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TFSA Investing: Best Strategies to Maximize Your 2025 Returns

The article from MSN Money discusses strategies for maximizing returns in a Tax-Free Savings Account (TFSA) for the year 2025. It highlights the importance of understanding the TFSA contribution limits, which for 2025 are set at $7,000, allowing for a cumulative contribution room of $95,000 for those who have been eligible since the TFSA's inception. Key strategies include diversifying investments across different asset classes like stocks, bonds, and ETFs to mitigate risk while aiming for growth. The article suggests focusing on high-dividend stocks for income, particularly from sectors like utilities or real estate investment trusts (REITs), and also mentions the benefits of investing in growth stocks for long-term capital appreciation. It emphasizes the use of low-cost index funds or ETFs to keep fees low, thereby maximizing net returns. Additionally, the piece advises on the importance of rebalancing the portfolio periodically to maintain the desired asset allocation, and taking advantage of tax-free compounding by reinvesting dividends and interest. Lastly, it warns against over-contribution penalties and encourages investors to consider their risk tolerance and investment horizon when choosing assets.

Read the Full MSN Article at:
[ https://www.msn.com/en-ca/money/economy/tfsa-investing-best-strategies-to-maximize-your-2025-returns/ar-AA1yPsvB ]