I Opened An FHSA! My First Home Savings Account Investment Strategy

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  • Опубликовано: 17 янв 2025

Комментарии • 122

  • @stephandden
    @stephandden  9 месяцев назад +11

    I'm so excited to have finally opened an FHSA 🥳 What account are you using to invest right now? Let us know!

  • @bestbongoman2697
    @bestbongoman2697 9 месяцев назад +31

    The ability to transfer the funds in your FHSA to your RRSP is huge. Even if you don't plan to buy a home you are essentially getting 40K of extra RRSP room (assuming you max out your FHSA).

    • @rochester3
      @rochester3 9 месяцев назад +2

      yep, and you can also transfer rrsp to fhsa aswell

    • @stephandden
      @stephandden  9 месяцев назад +4

      It is huge! Definitely a benefit 😊

  • @AmandaCorcoran-cr8gz
    @AmandaCorcoran-cr8gz 9 месяцев назад +9

    Great video!! my husband and I opened 2 FHSAs in our separate names to benefit our money to grow to $80,000 CAD rather than just the $40,000 limit

  • @FillupOnSilver
    @FillupOnSilver 9 месяцев назад +8

    Great videos Steph and Den and/or Den and Steph. I opened FHSA with EQ & Wealthsimple. Didn't contribute in 2023 but will split up 16000 for 2024 between them. I never owned house or home and am 67 and have not much time left but who knows. I still work full-time and collect pensions, so it's never too late or too early for anyone, yes! Keep up the great videos learn so much from them.

    • @stephandden
      @stephandden  9 месяцев назад

      Thank you so much for this comment! We love hearing this - it's so true that it's never too late or too early for anyone! 😊

  • @taylorhansum
    @taylorhansum 21 день назад

    Wow, super impressed with this video. I've just begun teaching these strategies to friends and family and your video is probably the most clear and well produced piece of learning content i've seen in a long time! You deserve a lot more than 122k subs!! Keep up the great work!

    • @stephandden
      @stephandden  20 дней назад

      We appreciate that! Thank you so much 😊

  • @SharonChou9
    @SharonChou9 28 дней назад

    I love your content Steph and Den! Learning so much from you guy's platform:)

  • @rochester3
    @rochester3 9 месяцев назад +51

    they should increase the limit to 100k

    • @stephandden
      @stephandden  9 месяцев назад +7

      That would be great! 👀

    • @rochester3
      @rochester3 9 месяцев назад +20

      @@stephandden it only makes sense because of how expensive house prices are, 40k is simply not enough especially after 5 years when inflation will be higher

    • @petermozuraitis5219
      @petermozuraitis5219 9 месяцев назад +9

      There’s lots of ways to help get that first down payment though. If you have a partner then you can also use their FHSA on a down payment, essentially doubling it;also 40k is just the contribution, if you have 40k invested for 5-10 years that could create thousands more. Using your RRSP, you can get RRSP contribution space back if it’s used on a home down payment and you pay it back within 15 years. Liquidating some TFSA investments, a few thousands dollars cash. All these small steps add up
      It be great if they expanded max contribution to 50k or more, but it’s just one more tool to help afford a home

    • @TaliyahP
      @TaliyahP 9 месяцев назад +6

      a 40k limit in this country in actually hilarious

    • @rochester3
      @rochester3 9 месяцев назад

      @@petermozuraitis5219 I think the first time home buyers for rrsp is the stupidest thing the government can do for Canadians and since they’re borrowing their own money and have to pay it back on top of having to take care of the mortgage and property taxes now a new loan back to your own account🙄 making things more stressful , that’s why I want 100k for fhsa so we get the tax deductions and when it’s time to buy a house we don’t have to worry about having to pay back anything.

  • @GarethBushMusic
    @GarethBushMusic 9 месяцев назад +3

    XEQT is my biggest holding, but Ive been using the FHSA more conservatively with the $CASH ETF, like a GIC but with more liquidity. If your time horizon to buy is 3 years or less it's probably unwise to invest it in equities. 5 years is a different story!

