TFSA SNOWBALL

Class [036]
TFSA Snowball was created and developed by Scott McCartney and George A. McConechy. Canadians are allowed to place $6000 a year in their TFSA, which could be invested in equities. The profit earned from dividends in the TFSA is sent out to the clients, the TFSA rules allows you to contribute what you have withdrawn in the next calendar year. This strategy is essentially optimizing an individual's TFSA through equity investments to ensure a continual Tax Free income stream. When the person has investments in a taxable account they can contribute the annual contribution amount plus the amount withdrawn to create an even bigger Tax Free income (like a snowball rolling down a hill). It also allows you to pay less Tax on your taxable account. Thus, as your TFSA becomes larger, you earn more from dividends which allows you to transfer more into your TFSA, consequently allowing you to earn more from dividends.