Do you want to earn thousands in annual passive income in your TFSA? In a way, it’s a silly question, because everyone wants more income, not less. But having a clear goal of getting to multiple thousands in annual passive income and just daydreaming about it are two different things. Many people who “want” more money buy lottery tickets, which are statistically likely to result in losses.
Actually obtaining passive income in a reliable fashion requires a game plan. In this article, I will explore a relatively straightforward method for getting to $4,750 in annual passive TFSA income. Invest in GICs Investing in guaranteed investment certificates (GICs) is the safest and easiest way to get passive income.
GICs are bond-like instruments offered by banks providing you with a bit of interest at maturity in exchange for agreeing to have your money locked up for a while. The GIC principal is insured by the Federal Government, so GICs are among the least risky assets out there. There is a way to get $4,750 in passive GIC income in a TFSA.
In order to do it, you must satisfy one of the following conditions: It is possible to find GICs yielding 5% today. For example, the Canadian bank offers such a yield on some of its long-term GICs. If you invest $95,000 into a 5% yielding one-year GIC, then you will get $99,750 back at the maturity date.
Of that, $4,750 of the $99,750 represents the return. Stocks can get you even more income You can get even more passive income with stocks .