Happy New Year from Ottawa!
The new Tax Free Savings Account (TFSA) is your new year’s gift from the federal govern-ment! Every Canadian age 18 and older now has the opportunity to invest up to $5,000 each year in an account where their money will grow tax free. That’s right – no taxes to pay while the money stays invested or when it’s withdrawn. And when you take money out of a TFSA, you can re-contribute those funds the following year or in future years.
You can set up a TFSA with your PWL investment advisor – and there’s no addi-tional administration fee. Here are some of the situations where a TFSA could be right for you:
- You want to build additional tax-sheltered retirement savings beyond your RRSP limits
- You want to tax shelter some of the non-registered investments you’ve built up over the years
- You have to withdraw more than you need from your RRIF and want to invest the excess
Your PWL advisor will be happy to show you how a TFSA can fit into your overall financial plan.