GOOG and ASML, worth it to add in RRSP or do you see any problems holding in TFSA? (withholding tax)

I am more concentrated on maxing out my TFSA rather than RRSP first. I believe the withholding tax on dividends is waived in our RRSPs, when buying growth companies such as GOOG and ASML, is it really worth it to hold in the RRSP over the TFSA? I started buying GOOG in my TFSA already.

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Asked on November 27, 2024 6:06 am

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A lot of people make a big deal out of something like this but to be honest, it is a very small amount of the total returns of something like GOOG or ASML.

RRSPs can be sup-optimal for some people, depending on your overall income situation now and in retirement, and trying to tax-shelter these companies in an RRSP just to save the 15% withholding tax on a very small dividend can actually cost more money.

If the RRSP works out for you financially and is the better situation, sure, it makes sense to save what you can and invest in these companies in an RRSP. However, I wouldn't sweat it if you're targeting your TFSA to max out first.

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Posted by Dan Kent

Answered on November 27, 2024 8:11 am

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Thanks for the quick answer, this is what I was thinking, I would prefer these companies in my TFSA, thank you for the confirmation.

(Mark Lambert at November 28, 2024 9:18 am)

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