November is Financial Literacy Month and so now is a great time to discuss the TFSA or as I wish they’d named it the TFIA (Tax-Free Investment Account).
These accounts have been around for over a decade, but the level of misuse is quite high. That’s not your fault.
With the recent rise in Bitcoin, we have seen a re-emergence of neanderthal investing articles. “If you had bought $X of Bitcoin in year Y it would be worth $Z today.” These articles emerge whenever a stock or an asset experience a meteoric rise and ignore all context and everything we know about human behaviour
TFSA and the CRA: The CRA is the ultimate record keeper of your TFSA contributions over time. They are also the body that determines if you have overcontributed and need to be fined. However, they are not good at keeping their records up to date.
The first few weeks of January are always filled with cautious optimism. There’s Dry January and fitness goals (pre-pandemic fueled by discounts to gyms and a plethora of healthy food meal plans). People commit to learn how to juggle or read 12 books or floss every day! Sadly, by mid-February the lustre of a new year where failure hasn’t marred its surface has faded.
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