TFSA Explained: EVERYTHING You Need To Know (Contribution Room, Withdrawals, Strategy, & More)

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Fee for service financial planning: www.parallelwealth.com/ffs
Contribution room table: fbc.ca/blog/tfsa-limit-2021-a...
We've done quite a few videos on TFSAs on this channel, but when I talk to clients, there is still some confusion around the topic. In this video we'll go through all the ins and outs of a TFSA. What is a TFSA? What are some common mistakes? What is my personal TFSA strategy? Hopefully by the end of the video you have a good idea of how a TFSA can be extremely helpful for you, and can be a great tool not only for retirement, but for a variety of different reasons.
If you have any further questions about this video's topic or any financial planning questions in general, I encourage you to find a certified financial planner in your area or book a consultation with us to get your savings plan on track.  You can learn more about our services at www.parallelwealth.com/planning or email Info@Parallelwealth.com
OUTLINE:
0:00 - Introduction
0:45 - What This Video Covers
1:45 - What Is A TFSA?
3:28 - Contribution Room
4:26 - Various Examples (Withdrawals / Contribution)
13:39 - TFSA Mistakes
19:07 - How To Use Your TFSA?
24:29 - My Personal Strategy
-----------------------------------------
DISCLAIMER: The videos and opinions on this channel are for informational and educational purposes only and do not constitute investment advice. Adam Bornn is not registered to provide investment advice and as such does not provide recommendations - those looking for investment advice should seek out a registered professional. Adam is not responsible for investment actions taken by viewers and his content should not be used as a basis for investment trades.
Take our Retirement Ready Assessment www.parallelwealth.com/retire...
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Book recommendation: www.amazon.ca/Start-Why-Leade...

Опубликовано:

27 июн 2024

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Комментарии : 144

@Bondanalloy 2 года назад

don't worry. if every video you do is tfsa, it still won't be enough to raise awareness and educate canadians on how awesome it is. everyone should have one.

@ParallelWealth 2 года назад

I feel the same...honestly if each TFSA video helps 1 person it's a win!

@huejanus5505 2 года назад

Too many people think it’s just a higher interest savings account, and just forgo it.

@mrslcom 2 года назад

One of the reasons that many people are not investing or misusing the TFSA is because it’s a misnomer. The name implies it’s a tax free Savings account while in reality it should be more appropriately named as a tax free Investment account.

@ParallelWealth 2 года назад

Tanah, couldn't agree more!

@tomhinds14 2 года назад

I understand that part Tanah, I just have no idea as then how to use this account for investing. Can you possibly expand on your statement,

@tomhinds14 2 года назад

@@ParallelWealth or Maybe you could answer my question? Thank you both in advance

@tomhinds14 2 года назад

@@ParallelWealth can I ask my bank to invest for me, and is this a responsible idea?

@ekarassev 2 года назад

You Sir explain it so well. Thank you very much.

@ShawnHedges 2 года назад

Wow, very helpful; especially the example that starts at 4.29 min. Thanks Adam.

@brianwraight4966 2 года назад

Thanks for clearing this for me

@howardabe9256 2 года назад

You break things down very well and have uncovered many things for me to think about. I like the Canadian focus also. Subscribed!

@ParallelWealth 2 года назад

Thanks Howard! Welcome to the channel

@S.A.F276 2 года назад

Great advice as usual 👍

@andrewc2252 2 года назад

Thanks Adam. Great video.

@lizgutierrez4221 2 года назад

Adam, thanks for the great video. Somehow, it encourage me to touch my TFSA and invest some of the money so it will grow a bit more. Right now, the rate of my TFSA is almost zero.

@prakruthi7414 2 года назад

Wonderful work. Thank you so much, Mr Adam.

