Quote:
Originally Posted by Ashasx
I guess I question the ability of most Canadians to actively manage their portfolios and the split between TFSA and RRSP investments, but you could be correct that it may not actually encourage further investment. On the surface, I think an additional $5k invested is good for the individual (if they can afford it) - I also think that it might encourage people to invest more than they were originally if this top up did not exist, but I don't think that can be proven until we see something like this in practice.
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But most Canadians don't have maxed out TFSAs. And among the very few that do, I would presume that virtually all of them either have a decent understanding of country weighting or have someone handling their money who does.
So is this policy going to change how people weight their portfolio? I don't see why. Personally, the first thing I'd do if this came to pass was sell $5K of Canadian holdings elsewhere, replace it with non-Canadian holdings, and then buy $5K of Canadian stuff in the new account.