5 TFSA Mistakes YOU MUST Avoid
HTML-код
- Опубликовано: 1 июн 2024
- Our free retirement ready e-book: www.parallelwealth.com/youtub...
There are a number of different reasons why you may not be using your TFSA correctly. Maybe you do not understand the difference between a beneficiary or a successor holder, or maybe you are stuck on what a TFSA can actually provide for you because it was poorly advertised early on.
Whatever reason it may be, in this video we'll go through the 5 main mistakes that we often see when we meet with our clients. By the end of the video, you'll get a good idea of when & how you should be investing within your TFSA, as well as some planning strategies so that you can take full advantage of the tax benefits that come with a TFSA.
6 ways to level up your financial plan:
Personal Finance for Canadians for Dummies: amzn.to/308jzic
Free Credit Report with Borrowell: borrowell.com/free-credit-sco...
Open an EQ Bank Account: join.eqbank.ca?code=ADAM8851
Financial Calculator I use: amzn.to/3qiFf6m
Financial Masterclass for Canadians: www.parallelwealth.com/master...
20% off an online Will at www.willful.co use promo code: PWFG
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 email Info@Parallelwealth.com or call 604-256-1151 and we will set up a meeting with you.
-----------------------------------------
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.
TL:DR
1. Don't do a TFSA Beneficiary Designation, make a successor holder instead
2. Don't use your TFSA as a 1-3% savings account, make it a 3-100% investment account
3. Don't put money into your TFSA when you owe money at a high interest rate to someone else, like a credit card company, pay them off first
4. Don't contribute and withdraw from your TFSA in the same year, only let your TFSA money flow in one direction per year
5. Withdraw TFSA money in December this year if you know you need it next year to buy something
You are hired
Step 2, That's why it really should be called a TFIA. I guess too complicated for some people.
Point 1 - when moving monies to your TFSA as a Beneficiary Designation, can l assume you wouldn’t be charged 1% by the gov’t for over contribution ?
This saved me 6 minutes of my life, thank you.
Need this in the video description.
Great comment!! I never hear about the Successor holder.
Correct but he failed to mention the RC 240 form from the CRA to rectify (the situation) in the same calender year when the annuitant becomes deceased.
@@boricuadetorontocanada that would be dealt with upon death when adjudicated! His video is awesome and too much detail just adds confusion… as long as it doesn’t impact taxes/limits, he didn’t fail to mention any details in my view… but good to know 👍
Great video and informative, thank you for being very clear. As for some viewers, a positive comment is more appreciated than a negative one. It takes a lot of time and effort to put these videos out to inform us Canadians, for those who are not aware of all this find it valuable like myself. Thank you so much. 👍🙏
@@boricuadetorontocanada ey Boricua, anything you can add to increase our knowledge is welcome. Just make it in a positive way, remember we are Canadians, we are polite 😀
@@ginocolello4241 we definitely aren't that polite. Maybe in comparison to Americans lol
No one has ever mentioned the Beneficiary vs the SH configuration to me before. Thank you very much for this.
You are very welcome
The TFSA is my favourite account. By the time I retire it’s my plan that it’ll be worth several hundred thousand and have significant dividend income for me to withdraw tax free to help fund my retirement
Used at it's best, the TFSA is the most valuable retirement tool in registered plans.
Based on what I usually see on RUclips, I was expecting simplistic advice and a thinly disguised sales pitch for your services. What I got was some good solid financial tips. Nice work!
Lol we will pitch you eventually 🤣🤣🤣.
Just trying to help Canadians 1 video at a time.
Awesome job
@@ParallelWealth First, absolutely love the show! I'm wondering if you guys would consider if index investing makes sense going forward, consider this: If you were making $21.50/hr at the lows of the great recession, you could by 1 share of spy for around 4 hours worth of work ($86). Now, say you are making around $35/hr, 1 share of spy is going to cost you about 13 hours of work. Is the risk-reward ratio too high, as Peter Lynch seems to suggest? I used a nominal wage tracker to get the rough average hourly US wages for the low of the great recession and current. Obviously, wages have not even come close to keeping up with the increases in the market, and therefor the relative risk of the market is multiple times as high as it once was.
@@ParallelWealth llllllĺqwertyuiop
His advise is always this good!
I am a teacher and I definitely appreciate well-communicated, thorough and accessible information when the subject matter can be hard to grasp. You are an excellent resource and I want to thank you! Please keep it up.
Thanks Lise, very kind of you to say.
Always excellent advice !
Great information Thank you
Awesome information. Thank you.
Thanks for the excellent tips
Love it. So we’ll explained. Thankx
awesome video, thanks for that ! good work !