@ParallelWealth 2 года назад

You are very welcome

@normbond8888 2 года назад

Adam thanks to your previous TFSA video on successor holder instead of assigning a beneficiary I changed my TFSA that I’ve had since they became available. Back then most financial institutions only knew of assigning a beneficiary. We moved my wife’s TFSA from a bank to their brokerage house accounts so she could buy stocks not just mutual funds. Easy to do as long as you stay within the same financial institution. The dividends we earn we leave as a cash buildup instead of DRIPPING the dividends. This become our emergency fund. Once there is too much cash then we take some of it & buy more stocks. The only cost is a small $10 brokerage fee instead of no fee to DRIP a stock. Everyone should have a TFSA as part of their financial strategy as you say. You don’t have to be rich to have one, but it is a way to become richer tax free.

@ParallelWealth 2 года назад

Good to hear Norm! Sounds like a good plan. If you are buying cdn stocks look at Wealthsimple Trade - offers free trading. You could transfer your account over and they will cover transfer fees too

@markhowarth4978 2 года назад

Great video

@truthandnothingbut 10 месяцев назад

You’re doing amazing work. Thank you for your content. Subscribed and a supporter. Kind Regards

@ParallelWealth 10 месяцев назад

Thank you so much 👍

@truthandnothingbut 10 месяцев назад

@@ParallelWealth ✨

@jovicrazed 2 года назад

Another tremendously helpful video. Thank you, Adam. LOL - I do watch a lot of YT videos in 1.5 speed but not this channel.

@ParallelWealth 2 года назад

I would recommend it:) LOL

@smartmom7758 4 месяца назад

Thank you

@leckmanj 2 месяца назад

really good video..I'd also suggest for people to be aware that if you have US investments in your TFSA that pay out dividends, the IRS with withhold 15% tax

@SandrineetCie Год назад

As a.canadian born and raised abroad that settled in the country in their 40's, we started using TFSA as a part of our emergency fund. Part of it in TFSA (higher interests) and part of it on a regular saving account As soon as we can get the full amount for EF out of the TFSA, we will definitely use it to invest. Thanks for the reminder though - it's easy to not change anything and miss the opportunity to invest.

@rickgray6960 2 года назад

Fabulous as always! Thanks a bundle (is in cash) :0)

@neolithic3 2 года назад

I naively thought that almost everyone had a TFSA (maxed out no less). I was shocked recently to see some statistics showing just how few Canadians are actually using it. It's such a fantastic investment account option, I wish so much it was around 25 years ago when I was starting out in investing. I would be so much further along by now.

@ziggyustar3137 Год назад

Most don't have the funds to invest and leave there/ most can not afford a home let alone the paint to make it look nicer/ If you invest $6000. for 5 years you make $300. that's enough to take a family of four to the local fair on a Friday nite/ crime pays better / so who has $86,000. to invest this year? so your comment is just boasting & good for u

@paulyslevel 2 месяца назад

My neighbour “Joe” is a brilliant man

@whitefox8291 Год назад

Thank you for your videos, investing in stocks is quite risky though, invested 50k in a TFSA during the Russian war and hit a wall, took out my money and injected more in a GIC at 4% and planning to keep it compounding until retirement

@alimony812 Год назад

Sounds like ultimately it may be more beneficial to max out a TFSA before working on maxing rrsp

@alainpascalrouthier5827 2 года назад

gee you mentions a lot of things here. one was many different type of tfsa account... ? what is that? i have a us$ and Can$ tfsa within those cannot i not just buy blue chips or more risky stocks? I currently have some F1 stock as play investment and vce, vfv as safer long term stocks. what else in tfsa option is there? thx, great great channel.

@gurindersira7996 2 года назад

Great video, thank you! My question is about taxation of TFSA funds when someone passes away and beneficiaries are kids.

@ParallelWealth 2 года назад

The account value at death passes tax free. If there is growth from point of death to account being sold and moved to beneficiaries there would be a tax bill in beneficiaries hands.

