💡List your spouse or common-law partner as a successor holder in your TFSA to optimize tax benefits
📈Inveset in long-term growth rather than using your TFSA as a high-interest savings account
💳Pay off high-interest debt before using your TFSA for savings
⏰Be aware of the calendar year restriction when withdrawing and contributing to your TFSA
💰Use strategic planning to optimize tax savings and maximize growth in your TFSA
What is the difference between a beneficiary and a successor holder in a TFSA?
—A beneficiary receives the money as a beneficiary but can only put it into their own TFSA if they have contribution room. A successor holder can add the money to their own TFSA even if they don't have contribution room.
Can I use my TFSA as a high-interest savings account?
—It is recommended to use your TFSA for long-term investments with higher growth potential, rather than as a savings account.
Should I prioritize paying off high-interest debt over saving in my TFSA?
—Yes, it is advisable to pay off high-interest debt before using your TFSA for savings, as the interest you save will likely outweigh the potential growth in your TFSA.
Can I withdraw and contribute to my TFSA in the same year?
—You can withdraw and contribute to your TFSA in the same year, as long as you have not exceeded your maximum contribution limit for that calendar year.
How can I optimize tax savings and maximize growth in my TFSA?
—Consider strategic planning, such as timing your withdrawals and contributions to optimize tax benefits and take advantage of growth opportunities.
00:00Introduction and channel welcome
00:37Mistake 1: Not listing a successor holder in your TFSA
02:23Mistake 2: Using your TFSA as a high-interest savings account
03:53Mistake 3: Using your TFSA while carrying high-interest debt
06:47Mistake 4: Contributing and withdrawing from your TFSA in the same year
09:50Mistake 5: Not strategically planning your TFSA contributions and withdrawals
