Tax Free Savings Accounts

TFSA means you save on taxes!

But how much can you save?
Here is a common scenario: If you contribute the maximum ($5,000) and assume no growth and a 4% return, NO taxes are due on $2,000 of investment income in that year (and the next, and the next, etc.)

What is a TSFA? It's an account where contributions are made with after-tax dollars but withdrawals are tax-free and any withdrawal leaves an equal amount of contribution room (but can only be topped up to the $5,000 limit in the next calendar year.)  This means you can save for an automobile, education, a house or a vacation. Plus there are no "taxes" to be paid on the interest or income earned from your TFSA investment.

There are no limits on what you can use it for - the only limit is that the maximum amount in a TFSA in any one year is $5000. Every year!

• Never pay tax on the interest, dividend or capital gains the deposits earn.
• Invest in any of the same types of investments that qualify for RRSPs, including term deposits, mutual funds, segregated funds, securities, etc.
• Withdraw funds for any reason without penalty.
• Contribute funds at any time (but only if you want to)
  

If you have questions about whether you should have a TFSA or RRSP (or both) or pay down your mortgage it really depends on your financial situation; talking to us will help you decide what's right for you!

It's the most flexible financial program the Canadian government has ever offered to ordinary Canadians. It has all the benefits of a tax shelter (similar to an RRSP or RESP) but without any of the restrictions.

Read about 5 TFSA strategies that make your money work for you!

Serving insurance  and financial clients in Kitchener, Waterloo, Guelph, Cambridge, Woolwich, Paris, Brantford, Ayr, Waterloo Region and across Ontario. Call us for your  personal property insurance, personal auto insurance, financial planning, life insurance, tax free savings account, commercial auto insurance, commercial property insurance, commercial programs needs.