Maxed out TFSA, RRSP & FHSA Q&A

[boby85]

Howdy! I have just maxed out all three accounts for the year and I will continue to contribute the maximum amount to a defined contribution plan at work on an annual basis, plus a HISA. I’m single, currently rent in Quebec, do not have any debt or any dependents and travel quite often for leisure / sporting events. Any ideas on what to invest in next? Cash account, real estate, etc?

Edit: Thanks for the suggestions everyone!

 

[jjp297]

@boby85 Globally diversified portfolio in a taxable account. Make sure you track your adjusted cost base. You can use https://www.adjustedcostbase.ca to track for free.

 

[wvc]

@jjp297 Yep, the biggest mindset change when you run out of tax sheltered space is to up your record keeping game. In RRSPs and TFSAs there's almost nothing to keep track of, just contributions. When you invest in taxable accounts you have to track every transaction.

 

[boby85]

@wvc Oh for sure, likely one of the reasons I wasn’t jumping to open up a taxable account just yet.

 

[wvc]

@boby85 It's really not a big deal, you just need to make it a habit. Like a lot of of people, I kind of learned this the hard way when I was younger. I had a non-reg account through work for my stock plan and I just signed up for the stock plan to get the match, which made lots of sense, but then a couple of years later I sold those shares and it was a pain to unwind the capital gain. The reporting from the online brokerage was crappy and I had to rebuild the ACB from first principles and old statements. Not the end of the world, but now I keep a running tracker of my own calculated ACB and where my brokers provide an ACB I make sure it matches my calculation.

 

[mariehall]

@wvc Please excuse my lack of experience, as I'm relatively new to investing in a non-registered account. Let's consider a scenario where I'm solely investing in Canadian equities and high-interest ETFs, without incurring foreign exchange fees, and using a commission-free brokerage like Wealthsimple Trade. Is there a necessity in monitoring the Adjusted Cost Basis? My observation has been that contemporary brokerages such as Wealthsimple Trade efficiently manage trade records, cost basis, and issue regular monthly statements. @jjp297

 

[wvc]

@mariehall Yeah you can rely on the info from WS just keep good records.

 

[wvc]

@mariehall Yeah you can rely on the info from WS just keep good records.

 

[jjp297]

@mariehall Then t5008 that brokerage issues are generally incorrect/inaccurate, and as per CRA, you are required to track.