As many Canadian fools already know Canada is introducing a Tax Free Savings account you can start contributing to in 2009. Just wondering how people are going to use this? I was thinking of investing in higher dividend stocks to help increase my yearly income (tax free).
My plan is put a large portion of my emergency fund into it. Then as I generate cash I plan on relabeling the money as "investment" money which I plan on using to finance our retirement. The money is accessible if I have an emergency and hopefully I won't so I can gradually invest it.ZK
I only wish they did this 5 or 10 years ago............however, I will take what I can get.The other good thing about it, if I have 15000 in and take out 9,000 to spend, I can put that 9,000 back in anytime.
Yeah, the emergency fund is a good idea. If this thing is around in 30 years one should be able to have decent tax free income, especially if maxed out every year. I like the fact the amount you can put in will increase with inflation as well.
'I only wish they did this 5 or 10 years ago............however, I will take what I can get.''The other good thing about it, if I have 15000 in and take out 9,000 to spend, I can put that 9,000 back in anytime.'Points on this:1. TFSA only stated in 2009. Max per year you can put in is $5,000. So by early 2011 you can have your whole 15000 in there.2. You can put back in anything you take out but you have to wait till the next year. If you put in (or back in) more than $5,000 in a year it is considered over-contribution and has a tax penalty.Check the rules with your bank.
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