How to Turn a $7,000 TFSA Into a Money Pumping Machine
The only rule of a TFSA is that you can withdraw tax-free. There is no limit on how much you can withdraw. You can withdraw €10,000 or €100,000 if you have that much balance in your TFSA. The amount withdrawn will be added to the TFSA contribution room the following year.
Pumping money out of long-term growth stocks
You can invest in a growth stock and withdraw capital gains while keeping the amount invested. Suppose you invest €10,000 Nvidia (NASDAQ:NVDA) in 2020 and those shares doubled your money to $20,000. You can withdraw the capital gain of €10,000 and keep the remaining €10,000 invested. This way you enjoy the growth cycle and don’t miss out on long-term growth. However, the benefit of compounding is diluted.
Nvidia stock is a long-term growth stock not only because of its artificial intelligence (AI) data center graphics processing units (GPUs), but also because of its autonomous vehicles and AI 2.0 capabilities. As long as Nvidia’s GPUs maintain their unparalleled performance, they will command a premium price and scale their revenues by strong double digits.
Pumping money out of cyclical stocks
Another option to pump money out of a TFSA is to invest in cyclical and seasonal stocks during their dips. For example, buying commodity stocks that give you exposure to gold and Bitcoin prices is a good option. The gold price tends to rise during economic uncertainty, and the Bitcoin price tends to rise during economic prosperity.
If you’re invested in it Lundin Mining By early 2025, your investment should have doubled as gold prices soared amid economic uncertainty. Moreover, central banks have been buying gold to build up their gold reserves, which is driving demand for gold. You can consider withdrawing the capital gain and investing it via Bitcoin Hive digital technologies (TSXV: H.I.V.E.).
Hive is a debt-free Bitcoin mining company. It has expanded its Exahash capacity per second (EH/s) from six to 25 EH/s in 2025. This computing power will help it mine more Bitcoin. Furthermore, the company accumulates Bitcoin when the price falls and sells Bitcoin when the price rises to finance capacity expansion. Hive’s share price is influenced by the value of its Bitcoin inventory, giving you exposure to Bitcoin prices.
Because it has no debt and is expanding into leasing high-performance computing (HPC) cloud space, it can generate stable cash flows and survive a bubble burst. You might consider buying the stock when its price is below $4 and selling it for $8, taking only the profit while keeping your initial investment.
Pumping money out of high-yield dividend stocks
Another interesting source of cash will come from high-yield dividend stocks such as Telus Corporation (TSX:T), trading near a 12-year low with a 9% yield. The stock has fallen so low because management has halted dividend growth until it deleverages its balance sheet. However, it will continue to pay the current dividend. You can withdraw this dividend and enjoy an assured quarterly cash income.
You can also reinvest the dividend in Telus itself through the Dividend Reinvestment Plan and save on brokerage fees on DRIP shares. Another option is to reinvest the dividend amount in the iShares NASDAQ 100 Index ETF (CAD-hedged) (TSX:XQQ).
The ETF gives you insight into the emerging technological trends of AI, autonomous vehicles and hydrogen cars. From hardware to software, you get market-related returns that balance the risk of individual stocks. ETFs allow you to withdraw the capital gains and keep the invested amount intact.
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