This is the answer I was looking for. I have been told to open a TFSA account by my friends for about 2 years now and I finally did it today. Yet I still never understood what made the TFSA account (asides from being tax free) so special. I mean the rates are measly 0.5%, so little tax saved on so little gain. Good thing you clarified about how these banks market the TFSA, because I thought they were all just regular savings account but tax free, because they make it seem like that's the only obvious route of your TFSA. I did not know I can invest into anything and just put it under my TFSA account to get any amount of capital gains tax free, and that made sooooooooooo much sense to me on what's so hype about this TFSA account. Unfortunately I just applied to my bank in opening up a TFSA (the 0.5% one)and RRSP right before I saw your video.
The information on not using your TFSA to invest in a high interest savings account is monumental good advice. I presume several banks push this (making money on your money) and paying out
I recently tried to clarify with the bank, when we could put money withdrawn from a TFSA back in. So 10,000 out November 2021, they said could not be put back in until January 2023 - not considering remaining contribution room. But from this video I think you are saying that if sufficient contribution room remains, 10,000 could go back in - and if not, the money could go back in the first of the following year without waiting a whole tax cycle. Your information is so very clear and I only ask because this bank gave conflicting information. Thanks for all your great videos - in Canadian information.
if i make american dividends in my non registered account then move that dividends to my tfsa is that better than having that American dividend stock in my tfsa and taking that 15 percent withholding fee?
This was helpful and I have shared it with a friend who only has a TFSA and not an RRSP. We plan to discuss more about some better ways for her to maximize her TFSA. Also, I didn't know that taking money out of a TFSA is not added on to your income stream and therefore possibly moving you into a higher tax margin....but basically it would get taxed anyway no matter what margin you are in. ADAM, so helpful in your presentation. As of today, as we move through the pandemic, stocks are doing a lot better in the TFSA and divvy have resumed....all set up properly for retirement and I got your message about using up the RRSP before 71 yrs of age, delaying CPP and OAS while using up and depleting the RRSP (the buffer sort of account strategy)...and now time to learn more from your channel about preventing OAS clawback due to two other sources of income streams adding to the overall yearly income. What PERFECT timing that you started your informative videos and even thought to produce them!!! We really needed Canadian content and a reliable one at that! Gratefully....keep up the great work....listening to your 2021 vids and noticing the improvement of quality in the presentation and visual surroundings as well....you are learning how to improve as you go...great role modelling that anyone open to receive and learn can improve for the better good 👍. 💯. 🇨🇦
@@ParallelWealth Good job...keep learning...you are obviously doing well. I am a strong supportive of your channel and look forward to your future topics. Appreciate the visuals that you show as well. It helps with a deeper understanding and memory retention...at least this is what I personally experienced when presenting to thousands of students of all ages 😉🇨🇦. 💯
Good content. I own 12 stocks in tfsa. Got lucky with Nvidia. I think that quality growth stocks are the way to go in tfsa. Dividend stocks that grow their dividends at 8 to 10 percent are great for cash margin account.
Great content as usual Adam 👏👌👍for long term you mentioned high interest saving account makes sense (hisa) which bank would you recommend? For example Simplii only offer %5 for limited time maybe 6 months do you know a better option?! Greatly appreciated 🙏
Hi I have question regarding contributions? If my limit is 50K and I invested 50K in some stocks and they go to moon in 3 years now my investments worth 150k so now I can take away 150k and my new contribution room is 150k+6k for next year? So my contribution room grows as my investments grows? What if that 150K goes to 300K so suddenly now my contribution room is 300K ?😅 plz let me know if I’m correct bcz if I’m my contribution room could go just up up
Been having a hard time finding an answer to this question, so it may be the way I'm asking it. If I were to buy shares of a company that pays out dividends, can I have those dividends automatically be used as reinvestment into the company in order to increase my holdings? Second question. Similar to the first question, if the whatever I happen to holding in my TFSA grows, is there any restriction in me reinvesting the gains? And could this be done "automatically" so to speak? Would I have to manage the sale of the "profit" and then re-purchase? Hope this makes sense...basically I think it's clear what I'm trying to get at, and that is how do I compound my investment and/or gains within TFSAs...GREAT VIDEO by the way!
