. This means if one bought a penny stock with 100% of the money & the company goes belly up, you can lose 100% of the contribution room, right? 😊
Big mistake I made. I took the money out of my TFSA account and invested in GIC. Now I’m having to declare the interest as income. Simplii I found out does NOT offer any investment within your TFSA account. Now I have no idea how to fix this. I have one GIC that matures in April however I already made my $7,000 contribution in Jan 2025. I’m very confused on how to fix this. How to put the money back into my TFSA account. My GIC are laddered.
Thank you for sharing your experience. I’d like to clarify something you mentioned if you don’t mind. In point 13, you stated that if we use a TFSA account to purchase US stocks, the dividends will be subject to a 15% withholding tax. Does it imply that we wont receive that 15% dividends at all? Therefore, would it be wiser not to use a TFSA account for trading US stocks as a Canadian? Or I assumed it depends on our individual tax bracket?
Hi Brandon, a lot of useful information thanks for amazing useful content Question to you: How can I count my TFSA limit? I'm 29 years, move to Canada few months ago and I'm not resident. So should I consider only 6000 limits, or might I can plus all my years out of Canada (so my limit in 2022 must be 50000+) Thank you in advance!
I have a question, I am 33 y.o .So I came here in CANADA last 2018 and became a PR that year. So if I just opened my TFSA just now. Should I still get the contribution room from the age 18 or the day when I became PR and came here in Canada? Thanks brother..
Thank you for your thorough explanation of the TFSA. One question about the day trading part. If I use the wealthsimple TFSA account, and I put money in it and set up the recurring investment function that automatically buy in the VOO every day for USD$5, does this count as day trading?
I won't lie the first two years I had a TFSA I was using it as like a once in a while savings account. I didn't realize it had such cumulative value. I feel so dumb now watching this. Id just put in 300 than take it out 5 months later because "it's just savings" Dumbbbb
I came to Canada as a PR in July 2009 at age 19. Does that mean i have full contribution to date? And yeah, i have a TFSA. I just thought it was an ordinary savings account that has tax immunity. Luckily, and quite sadly, my TFSA is essentially a blank slate...😅
Thanks for the video. Did not know you couldn't day trade the account. That said just watched another video where the CRA determined someone traded their TFSA too aggressively and came after them for $200k of the 500+K they have earned over the course of several years. What if you hold positions for several days or months and have huge payouts if say, your trading penny junior exploration companies on the TSXV. Is it at the discretion of the CRA to decide what 'they" determine is considered aggressive trading? If so that's a recipe just waiting to be abused by some overzealous auditor at the CRA!
How does it work if I make a wealthsimple TFSA. I buy a dividend yielding stock or etf? Like if I got 10k with, now, 85 k leftover contribution and the stock grows to 95k, and I sell it, when I withdrawal 85k, is that already calculated that those were gains and not my contribution; could I then still reinvest that 85k the same year? Also, how are dividend paid in a wealthsimple TFSA, is it right into the wealthsimple account or I'm mailed that money as a cheque?
Informative video. So what if you don't max out your TFSA and you withdraw say, $1K and then put it back in the same year (plus you still have contribution room from previous years - like most ppl). Do you still pay a penalty?
Withholding tax for US : other downside, its not just dividends. Say a company you own that doesnt pay dividends like NVDA, decides to spin off one of their businesses into a new listed company. Thats a taxable event in a cash account for Canadian residents. What about inside a TFSA??
how much is the maximum contribution to the canadian TFSA ? Whats the advantage of contribution to a TDSA than just leaving your money in a savings account?If you are a low income senior will tfsa affect your supplement that the government provide to low income seniors?When bank offer you a high savinhs interest rate like 6 pct for 4 mos or 6mos..this interest u gain becomes an income isnt it? In that case accepting a bank offer of 6pct to ur savings acct for 4 or 6mos is not practical ?Can you inlightened me on this one.appreciate ur reply.thks.
I use the CRA to track how much I can contribute. You mentioned that we should track it. However I would like to know how. I am being told in Quebec I can contribute only 4,000.00 four thousand every year. Can I contribute more?
2 года назад
my main issue is maxing it out. We learned about it really late, were barely breaking even on my grad student income with having a very frugal lifestyle. When we had kids, our priorities shifted to saving for them, so RESP and life insurance...that's over 300$ per month all together, and adding 250$ per person (and even for just one person) per pay period would put us in the negative. We want to provide opportunities for our kids so they have a few extra curriculars that would be cut if we had to but that would really mean we are in a tough spot. I might never see it maxed out, unfortunately. We also want tax breaks so we do 2-3 TFSA and 1-3 RRSP when we do put aside.
