This is technically a question specific to Canada but maybe it can be applied to other countries as well.
I have a fixed number of stocks in a regular investment account and in a Tax Free Savings Account (TFSA). For non-Canadians the TFSA is like a personal investment account except there is no capital gains tax. Last year I maxed out my contributions to my TFSA but I wanted to save more money so I put some funds into a personal investment account. This year due to the economy I can’t save as much so I have extra contribution room in my TFSA. So my question is, should I just sell all my shares in my personal investment account, transfer the money to my TFSA account and buy the same stocks there? Are there any downsides to doing this?
I would personally just sell and move cash, that way I know what capital gain or loss to expect.
All things considered, I would too.