Remember the last federal budget? I barely do, but I do remember that we are getting a tax-free savings account starting next year - and that’s just two-and-a-half months away. Tax-free growth is a pretty wonderful way to invest as millions of Canadians take advantage of this in our RRSP’s every year.
All the major institutions are creating these types of accounts - they will be available to us January 2, 2009. However, it’s best to start saving now so you have the $5000 available to put into the account next January. You won’t get the tax-deduction like your RRSP’s, but the money is not locked away and you can withdraw without being taxed.
Yes, it sounds crazy to consider investing in a new investment account now, but consider this - investors that put money in in 1929 and 1987 all made quite a bit of gains in the following years - why would this be any different? It’s a great benefit to even the risk-adverse investor.
Here is information for TD’s new tax-free savings account.
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[...] month I mentioned that everyone should be saving $5000 to take advantage of the new Tax Free Savings Account. Now I’ve noticed that my broker, TD Waterhouse, has allowed people to pre-register so they [...]