Tax Free Millionaire - Part 2

Tax Free Millionaire Strategy – Part II of III In our previous posting, The Tax Free Millionaire, we illustrated how maximizing household TFSA contributions with a return of 6.5% per year would lead to more than $1,000,000 of TFSA assets in 25 years. We strongly encourage all investors to contribute to these accounts to benefit from the tax free growth. The missed opportunity for annual growth in the TFSA from the investment portfolio return is something that cannot be recovered. We are reaching a point where the investment return will soon be as important as the contribution. Clients that we recently met with to implement the “Tax Free Millionaire Strategy” had the same concern as many

Tax Free Millionaire

The Tax Free Savings Account (TFSA) has become the most important investment account for Canadians. Each person in Canada over the age of 27 has $52,000 in total contribution room. For a couple, this now means $104,000 that can be completely sheltered from tax. By opening a TFSA and maximizing unused contributions up to $104,000 per couple and continuing to contribute $11,000 per year at 6.5%, the household TFSA balance will be over $1,000,000 in 25 years. (Illustration provided below) Our Creed Capital Balanced Portfolio returned 11% over the last 12 months as of June 30, 2017. On an account balance of $93,000, the TFSA would have grown by $10,230. If you have not yet maximized your TF

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