📈📚🇨🇦 Join The Investing Academy Today - bit.ly/theinvestingacademy I'm so excited to be back! Thanks everyone for bearing with me on my little break off.. I hope you've all been doing well! :D
Very excited to see you back!!! Definitely deserved a break, especially with all that’s going on but it’s great to see you and your dad on RU-vid as always
Can I open TFSA and contribute 1000 cad in one year then skip 2 years without contributions and then contribute 2000 cad, skip 1 year without contributions, and so on? I hope you get the idea.
@@belmorido Contributing something is better than nothing. You can literally do whatever you want. But remember this... a little bit of suffering now, you can literally turn a portfolio of $100,000 to $200,000 to over 1 million. If you are consistent this is better than skipping.... You'd be surprised how much money you make, when you have money. It's super slow at the starting. But as time goes by, if you keep that schedule of contributions and always try to make it as high as possible, when time goes by, your money starts to really double, then triple, then quadruple... but mostly when you have a lot of money. So imagine putting 6k in every year... So your initial investment... $1000 to start off account.. 6k + 7% interest (at end of year you have 6420) - you'd have to contribute $500 per month. ITS WORTH IT. 1st year: $7,268.58 2nd year: $13,990.32 3rd year: $21,197.98 If you don't put in money as quickly as possible and you take your time, then it takes longer to get those REALLY big gains. On the 35th year... you are making $61,000 per year.. just in interest !!! Every year you will be making more and more interest By the 40th year... you'll be making almost $90,000 per year in interest... So the key is... get in there, keep a schedule, put as much money as you can in there, and you'll do quite well. But to answer you question, you can literally do whatever you want. But by making such low contributions, it's going to take you a lot longer to get those incredible interest payments from your investment. So this is my suggestion.. if that is all you can do ... DO IT. But my suggestion is .. do much more. You'll literally set yourself up for the future.
damn you weren't joking when you said you wanted to put out better content, you've certainly earned my like! hyped for this because i started investing in my tfsa when i was 18 so the numbers are looking good :)
Good video. However, with a real inflation rate of 6-7%, that is, taking into account the deflation we should all be experiencing through technological advancements, you earn nothing in buying power. We should all know the official inflation numbers are manipulated lower, there’s too much incentive to do so. Could you do a video like this that is inflation adjusted?
1 million dollars doesn’t go as far today as you’d think. Townhomes where I live in Vancouver are over a million. Imagine in 33 years from now how far 1 million will go.
Not enough. Aiming for 2-3M is probably better. Would require drastically increasing income and perhaps real estate. Now he's only talking about 1M TFSA. Add that to any RRSP & non-registered accounts? 1M TFSA is a great start.
That's a great question. One way to look at it - this video presents everything in today's dollars, so the $1MM target should theoretically be the same purchasing power 30+ years from now. That said, one needs to adjust returns for inflation, as 6-7% returns are "nominal", meaning not adjusted for inflation. So, try using 4-5% returns instead.
@@beaviswealth Hey Brandon! I feel so silly to ask but would you be able to do a video on how to use this calculator? Like give some stock examples so we know what to put in for the interest rate and compounding time etc?
Hey Brandon, I didn't know you were a DGI! I noticed your other portfolios you made with your dad included mainly growth stocks. Is there a reason for this change?
When I was 18 years old I bought my first 1 bedroom home for $1,300. At age 30 I bought my second home (3 Bedroom) for $75,000. At age 69 if I was to buy a new home now I would pay $750,000 for a 3 bedroom townhouse. When I was 18 $1M was a heck of a lot of money. Today it buys what I could buy for $75k at age 30. It seems to me that a young person today would need $100M at age 65 to be comfortable especially if we are going back into a high inflation cycle again like the 1970s when I was in my 20s. 😥
Good, now do a video for someone who is 53 years old, lost most in a divorce last year, has a mortgage (because much cheaper than renting), and only has now $30 000 across all investments.
Essentially the perfect video. Nice simple and easy way to give us the type of interesting info that makes our mouth water to see how we can make more money, especially with all the volatility in our world today. Keep up the great work!
According to inflation history, $1 million dollars today will worth equivalent to 500,000 dollars or less 30 years in the future so, if we are willing to reach $1 million in buying power after 30 years, we actually have to achieve about 2 million dollars 30 years from now
Sadly I did some investments with TD system and am down 80%.... I know it is a long term game but still so disappointing. Even after tons of research and investment guides the stocks didn't do anything they expected to do.
