Learn what a TFSA is in 2 minutes!
What is a TFSA?
It's a tax free savings account! You can save and invest with this account on a tax-free basis!
What can I do with this TFSA?
You can save cash in this account! But a more useful approach would be to save cash and then invest it routinely and frequently.
Why should I invest in a TFSA?
Think about investing $10,000 into a TFSA. You make 10% in the year. You made an extra $1,000! Do you like paying taxes? No, I didn't think so. With a TFSA, you get to keep all $1,000 of profits! The government let's you grow your assets in this account in a tax-free way!
What can I invest in?
Well, you got lots of choices! Stocks, mutual funds, bonds, ETFs, REITs, stock options and more! Yes, you can hold cash and earn some interest, or buy some GICs, but then you won't maximize those potential profits on a tax-free basis!
Okay! But how much money do I need to start with?
Not much, really! For as little as $500 to start, you can contribute $25 on a periodic basis and get started with mutual funds!
If stocks tickle your fancy, we can help with that too!
For 2017, the contribution room for a TFSA is $5,500 added to your unused contribution space. Everyone has their own contribution limit based on when they turn 18 years of age. Your accountant or financial advisor would be able to accurately obtain or calculate that information for you.
Where should I open an account?
You can open an account with most financial institutions. Some allow investing, some allow cash holdings earning interest. Talk to your accountant or financial advisor for a more personalized approach.
You can always chat with one of our accountants or financial advisors at Aryandale Financial to get an idea of what makes sense for your financial situation!
Chat with us on Facebook Messenger or contact us through our website!
And that's your 2 minute summary of TFSAs! If you want to learn more about TFSAs, check our post "TFSA: A Deeper Look"!