Asset location question - I have USD and RRSP room but should I max TFSA anyway?

I'm getting started in investing and I'm a little confused about my asset location. I would like to attempt to max both my TFSA and RRSP in 2018 and I understand that certain assets are better off in certain accounts because of taxes and other reasons. Because I earn my income in US dollars, I plan to put US-listed ETFs in my RRSP. I took a look at the model portfolio for US-listed ETFs on canadianportfoliomanagerblog.com and it suggests VCN, ITOT, IEFA, IEMG, and ZAG for the RRSP portfolio. So with this allocation, I would want to keep VCN and ZAG in my TFSA and ITOT, IEFA, and IEMG in my RRSP, right?

Or when I'm first starting out, should I just max out my TFSA with the TFSA model portfolio before worrying about the RRSP at all? That would mean I have to convert my USD to CAD before investing it. Is this better than just putting US-equities in my RRSP right off the bat? Even if I would have to pay the fees to sell equities/bonds in the future in order to get everything in the "right" places in the future once my TFSA and RRSPs are maxed out?

Posted Dec 19, 2017, 6:20 PM UTC · edited

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aughhhhh•

Since you will be maxing out both tax shelters in a year, KISS and just put things where you want them at the end.

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