Yes to the first question. Just have the dividends pay into your TFSA, which you can then use to buy more shares of x. Any growth can be used to buy more shares of x as well. As long as you leave the income, dividends or realized gains in the TFSA then you can use those 'extra funds' to invest and grow the account more.
Great video, however, I thought if say you max out your tfsa at the $75 500 (limit for 2021) and that grows to be 100k, and you withdrawal all of it, you can only recontribute the max allowed amount. ($75 500 + 2022 limit). I don’t think you can use gains to increase your limit?
Tyler, you can definitely use the gains to increase your limit. If you took out $100k, you would get that back the following Jan 1 along with the new contribution room.
What happens if I have an investment account that I buy stocks in and they increase over my tfsa limit say my limit is 65000 and my stocks shoot up to 100k do I have to pay 1% on the difference still
Would it make sense to start drawing CPP at age 60 to put that money into a TFSA? Working pay cheque to pay cheque doesn't give me a lot of extra cash to start anything with.
10:05 Exactly why I would NOT use a TFSA to gamble with "play money". Better to reap tax free returns on assets that have an expected positive compounding return on the long run like a broad market index ETF and just pay the taxes on 50% of the capital gains if one is lucky with some speculative position IMHO ... and be able to declare capital losses if your genius play doesn't work out as well as expected.
Everyone has different risk tolerance. I will say the wealthiest Canadians we see come through our office have VERY large TFSAs - from making big gains tax free.
@@ParallelWealth I'm a TFSA aficionado myself, so I'm not surprised. I hold equity in my TFSA as well. That's not what I meant by not gambling in my TFSA. I meant speculative bets that might have expected positive returns (or possibly not even) and a very skewed outcome and such. :)
@@ParallelWealth I was surprised to get a 18 percent return on my market utilities GIC after being locked in for three years; glad I had it under a TFSA.
I will add one important point that is often overlooked... TFSA contribution room only accumulates during those years you are a resident of Canada. If you were considered a non-resident for a period of time then the contribution room will not accumulate during that time. As an example... you worked in a foreign country for two years and thus were considered a non-resident Canadian. Your TFSA contribution room will not accumulate for those two years. If you do contribution for those years anyway the CRA will ding you for that.
Great informative Video Parallel Wealth, Question for you: Can I transfer my TD TFSA $2500 amount to Wealth Simple trade TFSA account anytime ? I mean should I wait for any particular time to transfer fund between TFSA account to two different institutions?
TD will ding you for I think it's a $300 "transfer fee" if you move your money to another institution. You'll likely still do better with WS, but be prepared to take the hit.
Thank you for this video. I am continuing to learn from all the videos that are being posted. My question is:. I bought a Non-Registered Investment (Delisted stock) like SHLDQ stock, in all of my registered accounts (TFSA, RRSP, RESP). Are there any consequences and if so, what do I need to do to rectify this? Thank you for your help.
Hi Could you explain in more detail how one can permanently lose ones TFSA room. I currently have ETFs invested in my TFSA. Just as an example. Are you saying a 1000$ investment of company X goes to 0 I Lose that 1000$ contribution room and next year I just get the contribution room that the govt allocates
Niran, Let's say you invest the $10,000 into your TFSA and it drops to $2,000 and you cash it out. January 1st the following calendar year you would get the new contribution room for that year (currently $6k) plus your $2,000 that you redeemed. So you would lose the $8,000 of contribution room you lost through the first investment. You permanently lose that room, but of course you can build it back up with your new contribution. For example, let's say you invested $8,000 the following year ($6k + $2k) and it grew to $16,000 and you pulled it out, you have now increased your contribution room by $8,000 and back to what you started with the prior year. So losses can be permanently lost, but new growth can 'replenish it'. Hope that makes sense! Thanks for watching.
@@ParallelWealth It's only a loss if you sell the now lower value stock/fund, or if the company/fund actually goes out of business. It would need to go a lot lower than $2000 before I would sell; more likely that it would level off and bounce back with the market, or eventually be bought out. Assuming, of course, this isn't an "all eggs in one basket" story.
Thanks for the video it was very informative! Quick question about US withholding tax in TFSA account. Would I have to file it with IRS separately, do I file it with CRA or is it deducted automatically when the dividend is payed and I won't have to worry about it?
