17 TFSA Mistakes YOU MUST Avoid (Tax-Free Savings Account)
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- Опубликовано: 18 май 2024
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In this video we'll cover 17 of the most common and COSTLY TFSA mistakes made by Canadian investors. The TFSA (Tax-Free Savings Account) is my favourite investing account in Canada and should be properly.
We'll cover things like contributions limits, the legal age to open a TFSA, designating your spouse as a successor holder, transferring TFSAs correctly, and many other common investment strategy mistakes made in the TFSA.
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How much do you know about the TFSA? Be sure to let me know down in the comment section below!! Also, I'm so excited to be speaking on stage at The Moneyshow Conference LIVE in Toronto this September. It would mean so much to me and my dad to have you guys come out and support!! We'll have a booth to meet you all and take photos :) Best of all... It's COMPLETELY FREE to attend!!! There are so many talented speakers at the event and it will be a blast of a weekend so I hope to see you all there - conferences.moneyshow.com/moneyshow-toronto/speakers/adec2b68f2144b24ba2e06060e4f8348/brandon-beavis/?scode=056838
Great video! QUESTION: If a contribute every week $125 cad and I invest it right away is it considered frequent trading? Should I better do it every month? Or what is your recommendation? Thanks
Facebook, Instagram sent you a message, looking forward to your reply, sir.
@@DianaDiazEnglishTeacher Contributions are not the problem. It is the trading part that can be questioned. If you buy a stock, and sell it after 2 days, you've not invested - you have done trading which is considered a business. Trading is buying and selling a stock, not just buying a stock.
Remember before Trudeau when TFSA's were actually tax free? Pepperidge farms remembers.
Kk
Thanks so much. This should be mandatory learning in high school. My daughter is turning 18 and I am going to be guiding her so she can be financially savvy for the rest of her life.
Congrats on being part of the Money Show. Great tips!!
Transferring so importante!!!
Thank you
Great video, I was aware of most of it, bit it's always nice to refresh that knowledge.
I currently contribute my maximum limit per year but I have a lot of room from previous years to utilize. Tax returns typically go straight into the TFSA to help me catch up.
ive been watching you for so long, i actually knew everything already... but i havent maxed out my TFSA. not there yet.
thanks for the great videos Brandon.
Welcome back . Love your vibe, confidence, how you sounded.. and the video creativity. As always great content Thank you so much ! AND It will be awesome to see you on the stage and finally meet you :) can't wait !
I think it's worth pointing out a couple of things which I haven't seen any RUclipsr mention when they talk about TFSA:
1. If you're an immigrant, you only start accumulating contribution room on the year you become a tax resident of Canada. Not when you're 18.
2. In Quebec, you cannot designate a successor holder directly with your broker - you can only do so using a will.
Exact!
Thank you.. I was dreaming of the entire room possible :/
You think this kind of people ever stop for a second to consider the immigrants' perspective and their lives? HAHAHA They'd first need to open their minds and be curious about things outside their insular little world.
@@markop2024 Damn man, you close minded as hell.
@@markop2024. Please explain how it’s not a simple situation of largest target market
I always love the content you put out, it was a great refresher for me. Keep up the awesome work Brandon!
I didn’t know about the in-cash transfer, in fact I recently withdrew one TFSA to open a different TFSA at a new institution. Who knew 🤷🏻♀️? I am still learning every day. The rest of the content was a great refresher. Thanks for the video Brandon!
This is some GREAT info! Thank you. I learned a few things for sure. Time to take my TFSA more serious. I stepped up my savings and investing in 2022. Now, I will once more do the same...step it up this 2023. I watch your videos and Adrian's as well. You 2 are big inspirations for me and I'm sure for MANY others too. Thanks again!
I have a TFSA and learned many new things from this video. Also like the white board style too. Didn’t know about setting a success holder and will definitely do this soon
Thank you so much for your videos Brandon! They have helped me immensely in starting out with investing in Canada. As an immigrant who can’t turn to her parents and such to explain these things I sincerely appreciate what you do! Keep up the good work man
Pfff most Canadians don't get this education from their parents. We're lucky we live in a world with youtube and videos like this.
