Tax-Free Savings Account (TFSA)

A Tax-Free Savings Account (TFSA) is an account that allows you to save money and earn interest tax -free throughout your lifetime. The main benefit of a TFSA is that you don’t have to pay taxes on the money you earn in the account.

A Tax-Free Savings Account, or TFSA, can help people reach their short-term and long-term goals, like buying a new home or saving up for a family vacation. It can also be used to build up an emergency fund or add to retirement income.  A TFSA is a plan that can hold eligible investments, such as Segregated Funds or Guaranteed Interest Accounts (GIAs).

A TFSA is a great tool that can be used to start an emergency fund for costs that come up out of the blue or to save for other short-term needs. Depending on what your goals are, it could also be a way to save for retirement. In a tax-free savings account (TFSA), income and growth are not taxed. The money is easy to get to in case of an emergency, if deposits are made in eligible investments and follow the rules set by the government.

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Depending on your personal situation and your financial goals, a TFSA could be a good choice for you because it’s more flexible than some other ways to save.

Here are four good reasons to think about a TFSA:

  • Contribution room doesn’t depend on how much money you make

  • You can put up to $6,000 a year1 into the account

  • If you take money out of your TFSA, you can put it back in the next year. This is on top of the maximum you can put in each year

  • We want to make finance easy and at 108 financial, we can use a TFSA strategy to keep you saving and saving on taxes

Contact our 108 financial advisor today to learn more.

To help you decide in choosing the right insurance