I'm too old to take risks, so I have maxed out my TFSAs and have invested in low risk bank market utilities GIC locked in for 3 years; the last one that matured got me a 18 percent return and one that is coming up later looks like I'm getting 15 percent.
What Parallel Wealth said. It is worth noting that your contribution room starts building not the day you turn 18, but the day you become a permanent resident.
From what I understood withdrawing from your RRSP increases your taxable income, but it decreased it while you were contributing. But when you put money in a TSFA, that money has already been taxed during the year that you earned it. So in the end, do you really save money by using a TFSA for your retirement funds VS putting the same amount of money in an RRSP?
@@ParallelWealth thanks for making this valuable information more accessible. Our education system teaches us a bunch of things we will never use, yet it let's us face adult life without having enough personal finance literacy.
Reply to your reply below Parallel Wealth; Good job...keep learning...you are obviously doing well. I am a strong supportive of your channel and look forward to your future topics. Appreciate the visuals that you show as well. It helps with a deeper understanding and memory retention...at least this is what I personally experienced when presenting to thousands of students of all ages 😉🇨🇦. 💯
Hi Adam, Thanks for this fantastic video. I have 2 questions: 1- Can international students have TFSA ? 2- If I have got my SIN on 2019 as an international student and I am 35 years old, how much room I have for TFSA?
I have been saving into my tfsa in order to used the money towards purchasing a house in 3-5 years. I plan to save about 100,000 in 3 years. Is this a good ideal?
Well of course saving for a home is a great idea. Using your TFSA can be a good way to help build that savings and avoid any tax bill along the way. Just make sure you work with a financial planner to determine investment risk and planning inside your TFSA. I don't recommend investing in the markets or anything not guaranteed with a short time frame like you have. Maybe look at EQ Bank as an alternative to get a decent savings rate within your TFSA.
@@giftyamaning6592 happy to help - it's why we have this channel. All the best with your savings and look forward to an update in a few years on your house purchase!
I thought that TFSA accounts were specifically for "investing" and not "trading". For instance, can I buy and sell on a daily basis using a TFSA account with Questrade ?
Nope. The CRA will audit any account with a high # of transactions. They prohibit using your TFSA for your business. Since day trading is considered business income they would flag and investigate your account. There would be all kinds of tax penalties if you’re found guilty. Use a non reg account if you’re going to trade. Capital gains sucks but it’s likely less than what you’d pay for TFSA misuse.
@@lastnamefirst650 Thank you for your reply. At which point does it become "misuses"? Lets say I want to invest 50k on the market using ETFs. How many times may I buy? How many times may I sell? If the market shift, can I sell some of my positions to move to different parts of the market? I cannot find the info anywhere.
@@plda123 It’s a grey area from what I understand. I could be wrong and that info is out there but I didn’t find it…I have a feeling it’s based on percent gain combined with # of transactions. As long as you’re not opening and closing multiple trades each day you should be fine. Pure speculation - I think you’d be okay even swing trading too so long as your trades are open for at least a week, preferably longer than a month. I’m basing this on nothing but feelings btw I err on the side of caution with everything.
We have a government that is spending lots of money to get re-elected. Either they or their successor will be looking under every couch cushion to pay it down. Definitely NOT a good time to go pinning a "kick me" sign to your backside!
Question! I’m invested primarily in a RBC US Index Fund within my TFSA. Would that Fund be subject to the US Withholding Tax? Great channel, keep up the great content!
So the goverment will not question me ? If i put 1k every week until the end of the year without income?(2022) -my contribution limit is 50k. Because I’m not gonna file my t4 for next year(2023
omg.... i am lost. I am 59 years old and to-date I have 12,000 only in my TFSA account. I have no clue how to make this amount grow.... can anyone assist me since I am overwhelmed and have no idea what I am doing (I feel ashamed since I am not that smart when it comes to investments)
Investments are the roots of financial security; the deeper they grow, the stronger your future will be."
The deeper your investment roots, the stronger your financial security will be in the future.
Exactly! With my adviser, I’ve cultivated deep investment roots, strengthening my financial security for the future.
I would love an introduction to an adviser who can help me strengthen my financial roots.
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further.
Thank you for this amazing tip. I just looked the name up and wrote her.
Finally a RUclipsr speaking Canadian language. Thank you Adam!
No kidding eh!