Great to see a terrific young man giving great advice to other young people. Kudos to you man!
You got me. I did not know about "not naming spouse as sucessor holder", thank you! Great topic, well presented!
Definitely one of the more hidden tips! Thanks Harold, appreciated!
Same might have to look into setting that up!
@@beaviswealth Learnt something new, thanks! Will look into this one someday!
Wow Brandon, these were so helpful!! Thank you for all of your videos. They've helped so much in my financial journey.
Excellent video! Only one that I hadn’t considered was the in -kind transfer. Well done Brandon.
Your kindness, knowledge and subtle humor give me life Brandon! Haha
4:32 The picture that went with "do not rely on the government to do this for you" was a hilarious edit!
Thank you for clarification on the USD stock in TFSAs. One person said you Should NEVER have any USD in TFSA and I was feeling bad because I have 2 stocks of Rio Tinto before I learned that RRSPs would be a better place for foreign investment. I did appreciate you saying “it’s not a reason to not have any there, just be aware you kiss out in 15% of the dividend” I’m so happy to hear that there is no tax receipts come tax time for the missing 15%. Thank you again
Thank you for the clarification. Great info. I got thru most levels but didn't know about the successor strategy
Great video, very comprehensive. Got all right the most crucial points are 1. Successor holder and fully fund this account before making any other investment.
#15 was the only one I didn't know about. I will be looking into that for sure. Thank you!
Great video my man! Definitely needed some of these refreshers
Gotten to level 5- I don't make enough money to maximize my TFSA. I had a investment strategy laid out since 2020 by myself. It's been going extremely well. i still make investment mistakes but still moving forward and having the majority of my investments in the green. i am happy with the capital appreciation so far. i remembered during my first 6 months using my TFSA, I started to experience the joy of compounding interest.
I'm new in Canada, and this video was sooooo effective at quickly building my knowledge of TFSAs... thank you so much. liked and subscribed! I'll be watching your other videos.
Welcome to Canada! You start making room when you become a permanent resident.
Watched and liked, thanks Brandon! Only one I wasn't aware of was needing to be 19 in some provinces.
Thankyou for the information, very knowledgeable. Can't wait to hear more.❤
damn this is like your best video on the channel the effort that went into this really pays off! i transfered my tfsa to wealthsimple invest to wealthsimple trade a while ago, and one thing that really sucked was that WS invest tracked my contribution but since i asked for a cash transfer, when the money got on the WS Trade account, the tracking didn't follow and so it started tracking at like $23,789 even though I had only contributed $18,000 so right now it's a mess to figure out how much room I have left.
I didn't know what to do really, but after watching this video, I think the plan will be to sell everything and withdraw in december this year (if i'm in the green which might not be the case but we'll see lol) and then contribute the right amount in january of the next year just to start fresh and so that it actually tracks my contributions.
Wow! Thanks for the excellent TFSA tutorial. Your straight to the point. Learned a lot.👍
Thanks for tips 15, 16, 17. Planning to implement them right away.
Nice video Brandon, I like the white board video style, you should do more videos like this one ! TFSA is so underrated, young canadians must invest asap in it !
Thanks DEL 👍🏻👍🏻🙏🏻
I would love to see more videos explaining the technical differences between your spouse being a beneficiary vs. a successor, as in what can one do vs. not the other? and also explaining the spousal account too would be awesome! I'd look forward to that video also : )
there is no difference a spouse can not hold 2 TFSA's.
very clear - great video. thank you for putting all together.
great video, answering to your question - I am not using my TFSA at all. I am just learning about it thanks to you ! 🙂
Nice throw back video on the basics of TFSA investing. Love it Brando. I made the effort to name my spouse as the successor on my accounts. Questrade was very simple but found Wealthsimple a little tricky and had to contact customer support to help me out but got it done.
Thanks Beavis, I did k now alot but refreshed and learned
Thanks for educating on this! I really learned a lot today 🙏🏻💯
I didn’t know about the in -kind transfer, thank-you for pointing it out.
