January 2023 – As of January 1st 2023 we can now add another $6500 to our Tax Free Savings Accounts, and replace any money taken out in previous calendar years. The cumulative TFSA contribution total as of 2023 is now $88.000 (plus growth).
A wide variety of investment options are available for these tax free savings accounts, including high interest savings accounts for your emergency fund or short term needs. For longer term investments, consider mutual funds, segregated funds, and managed portfolios to provide you with greater tax free growth potential.
If you do not have cash available, you can transfer investments from a taxable account to your TFSA. Get advice first as there may be tax consequences which should be considered first.
You may also consider setting up regular periodic contributions or dollar cost averaging to average into the market, as you might also consider when making RSP contributions or other investments.