Author Topic: Canadian TFSA question  (Read 2270 times)


  • Stubble
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  • Posts: 185
  • Age: 33
  • Location: Montreal - Canada
Canadian TFSA question
« on: December 10, 2013, 12:51:08 PM »
Hey all,

I hope this is a quick question, I'm not sure where to put my money exactly. I've recently crossed the 0$ Net Worth line and I'm starting to put money aside.

Here's my current money saved :
RRSP in an ING Direct Streetwise Equity Growth account (for FIRE in 20+ yrs)
TFSA in a normal savings account earning 1.4% (for emergency fund)
Both accounts have under 5k in them, I just started putting cash in those accounts after clearing all my debts (except mortgage). I'm aiming at putting 5k in my TFSA emergency fund, then after that I want to open a new TFSA and invest that money instead of earning a tiny 1.4%, still keeping my 5k emergency fund in a safe savings account.

Here's my current situation :
Bought a condo two years ago using my RRSP at the time as a cashdown so I can't use that again in the future. Now since the housing situation in Canada looks like it's a giant bubble that's about to pop, it leaves us with interesting options if we plan ahead for them.

If there's a housing bubble that pops, I might want to have enough saved in a TFSA to put a cashdown on a rental or something like that. If not, or if it's simply not something I want to do anymore in a couple years, then this money will go towards FIRE in 20+ years. How should I invest this money for the moment? I want to put money aside in a TFSA because it's gives more liquidity than in RRSPs, but I'm not sure if it's for the mid-term (3~10 yrs) or long-term (20+ yrs)

What do you guys think I should do?


  • Magnum Stache
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  • Posts: 3996
  • Location: France
Re: Canadian TFSA question
« Reply #1 on: December 10, 2013, 06:08:14 PM »
1. People's Trust do a 3% TFSA (may not be available in QC, not sure)

2. Investing is 5 years absolute minimum, more like 10 years; if you are happy for 10 years, you could do a standard investment split (60/40 stocks bonds or however aggressive you like). Or just 'risk it' that stocks might fall more than real estate in 5 years.

3. How much are you thinking for a rental, how hands on do you want to be? You can pick stuff up out in the sticks (somewhat) that might be ok right now - I saw a duplex in NB on 5 acres for $20k. Sure it'd need a lot of work but... Or you can look in the US..