Creating a million-dollar income through a (TFSA) in Canada is achievable. No, seriously! In fact, assuming the maximum annual contribution limit of $7,000 as of 2024 and investing in a diversified portfolio that achieves an average annual return of 8%, it would take approximately 30 years to grow a TFSA to over $1 million, which is why investing is a prime way to shorten that time frame. Get into high-yielding ETFs Turning your TFSA into a cool $1 million might seem like a daunting task, but with high-yield (ETF) on the TSX, you’ve got a pretty solid roadmap to get there.
These ETFs, which bundle together a collection of dividend-paying stocks, can provide you with a steady stream of income that gets reinvested, allowing your investments to grow over time. Now, the beauty of these high-yield ETFs is that they let you tap into a variety of top-performing Canadian companies without the hassle of picking individual stocks. Think of it as spreading the risk across a basket of goodies instead of putting all your eggs in one basket.
Plus, the dividends these ETFs offer can be quite attractive, helping you stack those coins faster and making your million-dollar dream a little more tangible with each passing year. Finally, the tax-free nature of the TFSA is the cherry on top. All those dividends and capital gains grow and accumulate without Uncle Sam (or, rather, Uncle Trudeau) taking a cut.
This means that every dollar earned through your high-yield ETF stays in your pocket. Thus.