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Young TFSA (Tax-Free Savings Account) investors may wish to shift gears into growth mode if they’re a tad too heavy on cash and defensive investments, unless, of course, they expect sizeable expenses to arise in the near future (think a down payment on buying a first home, a first child, or the pursuit of an advanced degree).
For Millennials and perhaps Gen Z (the Zoomers, as they’re often referred to in media) who have a sum that they simply do not see spending over the next three, five, or even eight years, I’d argue it makes sense to adopt a more growth-focused strategy.
Indeed, the longer your time horizon, the better off you’ll be and the lower the investment risks you’ll need to take on. Unlike bonds and other fixed-income debt securities, equities tend to become less risky the farther your investment horizon is.
Growth investing with your TFSA portfolio
So, if you’re a young investor…
