@@ryankalavesis3466 I don't have any personal experience with RDSP but I can make a video on it if enough people are interested! You should invest in it similar to an RESP or TFSA, since US dividends will be charged a 15% withholding tax in an RDSP
I fully appreciate your content as a fellow Canadian who is financially illiterate. I’m so grateful I stumbled across your channel. Thanks for sharing your knowledge!
I don't personally do day trading, I invest in the long-term but if you want to try day trading, do it in your non-registered account (Margin account). Do NOT do day trading in your TFSA or RRSP. That's because day trading is riskier and if you lose money in your day trading, then you will permanently lose that contribution room and you gain NO benefits from these losses. In a non-registered account, at least you can claim these capital losses to reduce your taxes. Most importantly, the CRA does NOT allow day trading in your TFSA since that is considered business income not personal income. So if CRA discovers that you are day trading, they WILL tax you and probably fine you as well. Again, I personally don't do day trading so I wouldn't want to make a video on something unless I have personal experience with it. I hope that helps! =)
Thanks Patrick! That's so kind of you to say! I'm sure I annoy the crap out of my friends when I always try to give them unsolicited money advice but somehow they put up with me 😅 Merry Xmas to you too! 😁
Thank Adrian! I have a question. Can I sell "ABC" socks 100 shares with loss $1000 in my us margin account and buy it again right away to reduce capital gain that case is superficial loss? What if I buy "ABC" stock 100 shares fist and sell 100 shares? Is it same or now? Please let me know. Thank you.
That's the definition of the superficial loss! haha The CRA will say that you clearly intend to hold onto the stock since you bought it back right away. You're just trying to "force" a capital loss. You would have to sell the shares, wait 30 days and then buy them back, and it might not be worth it. I would say, only try to claim a capital loss if it's a stock you wanted to sell anyway. Don't sell a stock that you want just to claim a capital loss
@@CanadianTShirt Thanks. Do we have a wash sale in Canada? I sold and bought it again yesterday. Then I have to pay more tax if I make capital gain? Thanks!
Got a question; lets say i maxed my TFSA. 70k for example and made 10k gain. Is 80k my new max? If i withdraw that 10k will i be able to contribute it again the same year
Not quite! Once your TFSA is maxed, you can't put any more money in this year, whether your earned a profit or not! Until the next year (2022) you won't be able to put anything else into your TFSA. But whatever amount you withdraw in this year, you will regain that amount in contribution room for next year. So if you withdraw $10K this year, next year you will have $16K worth of TFSA room ($10K withdrawal + regular $6K of room) Make sure you watch my TFSA Explained video where I break this whole thing down =) ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-i_bWf1NyUbE.html
I don't personally have any experience with probate fees since I've never inherited anything but I can definitely make a video about this, if enough people are interested =)
Thank you Eli! That's why I love engaging with you guys and I spend at least 3 hours a day responding to comments! I know how intimidating and confusing the finance world can be, especially for beginners so I pride myself in creating a forum of discussion in the comments section that many people can benefit from! =)
Question 🙋♂️ you covered some of this in your video. I have US stocks like Apple NIO and Tesla in my personal account. The only reason I bought them in a personal account is to keep things simple for taxes and I wanted my TSFA to have nothing to do with taxes and just invest in the Canadian market but I have plenty of room in my TSFA. Is it worth transferring them to my TSFA and Is it true that you don’t have to pay tax on growth stocks in the USA market if you own them in a TFSA. Thank you once again I appreciate your time answering these questions 🙏
@@asim1017 yes capital gains are 100% tax free in a TFSA, even from US stocks. My strategy is to reserve my TFSA for dividend stocks and REITs since they get the most benefit of the tax-sheltered account. Growth stocks like Tesla don't earn you any income and thus you don't pay any taxes on them for years UNTIL you sell them! And once you sell them, capital gains are the most tax-efficient form of investment. So if you have to pay taxes on something, capital gains are the best one which I why I keep them in my non-registered account. But if you have the room in your TFSA, you can absolutely hold them there as well for zero taxes =)
Great tips! I’ve been back and forth this month on what to do with my oil stocks in my non-registered account. Trying to determine if I should sell, transfer some to TFSA or hold 🤔
Thanks buddy! If those stocks are paying a generous dividend (which oil stocks tend to do) you might want to consider transferring them to your TFSA =)
Say I sell 100k of assets that had a 0 cost basis... 50% of that is taxable under capital gains, os 50K... Say I had 50K of room in my RRSP... Could I put 50K of my 100K into the RRSP for that year and not pay any taxes on it? Also if I wanted to buy a house that same year, could I take 35K out and use it as a down payment, or does that need to be done the following year....
