Personal Tax Strategy

Open a TFSA for Christmas

It’s the time of year when we start deciding what to buy our family and friends for Christmas. But why not give yourself a gift, by opening a Tax-Free Saving Account before the end-of-year deadline. In fact, the TFSA is a gift that keeps on giving. That’s because it allows you to grow your money tax free year after year – something few other investment vehicles allow you to do.

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 But any investment return (capital gains, interest and dividends) earned in a TFSA is never taxed, not even when withdrawn.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 And any amount withdrawn from a TFSA can be re-contributed in a future year without reducing contribution room.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 or the Guaranteed Income Supplement.

Talk to your financial advisor

Your advisor can explain how a TFSA can fit into your overall financial strategy.

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.