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- 55 Crockford Blvd, Scarborough, ON M1R 3B7
- hello@www.policydirect.ca
- 647-274-9670
- Monday to Friday: 9am to 6pm
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647-274-9670 -
55 Crockford Blvd,
Scarborough, ON M1R 3B7 -
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TFSA
Investing With POLICYDIRECT
Our licensed financial services representatives are here to assist you in creating a complete investment portfolio to meet your investment goals.
Portfolio With POLICYDIRECT
We utilize the traditional investment tools along with the latest investment planning techniques to create investments that work for you.
Investing Made Easy
We offer the advice, solutions and resources you need to reach your goals. And we do it in a way that always puts you first.
Tax-Free Savings Account (TFSA)
Start Saving Today, Tax-Free
Grow your money tax-free and take it out whenever you want without penalty.
A TFSA or tax-free savings account is a flexible way to save with all the benefits of a registered plan. You can use it to put aside money free of tax for your goals throughout life, or to set up an emergency fund. Since TFSA withdrawals aren’t taxable, more money stays in your pocket, and is there when you need it.
TFSA
Grow your savings tax-free in an account that's easy to access
In the 2008 budget, the government of Canada introduced a brand new personal savings vehicle: the Tax-Free Savings Account (TFSA), to help Canadians save for different purposes throughout their lifetime. Some feel this account is one of the most important personal savings vehicles for Canadians since the introduction of the RRSP in 1957.
As of January 2, 2009, you are able to start contributing to a TFSA, which can hold any combination of eligible investment vehicles, such as cash, stocks, bonds, GICs, segregated funds and mutual funds, the growth of these funds are tax-free.
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Contribution Limit
The amount that you can contribute to your TFSA is limited by your contribution room.
The 2022 TFSA contribution limit is $6,000, plus the amount of withdrawals you made in 2021 and your unused contribution room from previous years.
If you’re a Canadian resident, have never contributed to a TFSA, and were 18 or over in 2009, your cumulative contribution room is $81,500 for 2022.
How to Open TSFA
If you would like to open a TFSA we recommend speaking to one of our knowledgeable associates to ensure a TFSA is really the best option for you. They will also make sure you know the contribution limits and do not over contribute. Our associates can walk you through a financial needs analysis in person or online to give you the best investment advice based on your own unique needs and goals.
Advantages of TSFA
- Tax free compounding interest.
- Regardless of your income level the contribution room remains the same.
- There is no death tax so you can transfer to your beneficiary tax free.
- You can use TFSA for your goals like buying a house or paying cash for a car.
- There is no mandatory withdrawal age like there is with RRSPs.
- Withdrawals don’t affect benefits from the government.
HOW DO TSFAs WORK
The Tax Free Savings Account allows you up to $6000 in contribution room in the tax year of 2022. You won’t have to worry about paying taxes on any interest generated on your investments from your TFSA amount. It is intended to be used as a tax-preferred or tax-sheltered vehicle for saving money.
Set money aside for a rainy day
TFSAs are a great way to save even without a specific goal in mind. Plan to put 3 to 6 months’ worth of net pay aside in an emergency fund so you’re ready if anything comes up.
Keep saving after retirement
Unlike the RRSP, your TFSA has no age limit for contributing. You can keep it open once you retire and continue growing your money. Since withdrawals aren’t taxed and have no impact on your government benefits, the TFSA is an excellent vehicle for additional retirement income.
Taxes & LimitationsTSFA
Over contribution can be an issue. If you happen to contribute more than you are allowed per calendar year the government will penalize you 1% per month starting the month it was put into the account on the amount you are over contributing until it is withdrawn.
4 types of TFSA-eligible investments
TFSA Savings Account
You can use this account to save money for short- and medium-term projects. Your money grows and it’s still there anytime you need it.
Guaranteed fixed-rate investments (term savings)
With term savings, your capital and interest are guaranteed. No matter how the markets perform, your returns are known from day one.
Market-linked guaranteed investments
With market-linked guaranteed investments, you protect your capital and enjoy good returns. Your capital is guaranteed, but your return isn’t known ahead of time since it depends on market performance.
Desjardins Funds
Mutual funds are one to way work towards your medium- and long-term goals. Your money is invested according to your profile and you benefit from professional management to help you maximize
Here’s why nearly 60% Canadians invest in an TFSA:
- Pay no taxes on any investment earnings4.
- Contribute even if you’re retired or not employed.
- Contribute for as long as you want to—there’s no age limit.
- Make up for missed contribution room from previous years indefinitely.
- Withdraw your money at any time for any reason2.
- Use a TFSA to save for anything while also saving for retirement in an RRSP.
PROBLEMS
THAT WE CAN SOLVE
- Evaluating your current financial position.
- Tolerance for risk assessment strategy.
- Assessing your future financial needs and goals.
- Creating a custom investment portfolio that meets all your investment and retirement needs and goals.
- Manage and monitor your investments over both the medium and long term.
- Assist you in planning for the unexpected. Updating your financial plan if ever there are changes in your financial situation.
BENEFITS OF
INVESTMENTS
FROM POLICYDIRECT
- Free no obligation consultation.
- No out of pocket cost by you to our representative ever.
- Proprietary Analytical Software Technology to create strong performance and financial outcomes for our clients.
- Professional team of financial services associates to manage your investment portfolio.
- Professional attention and top-notch customer care.
- Ongoing consultation over the phone, on your schedule to make it easy and comfortable for you.
TRY OUR INVESTMENT ADVICE
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