    • @stephandden
      @stephandden  9 месяцев назад

      Thank you for sharing! 😊

  • @matcha_mage
    @matcha_mage 9 месяцев назад +1

    Love this! Would love updates on this too and how you plan on switching up your investments after the 4 months

    • @stephandden
      @stephandden  9 месяцев назад

      Thank you! Good suggestion - I'll definitely share updates + do a video when I switch up my investments later this year! 😊

  • @bavnathan7518
    @bavnathan7518 9 месяцев назад +4

    You should consider a house hack instead. Use FHSA as it’s a primary residence and then rent out the basement while living in it. Helps to get a larger mortgage, make payments and also use the FHSA all in one (also don’t need 20% down payment)

    • @stephandden
      @stephandden  9 месяцев назад +1

      Thank you for sharing 😊

  • @aviralsharma9264
    @aviralsharma9264 9 месяцев назад +4

    One thing to consider is the tax deduction you get..thats like getting a 20%+ return depending on your marginal tax rate. So anything on top of that, GIC with 4-5% is perfect for someone looking to buy in 2-3 years and having a partner contributing in their fhsa.

    • @stephandden
      @stephandden  9 месяцев назад +1

      The tax deduction really is an amazing perk! Thank you for sharing this 😊

  • @nemoa7692
    @nemoa7692 9 месяцев назад +5

    I have an FHSA with TD they gave about 8% in four month so I'm possitive about them. Howevrr, I do manage my own TFSA.

    • @stephandden
      @stephandden  9 месяцев назад

      Love that you’ve opened one! 😊

  • @HouseOfBurgz
    @HouseOfBurgz 9 месяцев назад +1

    FHSA account is a great hybrid between a TFSA and RRSP. I do also agree on the sentiment that the limit should be increased. Hopefully one day it will be raised to 100K. Until then keep stacking and keep going! 🍊

    • @stephandden
      @stephandden  9 месяцев назад

      Agreed, it is a great hybrid - it would be amazing to see a higher limit. 😊

  • @JohnDoe-mi9pn
    @JohnDoe-mi9pn 3 месяца назад +1

    Hypothetically if you were to buy a home using your FHSA contributions in 5 years (e.g. 2029), how close to 2029 would you start to diversify your investment? For example, in 2028 would you switch to XBAL, a GIC, or a HISA ETF? Psychologically, it could be a bit unnerving knowing your FHSA is 100% stocks 12 months or less before needing that money.

  • @rdgamesdrip
    @rdgamesdrip 19 дней назад

    What platform you use?

  • @chibuzorahumaraeze418
    @chibuzorahumaraeze418 21 день назад

    Can you do a video of when you bought the ETF?

  • @joshuahankins2613
    @joshuahankins2613 9 месяцев назад +2

    You can buy a duplex, Triplex and Four Plex though if you will live there. If you both willing to leave Toronto could probably afford a duplex in 2-5 years and live in one unit.

  • @Jibril_Abdulkadir
    @Jibril_Abdulkadir 9 месяцев назад +1

    I think it’s great idea to have one savings account just for things you want in the future like the FHSA and another one for a rainy day quote unquote

    • @stephandden
      @stephandden  9 месяцев назад

      Agreed, it's great to having savings for different things (ie. an FHSA to save for a home, a HISA to keep your emergency fund, a HISA for other short term savings, etc) 😊

  • @LamsLam-n6f
    @LamsLam-n6f 6 месяцев назад

    Great Video! Thank you for the valuable FHSA information. However it drives me crazy to see US$ images in your illustration when you are talking about Canadian Finance. You are not the only one though!

  • @TreboRobert89
    @TreboRobert89 22 дня назад

    Do you guys have a Bloomberg account?

  • @LamsLam-n6f
    @LamsLam-n6f 6 месяцев назад

    Great Video. Thank you very much for the valuable information. However it drives me crazy to see US$ images in your illustration when you are talking about Canadian finance. You are not the only one though!

