TFSA Investment Advisor in Toronto


TFSA- Tax-Free Savings Account Advisors


A tax-free saving account is best if you want to grow your money without paying taxes. According to the TFSA investment advisor in Toronto, this savings account helps you increase your money faster. In addition, individuals do not need to pay on the income they earn through the account. 

What is a TFSA (Tax-Free Savings Account)?

TFSA, also known as a Tax-free saving account, is a form of registered tax-deferred savings that helps you earn money without paying any tax. This is similar to having a saving account where you can save investments that generate capital gains, interest, and tax-free amounts.

Funds you save through TFSA can be used for rainy days, dream weddings, child education, home purchases, and more. The TFSA investment advisor in Toronto suggests opening this account to achieve saving goals faster.

How does a TFSA Work?

Individuals can hold investments such as stock, cash, mutual funds, and bonds in TFSA. Moreover, you can easily withdraw investments and capital gains, interest, and dividends earned in a TFSA account anytime without paying any tax.

The total amount of savings you can invest in an account annually is decided by the Government of Canada. This limit refers to the contribution limit, and the contribution room accumulates funds annually. The individual above 18 years of age is eligible for investment in TFSA. However, if you cannot contribute a specific amount of investment up to the contribution limit every year, funds will be further added to the contribution for next year’s growth. 

What are Different TFSA Investment Options?

Common types of TFSA investment you can use to save in a TFSA account are:

  • Mutual funds

  • Cash 

  • Sticks 

  • GICs

  • Bonds 

  • Stocks

Each type of investment has its significance according to the saving goals. Before you invest, you can consult with a TFSA investment advisor in Toronto. They help you find the best options to enjoy risk-free savings.

Who is Eligible for TFSA?

According to the TFSA investment advisor in Toronto, Canadian residents above 18 years of age or older are eligible for TFSA if they have a valid Social Insurance Number. Non-Canadian residents or those who left Canada for some reason after opening their TFSA account can continue their account. They don’t need to pay tax on any earnings or withdrawals from the account. 

However, if you still want to contribute to the account, you may need to pay a 1% tax every month on the contributions they made to the account. Moreover, you are also liable to pay other taxes. Furthermore, your TFSA account doesn’t accumulate any interest or funds during the year you are not in Canada.

How is TFSA different from RESP?

You may reach your saving and investment objectives by taking advantage of the tax benefits provided by TFSAs and RRSPs. Therefore, it’s crucial to comprehend the variations and advantages of each form of the registered plan before deciding on one over the other.

An RRSP is to give you money after you retire. Your yearly contribution cap is determined by your income from the preceding year, subject to some modifications and an annual limit cap. Your prior year’s notice of evaluation contains information about your payment cap. You can deduct the deposits you make from your taxes, but you must pay taxes on withdrawals.

A TFSA may assist you in saving money for various objectives and is not only intended for retirement. Your income is not a factor in determining how much you may give, and your donations are not tax deductible.

What are the Benefits of TFSA?

There are so many benefits of using TFSA, such as:

Tax-Free Growth

You can store several qualified investments in the TFSA, such as cash, shares, asset-backed certificates, and mutual funds. You do not pay taxes on any investment earnings you may make in your TFSA. As a result, your money may increase more quickly and tax-free if your assets have better potential returns.

Added Flexibility

TFSA is a flexible saving solution that allows you to grow money to meet short-term and long-term investment goals. Moreover, you can withdraw savings anytime or when you need them.

Retirement Planning

When you have exhausted your RRSP maximum contribution or have reached the age of 71 and are no longer permitted to keep an RRSP, a TFSA can supplement your particular RRSP by providing extra tax-advantaged savings. By contributing to a TFSA, you can generate income that is tax-free over your entire life.

Easy Withdrawals

Individuals can withdraw their funds from their TFSA account anytime without paying any tax. That’s why a TFSA account is a great tool to grow money.

How to Open a TFSA Account?

To open a TFSA account, an individual can directly contact any financial institution, insurance company, credit union, or TFSA investment advisor in Toronto. Ensure to provide your SIN number to the TFSA account provider, date of birth, and other supported documents. The details help financial institutions register your account.

Get a Quote Now!

For more information on TFSA, contact INSUREDCAN, the best TFSA investment advisor in Toronto. We’ll help you connect with the right TFSA account services provider and other vital information to grow tax-free money. 




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