Selecting what stocks go best in which account

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Hi Dan
Could you go over briefly which of your stocks go into TFSA vs RRSP vs non Reg and why? Thanks!

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Asked on November 23, 2024 5:36 am
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If I can, I typically try to put US dividend payers inside of my RRSP. But, my RRSP is currently full so I do end up putting US dividend stocks inside of my taxable cash account.

That is pretty much my only preference to be honest. However, the only other thing I aim to do is have more speculative positions inside of my taxable accounts versus my tax-sheltered accounts.

I know some people are drawn to the idea of taking larger speculative risks in tax sheltered accounts because the gains would be tax-free, but they also get a bit of tunnel vision and don't consider the fact that losses are not tax-deductible, and they can also make very valuable contribution room disappear.

There is also the situation that a lot of account structures are entirely dependent on the individual. For some, capital gains will be the more friendly form of income and for others, dividends may be more tax friendly. So to finalize this answer, it really does depend on the individual.

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Posted by Dan Kent
Answered on November 23, 2024 12:25 pm
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Hi Dan, if I can tag along on this train of thought: let’s take your most recent addition to the bull list, ASML. Because you’re bullish on the stock, you would feel comfortable holding it in your TFSA? Or, due to its β€œunique” dividend paying status you may lean more towards the RRSP, for that reason, and potentially because it also trades on the NYSE, it’s exempt from the 15% withholding tax. Curious to hear your specific thoughts on that. Thanks for sharing!
(Brent at November 25, 2024 7:36 pm)