The Tax-Free Savings Account (TFSA) plan was created by the Canadian government in 2009 with the original annual deposit of $5,000 per person over 18 years old. In 2026 the annual deposit is raised to $7,000 per year. This gives any individual over 18 years of age a total deposit of $109,000.
These deposits with growth are accumulating TAX-FREE
Only 54% of Canadians own a TFSA. Clients and Retirees are not taking full advantage of this invaluable investment option.
📌A reminder for retirees: unlike Tax-Free Savings Accounts…
- Registered Retirement Income Fund (RRIF) accounts are totally taxable income – and totally taxable at death
- Non-Registered Accounts “Non-Reg.” do incur capital gain taxes
Tax-Free Savings Account on the TSX (Toronto Stock Exchange) 1-year growth was approx. 27% from December 23, 2024 through December 18, 2025. No income tax on this growth.
A TFSA death benefit is tax-free to your beneficiary (such as your spouse). Retirees can consider utilizing this as another life insurance vehicle, tax-free.
We are living longer and the government designed this creative investment alternative for tax-free savings and incomes to enable Longevity Planning Diversification.
Retirees are concerned about volatility so we advise implementing monthly savings into a TFSA – it is called dollar cost averaging where you catch the highs and the lows of the market.
Clients are capturing profit in short periods of time
Some Clients have been cashing-out their profits along the way (with the option to spend or re-invest that tax-free profit).
💡How we activate this strategy: buy an index fund or a group of them and also buy every month. Then capture the profits each time they pop up!
Tax-Free Savings Accounts (TFSAs) are the most popular investment vehicle for this strategy
I look forward to discussing this battle-tested approach. If you’re eager to book a time, please schedule with our handy online calendar here: calendly.com/tedirvine. If you prefer to call, please reach Angie at (204) 774-9529. Let’s make sure you’re maximizing your TFSA!
Bonnie and I are capping off 2025 by visiting our family and grandkids in Florida and California. Be well, friends!
