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Use Your TFSA, Earn $145.58 Each Month in Tax-Free Income


Published on 2025-01-26 15:41:06 - MSN
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  • Are you looking to create some more income but don't have the time? Use your TFSA and make some every month! The post Use Your TFSA, Earn $145.58 Each Month in Tax-Free Income appeared first on The Motley Fool Canada.

The article from MSN Money discusses how to utilize a Tax-Free Savings Account (TFSA) in Canada to generate tax-free income. It suggests investing in high-yield dividend stocks within a TFSA to maximize returns without tax implications. Specifically, it highlights a scenario where an investor could earn $145.58 each month by investing in stocks like Enbridge Inc., which offers a high dividend yield. The article explains that with a TFSA contribution room of $95,000, one could invest in stocks yielding around 5.8% to achieve this monthly income. It emphasizes the benefits of TFSAs, such as the ability to withdraw funds at any time without tax penalties, and the potential for compound growth if dividends are reinvested. The piece also notes the importance of diversification and understanding the risks associated with dividend investing.

Read the Full MSN Article at:
[ https://www.msn.com/en-ca/money/savingandinvesting/use-your-tfsa-earn-145-58-each-month-in-tax-free-income/ar-AA1xT9ue ]
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