TFSAs, or tax-free savings accounts have been marketed incorrectly since their inception. However, saving with TFSA may not be how you expect. They aren’t for vacation savings, an emergency fund or even other short-term investments, and if that’s how you’re using your TFSA, you’re missing out on the magic power of compounding interest. There is no other place you can grow your money tax-free, and also withdraw it tax-free in the future. It’s an ideal investment account, says Jackie Porter, Financial Planner at Carte Wealth Management.
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