Readers Write

We asked what you thought of a newsletter which declared that the Tax-Free Savings Account should only be used to hold cash.

That 'well-respected newsletter' is right out to lunch when it comes to what can be held in a TFSA.  Almost anything can be used as a TFSA investment.  Both my wife and I put our $5,000 maximum in a trading account with a discount broker. (The local bank did not know how to process our accounts so it did take almost 2 months, plus a pile of paperwork.)

We each bought a REIT and have done very well in only 6 months. My wife's account is now over $7,500. When mine doubled recently, I sold it and now have $10,000 in cash ready for another investment.  The added bonus is that there is no capital gains tax on the profit.  Unless you are using your TFSA strictly as a savings account, most people would probably make the best investment with a conservative, dividend-paying stock, a REIT or an income trust.
D & B Bober