“Savings, remember, is the prerequisite of investment”- Campbell McConnell
TFSA 2020 Contribution Limit Announced
This week, the Canadian Government confirmed the 2020 TFSA space to be $6,000. This was as expected.
The annual space is calculated using a specific formula and is indexed to inflation to the nearest $500. The 2018 amount was $5,500 and the 2019 increased to $6,000.
Anyone who has been TFSA-eligible since its inception in 2009, and who has never contributed to the TFSA, will have a lifetime limit of $69,500 on January 1, 2020.
A few additional notes on the TFSA:
Firstly, any amounts redeemed from your TFSA in 2019 will see that space re-added for 2020. For example, Jim has maximized his TFSA every year since 2009 ($63,500 contributed), but he redeemed $15,000 from the TFSA in July 2019. The $15,000 of space is frozen and cannot be reused until January 1, 2020. On January 1st, he will get back that $15,000 of space plus the new 2020 amount of $6,000, meaning he’ll be able to contribute up to $21,000 in 2020.
Secondly, growth within the TFSA does not consume TFSA space, and conversely, losses within the TFSA will not provide you with new space later. Outcomes within the TFSA structure have no effect on your contribution space.
Please contact us if you have questions about the TFSA in general, or your TFSA specifically.
Weekly Update – By The Numbers
|North America||Friday Close||Weekly Change||Weekly % Change||YTD % Change|
|Canada – S&P TSX Composite||17,040||85||0.50%||18.97%|
|USA – Dow Jones Industrial Average||28,051||175||0.63%||20.25%|
|USA – S&P 500||3,141||31||1.00%||25.29%|
|USA – NASDAQ||8,665||145||1.70%||30.60%|
|Gold Futures (USD)||$1,466.00||$4.00||0.27%||14.09%|
|Crude Oil Futures (USD)||$55.17||-$2.76||-4.76%||20.38%|
|CAD/USD Exchange Rate||$0.75||$0.00||0.20%||2.80%|
|Europe / Asia||Friday Close||Weekly Change||Weekly % Change||YTD % Change|
|MSCI World Index||2,292||18||0.79%||21.59%|
|Switzerland – Euro Stoxx 50||3,704||17||0.46%||23.43%|
|England – FTSE 100||7,347||20||0.27%||9.20%|
|France – CAC 40||5,905||12||0.20%||24.82%|
|Germany – DAX Performance Index||13,236||72||0.55%||25.35%|
|Japan – Nikkei 225||23,294||181||0.78%||16.38%|
|China – Shanghai Composite Index||2,872||-13||-0.45%||15.16%|
|CAD/EURO Exchange Rate||€ 0.68||€ 0.00||0.26%||6.54%|
|Fixed Income||Friday Close||Weekly Change||Weekly % Change||YTD % Change|
|10-Year Bond Yield (in %)||1.776||0.002||0.11%||-33.98%|
Sources: Dynamic Funds, Yahoo Finance, Advisor.ca
This information is provided for general information purposes only. It does not constitute professional advice. Please contact a professional about your specific needs before taking any action.