The annual contribution limit for the Tax-Free Savings Account (TFSA) will stay put at $7,000 in 2025. That pushes the total contribution limit to $102,000, which any Canadian who was aged 18 years or older in 2009 will have access to.
There's no need to stress if you're behind on your TFSA savings. Unused annual contributions can be carried over from year to year. And with the total contribution limit now above $100,000, for anyone with decades of investing time in front of them, $100,000 has the potential to grow into a significant nest egg.
Using a TFSA for long-term savings objectives
The TFSA is often thought of as a short-term savings vehicle, which it certainly can be. The tax-free withdrawals make it a great option for short-term savings objectives. But don't sleep on the TFSA for its ability to be an excellent choice for long-term savings goals.
A key selling point of the TFSA is the ability to earn tax-free compound returns. In the short term, that may not be a big deal. But for investors with plenty of time in front of them, the ability to earn tax-free returns, in addition to tax-free withdrawals, is not an opportunity that should be passed up.
With that in mind, I've put together a basket of three top TSX stocks. All three picks are loaded with long-term growth potential.
If you're looking to maximize your TFSA contribution room in 2025, these three companies should be on your radar.
Brookfield
Picking up some shares of Brookfield (TSX:BN) can provide an investor with instant diversification. The $120 billion company is a global asset manager that boasts a wide-ranging portfolio of assets.
But as diversified as Brookfield's investment portfolio is, the stock hasn't had any trouble delivering market-beating returns. Shares are up close to 100% over the past five years, excluding dividends. That's good enough for more than doubling the returns of the S&P/TSX Composite Index.
Sun Life
Sun Life (TSX:SLF) won't get many growth investors excited, but growth isn't necessarily the main reason for owning a financial stock like this one.
Like many others in the financial space, Sun Life pays a top dividend. At today's stock price, the company's dividend is yielding 4%.
In addition to a steady stream of passive income, Sun Life can also help keep volatility to a minimum in an investment portfolio. I won't argue that the insurance industry is exciting or fast-growing, but it sure is dependable.
goeasy
Last on my list is a growth stock that might not be trading at a discount for much longer.
Shares of goeasy (TSX:GSY) are down 25% from all-time highs in 2021. Even so, the growth stock is up a market-crushing 130% over the past five years.
As a consumer-facing financial services provider, the recent interest rate hikes have had a positive impact on the company's stock price. And with more rate cuts likely coming, now could be an opportunistic time to be loading up on shares of goeasy.
If you're looking to add some serious growth potential to your portfolio, goeasy should be on your watch list.