Featuring Sean Fahy, Bcomm, Financial Planner

Duration: 1 minute, 3 seconds

The Tax Free Savings Account or TFSA is an account that was introduced in 2009 by the Federal Government, which allows Canadians over the age of eighteen years of age to save.

They are allowed to put in five-thousand dollars per year on an accumulated basis. That number will increase by a percentage rate in the future. Any money contributed to TSFA does not get a tax deduction, nor when money is withdrawn is it taxed.

In the short term, a Tax Free Savings Account can be used to save for home renovations, vacations, car, and a child’s education. In the long term, it can be used to save for retirement.

One of the main benefits of income withdrawn from a Tax Free Savings Account is that it does not affect a senior’s eligibility for old age security. Although a Tax Free Savings Account is an excellent savings plan, given the relatively small contributions it should be used in conjunction with an RSP and other savings plans.

Presenter: Mr. Sean Fahy, Financial Planner, Vancouver, BC

Local Practitioners: Financial Planner