I started this channel to take a deep dive into investing, taxes, personal finance and money saving strategies FOR CANADIANS! 🇨🇦
If you don't even know the difference between a savings and chequing account, I will go over all the basics of taxes, saving, spending wisely with cash back credit cards and the importance of investing.
For more experienced viewers, I'll offer my investing strategies including diversification, stocks vs bonds, TFSA vs RRSP and everything in between.
The principles I follow are useful for any person who wants to take charge of their financial future, but I'm making this content tailor-made to Canadians and millennials.
Check out my playlists to learn about each topic:
-Millennial INVESTING Guide
-Canadian TAX Guide
-Credit Card Series
-Canadian BUSINESS Guide
-Stock Picks
Welcome! =)
Facebook: facebook.com/CanadianTShirt
Instagram: instagram.com/canadiantshirt
Twitter: twitter.com/CanadianShirt
Пікірлер
It is incorrect that CPP contributions do not go into government operational accounts... In 2020 the CPP was rolled into the Infrastructure funding account to fund thousands of 'infrastructure' projects controlled by Climate Barbie. As the Auditor General noted, this infrastructure minister could not account for 22,000 infrastructure projects of the over one hundred she claims to have 'invested' in.
Adrian, nice concise video. Can you tell me how the monthly payout is treated tax wise in Canada? Is it treated as interest income? If so, is their a similar ETF that is treated as a capital gain? Thanks for the videos.
Dave Ramsey says credit cards are for suckers
I threw 1000 into an FHSA in wealthsimple last year with the idea that imma do a bunch of research to invest it... I have been read and seen so much on peoples suggestions, and so many different routes and peoples opinions. What do yall think I should hold into my FHSA? I want to actually hold something and not just have it sit there making $0. XEQT? XBAL? CASH? ZMMK? I dont have a range of when I want to buy a house just know its ASAP, say maybe 2 years? Idk if i should dump all my holdings into 1 stock/etf/gic or diversifiy it. thoughts?
what credit card do you recommend for a first credit card for a full time working 19 year old?
How can I apply to so many credit cards without affecting my credit score?
It absolutely WILL affect your credit score! Every time you apply to a card, they do a hard credit inquiry which will hurt your score
I talk about this in detail in my CREDIT SCORE Explained video here =) kzread.info/dash/bejne/c6WavNWBlpTIp84.html
That's why you should never apply to more than 1 or 2 credit cards in a year. I accumulated all of these cards over the course of 10 years!
@@CanadianTShirt I just applied to 2 credit cards last night. Let’s see how it goes.
Thanks so much Adrian! Your videos helped me to get started doing my own investing this year and it feels good to take control of my own money! Would you recommend putting emergency savings fund in ZMMK? I have it in a high interest savings account right now, but it feels like a missed opportunity.
Thank you for those kind words! I'm happy to hear that my videos help you take that big step and take control of your own financial future!
Great question but I would say generally no... an emergency savings fund is money that you NEED at all times and can't afford any risk. Even though ZMMK is very very small risk, it's not zero risk. I would definitely park my emergency savings in a high interest savings account instead for that absolute protection
But if you have a large savings reserve then it would be fair to put a PORTION of it into ZMMK but again, the majority should be in savings. ZMMK is more suited for a specific money goal like a down payment, within the next 1-3 years =)
@@CanadianTShirt Thank you Adrian, appreciate your insights! I was wondering if you were planning to do an updated video on Chexy and credit cards, now that Chexy no longer accepts Mastercards. I know a bunch of people wondering what backup cc they should use, after their Scotiabank Momentum visa is maxed!
Is the distribution here considered dividends or just seen as interest to the tax man?
For any ETF, you have to look up the distribution breakdown to see how it's taxed!
In the case of ZMMK, it's not dividends since this doesn't contain stocks, it contains bonds. So most of it is interest income and thus taxed fully, just like a GIC or savings account
Does it need to be RRSP or I can use margin account? No difference?
Not at all! Norbert's Gambit works the same in ANY account type! I just used my RRSP as an example but I use it in all of my accounts =)
@@CanadianTShirt Alright, since I'm going to use non register account, do I have to keep track of every transactions to calculate ACB or Questrade's tax reports are good?
I am dripping but with the money that can't buy a whole share goes on my mortgage 😊it works for me, so I consider it a win 🎉
That's a solid strategy! You get the best of both worlds! 🙌
What happened to this series? You mentioned multiple future videos that aren't out 2 years later.
I still have more business videos that are coming out! I have 3 purple videos (specialized business videos) plus a ton of tax videos that talk about business taxation
But stay tuned for more! There's always more to cover!
