TFSA – The Foremost Special Account

by Monica J. Weissmann, CFP, CIM, MEE

Many people do not realize the power of TFSA.

TFSA Article 3

There is no greater gift that the government has given to Canadians than the creation of the TFSA in 2009 and many of us, Canadians, do not understand it, do not use it properly, or ignore it entirely.

The flexibility of the TFSA is such that it could be called not only “The Fantastic Special Account”, but also “The Flexible Special Account“, or “The Formidable Special Account”, or “The Fulfilling Special Account” or many other names, creatively generated!

Recently a senior manager with Investors Group, Todd Sigurdson, was calling the TFSA a “real genius” of savings, because it can be all things to all people.*

Indeed, as the money from the TFSA can be withdrawn any time and then deposited back (following the rules) without any penalty, it could be used to:

>>> Grow tax free, the savings for shorter term needs like a vacation or a car;

>>> Grow tax free, the savings for medium term needs like children’s education or aging parents’ support;

>>> Grow tax free, the savings for long term needs like retirement, or buying a residence;

>>> Hold an income generating vehicle that will be paid tax free during retirement and avoid claw backs or loss of the payments that occur with government benefits like OAS or GIS.

Currently the annual contribution room is $5,500, but if you were 18 years or older in 2009 – when the TFSA was introduced – and you have never had a TFSA, you can deposit $57,500 in your newly opened TFSA right away!

This is a significant opportunity to grow wealth, tax free. Do not miss it!

Complimentary financial consultation, offered by professionally accredited financial advisers would be an informative source of ideas for tailoring the best TFSA for your personal circumstances.

*Burton, J. (2018). The real genius behind your TFSA. Wealth Professional Canada. Retrieved from https://www.wealthprofessional.ca/