How to invest using your TFSA in 2026 | Do it CORRECTLY!

Video Description

TFSA 2026: Limits, Withdrawals, CRA Penalties & Smart Strategies If you live in Canada, you’ve probably heard this advice a hundred times: “Max your TFSA.” But what most people don’t tell you is how to actually use your TFSA properly and what can quietly get you into trouble with the CRA. In this video, we break down what a TFSA really is, what it isn’t, and how Canadians should actually be using it in 2025 and 2026. This is not hype. This is a practical, Canada-specific guide designed to help you avoid mistakes and use your TFSA as one of the most powerful tools available in the Canadian financial system. We start by clearing up the biggest misunderstanding: A TFSA is not just a savings account. It’s a tax-free investment container. Inside it, you can hold high-interest savings, GICs, ETFs, stocks, bonds, and more. While the money grows inside your TFSA, interest, dividends, and capital gains are not taxed, and withdrawals are also tax-free. In this video, you’ll learn: • What a TFSA actually is and how it works • The 2025 and 2026 TFSA contribution limits • How lifetime contribution room is calculated • How withdrawals and room restoration really work • Why recontributing too early causes overcontributions • How the CRA charges 1% per month penalties • What happens to your TFSA if you move outside Canada • Which investments are prohibited inside a TFSA • Why aggressive day trading can turn tax-free into taxable • How TFSA withdrawals affect OAS and GIS benefits • Smart TFSA strategies at different stages of life • Spousal and estate planning considerations We also walk through real examples so you can clearly see how TFSA room adds up, how mistakes happen, and how to avoid them. Many Canadians overcontribute simply because they don’t understand how withdrawals restore room only on January 1 of the next year, not immediately. Another critical topic we cover is CRA scrutiny. While most Canadians investing long-term in ETFs and stocks are completely fine, trying to run a TFSA like a day-trading business or using private company shares can trigger serious tax consequences including advantage taxes of up to 100%. For retirement planning, we explain why TFSAs are incredibly powerful. TFSA withdrawals do not count as taxable income, which means they don’t reduce government benefits like OAS or GIS. Over a long retirement, this can protect tens of thousands of dollars in benefits. This video is designed for Canadians in all stages of life from young professionals and first-time home buyers to families and retirees. Whether you’re deciding between TFSA, RRSP, or FHSA, this guide will help you make smarter, calmer decisions. If you want to build a Canadian money system that actually fits your life without CRA surprises subscribe to the channel and join us every Saturday at 10 a.m. for clear, practical Canadian personal finance. ••• Chapters ••• 0:00 – Intro 1:33 – What a TFSA Really Is (Not Just Savings) 2:53 – TFSA Limits & Lifetime Contribution Room 3:54 – Contributions, Withdrawals & Room Restoration 5:16 – Overcontribution Mistakes & CRA Penalties 6:38 – TFSA Rules If You Move Outside Canada 8:22 – Prohibited Investments & CRA Advantage Tax 9:59 – Day Trading in a TFSA: When CRA Can Tax You 11:21 – TFSA Withdrawals & Government Benefits (GIS & OAS) 12:25 – TFSA Playbooks at Different Life Stages 14:36 – Spousal & Estate Planning with TFSA 16:07 – Key Takeaways & TFSA Recap 17:21 – Subscribe, Questions & Closing Message #TFSA #CanadianPersonalFinance #FinanceCanada #TFSA2026 #CRA #TaxFreeSavings #InvestingCanada #RRSP #FHSA #MoneyManagement #WealthBuilding #CanadianFinance #TaxPlanning #RetirementCanada #OAS #GIS #FinancialLiteracy #MoneyTipsCanada #CPA #CFA