Yes that is correct! If you had $50K worth of RRSP room, you could claim that RRSP tax deduction to reduce your taxable income by $50K but I would ONLY suggest this if you are at a high tax bracket! Make sure you check out my RRSP videos to see the best strategies on when you should claim your deductions =) ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-bKMNgnMBSdE.html
Normally, you will be taxed any time you withdraw from an RRSP except for two main exceptions: the home Buyer's plan and Lifelong learning plan. I will cover these in greater detail in an upcoming video but there are a few things you have to pay attention to with the home buyer's plan so it's not always a good idea. Plus it ONLY works when you buy your very first house!
Your videos get me started with all this investment planning. Thank you very much for doing all this. I never understood a thing as it always looked very complicated to me from the beginning but the way you explained this all from your first video, it all makes sense. BTW, when are you going to release RRSP part 3?! Really want to learn more about it so I can properly start investing for home buyers plan 😅. Again, thanks very much.
Thanks Ishan! I really appreciate that and I'm glad that my videos helped you get started with investing! I should be working on RRSP part 3 soon in the next several weeks so stay tuned for that! =)
Great video, but I am confused about something. Maybe you can help clarify this. Let's say I never contributed to RRSP and I have a 70,000 CAD room. I invested in stocks 50,000 starting in April this year. When I do my taxes in a few months, is it mandatory to declare all 50k as RRSP contribution, or I can declare less (let's say 20k)? Thanks!
You do NOT have to claim the full $50K contribution! You can claim $20K this year to reduce your taxes and then carry forward the remaining $30K for a future year when you have a higher income! I go into all these RRSP details in my RRSP explained videos, check them out! =) ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-bKMNgnMBSdE.html
Hey Adrian, I was wondering, are BONDS worth it at 27 years old? I know 100% EQUITY RIDE THE WAVE! But I'm always weary of living through a bear market. Do you think 80/20 is too conservative for my age? or go 90/10?
Everyone has their own level of risk tolerance but for me personally, I barely invest in bonds. Especially right now, bond prices are high and their interest rates are lower than ever. If I were you, I would focus on growth and dividend stocks and ETFs. Bonds become more important as you approach retirement =)
Hi adrian! Great video again! 👏 i rewatched your rrsp videos. Can you clarify that if buy etf (ex. Vfv) in my rrsp, will i not get US withholding tax when i retire? Even it’s accumulated dividends? Thank you.
Unfortunately it doesn't work that way... To avoid US Withholding taxes you have to buy the USD version of that ETF such as VOO and hold it in your RRSP. VFV will still be charged withholding taxes.... So you'll have to convert to USD to buy VOO but I suggest using Norbert's Gambit to avoid those currency conversion fees, check out my video guide on how it works! =) ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-q6Q1dzK8vts.html
Thanks for all your videos, but I’ve given up on investing myself, send all my money to a portfolio manager at Connor Clark & Lund. any thoughts? I’ll lose 1.25% for discretionary trading.
If you feel more comfortable being totally hands-off but these management fees will cost you a TON of money in the long run.... I'll be making a whole video on the true costs of mutual funds but you're looking at a 25 - 35% total loss in value by choosing mutual funds versus an equivalent portfolio made of ETFs and stocks. If you want to be purely hands-off, you might want to consider a roboadvisor like WealthSimple or QuestWealth. They will only charge you around 0.5% in management fees!