Thank you so much! Very informative!
thank you!!! this video is just what i needed !!!
Great tips. Extremely useful. Thanks!
Great summary!
Great info!
Excellent video
Thank you! Very useful.
Awesome informative video.thanks
thanks for the clear explanations , keep up the great work!
Thank you very much.
Great channel.
Great tips thanks
Thanks, it's very informative
Good Video , thanks
Thank you. Very helpful
Thank you for these wise advices.
God bless you.
Thanks for getting to the point quickly Well done.
Love your videos. This has been really helpful. Very informative. Thank you!
This is some solid info and recommendations. Great channel! Thank you for doing these videos for us!
That last one, Great advice never heard that one before. Thank you for sharing.
Very informative video
Awesome info. So informative. Thanks a lot. I will keep & share it to people that I know have TFSA
Thanks ,have a good Day
This is an EXCELLENT video, clear and concise and great advice.
VERY good vid!
Thanks for the info. 😀
Excellent info. Short and directive and I guarantee that everyone will learn at least one thing.
Excellent to the point video! Very informative! Thanks a bunch!
Glad it was helpful Kosina
As an advisor, you nailed it!
great info
Thank you so much for explaining this so well, I can follow what you are saying and it makes sense.
I am going to watch your videos to help me and my job, I'm in finance.
this is great. i was not aware of this. thank you
You're welcome!
Great vid, looks like I avoided these mistakes by chance, not skill. Thanks for helping others meet their goals.
Thanks for an interesting educational video. Easy to understand with clear language. Didn't make me nod off or my eyes glaze over. Well done!! Thank you :)
Thanks. Important Stuff.
You are doing canadians a great service with these videos. Thanks!
Thanks Peter
Great videos and channel overall!!
Thanks!
Great advice!👌
Thanks Jade
Great info on tfsa
This is great knowledge thank you
Thanks Cathy!
Fantastic video and recommend everyone to watch!
Thank you!
nice vid
Good Information. Also, the discussion about Successor Holder also applies when setting up your RRIF although some institutions may call it Successor Annuitant.
Great video!! Especially the beneficiary part. A lot of people including me, did not know about the successor rules.
I am going to scroll through your videos for anything else of interest to my situation.
Excellent Info appreciate your Amazing vloggs keep up a great work Merci for sharing
My pleasure!
Great tips! Didn’t know about the successor holder. Will look into that. Thank you! Subscribed.
Thanks for the comment and sub.
Well done.
Successor TFSA beneficiary I did not know. Now I do.
Thank you.😃
This is what I call knowledge is power. Thank you.
Glad it was helpful!
THAAANK You!!!
Excellent video. I have seen a few now. I just subscribed. Yes, the successor holder mechanism was new to me. I'm going to rewatch. Thanks👍
Thanks for the view and sub
Great job and very well presented 👍👍nice to see some Canadian content that is valuable! Thank you
Many thanks!
Nice informational video
😊 thanks
Thank you.
thanks Adam again. Your financial wisdom is far better than I have ever seen.
Thanks, very much appreciate that. Glad the videos are helping!
Nice video ...appreciate the effort you put in..🎉🎉😊😊
My pleasure 😊
Thank you Adam, same as Kevin Jackson, I find your videos provide good solid financial tips in a humble and clear way; straight to the point.
Thanks! Appreciate the kind words.
Great video
Glad you enjoyed it
Great information , very hard to come by.
Thank you.
Nice video. I'm familiar with several of these, but the whole beneficiary/successor holder distinction is entirely new to me! Thanks!
No worries. Glad you took something away from it.
Very new subscriber so I have some catching up to do, I'm off work construction worker and 56 watching older vlog.
I get the retirement aspect and the working serino when you talk about money, just don't want you to forget about a segment of our population whose financial situation is more dynamic and unfortunately have to use retirement money now to pay the bills.
Awesome information and I wasn't talking about myself but know of others that are struggling.
On point one: if you are listed as a beneficiary but are a spouse you can actually just apply to have it changed. Yes it's a bit more work but you don't actually lose that opportunity simply because it was filled out poorly. Though I do agree with you getting it right from the start is just better.
As a fellow Canadian ... Totally appreciate your advice!
Thank you!
Thank you
Succession holder. Never heard of this. You may have saved me a tonne of taxes. Thanks
Fabulous!! Thank you sooooooooooooooo much!
You are welcome Rick.
Thank you I never heard of a Successor. Odd why my financial adviser didn't mention it or the Lawyer when he drew up my Will.
Thanks again.
Such a good video. I didn't know about the Successor holder and have now changed the designation on my TFSA. Thanks so much!!!
