Q: Hi:
I am considering using my wife's and my TFSA to invest in high yield Canadian Equities (i.e. anything paying 3% and above). As opposed to reinvesting the dividends, I plan on withdrawing the cash to provide a little extra income. If I didn't sell any of the equities and withdrew only the interest, would my contribution room "grow" commensurate with the withdrawals?
I am considering using my wife's and my TFSA to invest in high yield Canadian Equities (i.e. anything paying 3% and above). As opposed to reinvesting the dividends, I plan on withdrawing the cash to provide a little extra income. If I didn't sell any of the equities and withdrew only the interest, would my contribution room "grow" commensurate with the withdrawals?