🎯 Key Takeaways for quick navigation: 📝 Mistake #1: Not calling it the "Tax-Free Savings Account" (TFSA) instead of "TSFA". 💡 Mistake #2: Misunderstanding the age requirement for opening a TFSA; it's 18 in most provinces but 19 in others like BC, New Brunswick, Newfoundland, and the Northwest Territories. 🔄 Mistake #3: Believing you can only have one TFSA account; you can have multiple accounts but the contribution room remains the same. 🏦 Mistake #4: Thinking TFSA accounts can only be opened at banks; there are better options like online platforms such as Questrade, Wealthsimple, or EQ Bank. 💰 Mistake #5: Viewing TFSA only as a savings vehicle rather than an investment tool; it's meant for growing and investing money, not just holding cash. 📉 Mistake #6: Not understanding that unused TFSA contribution room accrues, even if you can't open an account immediately upon turning 18. 📊 Mistake #7: Failing to track TFSA contribution limits independently; relying solely on government or brokerage tracking can lead to errors. 📈 Mistake #8: Incorrectly assuming that gains within the TFSA affect contribution room; gains do not impact the amount you can contribute to the account. Made with HARPA AI
Dividend growth investing should not be the focus of your TFSA. Growth with at least some risk should be the focus with dividends and blue chips used to offset said risk
Can you transfer from a non registered account (company shares with xyz holding company) to a registered account TFSA with an in kind transfer an not be penalized for doing so?
If I make $50,000 from a trade for example I turn 5k into $50,000and then proceed to buy some Tesla shares with this $50,000 does this affect anything?
Good day Brandon - On the Fina; part you stated that we should Max out on the TFSA - would you consider then that the TFSA is far more advantageous than the RRSP etc.
Quebec residents should be aware that the Quebec Solitaire political party wants to pilfer people's TFSA to finance the insulation of buildings while they as National Assembly representatives get to keep a generous Provincial government pension.
If our families savings are in my wifes bank account and i use HER bank account to transfer money into MY wealth simple TFSA does it effect her contribution limit or mine?
Please let me know if my understanding is correct on TFSA. Capital Gain thru US Stocks(i.e Profits Booked) will not be counted towards Contributions as long as they REMAIN in TFSA. ** However, if Capital Gains(NOT the original amount we contributed) are withdrawn from TFSA, NOT ONLY we will loose that contribution room for the whole year BUT ALSO when deposited back(next year) the same Capital Gain will be counted towards contribution? In other words, this capital gain we withdrew is the additional amount of contribution we have for the next year in addition to the room we already had? ** For e.g. TFSA 2022 Limit = $50k. Invested $30k and made $10k profit and withdrew it. Can Still contribute $20k for the remaining of the 2022 year. In 2023, i regain that $10k profit. I can now contribute $20k(from 2022) + $10k(Profit Withdrew in 2022) + $6k(2023 Amount) = $36k in total for 2023. Right?
So one of the biggest mistake is to widthdraw a certain amount (let's say 750$) and over the next weeks, to recontribute the same amount? If so, it seems/feels like I have made a big big mistake!
This was eye opening, especially when the CRA can skin the regular person alive. So the message here is be very careful and find a good financial advisor
If there is a penalty for over contribution, then to me Revenue Canada knows the exact contribution room. Now given they know that number why would they NOT let me know? and why would I not trust it.
One area that I am somewhat confused with TFSA. The total limit up to and including year 2022 is $ 81,500. I have maxed out my TFSA each year including putting in $ 6000 for 2022. Let’s say that I had my TFSA invested in Canadian quality stocks and as of 2022 my TFSA is now worth $ 125,000 . I wish to put a down payment on a house and take out $ 25,000 of my TFSA. That leaves the TFSA now at $ 100,000. Does the $ 25,000 affect the total contribution room of $81,500. And if I took out $100,000 from the the plan and left $25,000 in the plan. Does taking out the $ 100,000 affect the contribution room of $ 81,600. Thanks.
if you have maxed your 81500 then the calculations are easy, whatever you take out you now have that room to put back in the next jan 1st (in addition to next year's 6500 or whatever the amount is), take out 25k you now have 25k of room to recontribute, take out 100k and you have 100k of room
At 10:30, is it like if you buy a stock that occupies x amount of funds in your account and the stock goes to 0, it will still occupy that original x amount of funds so that’s why you’re boned if it becomes worthless?
Ill be starting a TFSA soon. Im aware that my contribution limits have stacked. Say i'd have a total of 60k room, it does mean that, until i reach that point I will have no yearly limit correct ?
What happens if the spouse get the TFSA transferred after making them as successor. What will happen to the contribution limit. What happens if the money is over his contribution limit for the year. Does he have to pay the 1% as well
Can I contribute to my TFSA as a valid canadian resident and then leave next year? Would that cause any issue? And I am not planning to contribute to my TFSA while I am not in Canada?
If the limit in a year is $6000 and I invest $1000 then take it out and put it back in the same year does that go over contribution room or do I still have $5000 contribution room?
Things I didn't know ,,, apparently I was locked in on mine and after 4 yrs I took a withdrawal and then had to pay or received 750.00 less than what was there , apparently the lock in was 5 yrs , which I was not aware of !
One investment that you didn't mention are Options. If you have 100 shares or more of any particular stock, you can sell covered calls and greatly increase the cash flow that these accounts can produce.
Well... what I would like to know... is how the heck do you have enough money in this economy without having family to give you a leg up and connections to get the good paying jobs to even get close to hitting the limits???? I have well over 50k of room, and don't have income to do anything with that room, as my costs have gotten too high to be able to do much with it. Aware of it. Able to do it? nope. Budget could handle 60/pay only. With how companies don't want to pay any more than they absolutely are required to, so that the execs could make more... I couldn't do it.
What if you don't have kids or a spouse? Im in my forties and don't know who to tag my investments for. I have a boyfriend, but we keep our finances pretty seperate.
