Tax-Free Savings Account
The spring 2008 budget saw the government announcing a new tax-sheltered way for Canadians to save money: The Tax-Free Savings Account (TFSA). It is what is says, a savings vehicle where the growth is never taxed. Sound too good to be true? So far, it is! The government pitches it thus: "The TFSA is like an RRSP for everything else in your life ." While you save for your retirement in your RRSP, the TFSA could be used to save for a downpayment on a house, a vacation, a new car, taxes if you're self-employed, etc.
TFSAs can be most beneficial to high income earners who have already maxed out their RRSPs and have non-registered investments. TFSAs are also good for those in a lower tax bracket who expect their salary to increase in the future or where the tax bracket is unlikely to change from now to retirement.
We offer TFSAs with segregated fund options. For a more liquid TFSA (for a short-term goal), check with your bank for a high-interest savings account option TFSA.
