Wow, over the years, I made some pretty awful TFSA mistakes.
I got lazy.
I got tired of investing.
I even did some FOMO speculative plays.
As embarrassing as this is, I share my biggest TFSA mistakes to help you in your investing journey. Maybe this will save you a ton of money or accelerate your journey in investing.
Most importantly, I share 4 rules you can follow now to maximize your TFSA (tax free savings account).
LEARN FROM MY BIGGEST MISTAKES
TFSAs are great because you get to grow your money, collect dividends and collect interest payments tax-free, but try to avoid these mistakes that I have made!
TFSA Mistake #1: Investing in GICs/Not Investing
Opened a TFSA and put it into Guaranteed Investment Certificates
Did not take advantage of the account
TFSA Mistake #2: Losing Contribution Room because of Poor Quality Stocks
Invested into speculative growth plays and lost some money on those investments
When you lose money in your TFSA, you cannot write it off (TFSA provides a great benefit if you grow your money, not if you lose it)
TFSA Mistake #3: Daily Trading in TFSA
If you make a lot of trades per day, CRA can look at this as ordinary income and get taxed
Talk to your accountant about this to make sure you don't get dinged
TFSA Mistake #4 Buying US Dividend Paying Stocks in TFSA
You get taxed 15% withholding taxes on your dividends whenever it comes from a US company
For dividend income investors, buy Canadian dividend-paying stocks instead
TFSA Mistake #5 Over Contributions by Mistake
If you make money in your TFSA and withdraw it, you can contribute it back, but make sure it is not in the same year or you get a penalty from the CRA
5 Rules for Opening a TFSA
Open a TSFA ASAP
Maximize your contribution annually
Don't invest in poor-quality stocks
Avoid US dividend-paying stocks
Don't over-contribute within the same year
WATCH THE VIDEO TO LEARN MORE
0:00 - Intro
3:09 - TFSA Mistake 1
3:59 - TFSA Mistake 2
5:33 - TFSA Mistake 3
7:04 - TFSA Mistake 4
8:36 - TFSA Mistake 5
9:45 - 5 Rules for Opening a TFSA
Open up your TFSA now and Get some $$ Back:
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