Financial Planning: Why a TFSA is Not a Good Strategy

Hi, my name is Taivi Tayler and I am a practicing Certified Financial Planner and wealth manager and I work with people all over the Province of Ontario.

Want to know what drives me crazy about Tax-Free Savings Accounts?

It's when people underutilize them. If you're taking your investment advice from a company that happens to offer chequing accounts, they will encourage you to invest in a GIC or a HIGH-Interest Savings Account within your TFSA.

UGH! I think that is the worst advice ever.

Your TFSA should be poised to have meaningful capital growth through an investment portfolio strategy. If you want to grow your wealth, keep the GIC outside of the TFSA and have a high interest savings account for emergency stash cash purposes. Yes you'll pay a little bit of tax on earned interest, but frankly, that interest is going to be minuscule vs the capital growth potential from the right investment under the shelter of a tax-free savings account.

Contact us to find out how we can build you a portfolio that is right for you.

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