I received a great question the other day. A friend of mine asked "I'm looking for a good investment for my TFSA that pays nice dividends, what do you suggest"? What seems like a simple question gives us much food for thought. Most importantly, and the real thrust of this post, is that questions like these should not be asked (or answered) in a vacuum. Y ou really need to take a step back and consider your overall goals, current assets, saving strategy, investment plan, and retirement strategy across all of your investment accounts. What do I plan to use my TFSA for? Given that you can only contribute so much into a TFSA, you may want to ask yourself what is the goal and purpose of the TFSA and how does it fit into your overall financial plan. Some practical examples of how TFSAs can be used: Some people have enough money and/or pension income to draw funds needed in retirement from RRSPs, non-registered accounts, or elsewhere (see the article linked below).