TFSAs have been around since 2009 and people generally have not been too jazzed about them.
Perhaps they couldn’t get excited about the amount of tax savings on the $5500 they were initially allowed to contribute each year. In the last federal budget however the contribution limit was raised to $10,000, making things a little more interesting.
Imagine investing $10,000 each year for twenty years and earning 5% per year. You would end up with $330,659 to apply to income for retirement, for a dream vacation, or for supporting your grandchildren or children. And all without tax.
The increased contribution limits have changed the playing field.
We’ll be contacting you soon to discuss how the enhanced TFSA fits into your plan.