Wealth Awesome Update

Hey there,

The TFSA, my personal favourite investment account, has increased its contribution limit by $6,500 this year. 

For those keeping count, that's a maximum of $88,000 if you have qualified since the launch of the TFSA in 2009. 

Here are some TFSA articles updated for 2023:

TFSA Limit UpdateTFSA Limit Calculator11 Best TFSA Rates in Canada: Build Savings Tax-FreeTFSA vs RRSP: Which One Is Better?TFSA Pros And Cons: Know All The Facts

I get asked a lot about what to invest into for a TFSA, and I've usually pointed them toward stocks and ETFs over the past few years. But it seems many people are nervous right now about investing. 

While I still think investing is a good option, another alternative that is becoming more popular is a simple high-interest savings account or buying something like a 1-year GIC.

Normally I don't recommend buying cash equivalents in your TFSA, but interest rates are great now which is why it isn't a bad option; you can get a 3.00% TFSA Savings rate at EQ Bank right now (this option is good if you don't want to lock up your money) or a 1-year GIC at 5.00%.

For me, I'm evaluating a few options for my $6,500 TFSA contribution, but it will likely be either stocks or ETFs, even though I think the market has a high potential to drop this year. For my TFSA I invest for the long term, so short-term market movements don't really concern me.

Regards,
Christopher Liew, CFA
Creator of Wealth Awesome
Website: Wealthawesome.com