Excerpts from the Book - Preserving Wealth - written by Jack Lumsden, MBA, CFP®
Ok, smarty pants, what about TFSAs? How do they fit in?” I added.
Sandra glared at me and continued. “TFSA stands for Tax Free Savings Account. You don’t get any tax deduction for the money you invested into a TFSA; however, you don’t pay any tax on the growth of the money in the TFSA, whether it is interest, dividend, and/or capital gains income. And you can take it out tax free. With a TFSA, you can invest in basically the same type of investments as your RRSP. And to make it clear, honey, you never pay tax on the money you earn or take out of a TFSA. How’s that, Jack? Are you able to follow that?”
Mark started to laugh, and Uncle Wayne said to save me, “What I would add is that the amount of money you can invest into a TFSA increases each year; however,...