What is a Tax-Free Savings Account (TFSA): A Brief Overview.

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What is a Tax-Free Savings Account (TFSA): A Brief Overview. Resources to consider: -Canada Revenue Agency (CRA): http://goo.gl/Grjgr -RBC Financial Group: http://goo.gl/hIcL6 -Wikipedia:…

Comments

Raj Singh says:

Great info. Thanks!

utubefreak3110 says:

Could you please do a comparison video, for RRSP vs TFSA ?

BTW this was a great explanation 🙂 

giggi4455 says:

Hi. I have a TFSA withdrawal question. If I have maxed out my contributions
but my TFSA portfolio value is greater than the accumulated contribution
limit because as one would hope the investment portfolio has increased,
when I make a withdrawal such that the new portfolio amount is still
greater than the cumulated contribution room, does that free up
contribution room for next year?

For example, the cumulated contribution room is $25,500. My portfolio is at
$30,000 I withdraw $2,000 so now my portfolio is at $28,000. Next year is
my contribution room 5,500 or 7,500? 

Dean Moriarity says:

dude you have an awesome voice. and you’re Canadian. Kudos! You remind me a
little of Carl Sagan (voice, etc.) and maybe you’re from Krypton
originally? sorry lol keep it going!

LuminolBlue says:

@orangedac “…TFSA is for banks to make $, not people…” I beg to differ.
I opened and closed a TFSA with my bank, and wasn’t charged anything to
transfer the money out or to another financial institution. And yes if you
leave your money in a TFSA without actually investing the funds like I’ve
mentioned in the video, of course you won’t get much in return.

Mike Marrazzo says:

Say you invest 5000 into your tfsa, into stock a, you make 1000 capital
gain on stock a 3 months later and sell. Total in the tfsa is now 6000. Are
you able to reinvest the total amount earned into another stock tax free or
can you only reinvest the original 5000 ?

rtogurl says:

My bank must think I am a sucker! I have a TFSA which just sits there. I
also have investments with the same bank & another financial institution as
well. I have an RRSP with my bank & I save every month. *I don’t do
anything with it. Am I missing the boat???

LuminolBlue says:

@kanocularTV Yes, for sure.

patratcan says:

I’m still a bit confused on the matter of a TFSA vs RRSP for stocks or
mutual funds? Both are tax free?

Nate Morley says:

Wtf dude….. Your white as a ghost!!

osityan says:

@LuminolBlue So the your income for that year is reduced by the TSFA
contribution amount just like in an RRSP?

chibot botchi says:

so is it safe to say that TFSA is “kinda” better than the high interest
e-savings account?

LuminolBlue says:

@osityan No, the income that was deposited to the TFSA is tax free once it
is in a TFSA.

Miguel Gonzalez says:

Even your eyelids really?

orangedac says:

i opened a tax free trading account at questrade and have already grown my
$5K to more than any bank could ever pay me for years in interest on that
money. one thing you have to watch out for with banks is that when it comes
time to deposit $ into a taxfree savings account, they jack the interest
rate up and later on reduce it after you have put money in. if you want to
move your tfsa to another institution, they wack you with a $150 transfer
fee. Tfsa is for banks to make $, not people.

LuminolBlue says:

@rtogurl For a TFSA to work for you, it must contain something in it, such
as a mutual fund, or a GIC. Your money will grow but you have to do
something with it rather than simply leaving it sitting in a TFSA. I’m not
an expert on this matter, but as far as I know, TFSAs only ‘earn’ interest
once a year. I could be wrong, though. Speak to an investment specialist at
your financial institution, I’m sure he/she will be able to provide the
best advice. Good luck!

LuminolBlue says:

@osityan You still have to diclare any and all income, but the advantage to
a TFSA is that part of the income is not taxed.

osityan says:

Do you still have pay income tax on the income that you use to open the
TFSA?

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