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The benefits of a Tax Free Savings Account

A TFSA is a worthwhile investment option for almost every income because it works so well for both short- and long-term financial goals

How a TFSA works for you

A TFSA is a worthwhile investment option for almost every income-earning or retired Canadian because it works so well for both short- and long-term financial goals like these:

• Providing an immediate source of emergency funds.

• Saving for just about anything from a new car or cottage to a dream vacation.

• Saving for the down payment on a new home or even starting a business.

• Reducing taxes on your non-registered investments.

• Adding to your retirement savings. By the way, TFSA withdrawals don’t affect eligibility for such income-tested benefits as Old Age Security (OAS).

• Splitting income with your spouse to minimize taxes.

To explore these and the many other ways a TFSA can work for you, and to make sure you’ll always get the most from all the elements in your financial plan, talk to your professional adviser.

Kevin Dobbelsteyn is a certified financial planner with Investors Group Financial Inc. His column appears every Wednesday.