This is one of your best videos! Thank you!! Learned alot!
Thank you for your info I never knew before! This will help a lot!
Excellent advice and information. Will be moving forward with some of these tips 👍🏻
I got perfect because I watched all your previous videos. Thank you Brandon.
👏🏻👏🏻
Great video. No surprises for me on any of the mistakes, but that’s partly due to watching earlier videos from you and clearing up some confusion already.
Thanks to folks like you, I've been using the TFSA correctly and knew about all of the common mistakes. The last one is maybe the only one I've made. I'm in my 30's now and only started putting money into my TFSA a little under two years ago. With a full contribution limit available to me and the limit expanding by $6000 a year, it can feel like the contribution cap is almost out of reach at least at my current income level. Not a bad problem to have I guess, I'll take all the tax free gains I can get! Highlighting some of these mistakes though is a good refresher on why it is still important to track contributions. Great video, and may make the trek to the city see you guys in September!
I was hoping he would answer this. I too am in my 30s and starting now. I have no way to max it out. Likely never will. But the best I can do is start with the $500 per month rule
Learned #7 and #10 the hard way a few years back haha
I passed all your levels and maximizing at every beginning of the year 👌
Nice job Brandon. A very coherent video!
This video was so much helpful, It made me subscribe instantly.
Good video to explain proper strategies for TFSA usage. I think the biggest confusion points I experienced when getting to know the rules was how withdrawals affected maximum contribution limits and what constitutes as "day trading". You covered all the bases it seems and then some! Good work.
there are no black & white set guidelines for what constitutes "day trading". A friend of mine got audited in the 2nd year of the TFSA, and he posed that exact question to the gov't appointed auditor. He was told exactly that, and that it was a judgement call, based on the nature of your trading. In the case of my friend, he was buying, flipping, buying back, flipping again, often dozens of times a day.
He had increased the value of his TFSA from the $10k he had started with over the starts of the first 2 years (I think it was $5k per year then, can't remember exactly), to over $150,000 before the 2nd year was even completed.
Suffice to say, the audit & gov't ruled against him, and determined that he was using the TFSA trading as a "job", and he would have to pay tax on it as if it was regular income.
@@bonanza06 did he got audited because he widtdrawn the money ?
Definitely helpful to know these mistakes for a beginner like me!
This is a quality video. I learned all of this in a couple of years.
i learned a few new things! thank you! Subbed and liked.
Knew everything!!! Was surprised you didn’t mention about the December tfsa maneuver
Thank you for the action plan to max out the TFSA!
Thx man for the knowledge!
Thank you for #9 and #15, I learned something new today!
Thank you so much! This info gave me two action items to take to my Credit Union rep.
I knew all that you explained because you explained it a few years ago. Didn’t you? Anyway, thanks Brandon. I’ve learned a ton from you and I am setup pretty nicely now. ❤
This is awesome, thanks for sharing! Great points!
Loved the video, especially the pun on Trudeau haha
Amazing video Brandon!! Really appreciate it!!
Thanks AB 🙏🏻🙏🏻🙏🏻 appreciate you!
Just to clarify for anyone not born in canada and immigrated, a category my wife falls into. You have to be a resident of Canada with a valid SIN, not just be age of majority when you can enter into a contract. I think Brandon is coming from the perspective of a born and raised Canadian. You also need to be a legal resident of Canada, ie, spending more than 183 days of the year here. I think this is much needed information for new Canadians or those living as expats 😁😎
I'm in that boat too. My bank didn't even know that fact. Sadly I cannot put my money blindly into a banks hands. They'll cost me a 1% penalty a month for being a non resident with a TFSA that I contributed to.
Hey Igot here 2012 of October will I be eligible for 2012 contribution?
@@markopolov2207 depends if you were considered a resident when you arrived. My wife came as a visitor, and it wasn't until the following year we applied for PR, so the year she arrived was not counted. You can check online with the CRA to see your contribution room currently.