Let's say I sell some stocks at loss today (Dec 28) over my brokers (Questrade and Wealthsimple) then in April when the tax season has come how can I prove those loses? will the brokers send me receipts to be uploaded to CRA? or how's the way I can give that info to CRA? Finally, Can I deduct taxes from dividend gains using that strategy (sell losers stocks)? Thank you !
You will receive a tax slip from your broker but you can always go through your account activity to see more details if you ever get audited! And no, the capital loss can only reduce your capital gains tax. If you have no capital gains this year, you can carry it forward or carry it back 3 years. You can't reduce your dividend tax but remember, dividends are tax free in a TFSA or RRSP =)
WealthSimple doesn't support those kind of transfers... they are still a new platform and thus they are very limited. Questrade will allow you to do those kind of transfers, in fact I have a whole video on how to transfer stocks and money from your Bank's TFSA to Questrade TFSA: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-Bf1zufNlQSk.html
Obviously you cannot have physical items in the TFSA . For example sports trading cards that you got for little $ but if you sell them for $$$ that would be a capital gain but the TFSA isn't going to help in that case.
You are correct. You cannot hold physical assets like art, cars, real estate etc in a TFSA but there are certain ETFs and stock alternatives like REITs which allow you to hold real estate indirectly in your TFSA. I hope that helps =)
Well if you invest in a tax-sheltered account like the TFSA, you don't have to worry about taxes at all! A stock like Tesla is a growth stock, it doesn't pay out a dividend so it will be 100% tax free in a TFSA. Only US dividends are charged a 15% withholding tax in a TFSA. That's why I suggest to hold US dividends in an RRSP to avoid this withholding tax. Check out my RRSP videos to learn more about this withholding tax! =) ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-bKMNgnMBSdE.html
Thank you Michelle for supporting my channel! 🙏 I will be making a whole video talking about all of the details of the US Withholding taxes but I do talk about them in my TFSA and RRSP videos so check those out! =) ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-i_bWf1NyUbE.html
Of course! It's tax sheltered for years or decades UNTIL you decide to withdraw during retirement but the goal is that you will reduce your tax bills today in your high income years and pay a much LOWER tax bill years down the line in retirement. I cover this in detail in my RRSP EXPLAINED videos here =) ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-gcYlQl6hF6w.html
Hi can, do you have a CGT solution for 3-year-old ex-pat with a permanent residence of Canada while transferring non-register accounts in (say) UK or Bulgaria to Canada which has a capital gain from sold properties and other investments. The property was the primary residence for 10 years then 12 years in rental and then sold few months ago.
That is a very particular situation that you would have to ask your accountant for... I personally have never owned property outside of Canada and I don't have any experience as an ex-pat so I don't want to accidentally give you the wrong info there. Best of luck! =)
Can I buy and sell share in TFSA within 30 days of buying and selling any stock ( not the same stocks ) ? Say, I bought X, sell it and buy Y and sell it, all wilting 30 days
The superficial loss rule doesn't apply to a TFSA since it's tax free, you can't claim capital losses anyway. BUT what you are describing would probably be considered day trading which is NOT allowed in a TFSA! So if CRA discovers that you are day trading, they WILL tax you and probably fine you as well. The tax-sheltered accounts are designed for long-term, buy and hold investing. I do not recommend day trading, especially for a beginner. You are very likely to lose your money but if you really want to try it, it must be done in a non-registered account. Plus, you don’t want to risk permanently losing that precious tax-sheltered contribution room! I hope that helps! =)
quick question sir, so for RRSP, if we missed contributing to RRSP to lower the tax for this year before March 1st, it wont deduce our tax for this year, correct?
