Canadian Money Forum banner

1 - 4 of 4 Posts

·
Registered
Joined
·
51 Posts
Discussion Starter #1
I have approximately $5000/year to begin investing into dividend stocks - primarily CDN. I'll be purchasing one or two stocks annually in various sectors (my own mini-index). If I have extra cash each year I'll purchase more. The purpose is for long term growth, so buying and holding is my key objective. My RSP's are maxed out and are all in index funds.

While I understand the purpose of the TFSA and it's benefits, the one major drawback is that I cannot off-set any capital loss which I could do in a non-registered account. Should this deter me away from holding stocks in a TFSA, or is it a good thing? Which account should I invest the stocks in and why?

Thanks for any advice!
 

·
Banned
Joined
·
967 Posts
If your horizon is far away, and your strategy is buy and hold, then the capital loss claim would not come into play at all. In general, one should max out RRSP and TFSA before investing in a taxable account.

In taxable account, you can claim capital loss, but also 50% capital gain tax, and (?) % on dividend and other distributions.
Versus:
In TFSA, no capital loss claim, but 0% capital gain tax, dividend and distributions.

In the long haul, I'd go with TFSA.

Here's a couple of blogs I've read:

http://www.milliondollarjourney.com/portfolio-allocation-rrsps-tfsas-and-taxable-accounts.htm

http://www.milliondollarjourney.com/how-investing-taxes-work-part-2-dividends-and-interest.htm
 
1 - 4 of 4 Posts
Top