What is your financial retirement goal? How much money will you need to save for your retirement goal? There are numerous investment options you can use in order to achieve your retirement goal.
The Tax-Free Saving account (TFSA) is one option that people can take advantage of. TFSAs are a good option for retirement savings and also for short and long term goals. The TFSA allows your investment to grow tax-free, while you are able to withdraw cash without any tax implication.
Here are some benefits of investing in a TFSA:
- Any Canadian resident age 18 and older with a Social Insurance Number can contribute up to $5,500 per year into a TFSA.
- You can carry forward unused contribution room from the previous year. If you were 18 or older (living in Canada, with a SIN since 2009), you may have up to $31,000 in available contribution room through 2014.
- The available contribution room is independent of your level of income. You can contribute to a TFSA even if you haven’t earned any income; you just need to have filed a tax return.
- You can withdraw money from your account at any time, and are tax-free. You can also re-contribute the amount you withdrew any time after the year of withdrawal.
- TFSAs can hold the same investments as in a registered retirement savings plan, including cash, mutual funds, stocks, GICs and bonds.
If you have specific questions regarding the uses of a TFSA, please contact your financial advisor. If you would like to open a TFSA and make payroll deductions in to the account, please contact your PEO Canada benefits administrator today!
Marytsa Beuns / Benefits Administrator / PEO Canada