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The Tax Free Savings Account (TFSA) is highly beneficial for long-term investing. This comes down to its tax-free growth. For example, if an individual contributes the maximum annual limit of around $6,500 every year into a TFSA and invests in a portfolio with an average annual return of 7%, their investment could grow to approximately $1.1 million over 35 years!
This entire amount, including all capital gains, interest, and dividends, would be completely tax-free upon withdrawal. This tax-free compounding can significantly enhance wealth accumulation. That makes the TFSA an incredibly powerful tool for long-term investors looking to maximize their returns without the burden of taxes on their investment gains. So, what stocks can help you get there?
Growth and predictability
If you’re looking to make a long-term investment in your TFSA, Great-West Lifeco (TSX:GWO) and Constellation Software (TSX:CSU)…
