Tue, December 10, 2024
Mon, December 9, 2024

Earn $6,000 Tax-Free Annually With This TFSA Strategy

The article from Fool.ca outlines a strategy for earning $6,000 tax-free annually using a Tax-Free Savings Account (TFSA) in Canada. It discusses how investors can leverage the TFSA's tax advantages by investing in high-yield dividend stocks. The piece highlights that with the 2024 TFSA contribution limit set at $7,000, an individual could potentially invest up to $95,000 if they have never contributed before. By selecting stocks with an average yield of 6.3%, one could generate the desired $6,000 in tax-free income each year. The article suggests focusing on sectors like utilities, real estate investment trusts (REITs), and telecoms for stable dividends, and mentions specific examples like Fortis Inc., which offers a 4.4% yield, and others like Enbridge and BCE. It also emphasizes the importance of diversification to mitigate risk and the potential for dividend growth over time, which could increase the annual income beyond the initial $6,000.

Read the Full The Motley Fool Canada Article at:
[ https://www.fool.ca/2024/12/09/earn-6000-tax-free-annually-with-this-tfsa-strategy/ ]