TAX FREE SAVINGS ACCOUNTS
Relatively new in the realm of Canadian retirement savings tools, Tax Free Savings Accounts (TFSAs) are firmly rooted as a popular choice for many people looking to save money for retirement. This account is available to Canadians aged 18 years and older and offer flexibility with contributions and withdrawals and setting up of investment accounts.
What are the benefits?
Contributions are made with after tax dollars and unlike an RRSP you will not receive a tax deduction in the year of contributions however TFSA investment accounts are a powerful tool to save and grow your wealth in a completely tax-free environment.
Additional benefits of opening a TFSA include:
Tax free growth
Tax free withdrawals
Diversified investment portfolio’s
Income from a TFSA will not be taken into account in determining your eligibility for Federal income-tested benefits.
Creditor protection may be provided from bankruptcy if properly set up
Easily opened and managed