Ever since I found Steph & Dens’ channel, I have watched all their videos and made major financial changes to where I bank, who I bank with. And how I save my money. It’s only been a few months and I really see big positive changes in all my financial decisions. Especially with the switch to EQ bank! Thanks guys for all the advice and keep it up. I will always be watching!
@@stephandden been following you guys for quite awhile now, I'm a Zellenial (millennial/GenZ hydrid mindset) and I really appreciate the informative video formats y'all have been putting out. Keep up the great work! :D
I maxed out my TFSA and FHSA and have enough deductions in FHSA and RRSP to bring me down to the lowest tax bracket. I was going to start investing funds into a non-registered account. I didn't know we could carry forward the deductions. So, my next step is to contribute the max amount to RRSP and defer/carry forward the deductions to claim in the following years. Thanks for this tip.
I remember when I maxed out mine, I had the same question. There’s only so much you can put in the FHSA, and after that, it’s about figuring out the smartest way to keep building up your savings.
thank you for a great summary of the FHSA, it took me several weeks to find that info since it's kinda hidden and not up front in the descriptions for FHSA
I opened my FHSA in the final days of December 2023, and currently have mine maxed at 16,000 for 2024. Your only mistake was not opening one last year, even if you weren't planning to use it. Being one year ahead in contribution room is huge. But congratulations on your accomplishment, 8000 isn't a small number!
It's never too late, just be extra diligent and smart about it as there is less time to recover if the purchase doesn't work out great. With rates declining significantly this year, some of the risk may have come out of purchasing. Ensure you do essential due diligence if buying a condo!
I also need to max out my TFSA and I have so much room in it, but my plan is to put money in an FHSA, then invest in the TFSA and use the tax refund to beef up my TFSA contributions
I agree with maxing out your TFSA first because retirement savings is more valuable than having a home; but the same thing applies when it comes to the RRSP it’s also a retirement account even though it is tax deferred. The order should be TFSA RRSP then FHSA. You live in a home but you live off your investments
I think it's crazy to think like that. statistics are a good majority wont make it to retirement. health issues, car accidents, unforeseen events happen all the time. having a home is way more valuable to me than sitting on money and dying before using it...
Hi! Love your videos and they are what got my girlfriend and I to start investing! I was wondering if you knew whether the FHSA has the same power as the RRSP where we can "save" our tax deductions for a future year like what was discussed in 8:47
I have a question, let's say your investment in fhsa was super successful and reached 1million dollars after 15 years. If you buy a cheap condo that is worth 300K, what portion of that 1 million dollar you draw will be exempted from tax? 300K or entire 1M
When you open a FHSA through Wealthsimple (Self-Directed), and you move money from your bank to the FHSA, do you need to invest it to get the tax benefit? If for example you need to use it 6 months from opening so you don't want to invest it for long, curious is anyone has been in this boat
VFV is an S&P 500 ETF - we don't personally invest in the S&P 500 directly, as it's not as diversified as we'd like to be (it only covers US, large cap companies). However, the stocks within this ETF are also included in the ETF(s) that we do invest in, as they have exposure to the US market, as well. 😊
Hoping for things to work out in life these days. Having a tough time lately and wondering whether there would be enough to buy a house might see where the help would lead. 🥺
Times are definitely tough given the housing market and overall cost of living. Here’s the thing, although home ownership can be great for some - it’s not a necessity for everyone. As long as you’re able to invest what you can, over the course of your life, you’ll be okay. 🙏🏿🙏🏻
Hi! I have a question about the FHSA 15 year maximum lifespan: Is there a way to reset this 15 year countdown? Example: John opens a FHSA but only contributes the minimum balance to open the account, John decides to close his FHSA after not using it for two years. John opens another FHSA one year later, but will the new account have a reduced 12 year lifespan or the full 15 years?
Hey! As far as we know, because you’re allowed to open multiple FHSA accounts, as soon as you open one up, the clock begins ticking (15 year countdown). So regardless of whether you close one and open another one at a later date, it doesn’t matter.
