The dividends of foreign investments are subject to non-resident withholding tax. Like any tax, this eats into the amount you actually make. But that doesn’t mean you should rule out foreign dividend-paying investments. It’s important to have a diversified portfolio and this can mean having ...
**The only things you can’t hold tax-free in your TFSA are foreign securities – such as U.S. dividend stocks. So if you do use your TFSA for dividend stocks, keep it Canadian. Hold U.S. stocks inside your RRSP, since U.S. dividends will be tax exempt in the RRSP. In addition...
the main reason being that they are tax advantaged. Tax advantage accounts are those that allow you to grow your money tax-free or allow you to defer paying taxes until later.
Since $5k is not a lot of money (in the investment and retirement world) my strategy would be to invest in a very high risk mutual fund. If I can compound 10 -15% returns over several years, I will accumulate significant funds to withdraw in 25 years, all tax free. Otherwise, I mi...
RRSP: US equity, International equity, and emerging markets (XAW) Non-Registered: Canadian Equity (XIC or VCN) Another option, if you like to research and follow stocks on a regular basis, is to buy Canadian dividend stocks for your non-registered portfolio while using ETFs for your ex-Cana...
We still hold some US and international ETFs in our taxable account, but the emphasis is definitely on Canadian dividend-paying investments since under the right conditions (primarily lower-income levels), you can actually receive those dividends tax-free. ...