Every person can derive some benefit out of a TFSA account and the professional you hire for your TFSA account can help illustrate the many benefits that this account can provide to you to achieve your goals. We at Best Capital Bonds are capable of providing you deep insight into the ways in which a TFSA account will prove to be beneficial for you. In order to know more contact us at the earliest.
Some of the most common benefits that you can avail from investing in a TFSA account include:
- Helps you save for a ‘rainy day’- The TFSA account is a one-stop-shop that comprehensively covers all types of uses that you can have from a savings account, allowing you to enjoy complete flexibility in the way you choose to use your savings. Moreover, you are able to build your savings without having to pay taxes for them over time, allowing you to realize your goals faster than you expected. Additionally, you can withdraw money from this account whenever you desire.
- Best choice for non-registered investments and maximizing your RRSP- If you happen to have a number of non-registered investments, a TFSA account is ideal for you. It allows you to turn those incomes, which would be otherwise taxed into non-taxable incomes for the entirety of your life. This further aids you into creating an investment portfolio that is tax efficient and maximize the investment growth that you have. Furthermore, you are capable of contributing to a TFSA on the behalf of a family member or spouse. Rules pertaining to spousal attribution do not apply to a TFSA account as they would for an RRSP.
- Ideal for people who are retired or earn incomes through pensions- A TFSA account is ideal for people who have surplus income from their pensions or RIF, whereby they can use this investment vehicle to deposit the excess amount from their pensions or RIF. You are able to permanently tax shelter every GIC interest income that is non-registered. If you deposit within a TFSA account there would be no repercussions to government benefits like Guaranteed Income Supplement or Old Age Security. Moreover, there are no thresholds that force a TFSA account to become a taxable account.
