Tax Free Savings Account

This type of income sheltering account is long overdue in Canada.

Rampant spending or rampant saving, they both have their positives and negatives, just wish they would have had these accounts available 5 years ago so the present pain could be cushioned.

Hopefully we don't see 20billion in deficit like they are predicting.
 
Just in reply to the 1% a month penalty for anything over $5k? Where do you see this? A 1% penalty is nothing, unless of course you don't make over 1% a month trading, which pretty much means you should be looking to get out of the trading business.





Quote from Bootsie:

In Canada, we now have the opportunity to open a tax free savings account. Each year one can put in $5k with a 1% penalty (per month) on any amount over and above.

Here's a link to one of the big banks' FAQ's

http://www.tdcanadatrust.com/invest/start_tax_free_savings.jsp

I'd like to start out by moving $25k in but I can't open the account with my current broker - I.B. Canada.

Does anyone know of a broker in Canada that will allow the account with rates similar to I.B?

Thx,
B
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Now just why on earth Canada is trying to increase the savings rate in middle of a awful financial crisis...
 
Quote from Daal:

Now just why on earth Canada is trying to increase the savings rate in middle of a awful financial crisis...
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I'm pretty sure the TFSA was designed prior to the financial meltdown during the boom times.After all were talking about a government proposal being enacted.These thing take time.It made sense when billions were being poured into the Canadian economy and the TSX was flying.
 
Quote from T.Howell III:

I'm pretty sure the TFSA was designed prior to the financial meltdown during the boom times.After all were talking about a government proposal being enacted.These thing take time.It made sense when billions were being poured into the Canadian economy and the TSX was flying.
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Thurston's right... it has been in the works for over 3 years.

B
 
Quote from drukes1234:

Just in reply to the 1% a month penalty for anything over $5k? Where do you see this? A 1% penalty is nothing, unless of course you don't make over 1% a month trading, which pretty much means you should be looking to get out of the trading business.
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The 1% penalty is right from the CCRA's web site.

Here's one from RBC.

http://www.rbcdirectinvesting.com/tax-free-savings-account.html

(scroll down)

I was even thinking about putting 100k in... I can make 950 a month for the first 12 months, then 850 a month for the following 12 months and so on....

I'm going to start with 10k on Monday and go from there.

B
 
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