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Should you be investing in your TFSA?

When the federal government introduced the Tax Free Savings Account (TFSA), Canadians suddenly had another tax-saving tool. But they also had something else – a dilemma. There are many Canadians who don’t know the difference between a RRSP and TFSA; others don’t know which one offers the biggest tax advantage. Today, I will talk about the TFSA and RRSP.

A RRSP is a tax-deferred savings vehicle that allows Canadians to help fund their retirement. Contributions are tax deductible. A TFSA is a flexible, registered savings vehicle that allows Canadians to earn tax-free investment income.

But to make the most of these savings vehicles, it’s important to know how and when to use them. There are many factors to consider, such as:

  • Treatment of contributions and withdrawals
  • Effect on government benefits
  • Effect on spousal rollover
  • Marginal tax rates

If you want to talk more in detail about this topic, book a meeting and we can have a talk. #BeAccountedFor

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