Hiii, you know how you said we can choose to defer the deduction to a future year when our income is higher? is there a time limit on that? For example, if i contribute $1000 to our RRSP this year, could i wait until 2035 to deduct my taxable income then? Thank you!!!
I understand the concept of time in the market, however, for the purpose of fhsa, since we can only have it for 15 years, we are expected to withdraw it for buying house, why are we comparing the scenarios of investing with longer duration (25 yo investing for 30 years vs 35 yo investing for 20 years)?
That example wasn't relevant to the FHSA - I was speaking about why I'm prioritizing investing for retirement instead of investing for a home (aka why only $8,000 is going towards investing for a home, and everything else is going towards the long-term) 😊
I just started investing (freshly 23) and have been contributing into my TFSA strictly so far. Would you recommend maxing out TFSA before moving onto FHSA or contributing to both? I do want to buy a home eventually but I am not in the position to buy a home in the current market for another several years at least.
That’s great! And you can do both, but it might make sense to prioritize maxing out your FHSA every year first, before going back to your TFSA. Basically, the FHSA contribution room grows by only $8,000 a year, in comparison to your TFSA which likely has a contribution room of $37,500 already (assuming you were born in 2001). So depending on how much you’re able to invest each year, you can max out your FHSA first, giving your house money as much time in the market as possible, and if you hit the $8,000 before the end of the year, you can put the rest of your money into your TFSA. 😊 Side note: Keep in mind that you can also lose FHSA contribution room if you’re not maxing it out as you go. So if you’re not in a position to fully fund your account as you go, then it might not make sense to open one up just yet. Check out our FHSA Explained video for more info on that.
You're only eligible to open a FHSA if you haven't lived in a home that you bought / own for at least 4 calendar years; so, if you already own a house that you live in, you can't open an FHSA 😊
Currently, I have never owned a home and I have a FHSA that I am maxing out yearly. I looking at buying a vacant property in cash up north in sunridge , Ontario. Am I allowed to purchase that property and still use my FHSA as a down payment for a house I plan on living in the future ?
Good question - yes, if you purchase a property, but you don’t live in it, you’re able to use your FHSA towards a down payment on a house that you do plan on living in, in the future 😊
I went to a meeting with my bank to see about opening one and they told me they could only do it for mutual funds at 2.5%. They also told me that the fund could not exceed 40k. When I asked to clarify because I thought that the 40k limit was the contribution amount they said yea, no...the account can't go over 40k. I thought that sounded absurd because how the hell would anyone be able to track that if you have the money invested?
Wow - it sounds like they didn't know how an FHSA actually works, and beyond that were trying to convince you to pay unnecessarily high fees! You're right - the $40,000 lifetime contribution limit is for your contributions, not for the value of the account (the goal is to grow your money beyond that amount).
@@stephandden The scary thing is this person was a senior advisor. I spoke with a different bank and discovered that I didn't need to go through the bank to open an FHSA, but could do so directly with broker. So I ended up opening the FHSA with Wealthsimple to save on fees (they work with Q-trade which I hear is also good, but costs more $).
I have a question about a scenario. Say I currently save money in my FHSA to buy house, surprisingly I won the lottery ($1 Million) can I continue to contribute into my FHSA until I reach the maximum of $40k contribution? Just to get that tax deduction
Yes - winning the lottery wouldn't impact your ability to open and contribute to an FHSA (unless you use the money you win from the lottery to buy a home that you live in - then you'd no longer be eligible to open and use an FHSA). Keep in mind that Canadian lottery winnings aren't taxable 😊
If you sell, no. If you withdraw the funds and then attempt to re-contribute, yes. Basically, if you just sell the stocks, but the money remains in the account - you should be good to go. Check out our TFSA Explained and FHSA Explained videos for more info. 😊
@@stephandden Thank you so much for the info! Another quick question, if I sell a stock do I lose contribution room because of the capital gain? For example: If I bought a stock for $100 and it went up to $120 when I sold. When I use the $120 again, does it take out $120 from my contribution room or it still takes out $100 from my contribution room as long as I didn't withdraw the money?
