A Tax-Free Savings Account or TFSA can be used to help people achieve their short and long-term goals whether it be a new home, a future family vacation or to accumulate money for an emergency fund or supplement retirement income. A TFSA is a plan that can hold eligible investments within it, such as Guaranteed Interest Accounts (GIAs) or Segregated Funds.
A TFSA is a great tool that could be used for an emergency fund for unexpected life costs or saving for other short-term needs. Depending on your goals, it could also be an option for a retirement savings plan. Within a TFSA, income and growth in the account accumulate tax-free. The funds are easily accessible in the event of an emergency, provided that deposits are made in eligible investments and according to regulatory restrictions.
Depending on your personal situation and your financial goals, a TFSA could be a wise choice for you as it’s more flexible than some other savings options.
Here are four reasons why you should consider a TFSA:
1 Annual limit set by Canada Revenue Agency each year.
Talk to a FaithLife Financial Representative to learn about investment solutions that are right for you.