SERIES: FREQUENTLY ASKED QUESTIONS #3

WHAT IS A TFSA (TAX FREE SAVINGS ACCOUNT) ?

We have clients that have heard the name, but most people don't know exactly what it is. A common question around our office is "What is a TFSA?" Usually followed by "I thought I could only invest it in a savings account.

Here's where I usually say "Pretend your TFSA is a box that can hold any type of investment and it can stay in that box tax free and you won't have to pay tax on anything you take out of the box" ... see it doesn't have to be confusing!

And I'm sure my clients are now nodding and saying yes, I've heard that one before.
- Jodi