😁
So, this answers my question: “For my existing TFSA and my wife’s TFSA, can I change from beneficiary to successor holder after the fact?”. Adam, maybe you should confirm this is actually true. Going to make this change next time I meet with my FP. Great video Adam, as they all are!
How did you make the change? I can’t get my bank to confirm if my husband is listed as beneficiary or successor holder.
Impressed. I need a tax advisor for retirement and would be happy to hear from you.
In Quebec, the designation of a beneficiary and/or successor holder can be made only in a will or marriage contract.
Thanks good info.
Honestly the biggest life hack in Canada, glad I bought tsla in my tfsa few years back 😁
Honestly thought this was gonna be one of those videos with the stupid easy, everybody knows tips. But this was actually really good info!
Lol thanks.
Great advice! Just downloaded the forms to make sure my husband and I have each other set as Successors and not Benefiaries. Thank you!
Where did you find these forms?
Thanks for the Video. Regarding #5, I think you should clarify that this is for people that already have maxed out their tfsa. The contribution room is the same no mater what. Contribution room is added regardless of wether you take it out or not. If you have 65k in your Tfsa and you take out 10k you have 10k of room. Wether it’s before or after January, it doesn’t matter.
What a great video!
ty I need this.
I thought I knew the TFSA rules.
This video really cleared up some confusion.
Especially the first tip..had no clue
Well done and thanks!
Glad it was helpful!
If I could like and subscribe 1000 times I would. Just found your channel and binge watching your vids. I have an investment advisor that I meet with yearly and I'm happy with, but you just add a whole other level of knowledge while I watch and learn sitting on my couch having an adult beverage.
Thanks Ken. If you could sub 1000 times I would let you too!!
Great advice. I will send the video to my Sister and she can make my BIL as a Successor. I subscribed also and sent them the link to your channel as well. Keep up the good work,
Could you have 2 Successor Holders on your TFSA? Split evenly? as in your Kids?
Quick Recap:
1. Don't do a TFSA Beneficiary Designation, make a successor holder instead
2. Don't use your TFSA as a 1-3% savings account, make it a 3-100% investment account
3. Investing while having HIGH INTEREST DEBT - Pay Down the Debt First
4. Don't contribute and withdraw from your TFSA in the same year - Do One or the Other
5. Withdraw TFSA money in December this year if you know you need it next year to buy something
Successor holders can only be a spouse or CL partner....so good luck naming 2!! LOL.
Great information! My wife and I just this week set up TFSA's at our bank. The advisor there made absolutely no mention of the "successor holder" designation.
Not surprised.
We've since had that designation added.
This is because....banks are horrible. They don't really work for you. They work for themselves.
Thanks.
Thanks for noting the beneficiary vs. successor designation! Hopefully ours is correct.
I had no idea about the first tip, thus made this mistake. Now calling my banker for an appointment. Thank you.
Does the successor holder have to be the spouse/common law partner or anybody being designated?
I thought I was relatively proficient on how best to use the TFSA, but have to admit I learned a few more key things. I did not know about Successor vs Beneficiary. I don't even recall seeing that option being offered on any of my (or my spouses) TFSA accounts. I'll need to call them to find out where we can make that designation. The end-of-year withdrawal strategy is also a great tip. Your YT channel (and the solid advice/tips it provides) deserves more views / subscribers. Well done!
Thanks Jax! Appreciate the kind words and always good to hear our efforts are making a difference.
Hi Adam! Thank you for all this informative videos you put out. I am learning more than ever. I am wondering if you could make a video about US penny stocks and delisted US/international stocks in registered accounts (TFSA, RRSP, RESP). What happens to my high risk investments and what should I do? Can I just transfer the US stock(s) over to my Margin account and continue to see if their values go up? What would be the best solution for my situation? What would CRA in this case? Thank you in advance.
The option to leave your TSFA is on your mailed form which shows your latest deposit. If you call the 1800 on your bank card where you have a TSFA they will guide you to where these options are so it will show on your forms. Leaving it to your estate etc.
That’s good to know
Fun thing I ran into is if you transfer securities in-kind to a TFSA from a non-registered account and the price of those securities dropped since the time of purchase then you can't claim a capital loss as the loss is considered superficial.
Great advice on successor holder for TFSA! What about RRIF's and RRSP's?
How would you add your adult children in case both parents are killed together in crash etc. for any of these investments?
If your spouse is a “U.S. person,” name him or her as BENEFICIARY, not successor holder. Current U.S. tax law does not recognize earnings within TFSAs as tax-free and characterizes them as “foreign trusts,” adding yet another layer of onerous reporting requirements on the surviving US spouse.