Why you should top up your TFSA

Over 30 years, even a 1% tax savings makes a huge impact

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From the January 2016 issue of the magazine.

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It’s not uncommon for people with unused space in their tax-free savings account or RRSP room to hold non-registered investments simultaneously. While you could make a case for not maxing out your RRSP, it’s tough to justify leaving room in your TFSA if you have the savings available. (One exception might be if you have non-registered investments with accrued capital gains that will trigger a large tax liability if you sell or transfer the investments.) Here’s what could happen if you move your non-registered savings into a TFSA and limit the amount of taxable income you’re earning.

$10,000 in a TFSA would grow to $43,219 over 30 years


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6 comments on “Why you should top up your TFSA

  1. Where on earth can I get 5% on a TFSA ?
    Hard to take this article seriously.


    • You need to seek advice


    • Anywhere except from a bank!


  2. What financial institution is giving a steady, guaranteed 5% on a TFSA? One is lucky to receive a full 1% on a TFSA at the moment! Please do not insult your subscribers’ intelligence with these type of articles. If there is a steady 5% option, why was it not named in this article?


    • See an advisor that is not a bank. Banks tend to sell you on a savings account and most people think that is all they can get with a TFSA due to the name given to this savings method by the government. You can actually own a whole host of different investments in your TFSA.

      This is just like people talking about RRSPs generically. I have heard people saying RRSPs are a terrible investment, but when I ask them what they actually hold as a portfolio inside their RRSPs they are unable to tell me. They are confusing the investment vehicle name with what it is holding.



  3. Please let me know the name of the Bank which gives 5%interest rate on TFSA.


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