I have done a spreadsheet for a TFSA. I am assuming inflation is running at 2% in order to determine the increases in the maximum amount for the TFSA. This would be that approximately every 5 years, the government will increase the maximum limit for TFSA by $500. This is what has occurred by 2013.
If you were 18 when the TFSA came out and put into a TFSA the maximum and you earn 8% a year, then by age 65 you could have $2.7M in your account.
If you were 30 when the TFSA came out and put into a TFSA the maximum and you earn 8% a year, then by age 65 you could have just over $1M in your account.
If you started depositing on January 1, 2009 at an 8% return you could have some $77,000 in 10 years. It would take almost 27 years to get a $0.5M. In year 35, you could have $1M.
See my spreadsheet at tfsaa.htm. If you want me to send you a copy of this spreadsheet, just email me. (Also a spreadsheet with first 5 years filled in at tfsab.htm.
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8% unrealistic
ReplyDelete8% maybe unrealistic over the next 10 years, but not over 27 or 35 years. We are in a secular bear market and at sometime we will come out of it and make better returns than at the present time.
ReplyDeleteHow is 8% unrealistic? Wasn't the Dow Jones up like 8.9% last year plus dividends???
ReplyDelete-Tom
In my spreadsheet you can put in any value you want. I only used 8% as an illustration. On the second sample, the 8% is used to determine future rates based on an average 8% return over 5, 10 or 15 years. That can be changed also.
ReplyDeleteSusan