Yes so hard to find Canadian videos.
For real FINALLY!
This is the answer I was looking for. I have been told to open a TFSA account by my friends for about 2 years now and I finally did it today. Yet I still never understood what made the TFSA account (asides from being tax free) so special. I mean the rates are measly 0.5%, so little tax saved on so little gain.
Good thing you clarified about how these banks market the TFSA, because I thought they were all just regular savings account but tax free, because they make it seem like that's the only obvious route of your TFSA.
I did not know I can invest into anything and just put it under my TFSA account to get any amount of capital gains tax free, and that made sooooooooooo much sense to me on what's so hype about this TFSA account.
Unfortunately I just applied to my bank in opening up a TFSA (the 0.5% one)and RRSP right before I saw your video.
TFSA should be talked about in high school. There isn't anything taught on investing which is a huge failure of the education system
@@scottbaker3876 It IS taught in some high schools.
Thank you Adam, another great topic. Am learning more and able to share your utube channel to friends. Good job
You explained everything in the best possible order.
Thanks Pradeep
what about Investing in GIC?
That’s an option as well
The information on not using your TFSA to invest in a high interest savings account is monumental good advice. I presume several banks push this (making money on your money) and paying out
Love investment advice for Canadians
Great video so informative!!
Thanks! Many more videos to come.
I recently tried to clarify with the bank, when we could put money withdrawn from a TFSA back in. So 10,000 out November 2021, they said could not be put back in until January 2023 - not considering remaining contribution room. But from this video I think you are saying that if sufficient contribution room remains, 10,000 could go back in - and if not, the money could go back in the first of the following year without waiting a whole tax cycle.
Your information is so very clear and I only ask because this bank gave conflicting information.
Thanks for all your great videos - in Canadian information.
Thank you again Adam for the great video. Learned sooo much!
if i make american dividends in my non registered account then move that dividends to my tfsa is that better than having that American dividend stock in my tfsa and taking that 15 percent withholding fee?
so we have fallen into the tfsa high interest with our bank. can we switch this same money into a different account to make us more returns?
This was helpful and I have shared it with a friend who only has a TFSA and not an RRSP. We plan to discuss more about some better ways for her to maximize her TFSA. Also, I didn't know that taking money out of a TFSA is not added on to your income stream and therefore possibly moving you into a higher tax margin....but basically it would get taxed anyway no matter what margin you are in. ADAM, so helpful in your presentation. As of today, as we move through the pandemic, stocks are doing a lot better in the TFSA and divvy have resumed....all set up properly for retirement
and I got your message about using up the RRSP before 71 yrs of age, delaying CPP and OAS while using up and depleting the RRSP (the buffer sort of account strategy)...and now time to learn more from your channel about preventing OAS clawback due to two other sources of income streams adding to the overall yearly income. What PERFECT timing that you started your informative videos and even thought to produce them!!! We really needed Canadian content and a reliable one at that!
Gratefully....keep up the great work....listening to your 2021 vids and noticing the improvement of quality in the presentation and visual surroundings as well....you are learning how to improve as you go...great role modelling that anyone open to receive and learn can improve for the better good 👍. 💯. 🇨🇦
Thanks - and yes it's been a learning curve on my end for the video and presentations. Appreciate the feedback as always.
@@ParallelWealth Good job...keep learning...you are obviously doing well. I am a strong supportive of your channel and look forward to your future topics. Appreciate the visuals that you show as well. It helps with a deeper understanding and memory retention...at least this is what I personally experienced when presenting to thousands of students of all ages 😉🇨🇦. 💯
Every region
Fgcvjg cvvffykh
Good content. I own 12 stocks in tfsa. Got lucky with Nvidia. I think that quality growth stocks are the way to go in tfsa. Dividend stocks that grow their dividends at 8 to 10 percent are great for cash margin account.
Great content as usual Adam 👏👌👍for long term you mentioned high interest saving account makes sense (hisa) which bank would you recommend? For example Simplii only offer %5 for limited time maybe 6 months do you know a better option?! Greatly appreciated 🙏
I have used EQ Bank and also the National Bank cash fund
Hi, Is it better to have just one tfsa rather than 2 or more because of compound interest in long term?
Great video! Very helpful!!
