Happy Birthday, TFSA

It has been one year since the Tax Free Saving Account (TFSA) came into being. Its flexible structure had it pegged as the biggest investment opportunity since the now ubiquitous RRSP.

With the potential to become one of the most important savings vehicles available to Canadians, the TFSA could be the right plan at the right time for many investors and clients. Read all about the history, the advantages and the future of the option in our TFSA special report: Happy Birthday, TFSA.

TFSA strategies for 2010 By Mathieu Paradis January 2009 saw the launch of Tax Free Savings Accounts (TFSAs). From an advisor’s point of view, the small initial contribution room made TFSAs more of a make work project. Full Story

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Increase your AUM with TFSAs By Mathieu Paradis TFSAs present an excellent opportunity to provide financial planning advice to clients while increasing assets under management. Here are a few strategies we have been using in our practice to accomplish just that. Full Story

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Packing away your TFSA By Wilmot George Many consider the TFSA to be the most versatile savings account available to Canadians. Not only does it provide tangible benefits such as tax-free income and withdrawals, but it is available to all adult Canadians regardless of age or income level. Full Story

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Don’t be fooled: TFSAs will save money By Michelle Munro Not impressed by the debut of the TFSAs? You aren’t alone. In the first six months following their January 1, 2009 introduction, Canadians had opened 3.6 million TFSAs with an average balance of about $3,400, according to Investor Economics. By the end of June, total assets in the accounts stood at $12.4 billion. Full Story

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Archived Stories

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Learning module: A closer look at TFSAs By Roberta Wilton Fall has always been the traditional time for Canadians to turn their attention to making their RRSP contributions. Since 1957, RRSPs have been the simple way for Canadians to save for their retirement and for many, the only way to receive a break on their taxes. However, the RRSPs lock on tax-advantaged savings ended with the introduction of the Tax-Free Savings Account (TFSA). Full Story

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Tax Break: Untaxed savings By Gena Katz Canadians have been asking for it for years and finally, beginning 2009 they’ll have a new tax-assisted savings vehicle—the Tax-Free Savings Account (TFSA). Full Story

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Clients still astounded by the TFSA By Mark Noble For advisors, the introduction of the tax free savings account in January has been a nice little sweetener to a pretty sour year for getting new money. The novelty of the TFSA is far from worn out, a new survey by RBC suggest clients still don’t understand what they are or how to use them — which is opportunity for advisors. Full Story

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TFSA changes update By Mark Noble, Claude Couillard There have been a couple of questions raised by advisors about the new restrictions placed on the Tax-free savings account (TFSA), which were announced last week. Full Story

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Feds look to shut down certain TFSA practices By Mark Noble Advisors who think they’ve found a great tax-loophole in the tax-free savings account (TFSA) rules, may want to revisit their strategy. On Friday, Canada’s Minister of Finance, Jim Flaherty, proposed amendments to the Income Tax Act to bulk-up certain restrictions on the use of TFSAs. Full Story

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Education saving: Balancing RESP with TFSA By Mark Noble With the start of the school year just around the corner, many Canadian parents are tapping into the education funds that they set aside for their children. Until this year, probably the best way to save for post-secondary expenses was the RESP, but with the advent of the TFSA in January, there’s a new kid on campus. Full Story

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TFSA holders don’t understand death benefits By Mark Noble Although minor, the ability to tack a beneficiary designation onto tax free savings accounts is one of those small bits of advice that can differentiate an advisor from the herd. Full Story

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TFSAs and estate planning By Wilmot George Much has been written about the new tax-free savings accounts: the accumulation of tax-free income, the ability to re-contribute withdrawals and the capacity to access funds without impact to federally sponsored benefits. But what happens to the TFSA on death of the TFSA holder? Full Story

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Don’t rule out equities for the TFSA By Mark Noble The newly launched tax-free savings account has the potential to be a very appealing long-term investment tool for affluent clients who don’t need to access funds right away. Depressed equity prices are offering a unique historical opportunity for investors to maximize the upside potential of the first $5,000 they put into their TFSA. Full Story

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TFSA twist By James Zaza I’m not alone when I say: I’ve never liked RRSPs for most Canadian taxpayers. It’s just a big tax grab at the end of the day. On the other hand, the new government taxfree savings account (TFSA) is a smart money plan for everyone.Full Story

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TFSA vs. RRSP: How should your client save? By Michelle Munro Come January, one of the biggest questions facing financial planners will be “where should your clients put their money — into TFSAs or RRSPs?” Full Story

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Case study: How to use TFSAs for different client types By Michelle Munro They say bad news travels fast, and this has undeniably been the case in the markets of late. I’ve been dismayed to see my equity-weighted RRSPs shrink in recent weeks, and it’s likely most of your clients have witnessed this happening to their accounts too. Full Story

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How does the TFSA stack up to its U.S. and U.K. counterparts? By Michelle Munro One of the benefits of living in an interconnected world is that we can draw on the experiences and lessons from different countries to successfully manage new product rollouts in Canada. Full Story

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Advisors should embrace the TFSA By Michelle Munro On June 18, the federal government passed its 2008 budget bill into law, making the Tax Free Savings Account (TFSA) available to millions of Canadians beginning in January 2009. Full Story

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