top of page

TFSA Canada: My Biggest Mistakes in my TFSA (Don't Do This)

Updated: Sep 20, 2023

Wow, over the years, I made some pretty awful TFSA mistakes.

I got lazy.

I got tired of investing.

I even did some FOMO speculative plays.

As embarrassing as this is, I share my biggest TFSA mistakes to help you in your investing journey. Maybe this will save you a ton of money or accelerate your journey in investing.

Most importantly, I share 4 rules you can follow now to maximize your TFSA (tax free savings account).


TFSAs are great because you get to grow your money, collect dividends and collect interest payments tax-free, but try to avoid these mistakes that I have made!

TFSA Mistake #1: Investing in GICs/Not Investing

  • Opened a TFSA and put it into Guaranteed Investment Certificates

  • Did not take advantage of the account

TFSA Mistake #2: Losing Contribution Room because of Poor Quality Stocks

  • Invested into speculative growth plays and lost some money on those investments

  • When you lose money in your TFSA, you cannot write it off (TFSA provides a great benefit if you grow your money, not if you lose it)

TFSA Mistake #3: Daily Trading in TFSA

  • If you make a lot of trades per day, CRA can look at this as ordinary income and get taxed

  • Talk to your accountant about this to make sure you don't get dinged

TFSA Mistake #4 Buying US Dividend Paying Stocks in TFSA

  • You get taxed 15% withholding taxes on your dividends whenever it comes from a US company

  • For dividend income investors, buy Canadian dividend-paying stocks instead

TFSA Mistake #5 Over Contributions by Mistake

  • If you make money in your TFSA and withdraw it, you can contribute it back, but make sure it is not in the same year or you get a penalty from the CRA

5 Rules for Opening a TFSA

  1. Open a TSFA ASAP

  2. Maximize your contribution annually

  3. Don't invest in poor-quality stocks

  4. Avoid US dividend-paying stocks

  5. Don't over-contribute within the same year


0:00 - Intro

3:09 - TFSA Mistake 1

3:59 - TFSA Mistake 2

5:33 - TFSA Mistake 3

7:04 - TFSA Mistake 4

8:36 - TFSA Mistake 5

9:45 - 5 Rules for Opening a TFSA


Open up your TFSA now and Get some $$ Back:

👉👉Get $50 Worth of commission Free Trades with Questrade -->

👊$0 Commission Stock Trades: Sign up now to get $10 FREE to buy a stock with Wealth Simple:




bottom of page