Good video, I can't wait to see a series possibly made on it on youtube. --- Question --- I know people use leverage for investing in their taxable account but I was wondering if the CRA there would get mad/audit a person if they pulled money from a credit card/mortgage/line of credit to put into their TFSA to buy stocks?
No issue there. Borrowed money is not extra income, as far as the CRA is concerned, because you have to pay it back. The only risk is if you over-leverage yourself and can't pay it back, especially in a period of rising interest rates and diminishing returns in the stock market. You can see however how this is a powerful strategy in a recession to grab tons of liquidity to inject into your portfolio when the market is low. This is how the pros supercharge their investments...
This is also the pro tip used by the super wealthy to avoid paying taxes entirely. Granting themselves a salary would have them paying taxes like schmucks. Selling off their stocks to cover their expenses would trigger capital gains, on top of reducing their investments. What they do instead is declare no source of revenue at all, and live on borrowed money. -Hello Mr banker. I would like a loan for 20 millions, please. -I see. What leverage could we get for this loan? -I own 5 billions in stocks. -Here's your money, sir! Perfectly legal! The rich live off these loans and only pay back the interests. When the money runs out, they simply get a new loan from the bank. They can keep doing this forever as long as their holdings don't drop below their debt.
No problem at all, you just can’t write off the interest expense like you would on a taxable account. As a 40 year old, this is something I wish that I did with my TFSA. While the money itself would of course be valuable, what I truly envy is all of the extra TFSA room I would have by now. That is something that you can’t make up for with extra contributions in the present or future. Building up that room is worth a small amount of leverage if you can manage the payments and invest responsibly.
which software are you using at 6:46 I really like the CAGR feature for this one! manythanks its amazing million dollar video in itself I hope you get 1 million views on this! love it!
Rounded second with the weakest 6 month stock market performance in 50 years. This is a great opportunity considering what happend the last time inflation took off. Found success with disruptive companies and mainly being focused on growth. There are many different paths to find financial freedom and you should gather as much information from as many different sources to make informed decisions on your portfolio. Great video!
2024: is 95,000$ the max contribution space even after you withdraw MORE than 95,000 because you had growth and gains. eg: someone contributes 95K. grew to 140K. withdraw 140K. can put 140K back in next calendar year? or only 95K?
Thank you for the video. You are talking about S&P500 but the IRS taxes the earnings and you speak about Canadian stocks, it's not really accurate OR I got something wrong which is very possible :D
initial contribution of $61,500? You assume that the TFSA contribution room will be completely filled with money from the get-go! Assumption was your TFSA has $61,500 contribution room in it and you will have the same amount full of cash! Isn't that assumption a bit unrealistic?
Nice video. One can simply hold one of the Dividend Aristocrats funds like NOBL. Has a little more of a management fee (expense ratio = 0.35), but still not outrageous. They do all of the stock picking for you.
If be buys USA stocks there is a 15% withholding tax on any dividend payouts so its not always the most tax efficient way to do it. Always talk to a tax professional and don't just listen to a person on any site due to the different tax law differences.
Brandon, do I get to use the unused TFSA space from previous years?? Is that what you are saying? I am 32 this year and you've inspired me to invest seriously. Thank you for your content.
@@beaviswealth I appreciate your reply Brandon! I've been binge watching your videos and am learning so much. You're so young but wise beyond your years!!
So when factoring in the dividends say u have a stock that has 5% dividends and it doesnt grow any or lose any over time , your rate of return would still be 5% ? Vs if s & p only went up 7% in those year ?
Question: lets say my TFSA has now grown to say $150,000.00, if I withdraw the full amount for what ever reason would I be allowed to deposit back into my TFSA the full $150,000.00 say next year or, would I only be allowed to start again with my basic contribution limit ?
Do you love today's pick as much as you love BABA? Also, how do you calculate inflation for this calculation. ie what will I million be worth in 33 years. Today you are 27 years old + 33 years contribution @ a 6% rate of return gives you 1miilion when you are 60 years old. So in 2055 what willl 1 million be worth. 500k?
Rethink you "major goal in life". Enjoy your life today. The compauded inflation in the last 35 years is 147%. That is assuming only 2.6% annual inflation. It means $100 in 1988 is equal $247 in 2023. If the inflation stayed at 2.6% for next 35 years, 1 mil in 2023 will be worth in 35 years $404.000 in today's money. Less than halve of the value. "We'll all die anyway. Everything is futile" ❤
One has to consider when he turned 18 and when the TFSA started. He may have missed the early years of the TFSA? Not sure....good you noticed it though.👍
I understand dividends as a way of getting paid while you wait. But shares of a stock don't compound. You buy 1 share of xyz for 10$ and sell that share 10 years later for 20$ you only gained 10$ total, not 10$ per years compouded.
