A million dollar TFSA sounds great except…

By Bruce Firestone | Family

Feb 25

A million-dollar TFSA, https://business.financialpost.com/personal-finance/taxes/the-road-to-the-million-dollar-tfsa-is-getting-shorter-for-millennials, sounds great except I’m not 100% convinced about these assumptions:

a) earning 4.7% yearly, compounding annually,

b) continuing to put in max $$$ every year for 47-consecutive years without fail.

There are simply too many ups & downs over a lifetime.

But, say you buy a half double like one of my daughters did a few years ago in Ottawa for $345,000 after which she put in a basement apartment for $80k for a total investment of $425,000.

She rents her basement apartment, so she manages to live in a 3-bedroom, 2 and ½ bath home for just $600 a month after paying for everything (mortgage, property taxes, insurance, repairs, maintenance, tech package…)

She was 26 when she bought it. After 47-years (and if home prices go up 4.7% a year, which seems likely given that in many desirable North American, Asian and Euro cities, it’s much higher than that), she will have a place worth $3,680,297. She needed $80,000 in equity to do this ($5,000 from her and $75k from the bank of mom+dad).

Which is more likely to succeed as an investment strategy? You decide.

FOR REAL ESTATE INVESTMENT AND BUSINESS COACHING THAT’LL HELP YOU PROVIDE FOR YOURSELF AND YOUR FAMILY FOR 3-GENERATIONS, PLEASE CONTACT:

Bruce M Firestone, B Eng (civil), M Eng-Sci, PhD
Real Estate Investment and Business coach
Century 21 Explorer Realty Inc broker
Ottawa Senators founder
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Bruce is an entrepreneur/real estate broker/developer/coach/urban guru/keynote speaker/Sens founder/novelist/columnist/peerless husband/dad.

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