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TF TFSA Explained 🇨🇦 here's how you can make hundreds of thousands of dollars tax free in Canada it's called a TFSA and you're probably using it wrong let me explain welcome to the Investing Accounts for Canadian Series Part 1 a TFSA stands for Tax Free Savings Account but it really should be called a tax free investment account and this is why most people use a TFSA is meant to grow investments tax free so ETFs, stocks, mutual funds, bonds However, what most people do is use it like a savings account and just put money in there and leave it there you're leaving tax free money on the table let's say Susan who is 20 years old opens up a TFSA and purchases $300 worth of ETFs every month until age 65 at a 8% annual return at 65 years old her investments would be worth $1.59 million only $162,000 of that was what Susan put in and 1.4 million is what her money made now the crazy thing is when Susan goes to withdraw that money from her TFSA she does not owe the government a cent because the investment grew in a tax free savings account and here's the part that no one really explains you can only contribute a certain amount of money into your TFSA each year so for example in 2024 you could only contribute $7,000 into it it's called your contribution room TFSA contribution room starts building at age 18 even if you don't open an account right away now you can open a TFSA with a traditional bank such as CIBC or TD with an online brokerage like Questrade or well simple or through independent financial advisors such as Edward Jones or Primerica now that you know what a TFSA is make sure you stay tuned for part two where we are gonna be talking about RRSPs