I have 100 TSLA stock in my TFSA and 100 in my RSP. Now Im wondering if I should pull the ones out of the RSP, pay the income tax on their current worth (if thats how that works) then put them in my TFSA.. I worry the stock will 10x then ill be paying a load more income tax on those 100 stocks compared to if I have them in my TFSA before they go up. Say they are worth 30g now.. should I pay income tax on it now before they are potentially worth 200g... if they are in the TFSA when they go up... wont I just have to pay 15% to the US when I sell them?
Don't really agree with the recommendations given. If you're young (27) or even younger (18), you should take in more risk for a higher return. For example QQQ or even riskier like ARKK, or even buying individual tech companies like google or msft (buy several different ones) would be far better. Risk should be avoided for money you will need in the short term, if the money will be needed very far into the future, you should seek higher yields. Also, 1 million in 33 years will be worthless, think how much houses cost 33 years ago and how much they cost now. If you're close to retirement, switch to a safer balanced portfolio that contains bonds.
Great video! A challenge of dividend investing in Canadian stocks is to make sure you have adequate balance in your portfolio. The highest dividend payers are financials, telecoms and energy stocks. If you want to diversify, you will necessarily need to accept lower ROR. Do your research on the highest dividend payers that cut dividends in times of crisis. Since most investors are there for lucrative dividends, this will send the share price plummeting and will wipe out your dividend returns (think CPG in 2014 after the oil boom). Lastly, Canadian companies that pay USD dividends further amplifies your earnings but avoid holding US stocks in TFSA because you lose 15% to withholding tax.
Can you elaborate on losing 15% withholding tax on US stocks inside your tfsa? I have CVS stocks in my tfsa 😬 should i let go of it? Its been paying dividends consistently
@@mikee8734 when dividends from a US company are paid to a foreign account, 15% of the dividend is withheld as tax. For Canadians, this means that if you hold US dividend stocks in your TFSA, you lose 15% of your dividend. You don't need to ditch any stock that you're happy with which is paying a consistent dividend. Just realize that you're losing 15% by holding a US stock in a Canadian TFSA. The exception is if you hold the stocks in an RRSP, the dividend is exempt from this tax and you keep the whole dividend. Perhaps transfer it to RRSP if you're keen to hold CVS long term?
@@mikee8734 yeah sell the stocks because you need to pay 15% on divinded for non-canadian stocks however you do not need to pay tax when you sell them when they are in growth. For example, if you were to receive $100 in dividends from a U.S stock held in your TFSA your statement would show $85 in dividends paid, with the $15 already withheld. Again, you may not see the tax being taken off, but it is.
Great goal/video, enjoy watching your content however this one does leave me wondering why you left out a key component when "compounding stocks" This goal of 1Mil is only going to work for you if your investments are set up with a DRIP correct? If the dividend is not being reinvested, there will essentially be no compounding, and i think that would be useful information for people watching this type of content.
Great advice...you might want to increase that goal though! Even now, $1 million is not that much if you want to count on it for a retirement income! Inflation will eat up average of 2-3% of your 7% return goal. You didn't account for that. Use a calculator to determine how much you will need per month to live on and include inflation. I bet the number will be much higher than $1 million. But I will give you kudos for your passion and the video quality.
Dividends and cash flow are irrelvant. Please listen to warren buffet and ben felix. This strategy has so little diversification and will end in pain. Global total market index funds are the only option for TFSAs.
Thank god time is finite and we only need to prepare for 3 decades at most, some millionaires will not even get enough time to use their income, I know of several who kicked the bucket before 70 and even earlier. There is no armor against fate.
I have a question: if I have maximized my contribution limit of 82k, and that 82k grew to 1 million dollars in my tfsa, and then I withdrew $50k, would I be able to recontribute that 50k in the next year?
Short answer is yes. Here are a couple of links to our TFSA videos that will explain that in greater detail. Enjoy! - Marc ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-fcQVmZp0G-Y.html ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-0AfSYbhSsFQ.html
@@beaviswealth thank you! I’ve been trying to look for an answer to this question all over the internet and couldn’t find it. And thank you for this very inspiring video 🥳
This is exactly they type of thing I'm into. I hope to do the same thing and am looking at a similar time frame. An interest free million dollar portfolio in retirement would be ideal, a source of tax free income, and a great inheritance for my kids
