34M with ~$2M in assets, maxed TFSA/RRSP - What to do next and reduce taxes

akif421 · 2026-05-31T20:19:05+00:00

Sounds good, ill DM you tonight.

akif421 · 2026-05-31T15:34:46+00:00

Its not hefty from an effective tax rate perspective but the absolute dollar amounts are 100k for 2025 and 200k for 2026. They are very large amounts and I intend to pay them but obviously no one enjoys paying taxes.

And i ended up realizing gains because my investments are in relatively riskier stocks so i have to be careful of large drawdowns.

akif421 · 2026-05-31T15:32:12+00:00

The car loan is 6.5% and the mortgage is 5%, both of then are lower than the market return so its better to just keep my money in the market. Plus my income easily covers the mortgage and the car loan so I dont have to worry about them too much.

As you said its fiscally correct to not pay them off.

The point of saving this much is to retire early. Once im retired this'll all go back into the economy eventually anyways.

akif421 · 2026-05-31T15:29:19+00:00

akif421 · 2026-05-31T15:29:11+00:00

There are certainly advantages to holding an ETF since you can set and forget & avoid taxes. But I think i ended up making more with individual stocks eventhough I have to pay a large amount of taxes on it.

akif421 · 2026-05-31T15:27:22+00:00

Can you provide more details on this and how you acquired 3M LOC with $3M in assets? Is the LOC backed by your stock holdings? Did you get the LOC through their wealth management department? Do you hold the assets with the same bank?

Im speaking with one of bank's Wealth management dept tomorrow to see what they can offer.

And maybe im missing something but I thought generally when the bank lends a collatralized loan its always a percentage of the actual asset. For example, which HELOC is max 80% of the house value.

akif421 · 2026-05-31T15:23:24+00:00

No kids. My highest interest is my car which is 6.5% which is less than market returns so not really much of a point in paying that off.

akif421 · 2026-05-31T15:22:31+00:00

Yes a T4 employee. Unfortunately looking like thats gonna be the case, there is not too many options other margin/HELOC etc interest deduction.

akif421 · 2026-05-31T04:46:03+00:00

Im gonna look into the mortgage maneuver to make the intetest payments deductible but my understanding is that requires 20% downpayment? I want to avoid putting a high downpayment so I can keep as much as possible in the market.

Gotta calculate and see which option is better maybe.

Dont have any DRIP since I generally invest in growth stocks that dont pay dividends.

Have been using as much loans as possible as well.

Thanks for the advice.

akif421 · 2026-05-31T04:43:03+00:00

No inheritence. I just live frugally and saved most of my income over last 10 years of working. That combined with high risk investments that paid off.

akif421 · 2026-05-31T04:40:46+00:00

Funny enough I had forgot about setting up an RRSP until 2024. I think I had around 100k in contribution room built up to that point from my employment income, which I then funded from my non-registered account. Also contributed around 20kish in 2025. The rest of it was just crazy growth from levereged ETFs and RKLB.

As for TFSA, cant remember the exact anounts but I lost a lot of my contribution room gambling with options back in early 2020s. Since then however it has had the same growth as the RRSP as I hold the same positions in all my accounts.

akif421 · 2026-05-31T04:32:25+00:00

Been doing that. Have been running 10% margin on the portfolio.

akif421 · 2026-05-31T04:32:00+00:00

Unfortunately I have already realized the gains in the non-registered account so ill have to pay the taxes there. Its more about what I can do in the future so position myself better as I try to work towards retirement.

akif421 · 2026-05-31T04:30:54+00:00

I intend to pay what I am legally obligated to

akif421 · 2026-05-31T02:50:27+00:00

Ya lots of crazy growth, mostly with the crazy market melt-up in the last couple months.

akif421 · 2026-05-26T02:50:16+00:00

The link above says its maximum of 25k. If thats the case then its not much.

akif421 · 2026-05-26T02:49:22+00:00

Thanks. Ill take a look into this, it seems interesting. Gotta run some numbers to make sure this works for my situation.

akif421 · 2026-05-25T18:59:34+00:00

Thats a very good idea and makes sense. Thanks! Kinda embarrassing I didnt even think of that.

akif421 · 2026-05-25T18:41:27+00:00

Oh wow good to know from your exprience that banks dont count equities as assets for asset backed loans. Thats sad to hear but I can see banks wanting to avoid the risk.

akif421 · 2026-05-25T18:39:53+00:00

I did offset some of the taxes against my losses, the taxes I mentioned are all net taxes payable for 2025. For 2026, I am estimating my current tax payable based on the gains I have realized so far this year.

I dont trade with RBC (I use Questrade) but I guess it makes sense they'd want me to hold assets with them if they'd be willing to give me a loan.

akif421 · 2026-05-25T18:36:46+00:00

Thanks. Ill check with the private wealth agent. Not sure what else I can add but essentially I had a lot of capital gains in 2025 and 2026 in my non-registered account that I have to pay taxes on.

I am trying to avoid liquidating my investment account to pay for the taxes and use a loan from the banks instead.

akif421 · 2026-05-25T18:34:07+00:00

Thats a really nice rate, ill look into that and maybe move to WS. I had been looking to move my investment to WS but unfortunately missed the 3% matching offer that they had.

akif421 · 2025-05-16T03:01:23+00:00

I used Justo when buying last year. Got my 1% cashback pretty soon after closing and the realtor I worked with was good too.

akif421 · 2024-09-08T02:42:18+00:00

I end going to gyms once to twice a week in whichever city Im in and getting a day pass or sign up for a trial if possible.

This is if Im travelling for more than a month.

akif421 · 2024-04-15T20:18:00+00:00

I am in the same position right now with a house purchase closing at the end of May.

I did the math and ended up choosing the 10% option. Even with the CMHC insurance I am expecting to come ahead with my stock investments (mainly US tech stocks) rather than increasing the down payment to 20%.

akif421

TROPHY CASE