@@shafinmahmud1204 Your contribution room is only impacted when you deposit or withdraw money from your account - if you sell a stock and gain money from the sale, you can use all of the money to buy another stock (or a different investment type) without it impacting your contribution room at all 😊
Can I transfer from my TD TFSA to a wealth simple TFSA without consequences? With TD I'm only getting about $50/month in interest having 85k I'm that account
Is your money invested or is it in a TD TFSA savings account? To answer your questions though, yes you can do this, but there are a couple things to consider. There may be a fee to transfer your funds - that will likely be charged by TD, however, Wealthsimple covers up to $150 in fees if you’re moving more than $15,000. Also, as long as you do an in-kind transfer, where they move the entire account over to Wealthsimple, you don’t have to worry about your contribution room. Hope that makes sense. 😊
@stephandden thanks for the reply! The account is just a "high interest TFSA savings account" I opened it myself with my own basic research but I should of done more research on this......yes your answer makes sense. I will contact weath simple to arrange this, thanks again!
They need to double the FHSA maximum lifetime contribution limit for single buyers or remove mortgage insurance for first time home buyers with solid credit. This country is ______. You fiill in the blank...
It seems like it's a similar account! But the FHSA can only be used for purchasing your first home (although you can transfer the money to a retirement account, too) 😊
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We're back with an update on Steph's investment account progress! What investment account(s) are you using right now? 👀
Just a tfsa for now. If you don't mind me asking, do you also have your FHSA with wealth simple?
Absolutely love these videos! Great for young professionals in Canada to start their investing journey on the right foot!
Love to hear that! Thank you so much 😊
Ever since I found Steph & Dens’ channel, I have watched all their videos and made major financial changes to where I bank, who I bank with. And how I save my money. It’s only been a few months and I really see big positive changes in all my financial decisions. Especially with the switch to EQ bank!
Thanks guys for all the advice and keep it up. I will always be watching!
Wow, that's amazing to hear! Congratulations on all of the positive changes you've been making 🙏🏿🙏🏻
The thing I most look forward to on Sundays is seeing if Steph & Dan have uploaded a new video. You guys are my favourite channel, keep it up!
Wow, we love to hear that! Thank you so much 😊
Thank you Steph, nice educational video.
Thank you for watching! 😊
Awesome to see the new video again steph , excited y'all are back :)
Thank you so much! 😊
@@stephandden been following you guys for quite awhile now, I'm a Zellenial (millennial/GenZ hydrid mindset) and I really appreciate the informative video formats y'all have been putting out. Keep up the great work! :D
Hey, Steph. Quick pointer, At 2:27 - Taxable income is 65L = 70-5k. I think there is a small error & shows it as 70-65k.
Would love a video for business owners! (What bank you use, HISA for business accounts, etc)
Love the videos! 😊
Thank you 😊 + thank you for the video suggestion!
I maxed out my TFSA and FHSA and have enough deductions in FHSA and RRSP to bring me down to the lowest tax bracket. I was going to start investing funds into a non-registered account. I didn't know we could carry forward the deductions. So, my next step is to contribute the max amount to RRSP and defer/carry forward the deductions to claim in the following years. Thanks for this tip.
So glad that we shared that tip! Congrats on maxing out your TFSA and FHSA, too 😊
I remember when I maxed out mine, I had the same question. There’s only so much you can put in the FHSA, and after that, it’s about figuring out the smartest way to keep building up your savings.
Agreed! Thanks for your comment 😊
Love this!
🥳🥳
Awesome, I already bought a home in 2021 soooo maxing out TFSA shall be my main focus meow!
Congrats on buying a home! That sounds like a good goal 😊
thank you for a great summary of the FHSA, it took me several weeks to find that info since it's kinda hidden and not up front in the descriptions for FHSA
Of course, we're glad that you found it helpful! 😊
This very good consultation. I learned a lot thanks Steph.
