Best stocks for RRSP versus TFSA

Me, for TFSA like to have 20% dividend stocks for safety reserve and for generating cash, then 40% in balanced or core stocks and then 40% in growth stocks but mostly large capital ones

as for RRSP, me, playing it safer as now withdrawing funds or stocks, so I take the higher risk ones first and that keep the lower risk stocks in the RRSP......Tom

This is great, thanks! I've been researching and making tests on this same question, but I hadn't understood that the treaty prevents the 15% tax on foreign dividends.

Just a quick add: I've been doing Canadian dividend ETFs in my TFSA, which end up being 100% tax free. This is amazing because it makes it really easy to track performance and also, to make projections. As I see it today, I can max out on that account for the next 25 yrs, bake in some inflation-driven limit increases, as well as avg projected dividends (and deposits) and estimate how much income this tax-free money machine could provide for retirement.

Thanks again! loving the site during trial!

There is no hard and fast rule as for the most part, it is dependent on one own's tax situation. That said, many investors prefer to keep their US Dividend paying stocks in the RRSP instead of the TFSA to avoid the 15% withholding tax. Since the TFSA is not considered a retirement account, it is subject to the 15% under the US/Canada treaty, much like it would in non-registered accounts. It also can't be recovered, whereas you can recover it in a non-registered account.

That is pretty much it to be honest. There are arguments to be made that the stocks in which you anticipate the highest capital gains be held in TFSA (since its 100% tax free) but then again, those also come with higher risk and may be best held in a non-registered as if it doesn't work out, you can claim the loss whereas you can't in a TFSA.

Outside of that, it really is dependent on one's own tax situation as assets are treated the same outside of foreign dividends.

Mat