Is a TFSA the best place to save for a trip

[Cos]

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[tch7]

Well, the simple answer would be to just not contribute anything 30 or 90 days before you plan to withdraw the money.

I'd expect any fee should only apply to the funds added in the last 30/90 days. However, those fees are just to discourage short term trading, so if you're contributing monthly and then just making one large withdrawal later on, good chance the fees would be waived entirely.

[Mibz]

We use one of our TFSAs for our yearly mortgage lump payments, pretty similar schedule.

[Feruk]

No idea what is in this mutual fund, but it sounds long term. You are putting money into a long term mutual fund for a short term investment. No good. Plus you have to pay a penalty?? Stupid. Buy an ETF instead that you can sell with no penalty.

As for using your TFSA for it... why? I put dividend paying stuff in there. The TFSA isn't meant to be put into and withdrawn from on a regular basis by design. If it was me, I'd put it into a cash account and invest into an ETF that tracks the S&P 500 hedged to the Canadian dollar. Having to pay capital gains tax on money you make is a GOOD problem to have.

[tch7]

Originally posted by Feruk
Buy an ETF instead that you can sell with no penalty.
Buying $400-$500 per month of ETFs will be worse for fees than a mutual fund. If he had the full $5000 now and was just looking to park it somewhere for a year, then yes, ETF would be the way to go for sure.

[Cos]

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