The average TFSA balance at 45 might seem disappointing, but it's not a reason to panic. Many Canadians use their TFSA for emergencies or specific expenses, and that's perfectly fine. However, for those looking to maximize their retirement savings, an exchange-traded fund like Vanguard FTSE Global All Cap ex Canada Index ETF (VXC) could be a smart move. VXC provides broad exposure to global stocks, offering a diversified approach to investing. While it's not designed for large monthly payouts, it's built for long-term capital growth. The ETF holds over 11,700 stocks across developed and emerging markets, excluding Canada, giving investors access to companies driving global growth, technology, and international business expansion. This is particularly appealing for those who want to avoid the risks associated with picking individual stocks. The management expense ratio of 0.22% is also reasonable, meaning more of the return stays with investors over time. For a 45-year-old with a TFSA balance around the average, the key is to keep contributing and reinvesting. A $20,000 TFSA at 45, combined with steady annual contributions, can still become a meaningful retirement asset. The risk is volatility, but with 20 years before retirement, there's ample time for the TFSA to compound. In my opinion, VXC is a solid choice for those looking to diversify their TFSA and maximize their retirement savings. It's a simple, effective strategy that can help turn a modest TFSA today into a serious retirement asset later. However, it's important to remember that investing in ETFs is not without risks, and investors should carefully consider their financial goals and risk tolerance before making any investment decisions.
