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5 Things You Need to Know About Your TFSA

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

  1. Withdrawls from a TFSA are tax-free
  2. Investment income earned in a TFSA is tax-free
  3. You can invest the money in your TFSA into a variety of options such as investment funds, GICs, etc .
  4. Money withdrawn is not subject to an OAS clawback
  5. You can fully replace money that is withdrawn in future years.
  6. 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.