Hey Adrian! I maxed out both my registered accounts so I started investing in my margin account and I bought growth stocks, thus it doesn't pay dividends and I dont intend to sell it anytime soon. Do I have to declare my margin account even tho I dont have capital gains nor witholding tax?
Hey Anna! Congratulations on maxing out your registered accounts, that's huge! 🎉 If your margin account is purely growth stocks with no dividends and you haven't sold anything, then you haven't earned any money yet, on paper. If you haven't earned any income, there's nothing to tax! You'll only have to pay taxes when you sell at a profit =) Your broker will also give you a tax slip for any dividends or gains you earned, sometime in February or March so keep an eye out for that =)
I don't think you should be using any bank or credit union for a TFSA. The TFSA was designed as an INVESTING account, NOT a savings account. Check out my TFSA Explained video where I go into more detail on how to get the most out of your TFSA =) ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-i_bWf1NyUbE.html
I don't personally invest in crypto and I only want to make videos on topics that I personally believe in and have personal experience with. That being said, if you want to dip your toes into crypto, go for it! Just be prepared for extreme volatility and huge risks. I would only play around with money that you really don't care about losing. The majority of your investment portfolio should be in more established and secure companies that actually make a profit =)
Is there any way in Questrade to see how much closed profit I made in my margin account at the end of the year to know exactly how much I need to offset capital gain (if I decide to) ? Thanks a lot !
If you go to the Reports tab you will see various investment summary tools but you can also download Trade Confirmations which will show you a total of all purchases, sales and commissions made during a date range =)
Question, let's say I maxed out my TFSA at $80,000 and every year I get $5,000 in dividend and if I withdraw only the dividend money, next year I would have $5,000 plus the normal contribution room? If so, than technically, there's no limit on how much you have in your TFSA?
You are absolutely correct but you don't have to withdraw that dividend money! Just keep that dividend money inside your TFSA, reinvest it and it will continue to grow tax-free! But you are correct, there is no limit to how much money you can have INSIDE your TFSA, just how much you initially contribute. So if your initial $80K contribution grew to a million dollars, that's totally fine and tax free! You now have a million dollars growing tax-free inside your TFSA =)
Are you asking about claiming tax deductions on medical expenses in your tax return? Or claiming medical insurance benefits or reimbursement from your employer?
I've taught myself over the course of many, many years! Back when I started my first ever business, I read the entire Canadian Tax code just to understand what was happening 😅 I am constantly reading books and articles and I encourage everyone to do the same! Never stop learning! =)
That happens sometimes when you buy a US stock and it converts Canadian dollars automatically. It tries to convert enough CAD to get a $0 USD balance but sometimes it will be $0.01 due to rounding errors. I wouldn't worry about it =)
I will be talking about work from home office expenses in my upcoming business tax deductions video but I do also cover the work from home tax credit in my How to File Taxes video here, check it out! =) ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-4RxkNa2VjtU.html
Adrian, Thanks for your response. Super Helful. Just a follow up question. Will i be getting a RRSP TAX Receipt from Questrade? and how do you compare Questtrade with Interactive Brokers? Do you have any Pros Vs Cons videos on Questrade. vs Interactive Brokers?
I personally don't have experience with Interactive Brokers but they are better for options trading and day trading. They have a much more complicated fee structure and they charge monthly or quarterly fees which is a deal breaker for me and I imagine for most beginners as well!
