TWB Interviews: TFSA vs. FHSA?

Here’s a short interview with Mo’s daughter, one of our employees. We talk about her fear of not being able to afford a home (so common among her age group) and why the FHSA is her best option to save.

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Hi! Dave Chilton, The Wealthy Barber here. We’re going to start doing some interviews. And I wanted to pick Emily for our first one because I thought she had some valuable insights. Emily Ross, welcome.

Thank you.

Emily works for our company. She is Mo’s daughter. Mo has worked for me for I think 66 years now and Emily has overcome being Mo’s daughter and still is off to a very successful start in life.

You have started a TFSA, have you not?

I did.

That’s very good. And are you doing it on a monthly basis?

Ya, every month.

Dollar-cost averaging. What are you investing in within the TFSA?

Index funds.

You’re doing a good job.

Did you read “The Wealthy Barber?”

I did.

That’s good.

You darn well should, working here. I would expect that. So that’s good. You’re doing some things well. As you go forward, what are your biggest financial fears?

Fears? That I won’t be able to afford a house.

Yeah, I hear it all the time. That’s sad, isn’t it? And it’s tough to put the down payment together. Have you thought about a First Home Savings Account?

I’ve thought about it.

Do it.

Haven’t done it yet.

It’s even better than a TFSA to be perfectly honest.

I mean, the TFSA is great but the First Home Savings Account you get that tax deduction up front like an RRSP but the money grows unencumbered by tax and comes out tax-free, making it the best of all worlds. So a person like you who really wants to buy a home, that should probably be your first priority with your savings dollars, is the First Home Savings Account.

Do you think at some point you’ll partner up and you’ll have a romantic partner and you’ll do these things together?

Hopefully.

You are single right now, are you not?

I am.

Did you want to give your phone number?

Not, not yet.

Just not yet? Next interview. We’ll get that. Okay, well thank you so much for coming on.

I find you much more well spoken than Mo.

Thanks.