@@CanadianTShirt Looking forward to those videos. BTW, why is the cost of corporation setup 1K-3K as per this video? Other videos mention $300-400 setup costs. I am confused. What did I miss?
I’d look into Roger’s Mastercard especially for foreign exchange… 3% cash back on all foreign exchange so after foreign exchange it’s. profit of .5% no fee
The Rogers Mastercards is great but ONLY for USD! You get 3% on US purchases! Which is worth the 2.5% conversion fee
But for other foreign currencies you do NOT get this cashback and that 2.5% foreign fee will hurt. So I only use Rogers for USD. For any other currency, I use the HomeTrust to avoid the 2.5% fee =)
I’m glad I found your account, Adrian. A question; once the sole proprietorship business is already running with a different business name than one’s legal name, is there any consequence to this? …Before registering the business name.
You should still register the business name for several reasons, mainly to protect your brand so that no one can steal it from you!
You won't face any penalties or anything, you are still a sole-proprietorship no matter what your name is but you will eventually need to register your business name with the province and then on the federal level, you will have to register for a Business Number and sales tax (HST/GST) etc where applicable
@@CanadianTShirt Thanks so much for your response. New subscriber here!
I'm happy to help! Best of luck with your business! =)
@@CanadianTShirt Thank you.
Hi. Thanks for your videos! I have a question regarding what to do after buying an etf. My rich aunt passed away and she gave me U$ 100k. I invested most of the money in the VOO etf. Now what? I leave it alone for 5-10 years? Do I sell some positions and take out partial profits? There is not much information on what to do after putting in money in the stock market. Thanks
I am sorry to hear about your aunt passing but I'm sure she would be proud to hear that you are investing that inheritance rather than spending it on trivial things
When it comes to investing, you NEED to keep a long term mindset. The money you invest with is money you will NOT touch or need for a minimum of 5 years, ideally longer. So forget about this money, let it grow and invest and years down the line, then you can start to withdraw it when you need it
I break down the important of long term investing in this video here: kzread.info/dash/bejne/gpmg26t9gLnVqdo.html
ZSP is better than VFV for Canadian S&P500 ETFs
ZSP is very similar! Another great choice =)
It's seems more interesting than PSA
I don't personally own PSA but I have a bit of exposure through ETFs =)
Glad to see you get another sponsorship! You're one of the few creators I trust. I started heavily investing 8 months ago and have built my portfolio to about 80k at 24 years old (huge thanks to my parents for letting me live with them at this age lol). Keep up the great work! This sponsorship is much deserved.
Thank you so much for those kind words! I am still very new to sponsorships, I've only done 2 in 5 years and I definitely want to be extremely selective and limit who I work with. But with BMO ETFs, I've been a fan of their products for over 10 years so it's a great fit to be paid by them =)
And congratulations, that's INCREDIBLE! You are doing the right thing, stay with parents as long as you can mentally endure lol it will save you a TON of money to invest with! Keep it up bud! =)
Love your videos Adrian! Do you have one that explains the excel spreadsheet?
You bet! I go over my spreadsheet in detail in my DRIPs EXPLAINED video here =) kzread.info/dash/bejne/oamtutmahLLMmLg.html
@@CanadianTShirt Thank you!
My pleasure! I hope you enjoy my Excel template! =)
Hello Adrian, good video, big fan of the channel here, I'm new to investing but if I understood this right, with this fund it returns around 4.8% per year on average, right? If that's the case a GIC that pays more, let's say 5.25% would be more advantageous for the earning with the cons of the money being locked in for the term of the plan, correct?
Correct there are a few long term GICs that pay out even higher in interest income BUT the big downside is that money is locked in!
Remember the whole point here is saving money for a short term goal. So we NEED that flexibility to pull the trigger and withdraw that money when the time comes. That's why I prefer savings and money market funds instead of a GIC =)
Desjardins has the same product but no MER fees and the annual yield is currently at 4,85% vs 4,80% for this product. DJQ1100
There are Cashable 1 year or 2.year GICs with some banks but their interest rates are not as high as the yield on this money market fund from BMO. Great Video!😊
That's true! Cashable GICs usually offer lower interest rates than the fixed ones. That's the price you pay for the flexibility, but for short term goals like this, that flexibility is SO important!
Thank you for watching and sticking with my channel over all these years! I appreciate it! 😊
It was so sweet meeting you in Toronto. Thank you agian for helping me with Taxation 1😂
Thanks man for coming out! The Toronto event was EPIC!!! 😁
@@CanadianTShirt it was, but I found it was for very new investors getting into the market.
True the majority of our attendees are beginners or intermediates but we had investors from all levels! =)
@@CanadianTShirt You guys should host a more advance one. Talk about patterns in the market for day trading, swing trading, or shorting the market. Maybe forex, or even legal tax loop hole advantages. I know you guys are very smart!
