The TFSA Mistake Most Canadians Make (and how to fix it)

Most Canadians use their TFSA as a savings account, and that is costing you hundreds of thousands of dollars. Let's fix that.

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TIMESTAMPS
0:00 - Invest, Don't Save
1:25 - Misunderstandings
2:24 - Scenario One
7:07 - Scenario Two

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DISCLAIMER: This presentation is for informational purposes only and should not be considered financial, investment, tax, or estate planning advice. All investments carry risk, and past performance does not guarantee future results. Any forward-looking statements are based on assumptions and may not reflect actual outcomes.

The content on this channel is for educational purposes only and does not provide specific investment or planning recommendations. Viewers should consult a qualified professional for retirement, tax, or estate planning guidance. Parallel Wealth and Adam Bornn are not responsible for any decisions made based on this content.

[slaurids]

It's kind of sad that TFSAs have been around since 2009, yet so many people still don't understand how a TFSA works. Personal finance should be a mandatory course for high school graduation. Thanks Adam for your efforts to enlighten the masses.

[alhum]

Put $10, 000 into my TFSA account 3 years ago. Bought mutual funds per my bank's financial advisor. Today it is worth $9700. Mistake is listening to bank financial advisor. They make commission regardless if mutual fund performs or not.

[DeborahMichealk]

Investments are the roots of financial security; the deeper they grow, the stronger your future will be."

[sjbutler]

I'm A senior and got out of mutual funds, praise the lord. And invest into TFSA s on a regular basis. Right now I'm getting between 5.4%--4.4% for the next 4--5 years which is good. But that is or won't be the norm unless you get into stocks...etc. Which I am not comfortable doing. Lost money in mutual funds, commission fees too high. I don't like risk, I am doing gics. When interest rates go down again what should I be investing in to get at least 4--5 % again or more?
Not much out there for shy investors!

[OpmacGamingLounge]

Thank you again Mr. Harper for creating a amazing tool for Canadians. I started late with my TFSA for various reasons. Now maxed out and seeing it grow. For young Canadians just try and put any additional you can within a TFSA. Use a online investment calculator and see what consistent monthly contributions could grow into for you 30 years down the road. Pretty amazing and better yet tax free (At the moment)

[angrybird]

I'm glad you're telling people this Adam. One might ask why would someone NOT invest with TFSA? Truth is not everyone knows they can do this because they do their stuff thru their banks and banks are a frigging rip off and don't know what they're doing.

[gavinedmondstone]

Many people are frightened of putting their money at risk even if it costs them dearly in the long run.

[nobuddy]

Every vehicle option is available in a TSFA as every other type other RRSP type investment.

[TwinsDragon]

Move the TFSA to a self directed investment account to get the most out of it. Many good ETF's or dividend stocks to choose from!

[Broxty]

I put $33k into my TFSA 6 months ago and strictly purchased ETFs. VFV, XEQT, XIU and CNQ have turned it into $42k. Now I'm addicted to adding to them.

[maxineporter]

tFSA's make a lot of sense for young adults too (I would help out my grandkids with "gifts' for their TFSA's). Perhaps to use for a downpayment, even more than the new liberal home savings program which has a cap of $40K. What I like that if you use the TFSA for a downpayment, the contribution $ withdrawn becomes available for future use.

[iany]

Have started moving money from RRSP to TFSA at the end of last year. It is the first small step of drawing down RRSP.

[philcadorette]

Hi, there is another strategy to add to what Adam is saying that really helps out if you are in a position to do so. I just retired last year at 59, my tfsa is maxed out with dividend paying ETF'S that is getting me another 8k per year which is reinvested in those said ETF'S ( dripped) . I also contribute the max amount every January every year. Now, in January of every year I am actually starting out with 15k of new money, making even larger dividends all year long. This situation turns into a very nice snowball. Lastly, if you don't have cash on hand to contribute to your TFSA, you can transfer from your RRSP to TFSA for the contribution room, this also helps with a wee bit of RRSP meltdown.

[celiakulrich]

There are so many great ETF's out there.

[earthsteward]

We have funds in our TFSA in a high-interest savings account because we are using it more as an extra emergency fund. We are going to move some funds to a GIC until we have a 6 month buffer in addition to one month in a chequing account

[brads]

I'm using TFSA for both - emergency savings in a true high interest account, gaining interest tax free and at times I put half into a short term gic, and a TFSA in self investment firm with hbal etf. I'm in my mid 50s

[domxgun]

What truly is sad, is people paying fees for a financial planner instead of placing it themselves in a S&P 500 hedged ETF with 0 compounding fees.

[imagonnacrash]

One of my advisors told me that is what most people do. In the last two and a half years my TFSA yielded $16000 profit from 4 stocks. It lost $7000 in two other stocks, so overall a %60 gain.

[DoneByD]

Another common sense, be smarter with your money people video... Thanks Adam, keep them coming.

[RetiredPilot]

good advice, we are in our low eighties, we keep dividend investments in our TFSA and use drips to increase our returns. Every year we move stock from our RRIF's to our TFSA to the max allowed. This may appear strange but we are required to reduce our RRIF by law but we can shelter and have some of it grow in our TFSA. Too bad Trudeau reduced the max contributions. We do not need income from our TFSA so they keep growing every year.
Happy investing