this post was submitted on 23 Jul 2023
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My TFSA is not maxed, I have a few investments but nothing crazy. No GICs either. Should I focus on TFSA first, then GICs? I have a large lump of cash just sitting in a chequing account doing nothing as well.

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[–] [email protected] 1 points 1 year ago* (last edited 1 year ago) (1 children)

because any disproportionate gains/returns will be tax free

OTOH the most likely scenario is having mediocre gains, therefore wasting the tax-savings opportunity. Has anybody done the math to compare the performance of high-risk vs steady-returns if both have the same expected average returns? My intuition is that by exercising the tax-free aspect monthly you're making more in the long run due to compounding but I can imagine this being more complicated than that.

[–] [email protected] 1 points 1 year ago (1 children)

I made $100k on pot stocks in my TFSA, so... maybe my perspective is skewed.

But right now, I have a high-tech ETF with a high distribution that keeps going 'up and to the right'... I guess only time will tell.

[–] [email protected] 1 points 1 year ago

That's really nice, and I hope you have great gains. But yeah that doesn't mean that it's statistically optimal unless you can predictably get right the high risk investments that will go well, in which case you're on your way to become a millionaire anyway.