3 Ways to Make $500 a Month Passive Income in Your TFSA
Did you know that you might be able to deposit over $60,000 in your TFSA in a single year?
While the TFSA contribution limit for 2019 is $6000, the TFSA rules stipulate that you can accumulate contribution room for every year you haven’t opened one since the program started. This means that if you open a TFSA for the first time in 2019, you can deposit $63,500 without incurring the dreaded over-contribution tax.
What this means is that TFSAs can be powerful tools for generating income. The annual dividends on $63,500 at an average yield of 4% add up to $2540 a year or $211 a month, which is already enough income to help out in emergencies. But with regular contributions and dividend growth, you can turn that $211 a month into $500 a month over time, a significant income boost.
If you want to collect $500 a month in your TFSA month after month, it will take some time to get there. It can, however, be done. The following three strategies should help you get there in a decade or less.Admin