The Best Accounts for Stocks and ETFs + Why Canadian Compounders Are Struggling
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What is the main topic discussed in this episode?
Investing is simple, but don't confuse that with thinking it's easy. A stock is not just a ticker. At the end of the day, you have to remember that it's a business.
Just my reminder to people who own cyclicals, don't be surprised when there's a cycle.
If there's uncertainty in the markets, there's going to be some great opportunities for investors.
This has to be one of the biggest quarters I've seen from this company in quite some time.
Welcome to the Canadian Investor Podcast. I'm Simon Beranger. I'm back with Dan Kent. We have a fun episode today. So we'll be talking about what type of investments are best suited for the different type of accounts that are available for Canadians. So we'll be looking at TFSAs, RSPs, FHSAs. our ESPs and taxable accounts. And we'll really focus on stocks and ETF. But if it's something that you find useful, you let us know. And we can also expand that to other types of investments as well, like fixed income would be another type of investment that we could be looking at. So we'll start off with that. We also have some good visuals showing what actually is, you know, the drawbacks and so on for each account.
And then Dan, you will go over for What's going on with four Canadian roll-up companies that are really well-known from investors and quite popular? So do you want to tell us quickly which companies you'll be discussing?
Yeah, so I would say three out of four are well-known. But yeah, just kind of a segment on three of these acquisition heavy companies that are kind of in the tank right now. We'll go over Constellation, WSP Global, TerraVest, and then probably the one that not a lot of people are familiar with, besides me talking about it on the channel, is Boyd Group Services. So four companies that have historically grown a lot through acquisition that are kind of getting hit now, all in kind of different ways, which is what will make the segment pretty interesting.
Okay, well, let's get started. I'll be sharing my screen. This one, it's a full episode. It's available on YouTube for those that are listening to the audio. So if you'd like to see the visuals that are going with this, make sure you just go on our YouTube channel and you'll be able to see it. So non-dividend paying Canadian and US stocks. So typically these will be suitable for
Which Canadian accounts are covered and what will we compare first?
any account type you'll be getting the tax treatment in line with the capital gains losses for each account because these are not paying any dividends and one thing people will notice is a lot of the tax implications whether they're suitable for certain type of accounts or not i mean you can hold them in pretty much The kind of stocks and ETFs we're talking about in any account is just you may not get as favorable tax treatment when it comes to dividend payout. And that's really what we'll be going over today. So the non-dividend paying Canadian US stocks. So that means that for a TFSA or FHSA, for example, you won't be paying any capital gains because everything is tax free. within, but also when it's the money is withdrawn, obviously the FHA say with a caveat that it has to be used to buy a new home.
An important word of caution here with these two account is that if you have a loss, you'll lose the contribution room forever. So you just have to keep that in mind. So if you're a brand new investor, you have $7,000, you're 18 this year, you have 7,000 and you low invest in a company, it goes to zero. Well, you have zero room for this year. You'll have to wait till next year until you get the contribution room for 2027. So something to keep in mind. For an RRSP, you won't pay any capital gains taxes. You'll pay taxes when you start withdrawing money from your RRSP, which will be added to your taxable income. And for a taxable account, you'll pay capital gains. However, if you have capital losses, which is probably the advantage of the taxable account here, you'll be able to use that to offset capital gains that would be taxable.
And one perk of capital losses, although no one wants to lose money,
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Chapters
6 chapters
1
What is the main topic discussed in this episode?
0:01–2:27
2
Which Canadian accounts are covered and what will we compare first?
2:27–13:13
3
How should non-dividend paying Canadian and U.S. stocks be allocated across TFSA, RRSP, FHSA and taxable accounts?
13:13–25:28
4
Why might speculative positions be better in taxable accounts than TFSAs or FHSAs?
25:28–34:04
5
How are Canadian dividend stocks taxed across registered and taxable accounts?
34:04–49:30
6
Which accounts are most tax-efficient for U.S. dividend stocks and how does the 15% withholding tax affect decisions?
49:30–56:01
Speakers
3 identifiedMore from The Canadian Investor
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