The TFSA shields ALL investment gains from Canadian tax — forever. The strategy: hold your highest-return assets inside. Growth stocks. Canadian dividend ETFs. Aggressive ETFs. Bonds and cash work but waste the shelter.
See 4 strategies →Set & forget. 100% global equity ETF auto-rebalances itself.
Classic balanced. 70/30 stocks/bonds.
Quarterly dividend income, modest growth.
Lower volatility. Good for nearing first goal.
Canadian dividends are tax-EFFICIENT outside TFSA but TAX-FREE inside. Best home for high-yield Canadian equity.
US withholds 15% on dividends paid to TFSA (no treaty benefit). Better home for US dividends: RRSP (treaty exempts).
Highest expected returns → put them in your tax-free wrapper. Every dollar of gain is yours.
TFSA is BEST FOR HIGH-RETURN assets. Bonds/cash work but the value is in protecting growth from tax.
Compounding works inside TFSA without ANY tax drag. Set up DRIP at your broker.
CRA can reclassify as "business income" and tax it all. Famous 2023 case: $400k+ recovered. Long-term hold only.