Is your client interested in putting money into their Tax-Free Savings Account (TFSA)? The new limit for 2019 will be $6,000.
What if they’ve never invested in a TFSA before? In that case, they will have contribution room of $63,500 if they were at least 18 years old and a Canadian resident in 2009.
If your client has ignored the TFSA up until now, let them know that they are not alone. Many Canadians give it a pass because they think it’s just meant for savings. They also tend to believe that they can’t get a good return with it and that it can only be used for high-interest savings or a GIC. Well, we have something to say about that!
At this time of year, many investors think about contributing to their RRSPs — and that’s a great idea to build up that nest egg. However, if you have some short-to-medium term purchases you’ve been planning for, then the TFSA may be the better option.