TFSA Investors: 2 Costly Mistakes You'll Want to Avoid!
A TFSA account can be a great way for investors to save for retirement. The big advantage is that on eligible investments, investors can benefit from both capital appreciation and dividend income and not be taxed on either.
However, there are some important limitations that investors need to be aware of, because treating a TFSA as a normal investing account could prove costly down the road.
Below, I’ll go over two potentially expensive mistakes that TFSA investors could make and how to avoid them.
Trading too often
If you’re an active investor, one of the dangers of using a TFSA is that if you trade too often, you could be in danger of any income being earned treated as business income and therefore not being protected from taxes, which is the main benefit of a TFSA in the first place ...