@gurindersira7996 2 года назад

@@ParallelWealth that’s so much for clarifying!👍

@debrapearse5116 5 месяцев назад

That’s great , you and your spouse have TFSA investments and also will receive CPP, OAS. What would be your strategy for withdrawal… RRSP melt down , or CPP or OAS at a later age ?

@udhambrar4422 2 года назад

Great piece of information.thanks Adam. If I have money in TFSA and I temporarily move out of the country for five years, do I have to withdraw money from the TFSA?

@ParallelWealth 2 года назад

Will depend which country and if you keep residency

@Investedarg Год назад

Hi I have a question. Does TFSA contribution limit depends on the year when you became a resident of Canada? Or the whole TFSA limit gets (if ones born before 1991) regardless of the year of residency canada? Please give me the government website link which shows that. Thanks

@clarabudescu8969 2 года назад

Hi Adam,i have a question:for a 52k over contribution in 2021 (75.5k max)what is my contribution room in 2022: 81.5k,(75.5k+6k) that means i am ok in 2022 or 0 room space+6k new space+52k from last year withdrawn=58k,that means i still have 17.5k at least an over contribution in 2022( there are also the gains of the over contribution to consider)Thanks for clarifying this .

@biginvestmentsinc25 Год назад

We recently opened a ontario Corp. Would it be possible to borrow from a H.E. L.O.C , deposit those funds into a TFSA , Then lend that money to the ontario Corp plus interest as a shareholder loan, And pay that back principal and interest when the Corp has enough money back the TFSA tax free ?. Or would that trigger tax on the interest gained.

@denismeilleur1267 2 года назад

I did invest within my TFSA account, so why i have less money in it that i put in without any withdraw.

@evotorentals 2 года назад

Great video thanks! but can you please explain how dividends are managed inside a TFSA i.e. US dividend stocks vs Canadian dividend stocks and the withholding taxes of each on their dividend payments?

@James_48 2 года назад

US dividends within a TFSA are subject to the 15% withholding tax on the dividend. The only account that is exempt from this is a RSP/ RIF account. It only applies to the dividend - capital gains are not impacted.

@evotorentals 2 года назад

@@James_48 awesome thanks

@ParallelWealth 2 года назад

Thanks James!

@evotorentals 2 года назад

@@ParallelWealth But what if I want to live off a US monthly dividend? if I buy the US dividend stock in the RSP, every time we pull out the money monthly, I will be hit with Canadian tax come April. If I buy the US dividend stock in my TFSA, I am hit with a 15% withholding tax

@royald4169 2 года назад

Is this money just sitting there?? Or do you have to have the amount already saved??? Cause I just got told I don't have anything

@lucylucy9311 2 года назад

how to merge our tfsa accounts without trouble, can you have a video on that pls. a lot of people have one tfsa in high interest savings and another in investment acct, now you said shouldn't put tfsa in high interest savings, how to bring the high interest savings tfsa and merge it with tfsa investment acct. pls make a video on it, thanks.

@ParallelWealth 2 года назад

Just request financial institution to consolidate them. If at different institutions then you will use a T2033 and transfer it.

@a3a21971 2 года назад

hi Adam… to recap.. if I had 75k and it did well and it’s worth 150K.. to set my TFSA roof.. pulling it all out Dec 31 and then putting it all back Jan1 sets my TSFA ceiling for future @ 150k.

@ParallelWealth 2 года назад

Correct, plus new contribution room for the year (currently $6k)

@manjitdhillon4368 2 года назад

Hi just question if I did not contribute every year 6000.00 can I contribute 12000.00 in the next year?

@philjans1 2 года назад

Isn’t better to max out REER before putting money in tfsa so that the lowering of tax is worth more then growth in tfsa?

@ParallelWealth 2 года назад

I assume you mean RRSP? Will really depend on your income.