Ur a great person bro.
Wow! Thanks buddy! I appreciate that! 🙏
I am new immigrant moved to Canada. Recently started ur content, followinng u on blossom. The way u passionately explain things especially in Canadian style, is just great and quality educational content. God Bless Brother.
Thanks buddy! That is so kind of you to say! 😊
And welcome to Canada! 🇨🇦
Unrelated but I love how your saying Zed instead of Zee 🇨🇦
Haha there's a reason why I'm called the CANADIAN in a T-Shirt 🇨🇦
Is cash (global X) is similar etf? I have it in my FHSA
It is quite similar in the sense that it serves the same short term investing goal
But it's different in their composition. ZMMK contains short term bonds whereas CASH contains cash deposits with the banks, and those interest rates can change suddenly so keep that in mind! =)
@@CanadianTShirt thank you for the information
I'm happy to help! =)
Can you please do an updated 2024 stock video please. What to buy, how to get started, how to stay motivated etc. new subscriber! Thanks :)
You bet! That updated video is certainly on the way! =)
That zre etf looks like a disaster but thanks for the info
Well ZRE just contains REITs and real estate has been hit hard since the interest rate hikes in 2022. But they still continue to pay out monthly distributions and once interest rates come back down, I am expecting a great recovery =)
Amazing video as usual Adrian! So, would you say this is a good option for parking your Emergency Fund? Given the liquidity and cash flow distribution beating not just inflation but most of the HISA in Canada it seems a good option…
Hmmm I wouldn't say that, maybe at most a portion of your emergency fund. Your emergency fund is money that is always there with ZERO risk so a High Interest Savings account is the best choice for that
I say money market funds are better for "savings" that are going towards a big money goal in 1-3 years, like saving up for a house or a car. But if you have a large emergency fund, I could see the case for putting a portion of it into these money market funds!
@@CanadianTShirt Thanks Adrian! Certainly risk is a big factor to consider when moving Emergency Funds. Makes sense. Appreciated the quick turnaround!
I'm happy to help! Best of luck! =)
Does this get taxed?
Yes in a non-registered account, the distributions will be taxed!
Always look up the ETF itself to see the breakdown of the distribution but in the case of ZMMK, the majority of it is interest income and so it is fully taxed, the same as savings or a GIC
Nice video! I was wondering what is the bonus I can get if I use your referral link to open a Simplii? Thank you!
My referral link with Simplii gives 3 different bonuses! One for the credit card, chequing account and savings account =)
Would you be able to do a video on best budgeting apps we can use to keep track of spending please! Thanks in advance 😊 @
I do all my budgeting with Excel! I give a FREE Budget Template that you can download and use for yourself! I go over my template in detail in this video, How to BUILD WEALTH =) kzread.info/dash/bejne/fmVk2ciSnJbFgdY.html
Is the fees still the same as in the video?
You got it! The fees haven't changed in over a decade =)
@@CanadianTShirt Thank you! And do you recommend questrade using NG or IBKR?
I still prefer NG with Questrade but IBKR has certainly gotten a lot better over the years!
Nice informative video, do you get the distribution if you buy the ZMMK mid month? when is the best time to purchase, beginning of the month?
It's the same with any dividend paying stock or ETF, as long as you buy the ETF before the ex-dividend date, you WILL receive the dividend! (or distribution) =)
I break this down in detail in my DIVIDENDS EXPLAINED video here =) kzread.info/dash/bejne/aKyuyMmIkrveprg.html
Sorry, back here again. Thank you for doing this review (on the fence, but I may take a position later). Does BMO have something similar for your USD? Thank you in advance.
Great question! Yes BMO offers a very similar USD version called ZUS.U
For me personally, all of my income and savings etc is in CAD so ZMMK works for me. But if you have USD income, then that could be a good option! =)
@@CanadianTShirt Thank you!
My pleasure! =)
Great. We also published a video and explained how to start a business in Canada kzread.info/dash/bejne/k4uKtMmcY7fSfco.html
Hi Adrian, Is it wise to do this through the TFSA?
Since you will be withdrawing this money in 1-3 years, ideally you want the non-registered account. You want to prioritize the TFSA for long term investing instead!
However if you have a TON of available room and you're nowhere close to maxing out your TFSA, then sure you can use the TFSA to save on those taxes!
And once you withdraw, you would regain that contribution room in the following January =)
You do not mention brokerage fees where most are charging Buy 9.99 Sell 9.99 so you need to deduct the cost of doing business also to get a real return and CRA taxes
The fees will depend on your brokerage, there's nothing special about ZMMK in this regard, it's treated like any other ETF
Yes if you use a big bank brokerage and pay $10 in commission fees every time, that's very expensive.... That's why I've been investing with Questrade for over a decade!
