Personal Tax Strategy

Have you considered opening a TFSA?

We’re almost four months into the New Year now, and you’ve probably made a contribution to your RRSP, but what are you doing about the new Tax-Free Savings Account?

If you haven’t opened one yet you’re missing out on a great chance to save and invest your money tax-free.

Here’s how TFSAs work

Canadian residents over the age of 18 can save up to $5,000 annually in a TFSA. Unlike an RRSP contribution, you won’t get an initial tax deduction. But any investment return (capital gains, interest and dividends) earned in a TFSA is never taxed, not even when withdrawn.

More advantages

TFSA money can be used for any purpose you wish – from down payments on a home to vacations or financing your child’s college education.

TFSAs are flexible

Unused contribution room can be carried forward to future years. And any amount withdrawn from a TFSA can be re-contributed in a future year without reducing contribution room.

And don’t worry: Making a withdrawal from your TFSA won’t affect your eligibility for the federal tax credit or income-tested benefits such as the Canada Child Tax Benefit, Old Age Security (OAS) or the Guaranteed Income Supplement (GIS).

To learn more about investing in a TFSA, talk to your financial advisor. For a comparison with RRSPs please go to www.mackenziefinancial.com/tfsa/

Mutual funds sponsored by Mackenzie Financial Corporation are only qualified for sale in the provinces and territories of Canada.

Commissions, trailing commissions, management fees and expenses may all be associated with mutual fund investments. Please read the prospectus carefully before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.