@mudkipmilk 2 года назад

I think it's a misconception that DIY Investing (eg. WS Trade) is just high risk stock picking. You can buy the same broad ETFs, the same that investment companies charge you 1-2% yearly for. My WS Trade portfolio is 75% broad ETF, 10% stock picks, and 15% Crypto ETF.

@ParallelWealth 2 года назад

Yup. Also a misconception it is free trading. The FX they charge on US stocks is really high.

@mudkipmilk 2 года назад

@@ParallelWealth You lose 3% but only after you buy/ sell. If you're not actively trading, the % is extremely minor compared to 2% MER on a mutual fund.

@Igor-df4gl 2 года назад

Thanks for the video. Question- when is it more advantageous to invest in an RRSP vs TFSA, and vice versa.

@ParallelWealth 2 года назад

In very broad terms, $50k or more of income look to use RRSP

@TechPeasant404 2 года назад

i dont understand why you cant day trade with money in your tfsa. the logic escapes me as to why it matters how many trades we do.

@ParallelWealth 2 года назад

Chad, it surrounds the intention of the account. It would be great if CRA came out with more language around the rules.

@guillermohernandez8114 2 года назад

Thanks again for the free education. Can you please let us know what is the name of the company that drives your personal TFSA?

@ParallelWealth 2 года назад

BCV Asset Management manages my personal accounts.

@guillermohernandez8114 2 года назад

@@ParallelWealth thanks! I went to their website to see if they offer services to individual costumers like me but they don't seem to do so. I'm wondering if this company only manages wealth for companies wholesale?

@guillermohernandez8114 2 года назад

Never mind, found this: "Our minimum account size is 300 thousand dollars" 👀

@OlegScherbina 2 года назад

Can you do short-term option trading (covered calls, puts) in TFSA? Will CRA allow it, or treat as trading business?

@ParallelWealth 2 года назад

My understanding is yes, but speak to your investment advisor to confirm.

@mikes8510 2 года назад

I think you have 2 questions here. 1) Can I trade options in a TFSA. You are not allowed to short options (or stocks/ETFs) in your Registered account with the exception of Covered Calls and Cash secured short Puts (only some Brokers allow the short Puts). I am with IBKR and they do not allow cash secure short Puts. I do trade covered Calls in my TFSA and I also buy long Puts as a hedge. 2) Can I do short-term trading in my TFSA (like as in day trading?). TFSA is meant to be used for investments, so if you are day trading/high-frequency trading and CRA finds out, they will audit you. If they determine that you are generating business income instead of investment income, my understand is there can be heavy penalties.

@SIRMusik-gb1xc 20 дней назад

Can someone explain like I’m 5, or like I’m dumb (cause I am 😂) what is meant by holding investments in a TFSA. I thought I can only put cash in like a savings. I just learned there are three types of TFSA. Is it that I go into a bank or financial institution and ask for a tfsa that I can also put investments in? So confused

@Dom.Perignon123 2 года назад

Hi Adam and thanks; I really like many of the videos you put together. Question - for example, if my father (81yrs old) hasn't contributed for couple of yrs and has accrued let's say $12K and passes away, does he lose that availability or can my mother, as successor holder, use that available room along with whatever room she may have? Obviously, my father's available room won't increase going forward after he passes, but is that previous "earned" room still available to be used by my mother as successor holder? If she can use, are there time limits as to when she needs to fund the account? For the record, my father is still alive; I'm just trying to help them get their affairs in order. thanks so much for all your hard work and insight into investing!

@ParallelWealth 2 года назад

It's lost. Your mom would take over his account and the current value would increase her room should she ever take it out. So the $12k is lost and can't be used past death.

@Dom.Perignon123 2 года назад

@@ParallelWealth much appreciated for the response Adam!

@darineelsafadi3137 2 года назад

hello great video. i am new to this. in last February 2021 i deposit 19k to my account and withdraw after 4 days. now my account is 0$. iam thinking of adding 70k next week? think??

