Initial Value $20,002.30
March 26, 2012
Update Value $27,830.03
September 22, 2016
By Gordon Pape
Generally speaking, I believe a Tax-Free Savings Account should be invested more aggressively than an RRSP.
The latter is really a personal pension plan and should be managed accordingly. That means keeping risk to a minimum, the more so as you approach retirement age.
There are many ways to use a TFSA but the ultimate goal is to avoid paying taxes on the investment income it earns. To do that you need to maximize your profits, which means taking on more risk.
I created this Aggressive TFSA Portfolio in March 2012. It invests exclusively in stock-based ETFs and is designed for readers whose goal is to maximize tax savings in their TFSAs and who are willing to accept a higher degree of risk and volatility. This is not a model to use if you are saving for retirement, a child’s future education, or a major purchase to be made within five years.
Comments: The total portfolio gained $3,071.19 (including distributions) in the latest six-month period. That’s a gain of 12.4% during that time. The result was to boost the overall advance since inception to 39.1%. That works out to an average annual compound rate of return of 7.61%.
Here’s a look at the ETFs in the portfolio. Results are as of the afternoon of Sept. 22.
Aggressive TFSA portfolio details
Only current subscribers of the Internet Wealth Builder may view the details of this model portfolio.
If you believe your account is up to date, please login to access this content.
Subscribers also receive:
Regular updates and more