T-F-S-A: No better way to start each New Year

We're coming up to Year 2 for this gem of a tax-efficient investment vehicle. And if you haven't used up your $5,000 allowance from 2009, you will soon have the opportunity to invest up to $10,000 in a Tax-Free Savings Account (TFSA). You and every adult in your family!

Here, in a nutshell, are the prime benefits of a TFSA:

• You don't pay tax on any kind of earnings - ever.
• Any unused contribution room is automatically carried forward to future years.
• You can provide funds to your spouse or common law partner to deposit in their TFSA.
• You can use the funds for any purpose - house, car, vacation or anything.
• You don't pay tax when you withdraw funds from the account.
• If you do withdraw funds, you can always redeposit them as part of your lifelong TFSA limit and then continue to enjoy tax-free growth.
• You can invest the funds in many of the same investments eligible for RRSPs and RRIFs.
• Eligibility for federal income-tested benefits and credits is not affected by TFSA income or withdrawals.
• With proper estate planning, you can pass on your TFSA assets to a surviving spouse or common law partner.

Really, when it comes to building wealth, there is no better way than to maximize your TFSA contributions. Call our office today to make arrangements to top up your account first thing in the New Year.