It’s not just a savings account for rainy day money... 

The TFSA is a terrific long-term investment account.  You can set money aside in eligible investments and watch those savings grow tax-free throughout your lifetime.  Unlike other types of accounts, all growth in this account is tax-free!  And that means that investing money in this account and allowing it to grow over the long term is a brilliant idea!  Of course, you can withdraw your money any time you like, but as always, the longer you let it compound and grow, the more tax-free money you will amass.  

Click here for more details on the tax-free savings account.

We’ve done a great job educating our clients on the TFSA and how it works. Unfortunately for other investors, not knowing the rules can be costly.  

TFSA withdrawals
If you are planning a withdrawal from your tax-free savings account (TFSA), consider making the withdrawal in December instead of waiting until the new year; as this would result in additional TFSA contribution room in the following year.

2012-01-05     CRA     TFSA dollar limit for 2012