Last updated: Nov-21-2017

    
 
Risk or no-risk in TFSA
11/22/2017 2:08:47 AM
HOME : FEATURES : TAX FREE SAVINGS ACCOUNT SECTION : Risk or no-risk in TFSA
Show Printable Version Download Plain Text
 
Wealth Builder
Gordon Pape writes on common-sense wealth-building strategies.



By Gordon Pape  | Friday, November 19, 2010


 

Q – Which is wiser: to invest my Tax-Free Savings Account (TFSA) in the stock market or in guaranteed investment certificates (GICs), since I’m close to 65 years old. – George N.

A – Neither is “wiser” – it depends on what you want to achieve with your Tax-Free Savings Account and your degree of risk tolerance. If you are using the account as a source of emergency funds, short-term GICs might be the best bet. However, the returns will be negligible, because of current low interest rates, so the amount of tax you actually save will be only a few dollars.

If you want to use the TFSA to try to maximize tax-free investment earnings, then the stock market is one option. Aggressive equity mutual funds or ETFs are also possibilities. In the end, it’s your call. – G.P.

Gordon Pape is one of Canada’s best-known personal finance commentators and mutual fund experts and a regular contributor to the Fund Library. Click here to submit your question to Gordon.

Personal Opinions & Recommendations Disclaimer

The foregoing is for general information purposes only and is the opinion of the writer. This information is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting or tax advice. However, please call the author to discuss your particular circumstances.

 
:: STOCK SEARCH
Find a Stock

(Leave blank for all)
Symbol   Name
:: MEMBER SERVICES
Username:
Password:
Forgot your password?
Register now
Tech Support
:: USEFUL LINKS
For general inquiries, please email the Librarian.
 
Home |  Features |  Member Services |  Tools |  Funds |  About Us
For any questions or problems with this site, please contact the Librarian.
Page ID: 20:95:1047:00013463:9/19/2016:11:02:29 AM Duration of this visit: 0 sec.