Adrian, i am planning to open a TFSA account at Questrade to trade US stocks(most of the time). I've seen your videos and got to know that i can transfer funds in USD and CAD . Considering that i have a US$ account as well as CAN$ account here at TD, what will be the best option to either send money in CAD$(which they convert in US$ with 2% conversion fee) or send the money directly in US$ from my USD account. It seems easy to send the money to them from US$ account, BUT i was thinking : 1....Will sending in US$ and earning profits in US$ have any impact when i file my taxes(i guess not as it is TFSA) or any other impact? Does making loss means i loose that contribution only for that year or all the life? 2.... Any impact when sending withdrawals requests to Questrade, as they will only be able to send USD to my USD account? 3.... Currency rate at different time also matters as if i deposit , lets say in CAD$, i will get a low or high rate depending on the time at which i deposited? Overall, considering all these situations, please share your wisdom. Thanks,
That's a loaded question! Okay so if you have USD you can definitely transfer that directly into Questrade as USD without needing to convert! And since it's a TFSA, there are no taxes at all! You can also withdraw USD from you Questrade account. It's the exact same. You just specify the currency when you request a withdrawal
If you are depositing USD into your TFSA, you should record both the USD amount, the exchange rate on that day and the equivalent CAD amount. This CAD amount MUST be within your TFSA room =)
Why should we keep long term investments in TFSA? It doesn't make sense. Ideally we should trade once in a while and earn decent returns (30-35%) quarterly.. For RRSP, it makes sense to keep it for long term investments..
If you lose in a risky investment in a TFSA account and sell at a loss, you won't get that room back. That's a room you won't be able to invest in the future tax sheltered. In TFSA, you should only do low risk investment. High risk investment you can do it in a non-registered account, where you can benefit from a loss-tax harvesting.
@@juanesteban8938 Fair point. So basically we are saving tax from low-risk stocks that won't generate enough capital anyway hence long term. Got it. Btw are ARK ETFs a safe bet for TFSAs?
TFSA Tax free, Except with US investments...They still take a 15% withholding tax. I you have a stock in your registered account that is down but you still believe in holding it for the long term then sell it, book the capital loss, transfer the money to your TFSA, and then rebuy it immediately.
The 15% US Withholding tax ONLY applies on DIVIDENDS from US companies. Capital gains are always tax-free in a TFSA. If you want to avoid US withholding taxes, hold US dividend stocks in an RRSP instead. I talk about this in detail in my TFSA and RRSP videos =) ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-i_bWf1NyUbE.html
I don't think anyone can explain it haha I am a strong believer in the technology and the future of electric vehicles but even so, I do not personally invest in Tesla directly although I am indirectly invested in them through ETFs. The share price of Tesla is extremely overinflated due to hype and speculation and the company only recently started making a profit. Again, I think it's a company with a great future but I'm not buying stocks directly into Tesla until it can justify this huge evaluation. I hope that helps =)
I personally don't invest in crypto and so I have no personal experience with tax filing on crypto gains but if enough people are interested, I could make a video on it =)
hi there, thank you so much for allthe hard work you put into your videos. I have a question about transferring a stock that I have in my non registered to my tfsa. I have been adding to my position for the past few months, averaging both down and up..currently the stock is down , and I am down $300 bucks. I intend to hold on to it, and hope to see it grow tax free in my tfsa....are there any other implications that I should be aware of before I trasnfer it?
You can absolutely do a partial transfer! You specify how many shares you want to transfer and in your case since your stocks are down, you will NOT have to pay a capital gains tax! Just make sure you have the TFSA room and record that CAD value of those stocks on that day as a TFSA contribution =)
It would be safest to make the contribution a few days BEFORE December 31 since depending on your bank, it might take a few days to process. But if the money was in fact deposited in time, you will receive the grant in time =)
@@CanadianTShirt thank you I was freaked out a bit we did make a depost on Dec 26 pretty much last minute as the bank lady told us do it before Dec 31st as that was the deadline. thank you.
Say if you put 10,000 into an account and it goes up 20% so its worth 12,000 and you want to take out profits the 2000 what happens with your tfsa room
@@mayankrai345 so I'm just creating more room by expanding my money .. say if I maxed out my tfsa then it grows by 100% then I pull everything out then next year my limit is doubled....there's gotta be something that stops that
@@atown71 as far as I know from all RU-vid videos and legit reading materials, you get the limit back on 1st Jan (any withdrawals made from TFSA last year + unused contribution room + TFSA new year limit)
Thanks Mayank! You are absolutely right! And Adrian, it doesn't matter if you withdraw or leave that money inside your TFSA. Your TFSA has grown in value and anything INSIDE your TFSA will continue to grow tax-free =)
If you do this once or twice, that's totally fine. But if you are doing this every week, the CRA will probably consider that day-trading and then you will be taxed and penalized. I hope that helps!
