How Does the TFSA Maximization AI Strategy Work?

The TFSA Maximization AI Strategy works by automatically optimizing the use of your contribution room to maximize your TFSA. Here's how it functions:

1. Strategy Activation: You can enable the TFSA maximization strategy within the platform, which will prioritize maximizing TFSA contributions using available non-registered or registered assets.
2. Automatic Contributions: Once enabled, the platform automatically maximizes your TFSA contributions until your non-registered/registered accounts are depleted. Which accounts are used depends on which strategy you use.
3. Tax Efficiency: The platform will minimize the tax implications by prioritizing non-registered funds over registered ones, ensuring that you avoid unnecessary taxable events, especially during retirement when you're trying to maintain a lower tax profile.
4. Manual vs. Automated: While you could manually adjust your contributions, the TFSA Maximization strategy automates this process, saving you time and ensuring the optimal use of your available contribution room.

This strategy is particularly useful for those with significant non-registered or registered assets that they want to shift into the TFSA in a tax-efficient manner.