3 Top Secret Tricks of TFSA Millionaires

TFSA users who became millionaires have revealed the secret tricks in achieving the nearly impossible feat.

Key Points
  • CRA data: 352 TFSA holders have topped $1M (two exceeded $40M); with the cumulative TFSA limit rising to $109,000 in 2026, these outcomes came from consistently maxing contributions and investing rather than holding cash.
  • The playbook is simple — max annual room, buy-and-hold income-producing Canadian assets and reinvest dividends to compound growth (e.g., a $109K TFSA invested in InPlay Oil’s yield could reach ~ $1.04M in ~26.5 years).
  • 5 stocks our experts like better than [InPlay Oil] >

Tax-Free Savings Account (TFSA) users who became millionaires did so not because of pure luck. It was reported that two of the 352 successful account holders even had $40 million in their TFSA. Fortunately, the top secrets of these self-made millionaires were revealed.

Woman in private jet airplane

Source: Getty Images

Max out yearly contribution limits

A clear advantage, or head start, is being able to max out the yearly contribution limits. It’s mind-boggling to know that the TFSA is only 16 years old since its introduction in 2009, yet more than 300 individuals crossed the seven-figure threshold. For 2026, the cumulative limit has increased from $102,000 to $109,000.

The common trait among TFSA millionaires is consistent, regular contributions. You can catch up if you fail in one year, as unused contribution rooms carry over to the following year.

Focus on income-producing assets

The TFSA is a wealth-building investment vehicle, not a regular savings account. Hence, future millionaires will not store cash in it but rather invest in income-producing assets, particularly Canadian dividend stocks. Keeping idle cash defeats the tax-free money growth feature of the TFSA.  

Note that all earnings inside the account are tax-free. Thus, avoid holding U.S.-listed stocks as well. You have to pay a 15% foreign withholding tax. Other eligible or qualified domestic investments include bonds, mutual funds, Guaranteed Investment Certificates (GICs), and exchange-traded funds (ETFs).

Long-term mindset

No one becomes a TFSA millionaire overnight. The time horizon is always long term, decades even, to take advantage of the power of compounding. Dividend stocks are highly recommended because you can reinvest dividends four to 12 times for quarterly and monthly payouts, respectively.

TFSA candidate

TFSA millionaires used a “buy and hold strategy,” which means the chosen stock investment is for the long term and can endure market fluctuations. InPlay Oil (TSX: IPO) is a small-cap stock, but it has rewarded investors with substantial gains over the last five years. At $12.77 per share, the five-year return is +676.2%. The current dividend yield is 8.54%, along with monthly payouts.

The $355.5 million company owns petroleum and natural gas properties and produces crude oil, natural gas, and natural gas liquids (NGLs). InPlay Oil has a comprehensive hedging program in place to mitigate downside risk and provide protection against current market volatility.

InPlay aims to build a sustainable, long-term oil and natural gas company. The strategic plan involves acquiring low-decline, high-operating-netback producing properties with drilling development and enhanced oil recovery potential. Undeveloped lands with exploration and development upside are also under consideration.

Management’s primary objective is to deliver strong, sustainable free adjusted funds flow for many years ahead. IPO started paying dividends in November 2022 and has never missed a monthly payment since.

Given the current share price and yield, a $109,000 investment equivalent to the TFSA cumulative total will compound to $1,039,435 in 26.5 years. The example shows the power of compounding and tax-free money growth in a TFSA.

Be a millionaire

Do you aspire to become a millionaire, too? The $1 million goal is achievable with disciplined investing, patience, and a long-term mindset. InPlay Oil is just one of the many suitable TFSA dividend stocks.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Group of people in a line at an ATM waiting to make a cash withdrawal
Dividend Stocks

The TFSA Withdrawal Rule Every Canadian Should Know

The account is a much better place to invest long term than to make frequent trades and withdrawals.

Read more »

man shops at grocery store
Dividend Stocks

The Best Canadian Stocks for Conservative Investors Right Now

These two Canadian stocks combine durable businesses, growing earnings, and shareholder returns.

Read more »

Three children jump on an outdoor trampoline
Dividend Stocks

2 Solid Dividend Stocks Down 20 Percent to Buy Before They Bounce Back

These Canadian companies have been increasing their dividends year after year, while their stocks have pulled back from recent highs.

Read more »

happy woman throws cash
Dividend Stocks

The Ideal TFSA Stock: A 5.9% Yield-Paying Constant Cash

Enbridge’s predictable cash flows, substantial growth pipeline, and long history of dividend increases underpin its long-term investment appeal for TFSA…

Read more »

woman gazes forward out window to future
Dividend Stocks

Dividend Income in Retirement: What Could Go Wrong?

Dividend investing is a proven way to create income in retirement but you must know the risks you need to…

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

A 5% Monthly Payer I’d Buy for My TFSA: About $100 a Month on $24,000

Canada’s largest residential landlord offers a high yield, reliable monthly income, and a tax-sheltered foundation for TFSA investors.

Read more »

Two seniors walk in the forest
Dividend Stocks

Can Dividends Replace a Paycheque in Retirement?

Can dividends in retirement replace your paycheque? Explore how Scotiabank, RioCan REIT, and Fortis can help build a steady retirement…

Read more »

Sliced pumpkin pie
Dividend Stocks

The Fees That Quietly Eat Into a Small Investment

Many funds charge outrageous fees, but broad market index funds like the iShares S&P/TSX Capped Composite Index ETF (TSX:XIC) usually…

Read more »