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Today we'll discuss holding United States dividend stocks in your TFSA vs RRSP. We'll likewise discuss the 15% withholding tax.
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I agree with you. I am on the lower tax bracket and will most likely stay there for my whole career, so if I listened to someone’s advice in not holding any US holding in a TFSA, I would be 100% home bias and will miss out, not only in the growth the US has to offer, but also the diversification. For example, Canada doesn’t have many companies in the Healthcare sector that is worth investing in.
JEPY Defiant S&P 500 Enhanced Options Income
QQQY Defiance Nasdaq 100 Enhanced Options Income
QQQY 65.78% JEPY 59.21% Monthly Dividends.
I am thinking of putting JEPY and QQQY in my TFSA. Large monthly dividend, and even if 15% is taken away for taxes, you still have a huge dividend.
Perfomance is based on Indexes, and their strategy, so I expect the Dividend to change as the Indexes changes.
Yeah I bought like 100 shares of QQQY and JEPY respectively and I collected over $100 dollars in dividend NON-RES TAX WITHHELD for both etfs for like $2,500 invested respectively. If It maintains over $0.90 per share for the foreseeable year, its an ultra win.
When is the 15% on the US dividend stock taken? Do we receive the full dividend from the company and need to submit it to the US government or does the company automaticity withhold the 15% and send it in? Thanks
It’s taken by the IRS before it hits your brokerage
It’s withheld automatically
Thanks @bradleytalksmoney and @sandray7609 👍🍻
Great video! As a young Canadian dividend investor it really provided some food for thought!
Great video
I still can’t get over just how much I love this new background 😉
So holding Tesla stocks in my TFSa is okay?
Tesla don’t pay a dividend so no withholding tax
If you sell it for a nice gain, then it’s great as you won’t pay any tax on that gain 👍
I’ll share a personal story.
At a particular time I had money on my TFSA to invest but didn’t have money in an RRSP. I did my research and wanted to invest in Costco. But the tax issue came to mind. I took your advice about Dont Let The Tax Tail Wag The Dog and I pulled the trigger and bought 3 full shares of Costco in my TFSA because that’s where I had the money.
It’s my best investment with the best growth in that account. I know they don’t pay a huge dividend, but the tax thought tried to stop me from buying it. Thankful for your advice!
I have owned Berkshire Hathaway ( BRK.B) for years, and since the dividends collected by Buffet on the stocks in the company, are paid in the US, and Berkshire doesn’t pay out a dividend itself, there is no withholding taxes.
Do we have to pay capital gains tax when we sell our U.S. stocks in our TFSA ?
No.
The audio is really quiet in this video. My volume is max on my headphones and it’s hard to hear.
Yaaay they chose Beavis wealth ❤. I had a 1% in that choice 😅. So would you consider JEPY , QQQY on TFSA ? Food for my thought regarding high dividend ETF to grow tax free and having plenty of contribution room ?
Totally agree with you.
My TFSA is at 120K and its all Canadian stocks
My main account is 60% Canadian and 40% US and worth about 1.45 million now so it makes sense to have my TFSA all Canadian
I think it depends a bit on how much of the growth you expect to come from the dividend and how much comes from capital appreciation. I would have no problem holding McDonalds, Coke, Pfizer, etc in a TFSA, but I would be less eager to hold a US based covered call ETF in one. I might still do it, but I would think longer about it.
This is quite educational. It’s crucial for newcomers to keep in mind that the financial markets are highly irrational in the short run. You should constantly be ready for the unexpected. That is how chance operates. Because of the inherent risks in the market, I always favor long-term investments.
These uncertainties will always be there. Thing is, every once in a while, the market does something so stupid it takes your breath away. If you’re not ready for it, you shouldn’t be in the market business. or get you a skilled practitioner.
Personally, I use my TFSA for TLT, GICs and SPY.
Here’s the alternative approach. Keep US dividends paying stocks in RRSP to avoid withholding tax. In the TFSA account, keep US stocks like Berkshire Hathaway. When the time comes and you start selling small bites, you don’t pay capital gains. Or buy stocks paying small dividends like Microsoft. It’s more about value appreciation than dividends. This is a long-term. strategy, but it works.
Yes. BRK.B is the best under a TFSA as Berkshire-hathaway shelters the dividends.
Beavis Wealth…. I like it…👍
I have 3 accounts, and hold 2 canadian stocks and 24 US companies. Can’t invest here with the gov’t we have along with a small economy compared to other countries. Too much risk here. World class businesses in the US. I’ll pay the 15% tax any day on the dividends.