The TFSA Debate: Keep the Focus on YouSubmitted by Parkhouse Financial Inc. / Gravitas Securities Inc. on February 28th, 2015
Trending news this week is the debate about the affordability to long-term tax revenues and ultimately the Canadian economy of raising the Tax Free Savings Accounts (TFSAs) annual contribution limit.
In light of the upcoming Federal Budget and the previous Conservative government campaign promise to double the annual Tax Free Savings Account (TFSA) contribution limit upon balancing the Federal budget, the debate rages on about the overall tax payer coffer effectively further financing the wealthy by reducing overall tax revenues into the long term future.
Keep the Focus on Your Personal Situation
Whether or not you agree with an increase to the TFSA contribution limit or are contrarily against the idea as many of the financial news pundits have opined this week, what’s important is that TFSAs are here to stay and how the utilization of a TFSA can benefit your personal balance sheet.
To be clear, as this is often misunderstood, TFSAs are a mirror-image of an RRSP. Nearly any investment that can be held in an RRSP can be held in a TFSA, with only minor exceptions.
The Big Benefit to You
The reason you’ll want to bulk up your TFSA vs your RRSP is simple: tax free withdrawals.
Tax free access to your investment assets is the most crucial element of the withdrawal stage of your Retirement Plan.
Make your RRSP Tax Free with TFSAMaximizer™!
Whether you are 20 years from retirement or already required to withdraw from your RRIF, tax free access to your retirement assets requires a plan.
Setting up your retirement assets to be withdrawn tax free can still be achieved, even if the bulk of your retirement assets are already held in an RRSP or a LIRA (a former pension plan).
An innovative new strategy, TFSAMaximizer™, enables you to transfer your RRSP into your Tax Free Savings Account (TFSA) – Tax Free.
As everyone’s situation is unique, call me directly at 416.838.3617 to discuss the best strategy to create your Customized Retirement Roadmap to bring your retirement vision to life!
And, feel free to forward this article to someone whom you think will also benefit from taking action.