This teacher and his wife have guided their TFSAs to $2-million and tax-free dividends of $15,000 a month
https://www.theglobeandmail.com/investing/markets/inside-the-market/article-this-teacher-and-his-wife-have-guided-their-tfsas-to-2-million-and-tax
30 Comments
Pure luck, and good for him, but if he doesn’t have the brains to liquidate and invest in broad market etfs and ale the money and run, it’ll likely be a very different story for him in ten years.
This is the dream we were promised with the TFSA. This is basically a tax-free retirement. They have done the best with their TFSA that they could, and this should serve as inspiration for others rather than an object of envy.
[deleted]
* *CRA breathes heavily*
As long as you do a lot of research and be smart about it, stocks can be very lucrative and best part is you can do it all within your tfsa. Problem is you do need to put a decent amount of money on the line which a majority just can’t do let alone afford to lose any
Awesome
I prefer not having money
I bet they maxed out on N%#%A and then switched to a Canadian Dividend Fund
Smart bastard
Good for them
Nice, congrats!
This is the goal for me too. Index ETFs discipline and patience can get a long way.
That’s awesome!! Good for them!
If you’re gonna be dumb, you gotta be tough… So yea, pretty tough over here.
My doesn’t have any dividends but it is around 6-7 million. It fluctuate wildly since it it is 99% concentrated in Tesla. The most I’ve seen it was around 10 million.
Love the tfsa. It’s awesome.
Isn’t the max tfsa amount only $96,000?
They got lucky gambling on the stock market.
No paywall: [https://archive.ph/EbBP9](https://archive.ph/EbBP9)
Is there a version of the article not behind a paywall? Or can someone summarize what they invested and how much they put in and how much it grew by (if the article mentions this)?
They gambled and won. There are also people who dumped money into their TFSA and lost. Million + TFSA accounts are not normal, as there are many people who maxed out their contributions since day 1, and likely have less than $200,000 to show, even with ok returns. It’s great for this couple, but they are an outlier. Don’t feel bad if your TFSA is no wheres close to this, just keep plugging away.
Most of us likey started with do-nothing mutual funds sold to us by a bank when we started, long before easy self directed investing apps came along that let us have better control of our funds ( for better or worse)
They’re getting a 9% yield?
>Instead, they opened tax-free savings accounts and invested in stocks that pay dividends. Combined, their TFSAs are now worth $2-million (verified by screenshots). The stocks also pay tax-free dividends of $15,000 per month.
Teachers in Toronto had accumulated
surplus savings of $155, 000 by 2019
However, they didn’t want to hold the funds
in a savings account earning interest of less
than 1 per cent, subject to taxation and
inflation.
Instead, they opened tax-free savings
accounts and invested in stocks that pay
dividends. Combined, their TFSAs are now
worth $2-million (verified by screenshots).
The stocks also pay tax-free dividends of
$15,000 per month.
The windfall resulted from purchasing junior
and intermediate oil and gas stocks in early
2020. The stock market was then crashing
during the first alerts about the COVID-19
pandemic, and a price war between Russia
and OPEC had depressed the price of oil.
I was thinking, wow, how did I go so wrong with my TFSA until I read this key part: “People with secure jobs and good pensions, such as Paul and his wife, can take on the higher risk associated with an investment portfolio concentrated in only two Canadian equities. If they lost their entire investment, it would not have impacted their financial security. Others should not take on such risk unless they are using money they can afford to lose or don’t need.”
So hit a 20 bagger? Gotcha.
PAYWALL
Hope they live long enough to spend it all.
I can’t even put 5k a year away.
Compounding interest is the 8th wonder of the world.
If only high school me knew that putting away a few hundred from every pay cheque into an investment could make me a millionaire.
Didn’t someone make a bunch of money in the TFSA too fast. Maybe 5 or more years ago and then they were taxed on it? I think they were doing options though.
They should STFU about it. The government might decide that’s too much free, not enough tax.
Buying penny oil stocks is not going to work out for 99/100 people. Good job these guys.
The sexism is insane.
Headline: “this teacher and his wife”
Article: “Paul, 46, and his wife, Elizabeth, 42, are both teachers in Toronto”