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Borrow money to max out TFSA? (lemmy.world)

submitted 1 week ago by LucidLyes@lemmy.world to c/personalfinancecanada@lemmy.ca

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I've just heard of someone doing that and it ended badly, but that was because the person over contributed. I wonder if it would be legal/smart for me to do that? I don't make enough to max out my TFSA and don't take risks investing (only invest in global ETFs and bonds).

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[–] LucidLyes@lemmy.world -1 points 1 week ago (1 children)

I invest in VEQT.TO and XBB.TO. I use 65% stocks and 35% bonds. I did make a profit last year but this year's probably not gonna be as good so I'd just be losing on interests. I think it's not even legal to use borrowed money in a TFSA anyway

[–] bambootstrap@lemmy.ca 2 points 1 week ago

It is legal but the interest on the loan is not tax-deductible, unlike other investment loans you might take out.