TFSAs
Your Secret Weapon for Savings - All About TFSAs
You probably know that TFSA stands for Tax-Free Savings Account, but do you know how it can work for you? A TFSA is a savings account that allows you to earn investment income (such as interest and dividends) tax-free. That’s right, I said it – TAX-FREE! The contributions and earnings will never be taxed, regardless of investment type or the amount of time invested. Registered with the Canadian Government, a TFSA is a flexible savings option with specific contribution limits that can hold various types of investments. This is great investment option for stashing your cash, and watching it grow – with all of the gains going directly into your pocket. Now we’re talking!
How does it work?
Within a TFSA you can hold qualified investments (like cash, GICs, stocks, bonds and mutual funds) and can withdraw your contributions as well as the interest, capital gains, and dividends earned in the account without paying taxes. Each year, the Government determines the maximum amount a TFSA holder can contribute within that year. But if you don't contribute up to the contribution limit for a given year, the leftover amount is carried forward and is added to your available contribution room for future years.
TFSA Pro Tips
1. Consistency is Key – Even small amounts really add up over time and automated deposits can be a painless way to keep things rolling.
2. Keep your Eyes Peeled – Check in on your TFSA often to keep it top of mind. Knowing how things are ”growing” is the best way to keep yourself primed for the future and for any opportunities for further saving that may arise.
3. Stay Informed – Keep yourself updated on any changes to the TFSA program as well as any withdrawal rules and contributions limits. And remember, you can always reach out to your friends at Tandia if you have any questions.
How to Get this Tax-Free Party Started
Speak with a Tandia representative about getting started with a TFSA – when it comes to your savings, the earlier the better! They will let you know what info you need to get started and can review your finances to determine any additional opportunities for growth that you can take advantage of. Whatever you’re saving for, a TFSA just may be the flexible investment option you need – so let’s get growing!
