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Turn a $20,000 TFSA Into $70,000 With This Easy ETF

The article from MSN Money discusses how investors can potentially grow a $20,000 investment in a Tax-Free Savings Account (TFSA) to $70,000 using an easy-to-understand Exchange Traded Fund (ETF) strategy. It highlights the benefits of investing in ETFs like the BMO S&P 500 Index ETF (ZSP) which tracks the S&P 500, offering diversification across major U.S. companies. The piece explains that over a long-term horizon, such as 20 years, historical data suggests an average annual return of about 10% from the S&P 500, which could lead to significant growth due to compound interest. The article also touches on the tax advantages of TFSAs, where all investment growth and income are tax-free, enhancing the potential for wealth accumulation. It emphasizes the simplicity of this investment approach, making it accessible for those who might not have extensive investment knowledge, and encourages starting early to maximize the benefits of compounding.

Read the Full MSN Article at:
[ https://www.msn.com/en-ca/money/savingandinvesting/turn-a-20-000-tfsa-into-70-000-with-this-easy-etf/ar-AA1zzAlB ]