Thank you! Happy to hear that 😊
Great video! Super timely too as I have also maxed out my TFSA and FHSA, and have been thinking on what to do next.
Thank you! + that’s great timing - I’ll share more about what my RRSP investment plans are in a video next week, too 😊
I opened my FHSA in the final days of December 2023, and currently have mine maxed at 16,000 for 2024. Your only mistake was not opening one last year, even if you weren't planning to use it. Being one year ahead in contribution room is huge. But congratulations on your accomplishment, 8000 isn't a small number!
It’s not a mistake for me 😊 but I’m glad to hear that you opened one and have it maxed out, that’s amazing!
Great video! I missed you’ll! All the best on your investment journey!
Thank you so much! 😊
Welcome back! Missed your videos
Thank you! We're happy to be back 😊
Great video 🌟 I first invested into my TSFA then RRSP but might also start the FHSA
Thank you! Amazing - thanks for sharing 😊
Amazing job!
Thank you! 🥳
Thank you guys for the information. Am 43 years old. I just opened FHSA account. Hoping to buy my first home. I hope its not too late. 😅😅
Of course! That’s amazing to hear - it’s never too late! 👏🏿👏🏻
Thats true @@stephandden
It's never too late, just be extra diligent and smart about it as there is less time to recover if the purchase doesn't work out great. With rates declining significantly this year, some of the risk may have come out of purchasing. Ensure you do essential due diligence if buying a condo!
@@naheedgilani8257 thanks, point taken.
I also need to max out my TFSA and I have so much room in it, but my plan is to put money in an FHSA, then invest in the TFSA and use the tax refund to beef up my TFSA contributions
Love to hear that you're working on maxing them both out 😊
do you guys have the simplii finanical visa card? I thought there was a video you mentioned it
I agree with maxing out your TFSA first because retirement savings is more valuable than having a home; but the same thing applies when it comes to the RRSP it’s also a retirement account even though it is tax deferred. The order should be TFSA RRSP then FHSA. You live in a home but you live off your investments
It depends on your personal goals - keep in mind you can also transfer your FHSA funds into your RRSP 😊
I think it's crazy to think like that. statistics are a good majority wont make it to retirement. health issues, car accidents, unforeseen events happen all the time. having a home is way more valuable to me than sitting on money and dying before using it...
Hi! Love your videos and they are what got my girlfriend and I to start investing! I was wondering if you knew whether the FHSA has the same power as the RRSP where we can "save" our tax deductions for a future year like what was discussed in 8:47
That's amazing, we're happy to hear that!
Good question - yes, the FHSA works in the same way. You can defer your tax deductions to a future year 😊
I have a question, let's say your investment in fhsa was super successful and reached 1million dollars after 15 years. If you buy a cheap condo that is worth 300K, what portion of that 1 million dollar you draw will be exempted from tax? 300K or entire 1M
When you open a FHSA through Wealthsimple (Self-Directed), and you move money from your bank to the FHSA, do you need to invest it to get the tax benefit?
If for example you need to use it 6 months from opening so you don't want to invest it for long, curious is anyone has been in this boat
Can you carry forward the tax deduction you’d get from an FHSA the same way you explained you can for an RRSP in this video?
Yes, you can! It works the same way for an FHSA, too 😊
i was wondering when are you guys going to post
We're back! 😊
Steph, are you still doing your own investing through Wealthsimple and investing in the XEQT in your TFSA?
I just watched the video where you said you were going to switch from a managed account and was curious if you had an update.
Yes, I am! I'm only using Wealthsimple's self-directed platform now, and investing in XEQT inside of my TFSA and FHSA 😊
Have you guys reviewed VFV? What are your thoughts?
VFV is an S&P 500 ETF - we don't personally invest in the S&P 500 directly, as it's not as diversified as we'd like to be (it only covers US, large cap companies).
