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Stock impact report

How to Generate $500/Month Tax-Free Using a TFSA [Yahoo! Finance Canada]

Enbridge Inc (ENB) 
Last enbridge inc earnings: 2/14 07:00 am Check Earnings Report
US:NYSE Investor Relations: enbridge.com/investment-center/dashboard
Many Canadians use the Tax-Free Savings Account (TFSA) to help meet short- and long-term financial goals. However, turning a $7,000 annual contribution limit into a $500 monthly income stream depends on two factors: time and yield. Time is the runway for capital growth, while yield determines how much money you can generate. Generating $500 per month in tax-free income is a popular goal, and it is doable due to the TFSA's unique ‘money growth' feature. The Canada Revenue Agency (CRA) will not tax interest, capital gains, or dividends earned within the account, provided you follow the contribution and utilization rules. Let's do the math If you're starting with a $7,000 contribution, you need to target dividend stocks with at least a 6% yield. By maxing out your annual limits, the portfolio size could realistically reach $100,000 in about 10 to 11 years. The money will generate $6,000 in tax-free cash annually ($500 per month) thereafter. The key component here is dividend reinv Show less Read more
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