Tax-Free Savings Accounts are available to anyone 18 and older, provided you are a Canadian resident and you have a Social Insurance Number.? The growth on your investment?within a TFSA?is not taxed even when withdrawn from the plan, so you can watch your savings grow tax-free throughout their lifetime. TFSAs are umbrella accounts which can hold eligible investments like high interest savings accounts, GIC or term investments, or mutual funds. You can open more than one TFSA, but the combined annual limit is $5,000 for 2009. This limit may increase with inflation so you can save even more in the future. Contribution room will be carried forward indefinitely if you don’t invest the full amount each year.The best part of a TFSA is that you can withdraw your savings at any time, for any purpose! Save for a new vehicle or furniture, or the Disney World vacation you’ve been dreaming about! Of course you can also use the money for longer term goals like retirement, home renovations or starting your own business – the possibilities are endless! Tax-Free Savings Accounts can not be set up as a trust account for your child or ward.Most financial institutions, including Libro Financial Group, offer TFSAs. Everyone’s financial situation is different, so it’s best to get professional advice before opening a TFSA. Talk to your financial planner or Libro Coach who will work with you to determine how a TFSA fits into your financial plan. While a TFSA can benefit those from all income levels and walks of life, sometimes paying off debt or contributing more to your RRSP would be more beneficial to you.
Make a Tax-Free Savings Account part of your financial plan!