Good video mate! I am trying to find out a specific answer to a specific question So....here it is, see if you can help Now that we have a new $6k CAD contribution room to our TSFA I want to get some funds in and make some purchases! Q1) I have USD$2k in my Questrade margin account and I want to move that 2kUSD cash into my TSFA. How do I calculated my $6kCAD contribution room when I am moving USD in? After I move in my 2kUSD what is my leftover/remaining contribution room of the original 6k CAD? the issue obviously is that they are 2 different currencies, I am moving in USD but the contribution room is only quoted and calculated in CAD.... any ideas? Much appreciated! Cheers!
In your records, convert the $2000 USD into Canadian dollars using the end of day exchange rate. If CRA ever comes after you claiming you overcontributed, you have a record of exactly how much you put in and what the exchange rate was =)
@@CanadianTShirt thank you for your reply mate. So what do you mean "in my records" is that something in Questrade or you mean just me personally in my diary/phone/screen shot or something similar, to make a note of it? Also how do you find out the end of day exchange rate? the exchange for currency trades 24/7 there is no end of day rate like stocks do at the close of the market or do they? would it be end of day in what time zone? I really need to make sure I am using the same rate and Questrade/the CRA
@@AdventrureforAlan it's important to record EVERY contribution or withdrawal you make to your TFSA or RRSP. I record this in an excel spreadsheet! Also, here's what I use for the daily exchange rate, from the Bank of Canada =) www.bankofcanada.ca/rates/exchange/daily-exchange-rates-lookup/
I haven't made a video on capital losses just yet but I literally just made a video all about Capital Gains and the upcoming changes! Check it out! =) ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-qq8YndVACV4.html
Once again such an informative and helpful video. I’m wondering if I should prioritize my RRSP over my TFSA during the year if I’m in a higher tax bracket in order to get a better income tax return? Thanks again for all you do and I wish you a healthy and prosperous new year Adrian 😊
I will be making a whole video on TFSA vs RRSP but in the meantime check out my RRSP Explained videos where I tackle this very issue: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-bKMNgnMBSdE.html If you are in a high tax bracket this year and you don't expect to be in a higher bracket next year, then yes. Now would be a good time to claim your RRSP deduction and reduce your tax bill =)
I talk about this in my TFSA MISTAKES video here! ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-s4cBibLATOU.html Your TFSA should be used for INVESTING so you don't want to waste that precious contribution room on savings that will only earn you about 2.5% interest right now. I recommend using EQ bank which is my all time favourite savings account in Canada giving you 2.5% interest. I'll include my referral link below: click.linksynergy.com/fs-bin/click?id=G4zxVqAvD18&offerid=1115263.5&type=3&subid=0
But if you have a TON of TFSA room available and you are nowhere near close to maxing it out, then sure you can hold savings in there. I hope that helps =)
Yes they do and it's an interesting idea but I generally am against it. You should NEVER invest with borrowed money! Investing is risky enough as it is, so only invest with YOUR money and money that you don't need to touch for at least 3 years =)
Hey Adrian, I gotta know, that music at the end.. where did you get it? I always find myself poppin' and lockin' to it at the end of your vids and I was just wondering where it comes from?