However, the stocks within this ETF are also included in the ETF(s) that we do invest in, as they have exposure to the US market, as well. 😊
Hoping for things to work out in life these days. Having a tough time lately and wondering whether there would be enough to buy a house might see where the help would lead. 🥺
Times are definitely tough given the housing market and overall cost of living. Here’s the thing, although home ownership can be great for some - it’s not a necessity for everyone. As long as you’re able to invest what you can, over the course of your life, you’ll be okay. 🙏🏿🙏🏻
Hi! I have a question about the FHSA 15 year maximum lifespan: Is there a way to reset this 15 year countdown? Example: John opens a FHSA but only contributes the minimum balance to open the account, John decides to close his FHSA after not using it for two years. John opens another FHSA one year later, but will the new account have a reduced 12 year lifespan or the full 15 years?
Hey! As far as we know, because you’re allowed to open multiple FHSA accounts, as soon as you open one up, the clock begins ticking (15 year countdown). So regardless of whether you close one and open another one at a later date, it doesn’t matter.
Hiii, you know how you said we can choose to defer the deduction to a future year when our income is higher? is there a time limit on that? For example, if i contribute $1000 to our RRSP this year, could i wait until 2035 to deduct my taxable income then? Thank you!!!
Great question! There isn't a time limit, no - I believe you can defer the deductions for as long as you have your RRSP 😊
What about take taxfree profit from tfsa and invest it in rrsp so that increasing contribution and reducing taxable income.
I'll likely be waiting to claim my deductions in a future year anyways 😊
I understand the concept of time in the market, however, for the purpose of fhsa, since we can only have it for 15 years, we are expected to withdraw it for buying house, why are we comparing the scenarios of investing with longer duration (25 yo investing for 30 years vs 35 yo investing for 20 years)?
That example wasn't relevant to the FHSA - I was speaking about why I'm prioritizing investing for retirement instead of investing for a home (aka why only $8,000 is going towards investing for a home, and everything else is going towards the long-term) 😊
I just started investing (freshly 23) and have been contributing into my TFSA strictly so far. Would you recommend maxing out TFSA before moving onto FHSA or contributing to both? I do want to buy a home eventually but I am not in the position to buy a home in the current market for another several years at least.
That’s great! And you can do both, but it might make sense to prioritize maxing out your FHSA every year first, before going back to your TFSA.
Basically, the FHSA contribution room grows by only $8,000 a year, in comparison to your TFSA which likely has a contribution room of $37,500 already (assuming you were born in 2001). So depending on how much you’re able to invest each year, you can max out your FHSA first, giving your house money as much time in the market as possible, and if you hit the $8,000 before the end of the year, you can put the rest of your money into your TFSA. 😊
Side note: Keep in mind that you can also lose FHSA contribution room if you’re not maxing it out as you go. So if you’re not in a position to fully fund your account as you go, then it might not make sense to open one up just yet. Check out our FHSA Explained video for more info on that.
I am near to max my TFSA. Is there any point to go for FHSA as I already own a house or should I go for RRSP?
You're only eligible to open a FHSA if you haven't lived in a home that you bought / own for at least 4 calendar years; so, if you already own a house that you live in, you can't open an FHSA 😊
Currently, I have never owned a home and I have a FHSA that I am maxing out yearly. I looking at buying a vacant property in cash up north in sunridge , Ontario. Am I allowed to purchase that property and still use my FHSA as a down payment for a house I plan on living in the future ?
Good question - yes, if you purchase a property, but you don’t live in it, you’re able to use your FHSA towards a down payment on a house that you do plan on living in, in the future 😊
@@stephandden awesome thank you
I went to a meeting with my bank to see about opening one and they told me they could only do it for mutual funds at 2.5%. They also told me that the fund could not exceed 40k. When I asked to clarify because I thought that the 40k limit was the contribution amount they said yea, no...the account can't go over 40k. I thought that sounded absurd because how the hell would anyone be able to track that if you have the money invested?
