One-shotting TFSA lifetime contribution with a single contribution/ payment
Hi everyone, I suspect this is going to be a controversial one but here we go.
Context:
In this hypothetical scenario the TFSA is not for yourself but rather, and most likely, a child - ideally as young as possible (basically, open the TFSA the moment the child obtains his/ her ID number).
Also, we are going to assume that said child will not abuse/ ruin the TFSA account once they reach the age of 18 and owenership is transfered.
Question:
With the context in mind, I want to know if it could be considered "worth it" to make the entire lifetime contribution in one single contribution, as opposed to the usual, within-the-limits, annual contributions over time, in order to:
Maximize the potential growth of the TFSA from day one.
Minimize administration (practically set-and-forget).
Provide some degree of security (in the sense that, should the guardian/ parent pass away unexpectedly, again, administration of the TFSA is a none-issue).
All this for the low, low (tax) price of about R181k.