Preparing for Retirement

Updated: Jan 8

The TFSA new contribution limit for 2021 has been officially released. That limit is $6,000, matching the amount set in 2019 and 2020.

With this TFSA dollar limit announcement, the total contribution room available in 2021 for someone who has never contributed and has been eligible for the TFSA since its introduction in 2009 is $75,500.

What is a TFSA & how does it work?

A Tax Free Savings Account (TFSA) is not only one of the great wonders of the world, it’s also one of the great misnomers of the English language. Why is that? Well, it’s not a savings account at all.

We don’t know who decided to call it a savings account, but whoever it was should probably relinquish the part of his or her job that involves naming stuff! We’re about to give you a whirlwind primer on all things TFSA.

Should you use TFSAs and savings to pay off your mortgage?

It’s important to consider whether your TFSAs are earning more than you’re paying in mortgage interest, as well as how close you are to retirement.

RRSP vs. TFSA: Why the tax free savings account is often the better choice for savers

The registered retirement savings plan (RRSP) is one of the best-known tax shelters available to Canadians, particularly in the weeks before the annual contribution deadline.

But financial experts say a tax free savings account (TFSA) is often a better choice over the long run.

The problem is, many people don’t know what makes a TFSA different from an RRSP. A report by Bank of Montreal estimates that 32 per cent of Canadians are in that camp.

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