What Investments are Allowed in a TFSA?
When many people think of a Tax-Free Savings Account, they assume that it is literally a savings account. And that’s fair. Because that’s what it’s called.
But it isn’t actually a savings account (at least, not as we normally understand them). And yes, I get it, that’s totally confusing.
In reality, a TFSA is simply an account that you can park all sorts of assets in, like mutual funds, stocks, bonds, GICs, and more. And yes, you can even have a savings account parked in your TFSA.
In fact, anything you can hold in your RRSP, you can hold in your TFSA.
The key thing to remember is that a savings account is just one option for a TFSA. But it’s definitely not the only one.
So just make sure you know your options. And do whatever makes sense for you.
This article is for educational purposes only and is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting or tax advice. Opinions expressed are those of the owners and writers only. Every effort has been made to compile this material from reliable sources, however, no warranty can be made as to its accuracy or completeness. It may also include forward looking statements concerning anticipated results, circumstances, and expectations regarding future events. Forward-looking statements require assumptions to be made and are, therefore, subject to inherent risks and uncertainties. There is significant risk that predictions and other forward looking statements will not prove to be accurate. Please consult an appropriate professional regarding your particular circumstances. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus or the fund facts before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Mutual Funds and Segregated Funds provided by the Fund Companies are offered through Worldsource Financial Management Inc., sponsoring mutual fund dealer. Other Products and Services are offered through Rhys Martell/Well-Built Plans Financial.