Stock gift

For those of us not from Canada: TFSA = tax-free savings account and RRSP= registered retirement savings plan.

Saving for retirement is always a good idea. However, I believe the investment you make in these types of programs must be cash, and then you can invest in various mutual funds that are offered within the plan. In other words you can't simply deposit the stock shares you've been given - you would have to sell them first then move the cash proceeds into one of these plans. Selling shares you've received as a gift may cause you to have to pay income tax on any capital gain - I don't know how it works in Canada but in the US if you receive shares that are worth more than the original owner's cost basis the you cost basis in the shares is set equal to the giver's old basis. Consequently you are likely to have to pay capital gains tax on the appreciation over the gifter's cost basis. My suggestion is to put the stock for now into a traditional brokerage account, to give yourself some time to sort out what you want to do long term.