Can I deposit my pension from company on tfs account and RRSP account
Can I still keep my TFSA account even if I temporarily move to USA. No more further contributions, just the previous years contributions?
Hi I have question regarding contributions? If my limit is 50K and I invested 50K in some stocks and they go to moon in 3 years now my investments worth 150k so now I can take away 150k and my new contribution room is 150k+6k for next year? So my contribution room grows as my investments grows? What if that 150K goes to 300K so suddenly now my contribution room is 300K ?😅 plz let me know if I’m correct bcz if I’m my contribution room could go just up up
100% correct. Your contribution room grows as the account does.
Thank you for sharing your experience, it was very useful and informative
My pleasure!
Been having a hard time finding an answer to this question, so it may be the way I'm asking it. If I were to buy shares of a company that pays out dividends, can I have those dividends automatically be used as reinvestment into the company in order to increase my holdings? Second question. Similar to the first question, if the whatever I happen to holding in my TFSA grows, is there any restriction in me reinvesting the gains? And could this be done "automatically" so to speak? Would I have to manage the sale of the "profit" and then re-purchase? Hope this makes sense...basically I think it's clear what I'm trying to get at, and that is how do I compound my investment and/or gains within TFSAs...GREAT VIDEO by the way!
Yes to the first question. Just have the dividends pay into your TFSA, which you can then use to buy more shares of x. Any growth can be used to buy more shares of x as well. As long as you leave the income, dividends or realized gains in the TFSA then you can use those 'extra funds' to invest and grow the account more.
@@ParallelWealth Great, thanks for confirming!
Great video, however, I thought if say you max out your tfsa at the $75 500 (limit for 2021) and that grows to be 100k, and you withdrawal all of it, you can only recontribute the max allowed amount. ($75 500 + 2022 limit). I don’t think you can use gains to increase your limit?
Tyler, you can definitely use the gains to increase your limit. If you took out $100k, you would get that back the following Jan 1 along with the new contribution room.
My tfsa is with the bank. Can I work with my bank advisor to invest it into high earning stocks?
Or do i need to open a new one?
Should be able to but will depend on your account set up
What happens if I have an investment account that I buy stocks in and they increase over my tfsa limit say my limit is 65000 and my stocks shoot up to 100k do I have to pay 1% on the difference still
I hear everywhere the 75 500 limit but why does my CRA account tells me that my 2021 TFSA contribution room is 78 500.
Because you have had a gain at some point and cashed it out.
What if I didn't maximize my contribution room? And withdrawal funds..?
Would it make sense to start drawing CPP at age 60 to put that money into a TFSA? Working pay cheque to pay cheque doesn't give me a lot of extra cash to start anything with.
10:05 Exactly why I would NOT use a TFSA to gamble with "play money". Better to reap tax free returns on assets that have an expected positive compounding return on the long run like a broad market index ETF and just pay the taxes on 50% of the capital gains if one is lucky with some speculative position IMHO ... and be able to declare capital losses if your genius play doesn't work out as well as expected.
Everyone has different risk tolerance. I will say the wealthiest Canadians we see come through our office have VERY large TFSAs - from making big gains tax free.
@@ParallelWealth I'm a TFSA aficionado myself, so I'm not surprised. I hold equity in my TFSA as well. That's not what I meant by not gambling in my TFSA. I meant speculative bets that might have expected positive returns (or possibly not even) and a very skewed outcome and such. :)
@@ParallelWealth I was surprised to get a 18 percent return on my market utilities GIC after being locked in for three years; glad I had it under a TFSA.
this october 2024, does an HISA (4%) still not make much sense to park money in your TFSA?
Depends what it's for. If it's short term money then I could make a lot of sense
No one explaining how to do this. I am looking at my tfsa now what how do I invest it.
I will add one important point that is often overlooked...
TFSA contribution room only accumulates during those years you are a resident of Canada.
If you were considered a non-resident for a period of time then the contribution room will not accumulate during that time. As an example... you worked in a foreign country for two years and thus were considered a non-resident Canadian. Your TFSA contribution room will not accumulate for those two years. If you do contribution for those years anyway the CRA will ding you for that.
Great informative Video Parallel Wealth,
Question for you:
Can I transfer my TD TFSA $2500 amount to Wealth Simple trade TFSA account anytime ? I mean should I wait for any particular time to transfer fund between TFSA account to two different institutions?
