If you have been following the Loonie Bin for a while, you might have noticed I am a huge advocate for Tax Free Saving Accounts. I know some people save for trips or perhaps a new car with their TFSA, but I use my account to make my money work for me. After some extensive research on a new stock for my TFSA, I've made a decision to add a financial stock to the mix.
Hello, Scotia Bank (BNS)!
I've had my eye on this stock since I started investing and decided to finally pull the trigger when it dipped last month. After researching the top 5 Canadian banks in December, It just added to my confidence to own shares in this company.
By adding 100 shares of BNS to my TFSA, I will be receiving an additional $208 tax free into my account.
Thanks to previous contributions that I invested in ENB and BCE, my tax free income will be:
ENB: $452
BCE: $214.50 (New dividend takes effect in April)
BNS: $208
$874.50
At this rate, I won't have to worry about Harper raising the age to claim Old Age Security! Ok, well it's a start in the right direction to say the least. If I were to keep my money in a plain old TFSA, I'd probably be making $250 on the same amount of money and that would be it. I'm gunning for dividend growth from all three companies this year and then I can watch even more money come through, all tax free!
How do you use your TFSA?
