If you don’t know what TFSA stands for or you don’t have one set-up than you definitely need to keep reading.
In 2009 the government created a great investment option for Canadians through the creation of Tax Free Savings Accounts. TFSA’s are a simple and incredibly beneficial option, but somehow many Canadians still know very little about this opportunity and are failing to take advantage of it.
Just what is it?
“The Tax-Free Savings Account (TFSA) is a flexible, registered, general-purpose savings vehicle that allows Canadians to earn tax-free investment income to more easily meet lifetime savings needs.” – Government of Canada
5 Things You Need to Know About Your TFSA
- Withdrawls from a TFSA are tax-free
- Investment income earned in a TFSA is tax-free
- You can invest the money in your TFSA into a variety of options such as investment funds, GICs, etc .
- Money withdrawn is not subject to an OAS clawback
- You can fully replace money that is withdrawn in future years.
- If you have never contributed you can deposit up to $41,000 (so can your spouse or child who is 18 or over).
As you can see a TFSA is much more than a short term savings account and it is not something you can only get at a Bank. If you like the sound of earning money tax-free get in touch with our team. We’d love to answer any of your questions about TFSA’s and help get you set-up and find the right investment opportunities for you.