FHSA Explained // How to OPEN an FHSA Account with QUESTRADE Tutorial // First Home Savings Account

Summary

In this informative video, Adrian, the Canadian in a T-shirt, presents a comprehensive guide on opening a First Home Savings Account (FHSA) with Questrade, designed for Canadian first-time homebuyers. He outlines the benefits of the FHSA, highlighting its tax advantages, such as tax-free growth and tax deductions on contributions. Adrian shares his reasons for choosing Questrade, emphasizing its low fees and innovative features. He provides a detailed, step-by-step walkthrough for setting up an FHSA account, encouraging viewers to take advantage of this opportunity while also offering a special referral bonus for new users.

Takeaways

• 😀 The importance of maintaining a positive mindset for personal and professional growth.
• 😀 Strategies for effective communication, including active listening and clarity in messaging.
• 😀 The significance of setting realistic and achievable goals to measure progress.
• 😀 Tips on time management, emphasizing prioritization and delegation of tasks.
• 😀 The role of teamwork and collaboration in achieving common objectives.
• 😀 Recognizing the value of constructive feedback for continuous improvement.
• 😀 The impact of emotional intelligence in fostering better relationships at work.
• 😀 Encouragement to embrace change as an opportunity for innovation and development.
• 😀 The necessity of self-care and work-life balance to prevent burnout.
• 😀 Real-life examples illustrating the successful application of these concepts.

Q & A

What is the FHSA and who is it designed for?

The First Home Savings Account (FHSA) is a new tax-sheltered account designed specifically for Canadian first-time home buyers to save for a down payment on their first home.

What are the tax benefits of the FHSA?

Contributions to the FHSA can be deducted from your taxable income, reducing your tax bill. Additionally, all money invested in the FHSA grows tax-free, and withdrawals for home purchases are also tax-free.

What is the annual and lifetime contribution limit for the FHSA?

The FHSA has a lifetime contribution limit of $40,000 and an annual contribution limit of $8,000.

What are the eligibility requirements to open an FHSA?

To open an FHSA, you must be at least 18 years old, reside in Canada, and qualify as a first-time home buyer, meaning you haven't owned a home in the past five calendar years.

Can you use the FHSA in conjunction with the Home Buyers Plan?

Yes, the FHSA can be used alongside the Home Buyers Plan, which allows you to withdraw up to $35,000 tax-free from your RRSP for purchasing a home.

What types of investments can be held in an FHSA?

You can hold various investments in an FHSA, including stocks, bonds, ETFs, and REITs, all of which grow tax-free.

What are the steps to open an FHSA with Questrade?

To open an FHSA with Questrade, visit the Questrade website, choose the FHSA option, create an account, complete your profile, and fund your account with a minimum deposit of $250.

What makes Questrade a favorable brokerage option?

Questrade is known for having no monthly or maintenance fees, lower commission costs (typically $5 per trade), and the ability to hold both Canadian and US dollars without automatic conversions.

What documents are required to open an FHSA account?

You may need to provide a government-issued photo ID, like a passport or driver's license, and any other supporting documents as required during the account setup process.

What happens to the FHSA account after 15 years if you haven't purchased a home?

If you haven't purchased a home after 15 years, you must close the FHSA or transfer it to an RRSP or RRIF without tax penalties. If you withdraw the money, it will be taxed as regular income.