For a Canadian who has been eligible since 2009, maxed out their contributions every January 1st, and kept their money invested in the stock market, their TFSA could be sitting at roughly $510,000 today — grown from just $109,000 in contributions, with every dollar tax-free.

(This figure uses the S&P 500 as a benchmark — it is a standard measure of what the broader stock market has returned over time.)

That is what the TFSA was designed to make possible, and what most Canadians have not let it do.

Many people treat their TFSA like a savings account. It isn't — and in retirement, it is where the math really pays off. Withdrawals are tax-free and don't count as income, which means no bracket creep, no OAS clawback, and no tax bill waiting at the end. Every dollar you take out is still a full dollar. With an RRSP, the CRA is a silent partner in your account — every withdrawal is taxed as income, and a portion of your balance will never make it to you.

TFSA room does not disappear — it accumulates. A Canadian who has been eligible since 2009 and never contributed has $109,000 in available room today.

The right setup depends on your timeline, your other assets, and your goals. Cash, GICs, and mutual funds all have their place — but whether they are the right fit inside your TFSA is a different question, and one worth asking. The gap between what a TFSA could be doing and what it is actually doing is often larger than people expect.

If you would like to review your TFSA together — what's in it, whether it fits your goals, and whether there is a real plan behind it — that is an easy conversation to have. Give me a call or send me an email.

Fraser Willson, CFP, CIM | Senior Wealth Advisor | CIBC Wood Gundy | Collingwood | Fraser.Willson@cibc.com | (647) 588-4344

CIBC Private Wealth consists of services provided by CIBC and certain of its subsidiaries, including CIBC Wood Gundy, a division of CIBC World Markets Inc. The CIBC logo and “CIBC Private Wealth” are trademarks of CIBC, used under license. “Wood Gundy” is a registered trademark of CIBC World Markets Inc. Fraser is an Investment Advisor with CIBC Wood Gundy in Collingwood. The views of Fraser do not necessarily reflect those of CIBC World Markets Inc. This information, including any opinion, is based on various sources believed to be reliable, but its accuracy cannot be guaranteed and is subject to change. Clients are advised to seek advice regarding their particular circumstances. Please note that rate of return projections are for demonstration purposes only. They are based on a number of assumptions and consequently actual results may differ, possibly to a material degree.