The actual TFSA annual investment limit was set at $5,000 in 2009, when the investment account was first created. However, it’s adjusted for inflation yearly and rounded to the closest $500 to make things easier for investors. The exception was in 2015, when the TFSA limit was increased as much as $10,000 for one yr before being lowered to $5,500.
Someone who has never contributed to a TFSA and was born in 1991 or earlier could have $95,000 in cumulative contribution eligibility starting January 1, 2024.
TFSA Contribution Limit – 2009 to 2025
Investment ideas in your TFSA
TFSAs are usually not only for saving. You can even invest using your TFSA.
Stock selection
Herman VanGenderen has greater than $100,000 in his TFSA. He grew his wealth by specializing in Canadian and foreign stocks, diversification and dividends. Here’s what you may learn from his near-perfect TFSA investing strategy. Or if, like this investor, you are lucky enough to purchase in a tricky market (he made almost 40% of his investments in BP shares), the resulting gains may be significant – and tax-free.
Simple ETF portfolio
Patti has greater than $57,000 spread across 19 holdings. Experts suggest her an easy two-ETF solution to make sure she is well diversified and successful in the long run. Here’s one other example from someone who’s just starting out with TFSAs and is on the lookout for an easy, straightforward approach to start out constructing wealth within the account. Or, when you’re more risk-averse, you can go the route of this 31-year-old Toronto cop who focuses on aggressive stock index funds.
Out of the box (and never beneficial)
There are some strategies that work for investors – but you mustn’t necessarily attempt to emulate them. For example, this man suggests buying stocks and holding them eternally, while experts worry that he just isn’t diversifying enough. And this investor annually transfers Canadian dividend stocks “in kind” to and from his unregistered account, a method that seems to work but doesn’t pan out upon closer inspection.
Here are one of the best TFSA investments for Canada without delay.
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