Although it has been already 6 years since the Tax Free Savings Account has been introduced as a registered savings account, many Canadians are still confused about how to use it to its full potential. This article sums up all the benefits and clears a lot of doubts and confusion as to what a TFSA account does. However, there is one more point I have to add to this article is that I find that many people are confused about that they need to keep the entire TFSA account in one investment. That is not true and you can diversify as much as you like under the TFSA label.
- You can put these in your TFSA
Cash, mutual funds, foreign funds, GICs, REITs, bonds, Securities listed on a stock exchange, Certain shares of small business corporations, A single employer stock, “In kind” contributions (securities you hold in a non-registered account)
- These Don’t Qualify For Your TFSA
Personal debt • RRIFs • RRSPs • Home mortgage