Canadian investors can use their self-directed Tax-Free Savings Account (TFSA) today to start a retirement fund that can provide extra income to complement CPP, OAS, and company pensions.
One popular strategy to achieve this goal involves owning top TSX dividend stocks inside a TFSA and using the distributions to buy more shares.
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TFSA benefits
The TFSA limit in 2026 is $7,000. This brings the cumulative maximum contribution space per person to $109,000 for anyone who has qualified each year since 2009 when the government launched the TFSA.
All dividends, interest, and capital gains earned inside the TFSA are tax-free and can be removed as income or reinvested to grow the savings. Any amount…
