Is now the time for a long-term investor to abandon stocks? + MORE Oct 12th

Find out your current tax-free savings account (TFSA) contribution limit by using this calculator.

TFSA is a bit of a misnomer. While you can use it for straightforward savings, think of it more accurately as an investment holding account to store things like exchange-traded funds (ETFs), guaranteed investment certificates (GICs), bonds, stocks and, yes, plain-old cash. While you do have to abide by the set amount of contribution room each year, any gains you earn on those investments will not affect your contribution room for the current year or years to come. Plus, the income earned is tax-free (more on that below). Any resident of Canada, over the age of 18, with a valid social insurance number can open a TFSA.

Is a TFSA really tax free?

TFSA contributions won’t reduce your taxable income, unlike registered retirement savings plan (RRSP) contributions. (If you haven’t maxed out your RRSP, get on that before the deadline). However, where you do save on taxes with a TFSA is that the money you earn inside your TFSA is not taxable…

With any luck, I probably still have approximately 18 more years I could potentially be working, however I cannot contribute anything to this LIRA. I am interested in knowing the following:

Should I move it to GIC investments?I am interested in investing in a mortgage fund, but can I, and how?

—Sharon

How to deal with market volatility as a long-term investor

This year has been a brutal one for investors. Stocks are down, bonds are down, real estate is down—there has been nowhere to hide.

The Toronto Stock Exchange net total return is negative 11% year-to-date. The S&P 500 has been much worse, with a 23% drop. Canadian bonds, as measured by the FTSE Canada Universe Bond Index, have lost 13%.

If your locked-in retirement account (LIRA) has gone from $90,000 to just over $70,000, Sharon, it sounds like you are down about 20% in 2022…