Transfer anytime. You may be out of market for bit, but no tax issues with the transfer.
TD will ding you for I think it's a $300 "transfer fee" if you move your money to another institution. You'll likely still do better with WS, but be prepared to take the hit.
i made appointment with TD to plan ,,, that bad idea ?
Well wait to see what they give you...probably start CPP, delay taking out investments, etc.
@@ParallelWealth im 50 lol .. going to make some large investments
Thank you for this video. I am continuing to learn from all the videos that are being posted.
My question is:. I bought a Non-Registered Investment (Delisted stock) like SHLDQ stock, in all of my registered accounts (TFSA, RRSP, RESP). Are there any consequences and if so, what do I need to do to rectify this? Thank you for your help.
Aimee, reach out to wherever you hold these. They will give a clear answer to this.
@@ParallelWealth Thank you.
Thank you for this video i am not the smartest person but you made it in a way i can understand it 😅
If you’re watching videos like this you’re gaining knowledge which makes you smarter than you give yourself credit for.
Is having $25K in a TFSA at 25 good? Planning on investing anther $6K-$8K this year.
If you do not like risk, look into locking your 25K into low risk bank market utilities GIC locked in for 3 or 5 years.
Hi
Could you explain in more detail how one can permanently lose ones TFSA room. I currently have ETFs invested in my TFSA.
Just as an example. Are you saying a 1000$ investment of company X goes to 0 I Lose that 1000$ contribution room and next year I just get the contribution room that the govt allocates
Niran, Let's say you invest the $10,000 into your TFSA and it drops to $2,000 and you cash it out. January 1st the following calendar year you would get the new contribution room for that year (currently $6k) plus your $2,000 that you redeemed. So you would lose the $8,000 of contribution room you lost through the first investment. You permanently lose that room, but of course you can build it back up with your new contribution. For example, let's say you invested $8,000 the following year ($6k + $2k) and it grew to $16,000 and you pulled it out, you have now increased your contribution room by $8,000 and back to what you started with the prior year. So losses can be permanently lost, but new growth can 'replenish it'. Hope that makes sense! Thanks for watching.
@@ParallelWealth It's only a loss if you sell the now lower value stock/fund, or if the company/fund actually goes out of business. It would need to go a lot lower than $2000 before I would sell; more likely that it would level off and bounce back with the market, or eventually be bought out. Assuming, of course, this isn't an "all eggs in one basket" story.
How can i put a cash or deposit cash into my tfsa?
Set up the TFSA and link your bank account - then make a deposit.
Thanks for the video it was very informative! Quick question about US withholding tax in TFSA account. Would I have to file it with IRS separately, do I file it with CRA or is it deducted automatically when the dividend is payed and I won't have to worry about it?
Automatic
Awesome. Thanks!
If your are not putting it in high interest savings or buying a stock that could potentially go to zero what are you investing in ?
I'm too old to take risks, so I have maxed out my TFSAs and have invested in low risk bank market utilities GIC locked in for 3 years; the last one that matured got me a 18 percent return and one that is coming up later looks like I'm getting 15 percent.
Thank you for your videos. Does your company have an office or representative in Hamilton Ontario area?
.
Adam I have to ask, do you really think it is better to gamble in my TFSA vs a margin account where I can write my losses off?
Define gamble and how much. If it's a small piece (which a gamble should be) then absolutely.
Do dividend payments count as contributions?
Nope
So if you lose 10K in one year but the rest of your money does well and you gain back the 10K, will that allow for limit increase?
Yes, contribution room is based on overall gross gains and losses.
Good information, thanks. Can a legal permanent resident, non Canadian, have a TFSA?
Any resident of Canada who has a valid SIN and over 18
What Parallel Wealth said. It is worth noting that your contribution room starts building not the day you turn 18, but the day you become a permanent resident.
From what I understood withdrawing from your RRSP increases your taxable income, but it decreased it while you were contributing.
But when you put money in a TSFA, that money has already been taxed during the year that you earned it.
So in the end, do you really save money by using a TFSA for your retirement funds VS putting the same amount of money in an RRSP?