With Questrade you can buy ETFs commission free! And when it comes to stocks, they are literally half the price of the banks. And they have all the features you want. Nowadays there are even more low-cost alternatives so there's no reason to pay $10 for every trade =)
is this the same as CASH or SGOV?
It's similar, both serve short term investing goals!
But it's different in their composition. ZMMK contains short term bonds whereas CASH contains cash deposits with the banks, and those interest rates can change suddenly so keep that in mind! =)
What is your criteria for buying rental property? Is it possible to generate cash flow given that interest rates are still high ? Thanks
It's MUCH tougher than it used to be, even 2 years ago!
But yes opportunities are still there, but the numbers will definitely be tighter with these higher interest rates. But remember these rates won't stay this high forever! I'll be covering my entire strategy in my upcoming real estate series so stay tuned! =)
are these money market fund distributions counted like interest income of GIC, or are they eligible dividends like an equity?
Great question! For any ETF, you have to look up the distribution breakdown from the website to see how they're taxed
In the case of ZMMK, the majority of it is interest income so it will be fully taxed like a GIC or savings... no tax credit like a dividend unfortunately...
thanks
I'm happy to help! =)
Great video! What would be the USD equivalent to ZMMK?
Great question! Yes BMO offers a very similar USD version called ZUS.U
This is useful if you have a source of USD income, for me though I'm all Canadian for my savings =)
Any etf suggestions for parking usd for the short term?
Yup! BMO offers a similar ETF in US dollars called ZUS.U =)
I assume your audience is younger but these are also good options for someone who is retired and wants to supplement their income with monthly dividends. Just remember folks $2500 in ZMMK is going to pay $10 a month… if that gets you excited than go for it….
Hmmm sure they offer pretty stable income but I wouldn't make this your long term retirement account. If this is money that you will be drawing out of in the next 1-3 years then sure!
But for the rest of your retirement nest egg, you can do better with quality dividend stocks and ETFs, plus a bunch of other retirement income strategies =)
But you're correct that it's a very low risk option to supplement your monthly income!
Awesome video😊 Thanks Adrian I have one doubt about dividends earned in my TFSA in Cash.I am not eligible for drip yet. If I buy stocks/ETF from the cash earned through dividends will there be a penalty for extra contribution since my TFSA is maxed out for this year
Nope! Any income you earn INSIDE the TFSA (dividends, capital gains, DRIPs etc) is NOT considered a contribution so it will NOT affect your room!
So even if your TFSA is maxed out, those dividends or DRIPs will NOT push you over the edge!
I break this down in detail in my TFSA MISTAKES video here =) kzread.info/dash/bejne/pWiXpMubfKS6f7g.html
Thank you so much Adrian😊Appreciate it! You always clear our doubts 👍
@SuccessSpirit7 that's what I try to do! 🙌
Great video as always. I hold CASH etf but that is not insured by CDIC. Since this BMO money market etf offers the same kind of returns as CASH then I guesss it makes more sense to pick this one over CASH etf? If comparing the two, does CASH etf have certain plus points over this BMO one at all?
CASH is also a great option but it's different since it focuses on bank deposits vs short term bonds, and those interest rates are more susceptible to change
But it's also a great pick! But keep in mind that neither CASH nor ZMMK would be insured under CDIC since it's not savings, it's an investment. But as long as you are investing with a good brokerage, you would be insured under CIPF
Check out this video here to learn the details on CDIC vs CIPF insurance and how it relates to bank closures in the US =) kzread.info/dash/bejne/eI6esaeCcrCTj7w.html
PSA, HISA, CASH and HSAV are also good ones.
All good options for short term investing! They are different though since ZMMK focuses on short term bonds rather than cash deposits at banks. Just be mindful that bank savings rates can change at a moment's notice so keep that in mind! =)
Thanks for the video! This sounds like a great short-term option to park some cash. Do you know if there are any unique tax implications to consider with investing in a money market fund?
Great question! Always look up the distribution breakdown from the ETF website since it's more complicated than pure dividends
But for ZMMK, the vast majority of the distributions come from interest income (from the bonds) so it will be fully taxable... no tax credits unfortunately.
This is the same as interest you would get from a savings account or GIC. Of course this only affects you in a non-registered account, in a TFSA it would be tax sheltered =)
Great video! Thanks for always providing such useful information. Can you please clarify, the percentage assigned to 'total P&L' , would that percentage be for the lifetime of the questrade account? Just trying to figure out what kind of return I am getting year over year. Thank you!
thoughts on POW.t