@@001sander2 opening a TFSA account is entering into a contract technically. That's why you have to be age of majority.
@@mr.financial I'm landed immigrant on 2012 so I can get the 2012 contribution even I landed on October? and not on the start of the year?
Best Video ever, thanks so much for this. Liked and Subscribed ASAP!
Loved it man
I really appreciated your education. Millions of thanks
I was clued out! Thank you
very good video...many of my family and friends were not aware of point 13..I tell everyone I know about being aware of withholding tax on US dividends
Thanks supper infomative...itsbeen on my Radar to max my TFSA and will follow up with my bank manager...
Hi there world!!
I'm late to this party, but I still wanted to leave a comment, and I'm a new sub too!!
Thank you so much to this young man taking the time to create and then post this video.
You are a ROCK STAR!!!
I'm sure you are an avid reasercher, or the very least, you read...always!!
Either way, I'm grateful to you for learning all this necessary material and then graciously sharing your knowledge, too.
You are a great teacher!! Breaking down this information and making it clear to the viewer is not something everyone is gifted at being able to do.
Just know, I believe you are helping so many.
Yes, I learned so much, too.
Thank you.
God bless you for your kindness and sharing with Canadians, who should all be taking your advice!! 🙏🐾
Great Info Brandon, I think it is important to mention (and you did mention a bit) that all of the gains you earn in your TFSA, automatically increase your total Lifetime TFSA Room. Say like in your 10k to 50k example (@5:30), you were to withdrawal that 50k before adding any more money, to put down on a house, you would now have the Original 50k in Room plus an additional 40k of Room from your gains for a total of 90k in TFSA room that you could put back into your TFSA the next calendar year along with the new 6.5k for that new year all coming out of your Inheritance from your Grandmother . 😃 But as you did mention, all Loses in your TFSA reduces your Lifetime Room. If for example you Contributed all 50k (@5:30) into your TFSA and your investments went south and you lost 40k, leaving you with only 10K and then something came up and you wanted to withdraw the 10k. The next calendar year you can only contribute 10k + 6.5K of room, so you would have lost that 40k of room forever. I hope this isn't too confusing but it is important. Brandon you could do a better job of explaining this. Thx.
I agree... and you explained it very well. 😉
O@@sonjagatto9981
They should not allow stocks to be put in a TFSA because you cannot recontribute your losses. It’s to confusing.
@@user-qu2bj3tq7j diversify. And honestly r u really banking that significant of profit on those stocks. I also recommend not using all your securities of choice with your TFSA ACCOUNT. I have been learning by trial and error self directed, non managed and I have a blend of securities and digital currencies attached to my first TFSA that I started in 2021. Honestly, the app I use presents projected rtns on investments till my expected yr of retirement. It’s bloody dismal. I wouldn’t even be able to afford a damn box. And I am not having it!!!!!!! Then I started exploring. Learned that banks are in on this money making service. So I opened another with a traditional financial institution. And stepped it up. I have an entire limit of contribution available basically. It’s $95000 at this time. I also only have 12 yrs till expected full retirement. With nothing but the CPP. It’s extremely sad outlook for hard working people in Canada. It’s meant to be confusing my friend. You need to do some ground work and divide a strategy. Most importantly be honest with yourself. How much would I feel comfortable loosing if the markets cause losses. I bet Brandon has spend hundreds and hundreds hours. Getting educated. No quick fixes here. Hire a broker or portfolio manager. You keep yourself organized and open to improving your knowledge in this industry. Good luck!!
@@user-qu2bj3tq7j If the let you recontribute your losses, then to make things equal, if you have gains they would reduce your room to compensate for those gains. Would you like that??
Level one would have got me I guess...because I didn't know you had to be 19 in provinces I don't live in. Outside of that, the successor holder got me. Great info. Love the Trudeau pic for the "government". How I understand it - If I withdraw but am under my contribution limit, I can still contribute in the same year as long as I don't go over the contribution limit. I.e. I took out $5000 to pay my taxes but I have $30000 in contribution room remaining for the year, I just lose the $5000 of space until next year.