  • @avijeetkumar3733
    @avijeetkumar3733 9 месяцев назад

    Did you guys start your research on which area/city you want to look for buying the investment property ? As my own investment strategy is similar - where due to high cost of housing(extreme housing valuations under a slow growth economic future ) in GTA I don't want to get into the market right now for my primary home, but in a year or two I will enter market for an investment property. As that is not going to be primary home, hence I am planing to user HBP from RRSP for down payment while letting my FHSA grow.

  • @pogbafun3481
    @pogbafun3481 День назад

    Great video. My question is, since de limit is 40k what if you use this money to invest and it generates you a profit of 15k resulting in a total of 55k. Is there any penalty?

    • @stephandden
      @stephandden  День назад

      As long as you’re going to use that money to purchase a home, then no. The account offers tax free growth and tax free withdrawals. 😊

    • @pogbafun3481
      @pogbafun3481 День назад

      @@stephanddenoh nice. Thanks again

  • @shruthic3403
    @shruthic3403 Месяц назад

    What happens if I already to FHSA if my first home is investment property? I can’t use FHSA for investment property, can I continue contributing to FHSA since i bought my first house as investment but not primary residence?

  • @jacobanderson8744
    @jacobanderson8744 9 месяцев назад

    Are you able to purchase a duplex with an FHSA? Live in one side and rent out the other?

  • @SeanStephensen
    @SeanStephensen 7 месяцев назад

    Are you sure it's possible to buy a rental property while still building an FHSA? I heard that if I own a house, I'm no longer eligible to own or contribute to a FHSA. This was told to me on Reddit, so take it with a grain of salt. If you're able to confirm that the opposite is true (I am allowed to buy an investment house while maintaining a FHSA), that would be awesome! That was my thought as well.

  • @binibinikki
    @binibinikki 8 месяцев назад +2

    Also, i heard you talk about this, but just to clarify, can I buy my first property as an income property not using my fhsa. but use my fhsa in let’s say 15 years from now to buy a residential property for me to live in. if so, would that be ideal? generally in your opinion.
    Thank you so much!!! i must say I’ve learned more from this channel about investment and finance than any financial advisor I’ve ever met. You guys are doing the Lord’s work. More power, and please don’t stop making these videos🩵

  • @ahStarwok
    @ahStarwok 9 месяцев назад

    If my TFSA is not maxed yet, would it still be recommended to invest into FHSA? Or max TFSA first like you did?

    • @stephandden
      @stephandden  9 месяцев назад +1

      It's up to you and your personal goals! The FHSA is great given that you still get tax free growth and it also reduces your taxable income at the same time - and, if you don't end up using the money to buy a home, you can transfer it to your RRSP, instead.
      On the other hand, FHSA contribution room only carries forward for a limited amount of time, so if you open up an account, you ideally want to ensure that you'll be able to max it out each year.
      The other thing to consider is what you want to focus on investing for - I finished maxing out my TFSA first because 1) I was really close to hitting that goal, and wanted to check it off my list, and 2) my main priority is investing as much as possible for the long-term, so I wanted to 'finish' investing for that purpose first, before moving on to investing for a future home.
      I hope that helps 😊

  • @hornedlobster
    @hornedlobster 9 месяцев назад

    Can you guys do a video comparing using RRSP vs TFSA for saving for a down payment? Obviously the FHSA would be the first choice. But once that is maxed out we're not sure which one to use. We love the flexibility of the TFSA, but the Tax benefits and HBP of the RRSP are really nice too!

    • @stephandden
      @stephandden  9 месяцев назад +2

      Yes! We have a video about this exact topic coming out in a few weeks 😊

    • @kristinlynn2763
      @kristinlynn2763 9 месяцев назад

      Hi what does HBP mean? Thanks

    • @hornedlobster
      @hornedlobster 9 месяцев назад

      @@kristinlynn2763 Home buyers Plan

    • @hornedlobster
      @hornedlobster 9 месяцев назад

      @@stephandden Oh great! I'll keep an eye out for it :)

    • @danlaj6157
      @danlaj6157 9 месяцев назад

      @@kristinlynn2763Home Buyers Plan

  • @rdgamesdrip
    @rdgamesdrip 17 дней назад

    I don’t have welathsimple pls help me I’m in the USA

    • @stephandden
      @stephandden  17 дней назад

      Wealthsimple is a Canadian investment platform 😊 there’s many American ones that you could use, instead!

