Tax Free Savings Account

In our last three tips we have discussed why Tax Free Savings Accounts are a good idea:

you can save taxes;
it’s harder to get at your money, so you are more likely to not be tempted to dip into your savings; and
future income from your TFSA will not impact your eligibility to receive some government programs.

However, [...]

Yesterday we explained the second reason why a Tax Free Savings Account is a good idea: they make it more difficult to get at your money, so you increase your chances of building your savings.
Another good reason for starting a TFSA is that any savings you accumulate and then withdraw have no tax consequences and [...]

Yesterday we discussed why Tax Free Savings Accounts are a good idea: with a TFSA your savings grow tax free.  With no taxes to pay, your savings grow faster.
The second reason why a Tax Free Savings Account is a good idea is that it’s a great way to “hide” your money.  You are not hiding [...]

First, what is a tax free savings account?  According to the Canada Revenue Agency TFSA website:
Since January 1, 2009, Canadian residents who are 18 years of age or older with a valid Social insurance number (SIN) are eligible to contribute up to $5,000 annually to a TFSA.
The initial amount contributed as well as the income earned [...]