@TubeDeviant 2 года назад

Question: I'm guessing that most if not all banks offer TFSA accounts, including online only banks. Do you have to open a TFSA account at a brick and mortar bank to be able to pick whatever investment(s) you want to invest in..?? Also, how many different investments can you include in a TFSA account..?

@ParallelWealth 2 года назад

No, online options are good too. Investment options are endless.

@TubeDeviant 2 года назад

@@ParallelWealth Hey, thank you for clarifying..!! So, you would have to talk to someone over the phone to choose whatever investments you want..? Cause I'm not exactly sure which investments either. I do know I want to invest in ETFs though.

@Dom.Perignon123 2 года назад

Bonus question (lol) Also, if one passes mid year and has not contributed, can the successor holder contribute full amount for that year or is it pro rated? thanks again!

@ParallelWealth 2 года назад

You would take on their account and boost your contribution room - but no further deposits to their account. So if you die mid year without making a contribution, tough luck! It's not prorated or allowed past death.

@kakalemus 2 года назад

moved to Canada in 2017, I opened my TFSA with my bank when I arrived. I only started to put money into my TFSA since Dec and make monthly contributions (small amount nothing too big) as for today I put into the max for the year $6000.00 Can I put in more to make up for the years I didn't contribute since 2017, 2018 and so on?

@ParallelWealth 2 года назад

Yes, but I would first confirm your TFSA limit on your CRA site to make sure you do not over contribute.

@thuybui1003 2 года назад

Could you name your spouse successor holder to any other accounts other than TFSA? Thank you.

@thuybui1003 2 года назад

Not the RRSP, though.

@ParallelWealth 2 года назад

Nope. But a beneficiary on a RRSP works much the same.

@eltraveluis 5 месяцев назад

Why can't you have your emergency money in a TFSA account in a cashable GIC just in case you need it. It will at least grow some %

@Andy-ir1sj 2 года назад

Awesome video Adam. I read a few stories about the CRA deeming your trades ( ie:Stocks, ETF etc..)within a TFSA as an income and taxed accordingly. Not even as capital gains but as income because supposedly, your research and knowledge on a stock make it as though you're actually making a living trading stocks. I'm afraid to buy and sell stocks within my TFSA even once a month, so I don't get dinged on this rules which to me looks like a grey area. I just keep dollar cost averaging into it. Any thoughts on that? Thank You !

@ParallelWealth 2 года назад

Keep in mind mutual funds trade daily....so there has to be some precedence there as well. Not sure a few trades a month would be a red flag

@katalystcruz8864 2 года назад

Its a grey area. CRA has a criteria in determining if you're a "day trader" so they can tax you as regular income. As long as your not making trades every single day within the span of a few hours...you should be fine. They also look at frequency of trades. If your investing and holding for the long term you shouldn't have any issues contributing once or even a couple times a month.

@calgarian456 2 года назад

Great informative video. My question is I am legally separated from my wife. Can I name her as the successor holder of my TFSA and will the money go directly into her TFSA?

@ParallelWealth 2 года назад

Not if legally separated.

@chillertime 2 года назад

Can you buy/sell crypto in your TFSA? Like BTC, ETH or other alt coins?

@ParallelWealth 2 года назад

Through ETFS, yes

@freedom888888 Год назад

Is there a best to track your contribution for TFSA?

@ParallelWealth Год назад

CRA online, but best to double check it as it's not always up to date.

@DeeInTheHouse 2 года назад

what if you do not max. out the 2021 contribution of $75,500 but maybe have a contribution of $60,00 and then... that $60k makes $40k (in stocks)...so in the TFSA acct. there is $100K in the end of 2021 (not pulled out). Can I contribute the remaining $15,500 from 2021 and the new $6k for 2022 , totaling $21,500 in Jan, 2022?

@ParallelWealth 2 года назад

Yup, exactly right. Happy investing!!