  • @binibinikki
    @binibinikki 8 месяцев назад

    Steph, do you know how long do you have to stay in a home you purchased with FHSA, until you can use it for income property/rent it out? I asked my banker, and they dont know 😅

    • @elianorkhoury508
      @elianorkhoury508 7 месяцев назад

      I have the same question. What if I buy a house with FHSA, live in it, then I got a job offer abroad. Can't I still rent it?

  • @Oliviabaileys
    @Oliviabaileys 9 месяцев назад

    What is the point to open rhsa if you can carry on investing into TFSA? What if in 5 years you decide not to purchase a house…?

    • @stephandden
      @stephandden  9 месяцев назад

      My TFSA is maxed out right now, so I can't continue investing within it (until the yearly contribution room is added next January, which will be a capped amount).
      The FHSA also gives you the same benefits of the TFSA (tax free growth) AND it reduces your taxable income for the year - the benefits are even better from that perspective.
      If I decide note to purchase a house, the money within my FHSA can be transferred to my RRSP, instead. 😊 There's really no reason not to open up an FHSA and take advantage of the perks!

  • @PeanutButter123
    @PeanutButter123 19 дней назад

    Hi steph and den, what form do you fill out on your income tax return when tax season comes around? Would anyone be able to let me know if they opened a FHSA through WS?

  • @petermozuraitis5219
    @petermozuraitis5219 9 месяцев назад

    When does the FHSA contribution limit increase ? I opened one last month (March 2024) figuring I’d own a home within 15 years so just opening an FHSA and allowing contribution home to expand is a smarter than not

    • @rochester3
      @rochester3 9 месяцев назад +1

      its a maxx of 40k after 5 years it doesn't go up higher than that

    • @petermozuraitis5219
      @petermozuraitis5219 9 месяцев назад

      @@rochester3Yes, at 8k a year. Do you know on what day the contribution room expands ? January 1 of each year ?

    • @rochester3
      @rochester3 9 месяцев назад

      @@petermozuraitis5219 has to be the first since contribution room doesn't extend to the next year, its not like the rrsp whre you have till end of February 29 so its 16k room now

    • @stephandden
      @stephandden  9 месяцев назад

      You gain new contribution room each year (after you open your account) on January 1st!
      Remember that you can only carry forward unused contribution room for one year. So, if you don't contribute the full $8,000 this year, you can still contribute it next year (on top of the new $8,000 contribution room added) - but, in 2026 (two years later), you would no longer be able to catch up on that initial $8,000 (or whatever amount of that you didn't max out). If you want a better explanation, check out our video called 'FHSA, Explained...' 😊

  • @glen1742
    @glen1742 9 месяцев назад

    If i plan to purchase a condo in 2 years time would a GIC be better?

    • @petermozuraitis5219
      @petermozuraitis5219 9 месяцев назад

      There are FHSA GIC’s available, it wouldn’t be earth shattering money over two years but every little bit adds up and helps

    • @glen1742
      @glen1742 9 месяцев назад

      @@petermozuraitis5219 thx!

    • @hornedlobster
      @hornedlobster 9 месяцев назад

      That's what my wife and I are doing. Putting $8000 each into an FHSA, and putting that money directly into a 1 year GIC. With the 5% interest rates you'd make about $400 per year. It's not amazing, but every bit helps. And who knows where the market will be in a couple years. If you're looking to buy in the short term (

    • @stephandden
      @stephandden  9 месяцев назад

      They could be! We agree with the other comments on this thread - it's low risk, potentially low return, but everything helps 😊

  • @87hcm
    @87hcm 9 месяцев назад

    If you're buying a non-primary residence property first, how can you use an FHSA? That would be your second property, no?

    • @stephandden
      @stephandden  9 месяцев назад

      The definition of a first-time home buyer for the FHSA specifically is if you haven’t lived in a home you owned for the past four years - so, if you never live in the non-primary residence, you’re still able to use the FHSA for a primary residence!

