For example, Mary invested $5,000 of her TFSA contribution in a term deposit that earns 3.5% annual interest. She withdraws this money to finance her annual vacation. This transaction does not take advantage of the TFSA tax benefit, as 3.5% interest income on $175 will not make a significant change to your tax liability.
TFSA hacks to build a $1 million tax-free savings fund
The TFSA is the best tool for investing in high-growth stocks for the long term because it allows your investment to grow tax-free.
Invest in power generators
TFSA is ideal for the following Nvidia or Apple, making its loyal shareholders millionaires in ten to fifteen years. All those stocks that you hear have turned the $10,000 invested in 2015 into $1 million today are the best TFSA investments. Some wealth generators are trading near their 10-year lows, creating an opportunity to accumulate wealth from their future growth potential.
Constellation software (TSX:CSU) shares have seen a sharp correction of over 40% since July 2025. There is a significant management change when founder Mark Leonard resigned, and fears about the impact of artificial intelligence (AI) on traditional software companies remain unknown. Could AI disruption reduce the value of industry-specific software companies?
This uncertainty is weighing on the Constellation Software share price. However, the company is keeping an eye on the AI transition and is experimenting with AI. It is not yet acquiring AI companies, but waiting for them to create strong return on investment (ROI). Constellation’s business model is not to buy cutting-edge technology at a high price, but to acquire a proven and mature business with regular free cash flow at a discount.
Mark Miller, who has taken on the role of Chief Executive Officer (CEO), must maintain free cash flow growth for a full year to gain investor confidence. The company’s fundamentals and long-term growth remain strong, making it the wealth generator that can help you build your $1 million savings.
If you had invested $10,000 in Constellation in January 2016, you would have bought 785 shares for $12.73 per share. These shares are worth $2.1 million today, even if the share price is down more than 40%.
Rebalancing your TFSA portfolio
Finding the next power generator is not easy. However, another way to build on your $1 million savings is through disciplined asset allocation. Let’s say your target allocation is 40% growth stocks, 40% dividend stocks, and 20% ETFs. Check your TFSA balance every six months and rebalance your portfolio to your target asset allocation.
For example, you have $10,000 in your TFSA and you invested $4,000 of your growth stock investment in Shopify (TSX:SHOP) in June 2025. It is now $5,373. Assuming the rest of your portfolio remains unchanged, Shopify now accounts for 53% of your TFSA portfolio. You can sell $1,300 worth of stock and reinvest it in a dividend stock that is near its bottom.
This timely profit booking helps you preserve the capital gains and convert them into dividend income. Rebalancing your portfolio can help you make profits even during market downturns.
Combine your return with opportunities for high growth
The Canada Revenue Agency (CRA) has certain qualified TFSA investments, including ETFs and stocks traded on publicly traded exchanges, such as the NASDAQ, TSX and NYSE. Bitcoin is not a qualified TFSA investment, but you can invest in a bitcoin mining company. Hive digital technologies. Hive offers two growth cycle options: bitcoin mining and AI.
You might consider buying this stock at $4 or lower and selling it at $8 and higher. When there is a cyclical recovery, you can withdraw your profits and reinvest them in resilient growth stocks.
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