@ronitdesai6988 2 года назад

Thank you for the great video sir. I just had one question about cryptocurrency. As far as I'm aware, you can't invest in crypto with a TFSA account, right? I think whenever you try to open a crypto investment account, it will be a separate dedicated crypto account that would be taxed as regular capital gains are. This assumption is based on my experience with Wealthsimple. Please enlighten me on this matter. Thank you.

@ParallelWealth 2 года назад

You can buy crypto ETFs within your TFSA. There are a few companies in Canada that offer them. This is also unique to Canada.

@ronitdesai6988 2 года назад

@@ParallelWealth Thank you so much.

@steveogar5729 2 года назад

Could not clearly hear which investment company you use?

@ParallelWealth 2 года назад

BCV Asset Management.

@jatinarora5326 2 года назад

If someone was living overseas and came in Canada in 2021 for the first time then how much is the contribution room for that person?

@ParallelWealth 2 года назад

$6k

@jatinarora5326 2 года назад

@@ParallelWealth thanks a lot. I really appreciate your videos. Keep posting this type of education stuff👍

@markmullen2349 2 года назад

I don't understand how you can increase your TSFA limit higher than the government limits. You stated that if I invested $75,500 which is maximum for 2021 and it grew to $150,000 and I withdrew all the money from this TSFA before 2021and didn't reinvest until 2022. Are you saying that In January 2022 I can reinvest $150,000 into a TSFA? I do not understand how I can invest the whole $150,000 in TSFA when my new limit is now $81,500 for the year 2022.

@ParallelWealth 2 года назад

Correct, you can increase your limit (or decrease) based on performance. 2022 would be the $150k plus the new $6k contribution room!

@alimony812 Год назад

So if I’m buying a new vehicle and make 4% on investment generally I’m better to take out TFSA money to buy vehicle to avoid paying 7% interest and no harm no foul come Jan 1 of the following year .

@ParallelWealth Год назад

100%

@ziggyustar3137 Год назад

So if your single and die who gets your tfs account/If you can't give it to your kid?not transferable///does it cash out w/ tax or not to the beneficiary who may be your only living child? or is the question you asked us not to post?

@ParallelWealth Год назад

Whoever you list as beneficiary would receive the amount of the TFSS in cash. They can then use it for what they want.

@peterbiagi703 Год назад

Once you make the TFSA's as successor holders, what happens to the TFSA money should both husband and wife die. Where does the money go? Does it go to the estate and what tax implications?

@ParallelWealth Год назад

Estate or you can name beneficiary still as well. Typically best to estate for planning, even if you do incur a small probate fee

@valtsatsanismains967 Год назад

Who do you have your investments with I couldn’t hear.

@ParallelWealth Год назад

BCV Asset Management.

@valtsatsanismains967 Год назад

Thanks so much.

@clarabudescu8969 2 года назад

Hi Adam,you talked about the over contribution room in the tfsa,but you did not mention a situation as i experience right now: here is my case:in 2021 i took around the 52k from the tfsa i had in my bank account,put them first in the check account then i put the 52k in the new tfsa account i have with wealthsimple.I added around 23.5k from the check account to tfsa wealthsimple account,so i had the max contribution:75.5k.(with around 150 dollars withdraw from divideds and the value of portfolio around 75.800)Studying how to transfer my rrsp and resp from the bank to wealthsimple,i just understood that the transfer i made from one tfsa to another tfsa account doesn"t qualify as transfer,but is considered a regular withdraw( a qualified transfer is made between the 2 institutions)witch means i over contributed with around 52k or more for the last 6 months already!Ought!I need to remove immediately the over contribution room,but i am confused about the exact amount:you said that the gains from the over contribution needs to be withdrawn,yes?how they are calculated?,how about the 2022 year room?when i can add funds for 2022?what is the best move right now to do?Thanks!

@ParallelWealth 2 года назад

Yikes! I would reach out to your bank for help on this - or wealthsimple. Always make sure you are using a T2033 for transfers.

