Understanding The Benefits of TFSAs

How big is your financial nest egg?

There is no doubt there are a number of ways to protect and grow your money. It is all about knowing what is out there in the market and finding what best fits you and your life. There isn't a one size fits all solution for financial planning.

Today we are talking about TFSAs. The primary purpose of a Tax Free Savings Account is to proving a tax sheltered way to save money. They are registered with the Canadian Revenue Agency which is why they offer tax advantages. While the TFSA is relatively new, they were first made available in 2009, more than fifty percent of Canadians are using them. Despite the growing numbers of Canadians stashing their money in a TFSA, even more people continue to use the older, and likely better known, RRSP to save for retirement.  For example, in 2012, Canadians held roughly $841 billion in RRSPs versus just $81 billion in TFSAs.

There are differences between a TFSA and an RRSP. The key is that you don't need to choose one or the other. The two can work together to help you reach your medium and long term financial goals. Have a look at this great resource that runs through the benefits and difference of both.

Remember you can always get in touch with one of the Continuum II team to help you with your financial goals. We are here to answer questions and help you figure out what is the best financial strategy for you.