Thank you for providing a comprehensive review of this important investment tool, including covering off the scenarios for what happens to the account after death.
Thank you for sharing this information. My mom has a TFSA that she has named my sister and myself as beneficiaries. My question is this, when she passes away will the value of her TFSA be included in Probate. We are in Ontario. Thank you in advance.
I recently did another estate in Ontario, and NO it is not included in probate fees in Ontario. It becomes an estate asset only if no beneficiary is named. That's not your situation.
Indeed the TFSA is a valuable tool for Canadians to save and to withdraw without having to pay taxes. Personally I feel it is best to put away money without touching it until you retire.
You should be drawing down RSP , not contributing as you shouldn't have earned income. Unless you have contribution room. Extra cash in retirement, definitely put in a TFSA.
You should do what you think best. Just remember that RRSPs/ Riff need to be drawn down at some point. The more you have in them the more you have to take out as a percentage based on age. My RRSPs are out performing my TFSA currently by 8%.. they were doing better by 14% for a brief period. I rather make more interest than less. You can always make an RRSP withdrawal, pay the withholding tax and then put it back into your TFSA if you don't spend it and you have the room. Don't let anyone tell you what to do with your money. Lots of experts online. Do what's best for you
If you have not been contributing since the beginning of it 2009. You likely have room. The current amount is roughly 100000 since inception. If you only put in25,000 you have lots of room
So say i have $40K in January 2025 and i want to take out $10 K for emergency in February 2025 I can keep keep contributing March - Dec 2025 with no problems ?
If you have OAS at age 65 and you take a RRSP of $22, 056, your total for the year is $30,788.04. You end up paying $1,805.48 in income tax, which leaves you $28,982.56 net for the year. You happen to be over the limit for GIS and are not getting any. If you have OAS at 65 and you take a TFSA to get to that $28, 982.56, being that you will have no taxable income, you will receive the full OAS and GIS, which is $21,774.60. You will then need $7,207.96 in TFSA to obtain that same net income. Based on the amount of GIS available, any income is taxed at least 30% and up to 43% when you take a RRSP of $22,056. On your income tax form it doesn't tell you that your GIS of $13,042.56 just volatized, it only tells you that you pay ONLY $1,805.48 in taxes. Yeah, just concentrate on OAS clawback... I'm 68 and I wouldn't have been able to do anything because I needed the money then. But if I would have been single, I would have maximized a TFSA, any extra in RRSP's. Then delay CPP at 70, take OAS at 65, use the necessary TFSA during the 5 years to qualify and get the max GIS amount.
It's a powerful tool indeed. Maxing out his/her TFSA every year since 2009 and investing in a diversified set of index ETFs, one would easily accumulate over 200k in it by now.
The successor holder does not get double contribution room. You did not mention that the CRA is now watching how often you trade inside a TFSA and if you are active or good at trading will tell you that you are in business and bust your chops. There are no objective standards for how much is too much so they can decide subjectively.
@@ParallelWealthI'm a bit unsure of what you are saying. Yes you double the available CONTRIBUTION. but you don't double the the contribution room ie 2025 maximum contribution is $7000 but does the contribution room double to $14,000 ????? You don't take over your deceased spouse contribution room do you?? Just their contribution. The survivor has 300k, but only $7000 contribution room??
thank you for your great video 👏👍 i started investing $1,000 in TFSA, non-redeemable GIC for 6 months with 3.25% interest. i dit it online with my RBC. i am 57 and plan to work for 10 more years in health care and will get defined benefit pension from work, however, i can not tolerate losing money so i only focus on TFSA. Additional, with Trump in and Trudeau out, its interesting to see how things go economically The financial world is so fragile in my opinion i am interested in tips how to increase my $ invested in TFSA i’d rather (my money) be safe than sorry
Depending on when you plan on retiring, there's nothing wrong with investing in mutual funds or ETFs, just make sure to start selling and invest in more stable vehicles like bonds or GICs. If you are less than 5 years till retirement, forget everything I said about mutual funds or ETFs, as they can fluctuate heavily.
Thank you for providing a comprehensive review of this important investment tool, including covering off the scenarios for what happens to the account after death.
Thank you for sharing this information. My mom has a TFSA that she has named my sister and myself as beneficiaries. My question is this, when she passes away will the value of her TFSA be included in Probate. We are in Ontario. Thank you in advance.
I recently did another estate in Ontario, and NO it is not included in probate fees in Ontario. It becomes an estate asset only if no beneficiary is named. That's not your situation.
@@garth217 Thank You
@@mckeznak the income generated from withdrawing from the RRSP on death is included in the Estate’s taxes, which can be *significant!*
Indeed the TFSA is a valuable tool for Canadians to save and to withdraw without having to pay taxes. Personally I feel it is best to put away money without touching it until you retire.