Wow - it sounds like they didn't know how an FHSA actually works, and beyond that were trying to convince you to pay unnecessarily high fees!
You're right - the $40,000 lifetime contribution limit is for your contributions, not for the value of the account (the goal is to grow your money beyond that amount).
@@stephandden The scary thing is this person was a senior advisor.
I spoke with a different bank and discovered that I didn't need to go through the bank to open an FHSA, but could do so directly with broker. So I ended up opening the FHSA with Wealthsimple to save on fees (they work with Q-trade which I hear is also good, but costs more $).
Walk out an never go back...
I have a question about a scenario. Say I currently save money in my FHSA to buy house, surprisingly I won the lottery ($1 Million) can I continue to contribute into my FHSA until I reach the maximum of $40k contribution? Just to get that tax deduction
Yes, but it has to be used to buy a house or roll it into your RRSP(which also offer the same deduction) at the end of the 15years.
@@elmayo1665 Thanks!
Yes - winning the lottery wouldn't impact your ability to open and contribute to an FHSA (unless you use the money you win from the lottery to buy a home that you live in - then you'd no longer be eligible to open and use an FHSA).
Keep in mind that Canadian lottery winnings aren't taxable 😊
Can I have more than 1 FHSA account?
If I sell stocks from my TFSA or FHSA, does that alter the contribution room for that year?
If you sell, no. If you withdraw the funds and then attempt to re-contribute, yes. Basically, if you just sell the stocks, but the money remains in the account - you should be good to go. Check out our TFSA Explained and FHSA Explained videos for more info. 😊
@@stephandden Thank you so much for the info! Another quick question, if I sell a stock do I lose contribution room because of the capital gain? For example: If I bought a stock for $100 and it went up to $120 when I sold. When I use the $120 again, does it take out $120 from my contribution room or it still takes out $100 from my contribution room as long as I didn't withdraw the money?
@@shafinmahmud1204 Your contribution room is only impacted when you deposit or withdraw money from your account - if you sell a stock and gain money from the sale, you can use all of the money to buy another stock (or a different investment type) without it impacting your contribution room at all 😊
I opened an account on Nov 2023 and put only 500 bucks lawl. How many can I put in now in 2024? if I want to add more.
You can put max of $15500 this year( $7500 carried over from 2023, and the 8000 from 2024)
@@bilisekito thanks yall.
Can I transfer from my TD TFSA to a wealth simple TFSA without consequences? With TD I'm only getting about $50/month in interest having 85k I'm that account
Is your money invested or is it in a TD TFSA savings account?
To answer your questions though, yes you can do this, but there are a couple things to consider. There may be a fee to transfer your funds - that will likely be charged by TD, however, Wealthsimple covers up to $150 in fees if you’re moving more than $15,000. Also, as long as you do an in-kind transfer, where they move the entire account over to Wealthsimple, you don’t have to worry about your contribution room. Hope that makes sense. 😊
@stephandden thanks for the reply! The account is just a "high interest TFSA savings account" I opened it myself with my own basic research but I should of done more research on this......yes your answer makes sense. I will contact weath simple to arrange this, thanks again!
You haven't really maxed out until the 5th year of the FHSA
I’ve maxed out my current contribution room 😊 I’m not able to contribute any more money until January 2025
They need to double the FHSA maximum lifetime contribution limit for single buyers or remove mortgage insurance for first time home buyers with solid credit. This country is ______. You fiill in the blank...
My guess is you are going to change from XEQT to VOO for your RRSP...
👀👀 we’ll see next week!
I was going to guess the same 😊
VOO is the us based ETF correct? If so, why is it important to use the RRSP to invest in that?
My guess: VEQT 😆Just kidding, maybe US-listed ETFs for the tax advantages👀
👀 We like that guess! Hahah
so this is the canadian version of LISA?
It seems like it's a similar account! But the FHSA can only be used for purchasing your first home (although you can transfer the money to a retirement account, too) 😊