Making the Most of Multiple $7,000 TFSA Contributions Over Time

Here’s how I would structure an annual TFSA contribution for maximum growth.

Tony Dong, MSc, CETF®

Tony turned a series of 2017 marijuana stock losses into a freelance career advocating for ETF investing. He currently holds a Master’s in Risk Management from Columbia University and is a Certified ETF Advisor (CETF®). Tony is the founder of ETF Portfolio Blueprint (etfportfolioblueprint.com) and the Lead ETF Analyst for ETF Central, a partnership between Trackinsight and the NYSE. His analysis has also been featured in publications like Kiplinger, 24/7 Wall St., U.S. News & World Report, TheStreet, and Benzinga. Tony also provides independent content and marketing consulting services to various Canadian and U.S. ETF issuers. His editorial opinions for The Motley Fool remain independent and objective.

Published June 26, 2025 4:50 pm EDT

If you’ve been keeping up with your Tax-Free Savings Account (TFSA), you would’ve received $7,000 in contribution room in both 2024 and 2025.

That’s $14,000 total, and there’s a good chance 2026 will bring another $7,000 unless the government under Mark Carney decides otherwise. But once you’ve made those deposits, the real question becomes: what should you do with the money?

Leaving it in cash defeats the entire purpose. Despite the name, the TFSA isn’t just a savings account: it’s a powerful tax shelter for investing. Here’s how to actually put your contributions to work.

Blocks conceptualizing Canada's Tax Free Savings Account — Source: Getty Images

Dollar cost averaging works

You don’t need to invest the full $7,000 the moment it hits your account. If you’re nervous about market volatility or simply don’t have the full amount on hand yet, you can dollar cost average (DCA) throughout the year.

This means spreading your investment out over time to reduce the risk of buying at the “wrong” moment.

For example, dividing $7,000 over 12 months gives you a monthly investment of about $583. That’s a manageable amount to automate and builds the habit of consistent investing while still using your TFSA room effectively.

Don’t try to time the market

One of the biggest mistakes new investors make is sitting on cash while waiting for a better entry point. But history shows that bull markets last longer than bear markets, and missing just a few of the market’s best days can crush your long-term returns.

Once your money is in the TFSA, the goal should be to get it invested, not to try and guess short-term market moves. Remember, time spent in the market is always better than timing the market.

Pick the right investment

The best long-term TFSA strategy is to stay diversified. That means not just betting on Canadian stocks or chasing tech, but owning a broad mix across regions and sectors.

One of the easiest ways to do that is with an all-in-one exchange-traded fund (ETF) like the BMO All-Equity ETF (TSX:ZEQT).

ZEQT holds a globally diversified portfolio of 100% equities, including U.S., international and Canadian stocks. It’s low-cost with a 0.20% management expense ratio (MER), and you can seamlessly DCA into it every month without needing to rebalance or worry about portfolio construction.

It’s simple, cost-effective, diversified, and built for exactly this kind of long-term TFSA investing.