  • @con_rad_it_is
    @con_rad_it_is 8 месяцев назад

    i have an fhsa in cibc.. but now i want to move the money to my new fhsa account and close the one in cibc.. any idea if that's possible?

    • @stephandden
      @stephandden  8 месяцев назад +1

      Yes, you can definitely move it. 😊 As long as your new FHSA is open already, then you can do a direct transfer between both accounts.
      Which company or bank did you open the new one with? You might be able to initiate the transfer from their end which would make things even easier.

    • @con_rad_it_is
      @con_rad_it_is 8 месяцев назад

      @@stephandden I got opened it with wealthsimple.. Once I transfer I'm planning to close the one with cibc

    • @con_rad_it_is
      @con_rad_it_is 8 месяцев назад

      @@stephandden Thank you! i opened it with wealthsimple.. once i transfer the money i'll be closing the one with cibc.. hope there wont be any issues with closing that one either..

    • @larkspurking8140
      @larkspurking8140 6 месяцев назад

      @@con_rad_it_is May I ask you why you decided to close FHSA with CIBC? Cibc advisor just convinced me to open one with them like a week ago, so, I would really appreciate any feedback

  • @NoahBClark
    @NoahBClark 9 месяцев назад

    As an American WTH 😭I’m looking everywhere for some alternative but might need to just settle on using my HYSA.

    • @stephandden
      @stephandden  9 месяцев назад

      Ah I know!! This account is new in Canada (it just launched last year!), but it is nice to have now. A HYSA is definitely an option in the US, or potentially a brokerage account if you won't be buying a home for a longer period of time!

  • @leleusi
    @leleusi 5 месяцев назад

    Hi❤ Can I have two FHSA?

  • @riasat001
    @riasat001 9 месяцев назад

    but do you pay tax when you take your money out?

    • @stephandden
      @stephandden  9 месяцев назад

      No! You withdraw tax free as long as you're using the money to buy your first home 😊

    • @riasat001
      @riasat001 9 месяцев назад

      @@stephandden okey thanks. I own a house even before I got married. Now my wife is not in the title and doesn’t own a house. Would she use FHSA?

  • @Vantaa815
    @Vantaa815 9 месяцев назад +2

    I would personally feel uncomfortable leveraging myself so heavily with housing (buying an income property followed by your own house). Housing in other cities may seem "cheap" compared to Toronto; but they are not cheap compared to their historical averages. With the way that many Canadians are already struggling with housing I don't think you will be able to sustainably increase rent YoY (my rent is not increasing this year) and you are taking a lot of downside risk in case of a recession (price of your home) or a shitty tenant costing you thousands to evict. Just my two cents :) Good video!

    • @stephandden
      @stephandden  9 месяцев назад

      Thank you! + thanks for sharing what you would be comfortable with 😊
      We’ll share more about what we end up doing in future videos!

    • @hornedlobster
      @hornedlobster 9 месяцев назад +1

      Right! With the price of housing right now we'd be spending approx 50% of our take home pay on housing. We're currently spending about 15% while we rent. That means we'd have 35% less income to invest, less money for family vacations, less fun date nights. And of course the massive responsibility of home ownership. No thanks!

  • @con_rad_it_is
    @con_rad_it_is 7 месяцев назад

    Hi.. i have a quick question.. i have an fhsa with 8k in it.. now when i invest that 8k it will earn some interest.. the interest earned will add to the 8k limit.. so now the amount is my fhsa is over 8k.. is that ok? or should it be 8k including interest?

    • @con_rad_it_is
      @con_rad_it_is 7 месяцев назад

      Also, at year end assuming i have 8100 in fhsa (100 is the interest earned)...now for the new year do i get a fresh 8k limit or would it be 7900 (reducing the interest earned)? Thanks!

    • @JohnDoe-mi9pn
      @JohnDoe-mi9pn 3 месяца назад +1

      Similar to a TFSA, growth doesn't count towards your contribution room in a FHSA account. e.g. If your 8K grows to 9K that's okay.
      And you will get another 8K contribution room next year too. The growth is not deducted from next years contribution room.

