Tax free savings accounts are for more than just saving
Posted Jun 24, 2021 02:00:00 PM.
Since 2009, Canadians have been able to utilize Tax Free Savings Accounts (TFSAs) for holding investments or savings without having to pay tax on the growth. Many people use their TFSAs like a traditional savings account, but they may not be taking advantage of the full benefits that the account has to offer.
Making a TFSA Work for You
According to Alan Tchabushnig, Senior Vice President of Tchabushnig Wealth Group, looking at TFSAs as a savings account means missing out on tax-free investment earnings. Alan has been in the investment industry since 1988 and helping people manage and grow their wealth is his passion.
“Many people view TFSAs as being similar to a bank account – as a vehicle for saving cash. The name implies this,” he says. “Many financial institutions promote this because cash and similar investments are very profitable for the financial institution.”
TFSAs actually hold much more potential than a traditional savings account. “In reality, the rules allow most investments to be held in TFSA accounts. The rules parallel the rules for RRSP accounts. Items allowed in RRSP accounts are also allowed in TFSA accounts,” explains Alan. “A better name for these accounts would be Tax Free Investment Accounts.”
Important Investment Tool
Alan says that TFSAs are the most important investment vehicle available in Canada. He believes that every investor should utilize them above all other types of accounts.
“TFSAs allow a broad range of investment to be purchased and the growth is not taxed. Unlike RRSP accounts, clients can access their funds at any time without any tax implications,” he says.
Since most people do not understand the details of TFSAs and financial institutions market them more as savings accounts, TFSAs are underutilized. Even many investors do not realize that they can have access to their funds at any time and without tax consequences.
Experienced Advice Makes All the Difference
Seeking out experienced wealth management advice from a financial advisor like Alan makes all the difference. As a graduate of the Business and Economics Program at Wilfrid Laurier University with a strong interest in economics, he has been helping people grow their money for his entire career. In 2015 his son, Jack Tchabushnig, joined Tchabushnig Wealth Group as an Associate Financial Advisor.
Tchabushnig Wealth Group’s investment style is patterned after what the large pension funds do. As Alan says, “We like to invest in things that pay our clients income. This is perfectly suited to TFSA investing in that the income received from the investments is not subject to taxation.”
Tchabushnig Wealth Group of Raymond James is located at 595 Parkside Drive, Unit 1 in Waterloo. For more information about TFSAs or with other wealth management questions, visit them online at www.twealthgroup.ca or call them at (519) 883-6066.