Will depend on your income. The TFSA grows tax free a d pulls out tax free. It's an important piece of your retirement planning, alongside the RRSP
@@ParallelWealth thanks for making this valuable information more accessible. Our education system teaches us a bunch of things we will never use, yet it let's us face adult life without having enough personal finance literacy.
Reply to your reply below Parallel Wealth; Good job...keep learning...you are obviously doing well. I am a strong supportive of your channel and look forward to your future topics. Appreciate the visuals that you show as well. It helps with a deeper understanding and memory retention...at least this is what I personally experienced when presenting to thousands of students of all ages 😉🇨🇦. 💯
Good information
Great Info thanks!
Glad it was helpful!
Hi Adam,
Thanks for this fantastic video. I have 2 questions:
1- Can international students have TFSA ?
2- If I have got my SIN on 2019 as an international student and I am 35 years old, how much room I have for TFSA?
No, you can not have a TFSA. You need to be Canadian Citizen and pay income tax in Canada.
I have been saving into my tfsa in order to used the money towards purchasing a house in 3-5 years. I plan to save about 100,000 in 3 years. Is this a good ideal?
Well of course saving for a home is a great idea. Using your TFSA can be a good way to help build that savings and avoid any tax bill along the way. Just make sure you work with a financial planner to determine investment risk and planning inside your TFSA. I don't recommend investing in the markets or anything not guaranteed with a short time frame like you have. Maybe look at EQ Bank as an alternative to get a decent savings rate within your TFSA.
@@ParallelWealth thank you for taking the time to answer my question.
@@giftyamaning6592 happy to help - it's why we have this channel. All the best with your savings and look forward to an update in a few years on your house purchase!
Very informative!
Thanks Sunny. Glad you enjoyed it.
I think the term tax free savings account is a misnomer and ends up confusing people. It’s not really savings. It’s an investment account
100% agree. It's a huge fail from day one. And then the banks piggy backed on the name and sold most people high interest savings inside the TFSA...
@@ParallelWealth that’s a shame….
I thought that TFSA accounts were specifically for "investing" and not "trading". For instance, can I buy and sell on a daily basis using a TFSA account with Questrade ?
Nope. The CRA will audit any account with a high # of transactions.
They prohibit using your TFSA for your business. Since day trading is considered business income they would flag and investigate your account. There would be all kinds of tax penalties if you’re found guilty.
Use a non reg account if you’re going to trade. Capital gains sucks but it’s likely less than what you’d pay for TFSA misuse.
@@lastnamefirst650 Thank you for your reply.
At which point does it become "misuses"? Lets say I want to invest 50k on the market using ETFs. How many times may I buy? How many times may I sell? If the market shift, can I sell some of my positions to move to different parts of the market? I cannot find the info anywhere.
@@plda123 It’s a grey area from what I understand. I could be wrong and that info is out there but I didn’t find it…I have a feeling it’s based on percent gain combined with # of transactions.
As long as you’re not opening and closing multiple trades each day you should be fine.
Pure speculation - I think you’d be okay even swing trading too so long as your trades are open for at least a week, preferably longer than a month. I’m basing this on nothing but feelings btw I err on the side of caution with everything.
@@lastnamefirst650 I appreciate your reply. Thanks for the insights.
We have a government that is spending lots of money to get re-elected. Either they or their successor will be looking under every couch cushion to pay it down. Definitely NOT a good time to go pinning a "kick me" sign to your backside!
Nice video
Thanks!
We’ll done!!
Question! I’m invested primarily in a RBC US Index Fund within my TFSA. Would that Fund be subject to the US Withholding Tax? Great channel, keep up the great content!
If it pays any US dividends then yes it would have US withholding tax.
Can i put money on tfsa wihout any income ? But i sell shoes (cash) on random people? I live in toronto
TFSA contribution room is granted, not earned. So yes you can.
So the goverment will not question me ? If i put 1k every week until the end of the year without income?(2022) -my contribution limit is 50k. Because I’m not gonna file my t4 for next year(2023
@@JohnsenLife you can deposit up to your contribution limit, in whatever fashion best suits you.
omg.... i am lost. I am 59 years old and to-date I have 12,000 only in my TFSA account. I have no clue how to make this amount grow.... can anyone assist me since I am overwhelmed and have no idea what I am doing (I feel ashamed since I am not that smart when it comes to investments)
how can aboriginal people invest tax free
Is there any difference?