    • @con_rad_it_is
      @con_rad_it_is 3 месяца назад

      @@JohnDoe-mi9pn thank you!

  • @TreboRobert89
    @TreboRobert89 22 дня назад

    Are you planning to use CASH for your FHSA, or are you considering a high-interest savings ETF instead?

    • @stephandden
      @stephandden  21 день назад

      I purchase an ETF inside of my FHSA 😊

    • @TreboRobert89
      @TreboRobert89 21 день назад

      @@stephandden Just to clarify, I understand it's an ETF, but did you specifically purchase the CASH ETF?

  • @autobotdiva9268
    @autobotdiva9268 8 месяцев назад

    wonder if they have something like this account in america. better check for my 22 year old

    • @stephandden
      @stephandden  8 месяцев назад +1

      I don’t think they have an equivalent account, although hopefully there will be one in the future! It’s a nice addition 😊

  • @swaggyg6017
    @swaggyg6017 9 месяцев назад

    Hey guys, just to confirm, I can open a FHSA thats still eligible even if i bought a rental already right? Because i didnt live in it and rented it out, it doesnt count as my first home (qualifying home)

    • @stephandden
      @stephandden  9 месяцев назад

      Yes - for the FHSA, a 'first time home buyer' means that you haven't lived in a qualifying home as your principal place of residence at any time in the past four calendar years (you can't have lived in a home that your spouse or common-law partner owned during that time, either). 😊

  • @gorgeplo
    @gorgeplo 5 месяцев назад

    I use the BTC ETF it grow fast and you can use it in traditional finance for tax free or what not

  • @TelosBudo
    @TelosBudo 8 месяцев назад

    Don't you actually have $16,000 contribution space in 2024, not $8,000, given your 2023 FHSA contribution was $0.00, and the FHSA account is retroactive and you were over 18 years old in 2023, when the FHSA account launched?

    • @yeahhi3207
      @yeahhi3207 8 месяцев назад +3

      Unlike a TFSA, your FHSA contribution space starts the year you open your account, not when the FHSA launched.

  • @SargentFraser
    @SargentFraser 9 месяцев назад

    Last year, I invested my first 8K on a relatively safe Canadian bank dividend stock, which should return at least 7% annually with DRIP.
    The rest of my investments is going to growth stocks. I was thinking between VFV or XEQT, but decided VFV. I might reallocate later.
    So far, with the $8000 from the first year, I'm getting around $52 every month, with it slowly growing more and more as I reinvest in that same dividend stock. Each year I should get more than 600$ from that, so even if VFV drops 10%, the dividend stock helps me negate that.
    If I purchase a house, I think it'll be in 5 years at the earliest (although I am in no rush).

    • @stephandden
      @stephandden  9 месяцев назад

      Thank you so much for sharing (+ that sounds like a great plan). 😊

  • @mohaklondhe
    @mohaklondhe 2 месяца назад

    SPUU

  • @EricMoore790
    @EricMoore790 9 месяцев назад

    She is cute

  • @wilsonfidelisekpotu1980
    @wilsonfidelisekpotu1980 9 месяцев назад

    Thanks @stephandden. Please, do you think it is possible to move or pivot from a managed account to a self directed account that enables me to buy XEQT with wealthsimple, or can i open another another TFSA account for self-directed investing even if I have an existing TFSA account.

    • @stephandden
      @stephandden  8 месяцев назад +1

      Hey! Yes, you can move your funds from your managed TFSA into a TFSA on Wealthsimple Trade. You should check out our video (‘Wealthsimple Invest Portfolio Results After 3 Years’) where Steph goes through the entire process. Hope that helps 😊

  • @rdgamesdrip
    @rdgamesdrip 19 дней назад

    What platform u use?

    • @stephandden
      @stephandden  18 дней назад

      Wealthsimple 😊

    • @rdgamesdrip
      @rdgamesdrip 17 дней назад

      @ I don’t have Wealthsimple in the USA something else plssssss?!