Tax Free Saving Account

[dkwan]

This Tax Free Saving Account(TFSA) is a new legislated bill from the Tories.

Each year, everyone(certain requirements must met) will have a $5000 contribution room. All earning gained within this account is tax free.

The contributions do not affect any income-based benefits, like Child Tax or Old Age Securities. RRSP room will not got affected by the contributions.

Check with your local bank or investment broker to see does any of your currently non-registered investments are eligible for this initiaitive.

 

[Jalise]

This will not available until 2009 ...

 

[dkwan]

only a few months away

 

[Water Bottle - 水瓶]

"I don't mind paying taxes. Actually, I wish I could pay a million dollar of taxes every year.", by someone.

 

[dkwan]

I wish I could pay a million dollar in tax......... back to my pocket..

 

[maple]

Each individule only can put $5000 per year into that account. And those $5000 is after tax, not tax free. only the investment gain for that $5000 is tax free. Image how much you can earn from that $5000 in one year and how many tax you can save from those gain. That almost means nothing.

 

[FROMNOWHERE]

"I don't mind paying taxes. Actually, I wish I could pay a million dollar of taxes every year.", by someone.

 

[dkwan]

Each individule only can put $5000 per year into that account. And those $5000 is after tax, not tax free. only the investment gain for that $5000 is tax free. Image how much you can earn from that $5000 in one year and how many tax you can save from those gain. That almost means nothing.

First question I have is, where can I have $5000 to invest.
But if I really do, I would like to make it less tax as possible.

 

[寺言]

ING Direct launch it yesterday

I have open this type of account with ING direct today. They offer double the interest during Oct. Nov and Dec. Since it will be only tax free in Jan.2009. The doubled interests will be taxable income. But it is ok to me.
So every year, there will be interest (on max.$5000) as the tax free.

 

[巴菲]

This savings account is a good stuff. It's tax free, not just tax-deferred. It's much better than your RRSP/RPP account. The only point to remind everybody is, it should be secured from any creditor, since the money will be used after you retire. Then the 1st choice is to check with your group company to see if they have such product;
The 2nd choice is to check with your personal insurance company;
Setting it in a regular bank will have no protection from creditors in a life-long term. You could build a bit pot of money in 30 years then give it away in one evening.

 

[dkwan]

If a person can save a pot of money, I don't think that person will put himself into a situation that creditors will come and seize his/her account in one night.
But that is possible as well, of course.
TFSA could be any type of investment provide the financial insitutation can register their product. It could be a regular saving acccount, a mutual fund, stock trading, seg fund....etc
So, TFSA is not just a saving account. It's an umbrella of investments that earnings are not taxable.
I know the inside stuff...... cause. ( can't tell )

 

[qiuyi_1]

Isn't the money in the tax free savings account protected by CDIC (Canada Deposit Insurance Corporation)?

 

[qwer]

Isn't the money in the tax free savings account protected by CDIC (Canada Deposit Insurance Corporation)?

与你做什么投资有关

 

[dkwan]

It depends on product under the TFSA plan.
CDIC only insures saving accounts, chequing accounts and GIC of 5 yrs or less.

Since mututal fund could be under your TFSA plan, then this product will not be insured.

 

[qiuyi_1]

I just put it under ING tax free savings account, should be safe.
I'm not touching the stock market, the market is scary and crazy.