We’ve reached the 1st anniversary of the Tax-Free Savings Account and this means another $5,000 in eligible contributions (bringing the total to $10,000). We’ve talked about TFSA strategies before, but there are so many key money-saving tips associated with this account, that they are definately worth mentioning again.
Below are two articles you must read on how and when to best utilize the TFSA. They discuss ideas such as:
-TFSA vs. RRSP – Which should we use? When to use both? At what age, income level, and tax rate is one better than the other?
-Placing the refund of an RRSP contribution into a TFSA
-Which highly taxable assets should be placed in a TFSA?
-Using the TFSA as a homebuyer’s or emergency fund
-Income earned or withdrawals from a TFSA do not affect eligibility for income-tested government benefits and credits (important for retirement planning).
-Using the TFSA to supplement RESP savings.
Both articles explain these strategies in simple terms. If you have any questions or would like to open a TFSA (if you haven’t already done so), please let us know.