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Is a $100 million TFSA possible?

The article from the Financial Post discusses the concept of a Tax-Free Savings Account (TFSA) in Canada, highlighting its potential for significant wealth accumulation over time. It explains how, since its introduction in 2009, the TFSA has allowed Canadians to save and invest money without incurring taxes on the investment income, including interest, dividends, and capital gains. The piece details how an individual could theoretically amass $100 million tax-free by consistently contributing the maximum annual limit, which has varied over the years, and by investing in assets that grow significantly. It provides an example where if someone had invested the maximum allowable amount each year into a diversified portfolio yielding an average annual return of 7%, their TFSA could grow substantially over decades. However, the article also notes the practical limitations, such as the cap on annual contributions and the fact that very few would achieve such high returns consistently. The narrative underscores the TFSA's role in long-term wealth building, emphasizing its benefits for retirement savings, emergency funds, and major purchases, while also pointing out the need for strategic investment choices to maximize its potential.

Read the Full Financial Post Article at:
[ https://financialpost.com/wealth/smart-money/100-million-tax-free-savings-account ]