@clarabudescu8969 2 года назад

@@ParallelWealth Thanks Adam,let me know the details about this,how i can get in contact with you?

@ParallelWealth 2 года назад

@@clarabudescu8969 www.parallelwealth.com/planning

@brucebalerion 2 года назад

My contribution limit is 75k this year. Say I put 30k into my tfsa and now its worth 50k. I withdraw the whole amount of 50k in December for emergency reasons. How will this affect my contribution limit in 2022?

@ParallelWealth 2 года назад

You would have 101k of contribution room. 50+45+6

@brucebalerion 2 года назад

@@ParallelWealth thank you!!

@jeffreydaniels7215 2 года назад

not sure if you touched this on your videos.... say I have a direct trading account at a discount broker, that includes a TFSA and an RRSP, so for year 2021 the TFSA contribution limit is $75,500.00 and I was able to grow it to $100,000.00, then I withdraw the $100,000.00 this year. So base on the video by year 2022 I can put back $106,000.00 to my TFSA. Question, can I get that $106,000.00 from my regular trading account and put it to my TFSA?

@ParallelWealth 2 года назад

Yup, the cash to put in your TFSA can come from your non- reg trading account. There may be a tax consequence in selling/moving those no reg assets tho.

@katalystcruz8864 2 года назад

That example of redemption sounds wrong. How can you get $150,000 in contribution room.. ??

@ParallelWealth 2 года назад

It's correct. If your accounts grows and you take it out - regardless of size - you get that withdrawal amount back as contribution room the following year plus the usual $6k. We have clients that have TFSA accounts well over $500k.

@katalystcruz8864 2 года назад

@@ParallelWealth WOW. It just sounds to good to be true..especially when dealing with the CRA..

@henryhonda8408 2 года назад

I don't understand why this is confusing. The rules are very simple and easy to follow.

@sonja8282 2 года назад

I don’t think the information at the beginning of the video is correct. If you maxed out your TFSA contributions ($75,000) and it grew to $150,000 and then you withdraw it all this year I think for the next year your room would be only $75,000 plus the $6,000 for the next year, not $150,000 plus $6,000. You cannot increase your contribution room just because your money grew. I think you just get back the contribution room you have utilized before but when you withdraw your money out of TFSA you get that same room back, but not the increase. Let me know if this is correct.

@mpTraveller87 2 года назад

Not true. You can put all the money you took out back plus any new room. If you are in doubt check your room in your cra account. It will be updated in the new year.

@ParallelWealth 2 года назад

Sonja, the video is correct. If your account grows and you pull money out you will get all that redemption back the following year plus new contribution room. Margaret - thanks for beating me to this!

@sonja8282 2 года назад

@@ParallelWealth Thank you, you are correct. I checked the information.

@sonja8282 2 года назад

@@mpTraveller87 Thank you, you are right, I was wrong. This is actually amazing. I did not know it works this way.

@mpTraveller87 2 года назад

@@sonja8282 it IS amazing!! Now let’s find the cash to put it all back and then some shall we 🤣!!!

@MathieuAllain 2 года назад

Hi Adam! I have a question regarding contributions to an RRSP vs a TFSA. I know you suggest contributing to an RRSP when your salary is above $50,000, but do you suggest contributing 100% to an RRSP until there’s no room and then switching to the TFSA? I’m in the highest tax bracket and my Wife doesn’t work. Mathematically it makes most sense to max out my RRSPs, but I fear missing out on the flexibility that the TFSA offers. I’ve toyed with the idea of investing my RRSP tax return money into my TFSA, but then I lose on all the compounding effect of always reinvesting my RRSP tax return money. What do you think would be best? Thanks a lot in advance and sorry for the long message.

@ParallelWealth 2 года назад

I like the tax refund to TFSA. Balances it out. Actually recommended that to someone else earlier we were building a plan for. Definitely focus on RRSP but start building some TFSA now. Hope that helps