Kevin Greenard: Breaking down the stages of retirement timescolonist.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from timescolonist.com Daily Mail and Mail on Sunday newspapers.
Image source: Getty Images
Canadians can reach their savings goal faster through the Tax-Free Savings Account (TFSA). Unlike RRSPs, contributions to your TFSA are not tax-deductible like the Registered Retirement Saving Plan (RRSP) contributions. You can maintain the account for life and not close it on your 71st birthday.
The best part of all is the tax-free growth of investment income and capital gains from qualified investments inside a TFSA. Your withdrawals are also tax-exempt and will not result in lost contribution room for a user. There’s no minimum or maximum income level to open a TFSA as long as you’re 18 years old beginning 2009.
Debunked: 7 Myths to Unlearn About Investing
Including some helpful tips to become more financially literate
In a similar way that we take the time to exercise or eat healthy to take care of ourselves physically, staying on top of your finances through education and investment opportunities is also a small commitment you can make today for a brighter tomorrow. So why is it that only a fraction of Canadians are actively investing for their retirement? While the circumstances of our finances may differ greatly from person to person, financial illiteracy has impacted the way many Canadians approach investing especially young adults.