When you're a RU-vid creator, you have access to a giant library of royalty-free music that you can use in your videos without worrying about copyright or anything. I found it there =)
Absolutely! Check out my step-by-step tutorial on HOW TO FILE TAXES in CANADA with TurboTax! I have a whole section on RRSPs where I show you exactly how to carry forward those deductions for a future year =) ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-4RxkNa2VjtU.html
I will be making a whole video on how capital gains tax works but selling US stocks is no different! You will be taxed the exact same capital gains tax on US stocks as you would on Canadian stocks. Only 50% of your capital gains will be taxable, that's why capital gains are so tax efficient! =)
Hey Adrian, Dude thank you so much for all this incredible content! A wealth of knowledge readily available. Question: Other than accomplishing NG properly to purchase US Listed ETF'S, is there any down side you could see to holding mostly US Listed ETF'S in my portfolio/RRSP (VTI, VWO, and AVUV) vs their Canadian counterparts? I like the lower MER and easier on FWT. Just want to make sure I'm not putting the cart before the horse. VCN in my TFSA. Hope to hear from you! Cheers from a fellow 🇨🇦
With my limit being 75,500 in my tfsa. say I contributed 25,000 in my tfsa then I take out that money in December. Will I have 100,500 the next year or will it still be 75,500 plus say the extra 6,000?
So right now you have $75,500 of room. If you contribute $25K, you will now have $50,500 of room left. When you withdraw that money, your TFSA room is unchanged but then on January 1, you regain that $25K of room PLUS the new $6000 so you will have $81,500 of room =)
Luckily I have a full step-by-step tutorial on how to buy and sell stocks so check it out! =) ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-_V2yBWwOZX4.html
Absolutely! I will be making a WHOLE video on how to invest using a Margin account and what to avoid! Namely, do NOT invest with more than your cash amount since you will be "borrowing" money and make sure you use Norbert's Gambit to convert to USD =)
im a complete noob when it comes to investing. what do you do when you max out your tfsa? i can only contribute $6000 per year. so if i want to invest more money, where do i invest the money to?
Once your TFSA is maxed out, you'll want to invest in your other tax-sheltered accounts like the RRSP and RESP and after that, then you have to invest in your taxable accounts like your margin account =)
Hi sir could you tell me if well health is good to buy now... I am just starting to buy like very new at this ... can you share some names for beginners to make profit and be secure.. 🙏🏼
Well Health is not for me.... it's incredibly speculative and risky stock and I think it's awfully overvalued right now... Again it's your money so you have to make your own decisions but I prefer to stick with more established and reliable companies with a solid track record =)
Check out my Stocks to Buy playlist to see some of my favourite Stocks and ETFs which I invest in! ru-vid.com/group/PLj8bU3AuW2qFD4sCsCxXdaAADlyiP8bqB Make sure to always do your own research and don't just blindly follow some random guy on the internet, including me! =)
I don't have any personal experience with RDSP but I can make a video on it if enough people are interested! You should invest in it similar to an RESP or TFSA, since US dividends will be charged a 15% withholding tax in an RDSP
Hi Adrian, thanks for all the investing tips you gave us. You're awesome. I just click you referral link but when I bought US stocks on my RRSP, I paid $5. You said $5 free trade, right?
Hey William! The $50 referral bonus is a rebate, you won’t receive $50 cash. When you buy stocks, you will be charged the commission fee as usual and then Questrade will reimburse you that commission after a few days, for a total rebate amount of $50. I hope that helps =)
if you sell your stock but don't withdraw from personal account is that considered gain or loss and subject to tax? technically we can't use it if we don't withdraw!
When you say personal account, you mean a non-registered account? Like a Margin account? In that case, yes. You will be taxed on the capital gains on the year that you sell your stock. Even if you don't withdraw that cash and spend it, you still made a taxable profit!
@@CanadianTShirt Yes like margin account, if that's the case every dividend we receive will be subject to tax even if we reinvest it in same stock! not fair!
Im not nearly as qualified as ^^, but I would say a margin has a lot more potential risk, especially for a beginner. I opened a non registered (taxable account) to start with but that was just to experiment. Once you have a clearer idea of which long term stocks you might like, buy them and hold them through your TFSA. Like I said, just what I would recommend. Good luck!
