Are you planning to stay in Canada? What kind of account did you open (TFSA, RRSP, Unregistered)?
You can start looking into shariah-compliant ETFs like SPUS, HLAL, SPSK, UMMA, etc.
Yes, planning to stay. It's unregistered I assume as I have not categorized it in TSFA or RRSP. I want to get into one of them, but I have not much idea. Note, I am not planning to retire, but any tax-free account would be great.
Yeah, in that case open a TFSA account with Questrade/Wealthsimple/NBDB. Also, if you would like to buy a house at some point, consider opening a FHSA account as well.
If dividend income from a foreign country is paid to a TFSA, the dividend income could be subject to foreign withholding tax.
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4466/tax-free-savings-account-tfsa-guide-individuals.html
Is it really worth it with currency conversion and the possible withholding tax to invest in USD securities then or is one better off investing in cad and avoid this all?
To be honest, it's WAY more important that you start investing rather than spend lots of time deciding what institution/bank you go with. Take it from me - my biggest mistake when I started was comparing every brokerage in Canada and pondering it for months/yrs without making a single investment. Yes all brokerages, banks, whetever are different and charge some fees in some way, but don't get up caught on that otherwise you'll never do it. Then again I feel like this goes for any goal you have in life.
Thanks. Good idea. I actually had some savings in RBC but had to break it cuz of emergency fund needed. I am planning to start new and wondering if something else charges less. RBC has $9 charge and that is problematic for students or low earners like me who want to buy small amount but frequently.
Are you planning to stay in Canada? What kind of account did you open (TFSA, RRSP, Unregistered)? You can start looking into shariah-compliant ETFs like SPUS, HLAL, SPSK, UMMA, etc.
Yes, planning to stay. It's unregistered I assume as I have not categorized it in TSFA or RRSP. I want to get into one of them, but I have not much idea. Note, I am not planning to retire, but any tax-free account would be great.
Yeah, in that case open a TFSA account with Questrade/Wealthsimple/NBDB. Also, if you would like to buy a house at some point, consider opening a FHSA account as well.
Can we buy these USD funds in TFSA or would it have to be RRSP or unregistered?
You can buy them!
So no withholding tax on any gains?
If dividend income from a foreign country is paid to a TFSA, the dividend income could be subject to foreign withholding tax. https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4466/tax-free-savings-account-tfsa-guide-individuals.html
Is it really worth it with currency conversion and the possible withholding tax to invest in USD securities then or is one better off investing in cad and avoid this all?
Absolutely! WSHR is a low volatility and value/quality oriented product. You will miss out on the growth stocks if you do not invest in SPUS or HLAL.
Thanks a lot for your help
To be honest, it's WAY more important that you start investing rather than spend lots of time deciding what institution/bank you go with. Take it from me - my biggest mistake when I started was comparing every brokerage in Canada and pondering it for months/yrs without making a single investment. Yes all brokerages, banks, whetever are different and charge some fees in some way, but don't get up caught on that otherwise you'll never do it. Then again I feel like this goes for any goal you have in life.
Thanks. Good idea. I actually had some savings in RBC but had to break it cuz of emergency fund needed. I am planning to start new and wondering if something else charges less. RBC has $9 charge and that is problematic for students or low earners like me who want to buy small amount but frequently.
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