Initial Value $20,002.30
March 26, 2012
Update Value $29,982.84
March 27, 2017
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 value of the portfolio, including retained income, now stands at $29,982.84. That is up 7.7% from our last review six months ago, in September 2016. Since inception five years ago, we have a cumulative return of 49.9%, which works out to an average annual gain of 8.43%.
Here’s a look at the ETFs in the portfolio. Results are as of noon on March 24, 2017. .
Aggressive TFSA portfolio details
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