Thanks Alex for stepping in for me! =) I will actually be making a whole video comparing the different account types and which you should focus on based on different scenarios but for most Canadians, the TFSA is the best one to start with since it's flexible and you can take advantage of tax-sheltered growth! Generally, you want to max out your tax-sheltered accounts (TFSA and RRSP) before you start investing in a Margin account. Why pay taxes on investments when you have tax-free room waiting for you? Make sure you check out my TFSA Explained video to see how it works! =) ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-i_bWf1NyUbE.html
This might sound silly but let say your TFSA grew to 100k, You make 80k/year job; couldn't you just put every paycheck in the TFSA, withdraw the money right after and just live tax free for ever ?......
Ya I will definitely be making a whole video about it, I just wanted to give a high-level overview since a lot of Canadians don't even know it exists and then it's a huge surprise during tax time! =)
Nope!!! That's the beauty of the TFSA! Any income you make in your TFSA (capital gains, dividends or DRIPs) do NOT count as contributions!! So if your TFSA was maxed out but then you earned $5K in dividends (or $5K worth of shares through DRIPs) this would NOT put your over your limit! You get to enjoy watching your TFSA grow worry-free! =)
As long as you don't take out the cash, it does not affect your contribution at all. The TFSA contribution room is evaluated based on the cash you have deposited and withdrawn from your account over the year regardless of the capital gain and/or loss you scored.
The CRA does NOT care what you do inside the TFSA (as long as you aren't day trading) The only thing that directly impacts your TFSA room is contributions going in and withdrawals going out. That being said, if you sell stocks at a loss inside your TFSA, you are effectively losing TFSA room even if you don't withdraw. Let's say you max out your TFSA with a $10K contribution and you put those all into a stock. Then 4 months later, you sell those stocks for a $4K loss. Now you ONLY have $6K of cash available inside your TFSA even though you put in $10K initially! The CRA does not care about this $4K loss, your TFSA is still maxed out as if you still had your original $10K so you CANNOT put in any more money into your TFSA until next year. So on paper, your contribution room hasn't been affected but in reality, you only have $6K of TFSA money to play with versus $10K which you would have had if you didn't sell at a loss. So now, you will always be $4K BEHIND someone else who didn't sell at a loss in their TFSA. This definitely isn't a simple, straightforward concept so I hope this makes sense. I think a lot of people have this question so it might be worthwhile to make a whole video about this topic.
I personally use Turbotax to file my own personal and business taxes for the past 10 years. I'll be making a Turbotax filing tutorial very soon within the next week! =)
hello Adrian, you said that if we have an increase in our income in 2020, its worth waiting for the next year to claim the difference. Could you explain this a little better?
Well there are two different things that you can delay claiming that I talked about in this video. 1. RRSP contributions you make. You can deduct this from your taxable income to reduce the amount of taxes you pay that year! If you expect your income to increase next year, then it's better to wait to claim that RRSP deduction next year since you'll get a bigger tax saving. Check out my RRSP Explained videos for more details on that!
2. Was the capital gains which occur when you sell a stock for a profit. In that case, you might choose to wait until January to sell a stock to delay the capital gains tax that you would pay by a whole year!
I am preparing to start filing taxes for 2021 and realized I have to pay a lot of taxes back due to the CERB and EI we received during COVID. Is there any way to reduce the amount of taxes I need to pay. Would adding a sum of money to an RRSP or TFSA, lower the taxes I have to pay back or is it already too late? If you have any tips to reduce please let me know!! Thank you for the great video :)
Awesome info Adrian! I'm planning on maximizing my tfsa contribution with questrade portfolios in 2021. Would you recommend doing a lump sum or a laddering contribution? Thanks again and Happy Holidays!
It doesn't really matter if you do a lump sum or multiple contributions but I would recommend spreading out your investment over the course of weeks! What I mean is that you can put in $6K into your TFSA all at once but you don't have to spend that entire amount on stocks right away! You could spend $1K today and then $1K next week and so on. This way you aren't trying to time the market, you are taking advantage of dollar-cost averaging! =)
