Do Risky Assets Belong In A TFSA?

Do risky assets belong in a TFSA? This is a simple question with a complex answer.  In order to explore this question we will consider an individual with $5,500 to invest in their TFSA for 2014. The individual has the following two investment options. The first option is a GIC paying a guaranteed 2% per year. The second choice is an ETF tracking the TSX with an expected return of return of 6%, with the possibility of returns ranging from -15%...