Our 2022 DGI TFSA Portfolio

Our annual goal is to maximize the contribution limits of our TFSA beginning of each year. We aim to contribute the maximum allowable limit every first week of January. With the recent announcement of next year TFSA contribution increase to $6,500 this will bring to a cumulative contribution room of $88,000.

Here are the TFSA contribution limits by year since its inception.

• 2009 – $5,000
• 2010 – $5,000
• 2011 – $5,000
• 2012 – $5,000
• 2013 – $5,500
• 2014 – $5,500
• 2015 – $10,000
• 2016 – $5,500
• 2017 – $5,500
• 2018 – $5,500
• 2019 – $6,000
• 2020 – $6,000
• 2021 – $6,000
• 2022 – $6,000
• 2023 – $6,500

Total contribution room = $88,000

First of all, If you are a Canadian and haven’t contributed to your TFSA since it’s inception in 2009, you are eligible to put up to $88,000 beginning of January 2023.

It is a valuable gift that we as Canadians should take advantage as your investments if held in a TFSA will continue to grow free of tax for many years to come. Additionally, you will also not pay any taxes at the time when you want to take your money out as you have contributed to it after – tax income.

Similarly, you can use your allowable contribution to invest in a regular savings account, HISA, GIC, bonds, mutual funds, index funds, ETF, and common stocks. These are among the investment vehicles that you can choose from. Overall, the choice comes down to your personal goals, age, and risk tolerance.

Personally, my wife and I have been investing our TFSA in Canadian equities focusing on dividend paying growth stocks. Most recently, we also started to invest globally for diversification and exposure to global economy. Usually, the easiest way of doing this is investing in ETFs with low MER fees. You may see further details – Where we invest our 2022 TFSA contribution limit?

Here’s a quick glance of our 2022 DGI TFSA portfolio.

My TFSA portfolio as of the time of update has a projected annual dividend income of  $5,241.57.

Updated January 2, 2023

My spouse TFSA portfolio has a slightly better projected annual dividend income of $5,544.98.       

This brings to a combined projected annual TFSA dividend income (PADI) of $10,786.55 at the time of this update excluding 2023 new TFSA contribution limits which we still have to utilize beginning of January 2023. That’s about $898.88 monthly or $29.55 a day of passive income while we sleep from our TFSA accounts alone. 

Equally, we expect our projected annual dividend income (PADI) to continue growing by the end of the year as we are reinvesting all our dividends on a monthly basis. Additionally, increase in our PADI also will come from dividend growth oriented companies that organically increase their dividends if their business continue to be profitable. Please take note that dividends are not guaranteed therefore investing blue chip dividend growth stock that has a long history of increasing it’s dividend payout is crucial and very important for dividend growth investors.

Note: The journey I have shared in my blog is about our TFSA dividend income only. We already maxed out both our TFSA and RRSP for the year. Similarly, we continue to invest in our non-registered (taxable) accounts after we saved up for our emergency fund.

Additionally, you may refer to this link for our total dividend stocks and ETFs we own which we held in our TFSA, RRSP, and non-registered accounts. For further diversification, we also allocated a small percentage of ETF in our portfolio for US, International, and Emerging market exposure.

At this point, it isn’t a life-changing amount and far from being financially independent. However, it’s very inspiring to see that we are receiving passive income while in our sleep.

Moreover, I will aim to update our projected annual TFSA dividend income monthly. Here’s the link to our current monthly TFSA dividend income and link to our live non-registered DGI performance.

However, this can only be achieved if these key factors remain the same:

1. Holding these dividend paying companies throughout the year and beyond.
2. All above listed companies continue to pay dividends at its current rate or increase organically.
3. No reduction and suspension of its dividend payout.

“But here’s the kicker”

It gets more interesting! First of all, we are still working and retiring will be a couple more years down the road hence, we don’t need to withdraw these passive income. Secondly, we are reinvesting all the dividends we received regularly back to any companies in our portfolio every month. Finally, since we are partnering and building a portfolio of dividend paying growth stocks, there is a huge potential that many of these companies, as long as they remain profitable, will continue to increase their dividend payout this year and the years ahead. Therefore, our actual annual income would probably be higher (although there is No guarantee that companies will increase dividends) than our projected annual income.

My Final Thoughts

Just like the story of the rabbit and the turtle we all familiar with as a child. “Slow and steady wins the race” – Robert Lloyd

Note: For transparency I have started this blog with my commitment to post our TFSA dividend income alone. We don’t have any intention to post the total value of our portfolio or personal net worth updates. Thank you for your understanding.

More Reading:

One of my previous blog posts highlighted our mistakes in buying our first home in Canada. With those lessons learned we felt we were equipped with much-needed information this time around buying our recent home using leverage instead of selling our investments to use as a down deposit. In doing so, we have improved our total current net worth without dipping into our long term investments.

We made a massive savings by switching our home insurance to Square One up to 30%. If you are looking to renew your home insurance or for a new property, why not check them out and see for yourself if you can also get a huge discount on your home insurance.

Moreover, we also made dramatic changes in our lifestyle and embraced minimalism hence we viewed that living less is more. A few simple money saving tips we have done are reducing our cell phone bills and if you are still paying bank fees consider switching to No fee bank accounts.  Similarly, I find dividend investing easy and more fun and you can choose a no fee trading account either as a new or seasoned investor.

Finally, when we are employed, we receive a regular income and a sense of financial security. However, many jobs are not guaranteed and can be also lost and taken away beyond our control as many have experienced during this past pandemic due to an abrupt closure of businesses due to the impact of the virus and government mandated lockdowns. The looming recession will show a slowing global growth in our economy and the risk of potential lay off and rise of unemployment.  Therefore, it is vital to generate multiple sources of income to protect ourselves from these unforeseen events.

DISCLAIMER: Everything I have shared in my blog is wholly related to my personal experience. It is for entertainment and educational purposes only and should not be construed as advice.

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