The holy grail of investing accounts. Use it wisely!
Where are you guys located ? I’d like to chat to you guys !
Can you have more than one TFS a account
Yes
You can open as many different TFSA’s as you want so long as you don’t contribute more than the limit.
Having multiple accounts adds complexity, not contribution room.
I'm 65 and retired 6 years. Should I still contribute to rrsp or just a TFSA
You should be drawing down RSP , not contributing as you shouldn't have earned income. Unless you have contribution room. Extra cash in retirement, definitely put in a TFSA.
You should do what you think best. Just remember that RRSPs/ Riff need to be drawn down at some point. The more you have in them the more you have to take out as a percentage based on age. My RRSPs are out performing my TFSA currently by 8%.. they were doing better by 14% for a brief period. I rather make more interest than less. You can always make an RRSP withdrawal, pay the withholding tax and then put it back into your TFSA if you don't spend it and you have the room. Don't let anyone tell you what to do with your money. Lots of experts online. Do what's best for you
Where do i find out How.much TFSA room i have ?
The CRA web site is supposed to tell you but you CANNOT trust them as it can take nearly a year to be updated. Your bank can help.
If you have not been contributing since the beginning of it 2009. You likely have room. The current amount is roughly 100000 since inception. If you only put in25,000 you have lots of room
Thanks for the quick response
So say i have $40K in January 2025 and i want to take out $10 K for emergency in February 2025
I can keep keep contributing March - Dec 2025 with no problems ?
Thanks for the info
If you have OAS at age 65 and you take a RRSP of $22, 056, your total for the year is $30,788.04. You end up paying $1,805.48 in income tax, which leaves you $28,982.56 net for the year. You happen to be over the limit for GIS and are not getting any.
If you have OAS at 65 and you take a TFSA to get to that $28, 982.56, being that you will have no taxable income, you will receive the full OAS and GIS, which is $21,774.60. You will then need $7,207.96 in TFSA to obtain that same net income.
Based on the amount of GIS available, any income is taxed at least 30% and up to 43% when you take a RRSP of $22,056. On your income tax form it doesn't tell you that your GIS of $13,042.56 just volatized, it only tells you that you pay ONLY $1,805.48 in taxes. Yeah, just concentrate on OAS clawback...
I'm 68 and I wouldn't have been able to do anything because I needed the money then. But if I would have been single, I would have maximized a TFSA, any extra in RRSP's. Then delay CPP at 70, take OAS at 65, use the necessary TFSA during the 5 years to qualify and get the max GIS amount.
It's a powerful tool indeed. Maxing out his/her TFSA every year since 2009 and investing in a diversified set of index ETFs, one would easily accumulate over 200k in it by now.
Thank you
One major drawback of a TFSA is that any losses are not tax deductible whereas in a regular investment account they are.
My RRSPs went up and down. During covid I lost considerable money. I couldn't use those losses, your post is not factual
@@garth217 did he say rrsp? No he said a normal investment account
Losses are not tax deductible in any account anywhere. Capital losses can be used to offset current or future capital gains. Not the same thing.
@theguyonyoutube4826 he didn't say normal investments either
The successor holder does not get double contribution room. You did not mention that the CRA is now watching how often you trade inside a TFSA and if you are active or good at trading will tell you that you are in business and bust your chops. There are no objective standards for how much is too much so they can decide subjectively.
Adam didn't say you get double.
You take over their account as successor, and if both maxed out creates a double contribution room.
@@ParallelWealthI'm a bit unsure of what you are saying. Yes you double the available CONTRIBUTION. but you don't double the the contribution room ie 2025 maximum contribution is $7000 but does the contribution room double to $14,000 ????? You don't take over your deceased spouse contribution room do you?? Just their contribution. The survivor has 300k, but only $7000 contribution room??
thank you for your great video 👏👍
i started investing $1,000 in TFSA, non-redeemable GIC for 6 months with 3.25% interest. i dit it online with my RBC.
i am 57 and plan to work for 10 more years in health care and will get defined benefit pension from work, however, i can not tolerate losing money so i only focus on TFSA. Additional, with Trump in and Trudeau out, its interesting to see how things go economically
The financial world is so fragile in my opinion
i am interested in tips how to increase my $ invested in TFSA
i’d rather (my money) be safe than sorry
Adam does fee for service planning. Consider hiring him.
Depending on when you plan on retiring, there's nothing wrong with investing in mutual funds or ETFs, just make sure to start selling and invest in more stable vehicles like bonds or GICs. If you are less than 5 years till retirement, forget everything I said about mutual funds or ETFs, as they can fluctuate heavily.
The best thing that Canadians could do is join the USA. 60% less tax and not have the possibility of a Liberal/NDP/BLOC regeme
The best thing is that if Trump was never born.