STOP SABOTAGING YOUR PORTFOLIO 📈
🛑 Chasing High Yields (The Yield Trap): A 9%+ dividend yield looks juicy until you realize the stock price is down 50%. High yield often signals a failing business, not a free lunch.
❌ Using a TFSA for Pure Cash: Leaving your TFSA in cash is like buying a Ferrari just to park it. A TFSA is meant for growth and income assets so your returns stay 100% tax-free.
🇺🇸 Ignoring FX on US Assets: Buying unhedged US ETFs (like VFV) without understanding exchange rates means currency swings will impact your returns—for better or worse.
🎢 Panic Selling on Red Days: Equities fluctuate. Selling during a pullback locks in permanent losses instead of letting compound interest work its magic.
🗄️ Holding US Dividend Stocks in a TFSA: The IRS takes a 15% withholding tax on US dividends inside a TFSA. Hold foreign dividend payers in your RRSP instead to keep that tax relief!
🌀 Confusing Overlap with Conviction: Buying 5 different index ETFs that all hold Apple, Microsoft, and Nvidia isn't "diversifying"—it’s just paying multiple management fees for the same stocks.
Focus on total return, keep fees low, max your tax-sheltered accounts, and let compounding do the heavy lifting. 📈💰
