RR, I would argue that you don't have returns in your TFSA unless and until you sell something. A TFSA is the most valuable component of my own portfolio. I'm only upset that it was implemented so late in my life. It blows RRSPs right out of the water. With an RRSP, your contribution room once used is gone. If you ever cash any of it in, you've lost that investment potential forever. And unlike an RRSP, you can hold a TFSA for your entire lifespan. No conversion to a RRIF. Furthermore, any withdrawals from a TFSA do not affect any entitlements to other income, like CPP, or old age security programs. And I believe that there will be the possibility to transfer the assets of your TFSA to close family members upon your passing, without triggering estate taxes or deemed disposition of the assets.
This isn't intended as investment advice, but as a thinking point. Because any proceeds of a security sale are fully protected against taxation within a TFSA, the optimized strategy, IMHO, is to buy low sell high, and repeat as often as you can. No capital gains to worry about. Ever. And if you ever decide to move money out, they give you back an equivalent deposit limit in the following tax year.
So, if one of your TFSA investments has had a good run, and you have your eye on another stock that's possibly poised for a pop, make the switch. You can trade inside your TFSA just like it was your regular market account. I know somebody who is up 800% with this strategy. I didn't "clue in" to the opportunity until July, and I'm up about half that, but I only had half the time. And now I'm loaded up in there with my next pick, so that potential multiple still remains a potential. And they're giving me another 5k in investment room in a couple of weeks. What's not to like about that?
Lar
