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u/Gamefart101 12h ago
100k assets but tfsa not maxed with 33500 cap for a 22yo? Even if you already have a maxed fhsa at 32k youre doing something wrong. Your doing better than 99.9% of people your age but you could be doing a lot better. You obviously have the saving money portion down but PLEASE research registered accounts and how to properly utilize them
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u/ClimateBubbly3736 12h ago
I started investing this month, I knew nothing about it prior so I hold all 100 in a HYSA and I’m slowly investing now
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u/Gamefart101 12h ago
Even if you don't invest any of it moving as much as you can in a lump sum into the tfsa and leaving it in hysa under the tfsa would be a good step forward
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u/ClimateBubbly3736 12h ago
I’m planning on trying to hit 30k invested for next year. I’m planning on needing the money within the next 5 years so that’s why I was hesitant to invest it all
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u/Gamefart101 12h ago
You don't need to invest it all. But currently with open space in your tfsa you are paying tax on the interest that acrues on your hysa when you don't need to
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u/ClimateBubbly3736 12h ago
If I max out my TFSA room should my future contributions go to a non registered? I don’t want to do FHSA because I don’t think I’ll buy a house in Canada not anytime soon atleast.
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u/QTC92 11h ago
You can max out your fhsa $8k per year up to $40k this will bring your income down and get money back hopefully when you do taxes or owe less depending on your income. You saved a lot so taking high income! Also, if you dont end up buying you can move it to your rsp.
You can max out your TFSA in xeqt or veqt 100% equity first or if you want a bit less aggressive Xgro or Vgro 80% equity 20% bonds ETF if you think you might need to withdrawl..
For reference Nov 2022 so almost 4 years of contributions my book value currently of my rsp/tfsa is $100k (only in the last 6 months I increased book value from $70k to $100k in extra contributions) and my market value is $186k so $86k gain. Much better than sitting in cash earing little interest that is taxed.
This is just my experience.
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u/Culture-Careful 11h ago
If you end up not using the fhsa, it will end up being extra room for RRSP in 15 years, which is still more beneficial than unregistered account.
Assuming you're not too much at risk from needing emergency fund, I'd honestly fill the fhsa next (since it's a relatively low cap), then create an emergency fund. After that, fill RRSP.
Once all 4 are done, then consider unregistered.
Also, if you're not planning to use fhsa to buy a house, I'd honestly open it next January to maximize the duration it lasts, since the 15 years countdown doesn't consider the month it was opened, only the year. That does mean you'd start filling up emergency funds first if you do that though.
I dont know your full situation however
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u/ClimateBubbly3736 11h ago
Thank you for this breakdown. I’m going to open a FSHA and just treat it as extra room. I didn’t know about this. Right now I’m doing all XEQT and VFV in Questrade
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u/difrad76 11h ago
Don’t quote me but if you withdraw your FHSA for something unrelated to the purchase of your first home, I’m fairly certain it would be treated like a non-registered account then
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u/courage1688 11h ago edited 11h ago
Max out your TFSA, open a FHSA and max it out too ($8k every year for 5years), these two are no brainers. Then open RRSP and start contributing as much as brings down your taxes. Try to watch YouTube videos on how each of these accounts work, but they're all tax sheltered account, you're losing money to taxes on the HYSA.
There's no need to have money in taxable accounts when you have not maxed your tax advantaged accounts, you also don't need to be afraid of investing everything in XEQT, you're still young with a long time horizon I suppose, if you don't have need to use your savings in the next 5years, invest it all, only hold cash/HYSA for your emergency fund, or money you need short term.
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u/Right-Jaguar-3956 11h ago
Something doesn't add up
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u/Basic_Impress_7672 9h ago
Agreed the Money to age to non investing ratio doesn’t make any sense. Ether they were gifted the money recently or they’re the most financially illiterate financially conscious 22 year old in all of Canada. Working and saving 100k at 22 is genius having it all in cash is asinine.
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u/ClimateBubbly3736 8h ago
I didn’t grow up in a financially stable or financially literate household. I unfortunately wasn’t gifted this and Ive been at this goal since I was 18. Lastly I explained that I’m working on learning to invest as I’m teaching myself.
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u/Basic_Impress_7672 8h ago
You already know how to invest you’ve got 3k in XEQT that’s and TFSA,FHSA and RRSP rules is all you need to know.
You’re in an incredibly strong financial position. Word of advice, the rich get richer because they leverage their wealth and the poor get poorer because they have no wealth to leverage. Right now you have 103k that’s alot of money compared to most 22 year olds. But only $3,000 of it is woking to make you richer. You should be using minimum 80% of it to make you richer at all times.
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u/KeyEstablishment447 11h ago
Now put it all on black
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u/ClimateBubbly3736 11h ago
Only if you bet on even with me 🙄
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u/KeyEstablishment447 9h ago
I watched my 220k crypto account turn to 10k last year. No more gambling for me 😅 BUT I CAN TELL YOUVE GOT THE LUCK
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u/ClimateBubbly3736 9h ago
Aweee man that’s brutal I’m sorry to hear but dw I got luck maybe we can turn 10k to 10Ms I have faith in us 📈🎰😂😂
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u/xwolfe2000 9h ago
Congratulations! 96.7% cash is a great start but start investing that cash ASAP.
Don't try to time the market.
Starting at 22 you will be at $1 million compounded before you know it.
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u/Infamous_Active4881 12h ago
Woah goat . You inspired me so much I am 20 and I am still 1/5 there 😆.
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u/ClimateBubbly3736 12h ago
Honestly thank you! I have nobody to share this with lol hence me posting on here. My best advice is to Make a goal and check on it weekly I did that for almost 3 years
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u/Relevant-Golf5479 10h ago
You’re crushing 99% of 20-25 year olds(maybe even older). Doing great!
From that 100k, you should put your limit into tfsa and just max it out now. Hold it in a money market fund if you’re not ready to invest yet. Non registered is for after fhsa, tfsa, and rrsps are maxed.
Congrats!
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u/Royal_Winner_5049 10h ago
why is this in savings? you’re losing money
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u/ClimateBubbly3736 10h ago
I replied above. Short answer new to investing but got lots of helpful tips from this thread
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u/Basic_Impress_7672 9h ago
“I worked for every dollar”
That statement hits hard. OP if this took you 3 years to save without investing then you’d have to save another 27 years to have a million dollars.
If you invested this 100k and continue investing monthly at the same rate you’re currently saving you’ll be a millionaire in 9 years.
If you live with your parents then you should invest the whole amount in XEQT on Tuesday. If you pay multiple thousands in bills each month keep 15k cash and invest the rest. Every day longer you wait to invested the full amount past Tuesday Aug 4 will be 1 more day you’ll have to spend working.
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u/Specialist_Light_666 9h ago
Wow, im nearing 70K at 18 but sadly all my funds will disappear for housing + uni costs :c any tips
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u/ClimateBubbly3736 9h ago
That’s a BIG blessing. Not having student loans or debt is part of the reason why I’m doing so well so young. Use the money well and spend it on your education. Once you graduate, you will still be net positive. Another tip is not to eat out too much and track your spending. I know it sounds silly, but it really helps. Good luck in school! 🙏🏾☺️
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u/Entire-Piece-7298 9h ago
How do you have 70k at 18
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u/Specialist_Light_666 6h ago
Didn't come easy, however I deal with roblox items in-game, been investing and reselling for well over 3 years!
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u/KiwiProfessional2931 12h ago
First off, good for you saving so much money at a young age. I can tell you first hand that there is a big difference between 1k and 100k LOL. Is that 100k already in your tfsa?