What is a TFSA?
If your a Canadian that is 18 years of age or older your most important investment vehicle is the “Tax Free Savings Account” or TFSA for short. As the name implies this registered account allows you to deposit money and invest it completely tax free which can save you hundreds of thousands of dollars by the time you retire.
Who gets a TFSA?
So now that you know what the TFSA is, how do you open one? Pretty much any Canadian bank or investment broker will be able to open a TFSA in your name and you can begin making contributions. Check out this article to compare which institutions are best to open your TFSA.
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How to invest in your TFSA?
Picking what to invest in is a deeply personal decision and depends greatly on your own risk tolerance. That being said I have an article here where we review some of the most popular options for investing in a TFSA.
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How do you withdraw from a TFSA?
So once you put your money in and have it grow for some amount of time you may end up needing to withdraw the money. Withdrawing from your TFSA unlike the RRSP and RESP has no tax implications, this means you just withdraw the money and spend it however you want.