Q: What unique investment product was created and offered to Canadians by the Canadian government in 2009?
Raise your hand if you know the answer.
Yes, you in the front row?
A: Correct! It’s a Tax-Free Savings Account!! (TFSA)
The TFSA was created to encourage Canadians to keep saving for a lifetime.
Why is this unique?
- Because you could invest $5,000 per year – the benefit to you is the tax-free growth
- You could spend the growth tax-free
- You could draw an income tax-free
- You can pass it down to your beneficiary tax-free
- This is not tax deductible
Where is this TFSA in 2024?
- Now the government allows you to invest $7,000 per year.
- Now we’re talking BIG MONIES!!!!! Your profit is still tax-free
- In 2023 if you invested all of your TFSA in the S&P 500 your return was approx. 30.72%↑
- If you invested in the NASDAQ your return was approx. 38.04%↑
- If you invested in the Canadian TSX 60 your return was approx. 12.83%↑
If you had your tax-free savings invested in these investments or a portion, then grab your profit and run – it’s tax-free. Hindsight is 100% correct.
Only 60% of Canadians own a T.F.S.A and only 20% maximize this benefit!!
The government takes some programs away, but is also gives back. This is a good one. If you can – load up this benefit from the government!
What has professor Ted been studying these past 2 months?
JOIN THE LONGEVITY REVOLUTION A Guide for Financial Advisors and their Clients
TFSA Contribution Limit By Year To 2024
