Is your client interested in putting money into their Tax-Free Savings Account (TFSA)? The 2024 limit is $7,000.
What if they’ve never invested in a TFSA before? In that case, they will have contribution room of $95,000 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!
Although many investors continue to contribute to their RRSPs (a great idea to build up that nest egg), if your client has some short-to-medium term purchases that they have been planning, a TFSA might be the better option for them.