Thank you! One quick thought: if you want to only contribute the annual $6,000 to your TFSA (because you have used up all previous room), don’t contribute $250 biweekly as that will put you $500 over the limit. There are 26 pay periods if you are paid biweekly. Contribute $230.76 biweekly.
I came here to say just that. If you’re going to do a contribution per pay, make sure you do the math to ensure you’re not going to go over the limit
$6500 asof 2023
@@ricgunn1439. I wonder if they changed that due to general inflation, or because of the $250 a week part.
Some companies pay periods are semi monthly
Great video, G. Learned a ton
Very well articulated. Found it extremely helpful. 👍🏻
Thanks
My strategy has been to do a minimum annual withdrawal (MAW) from an RRSP or RRIF on the first business day of a new year and immediately input your TFSA contribution using some of the MAW funds (In RRIF Accounts)and other savings to make the annual contribution to the TFSA in the first business days of a New Year. This strategy may help to maximize returns in the TFSA and returns in RRSP\RRIF accounts are fully taxable. Your video was very good and I did not know about the jurisdictions where you were required to be age 19. Good job!!
Can you please explain more in depth I really want to start investing but don’t understand any of these acronyms like I’m a beginner
thanks for simplifying the 15% withholding tax (dividend tax)
VERY WELL DONE...THANK YOU
Thank you learn a lot!
Love, love love. Thank you!
Love your picture of the "government." 😅
One investment that you didn't mention are Options. If you have 100 shares or more of any particular stock, you can sell covered calls and greatly increase the cash flow that these accounts can produce.
Thankyou! Most instructive - even tho I knew most of this, there was a point or two than I needed to be reminded of. Yes - certainly do not overcontribute: A couple years back when I got my Statement from the CRA, I mistook the < > (overcontributed) for Contribution Room. My mistake cost me ever $4000 in additional taxes. Be aware.
what I do is contribute to my RRSP 18% and I take my return and I deposit it to my TFSA , been doing it for a while, and now the new FHBA
Learned good strategies and information. Thank you
wow man great job on that video!
only thing i didnt know was that i wouldnt have been able to open a TFSA back when i was 18, since i live in BC. great video tho!
Hi Brandon, thanks for your video. I love your explanations. Thanks keep doing the videos. I have learned all your levels in my first year of investing. I still need to learn more stuff. Still investing and doing great!
Excellent clarifications!
Thank you for the informations.very interesting
Answered my question about DRIPing in a TFSA. Thanks
This was eye opening, especially when the CRA can skin the regular person alive. So the message here is be very careful and find a good financial advisor
👍 Did not know about the spouse thing and that if an investment goes to zero that that contribution room is gone.
that was a hell of a good video! Put 40$ a week and all the extra and unnexpected money in that accont for one day have a dividen snoowball. keep up the work
This video was dope!!
my main issue is maxing it out. We learned about it really late, were barely breaking even on my grad student income with having a very frugal lifestyle. When we had kids, our priorities shifted to saving for them, so RESP and life insurance...that's over 300$ per month all together, and adding 250$ per person (and even for just one person) per pay period would put us in the negative. We want to provide opportunities for our kids so they have a few extra curriculars that would be cut if we had to but that would really mean we are in a tough spot. I might never see it maxed out, unfortunately. We also want tax breaks so we do 2-3 TFSA and 1-3 RRSP when we do put aside.
Thanks buddy subbed!!!!! 🇨🇦
4:54 Thank you, I was trying to figure that one out.
Did not know about the 15% tax on US dividend. Thanks!
Hi Brandon...I didn't realize one could loss contribution space, if their stock did poorly in your TFSA....thank you
I'm old and I knew most everything . Enjoy yr information
I liked your video! I did know most of what you explained I made the mistake of haveing meme duds when i first started. but I do find it frustrating trying to max out tfsa I make low 6 figures and still struggle to meet half my contribution room.
As a much older Canadian I should also mention that utilizing many years of unused contribution room is a great way to get the maximum benefit out of such windfall money as inheritances to help generate tax-free retirement income.