Yes, opening a Tax Free Savings Account or TFSA surely seems to be a good idea. In fact, TFSA is good for a person who is 18 years or above and is looking for long term investment.
A financial plan is where you put forth a budgeting, savings and investment plan to achieve your future goals. The goal could be a leisure trip, or retirement savings, educational plan or kids’ savings plan.
Tax planning is a part of financial planning, where you meticulously plan to save on your tax liability legitimately, so that you can use those funds for an alternative expenditure or savings.
So, coming to the point, TFSA is a tax-free savings account and an eye candy for those who are looking to save on taxes.
Let’s explore if it is a good idea for you to open a TFSA.
The suitability of TFSA depends on various factors such as your age, savings plan, contribution amount you are looking for and your investment time frame. Further, your investment objective, tax planning and the kind of flexibility you are seeking also determine your financial decisions.
A TFSA is good for a person who Is above age 18 and who wants to invest long term an amount that is lower than $6,000 per annum and is not seeking any government grants or contribution flexibility.
In general, RRSP is a good idea to grow retirement money in a tax- advantageous way. Let's get more insights on the Registered Retirement Savings Plan in Canada.
Yes, Tax-Free Savings Account (TFSA), Canada is one of the safest places to invest your money. As a Canadian investor it may prove to be a good place to park your extra earnings.
Choosing between TFSA and RRSP depends on various factors such as your goals, time frame of investment, your marginal tax rate, age etc. Discover the similarities and differences between TFSA vs. RRSP Canada.
There are various online brokerage platforms in Canada. We believe that Questrade, Scotia iTrade and CIBC investor's edge are the best alternatives to Wealthsimple.
Based on our analysis Wealthsimple is a good alternative to Questrade for its cost effectiveness and Qtrade is a good alternative for Questrade for its customer services and research tools.
Tax-Free savings Account (TFSA), Canada can be considered the equivalent of Roth IRA, USA. Let's get into some more details on the similarities and differences, Roth IRS vs. TFSA.
Yes, you can lose money within a TFSA by paying taxes for over-contribution, investment management cost, account keeping fees, withholding taxes, capital losses etc.,
No, you cannot open an investment account in Canada while you are a Non-resident, the exemption being - Tax-Free Savings Account (TFSA). Having said that, you can continue to hold the investment accounts that you once opened while you lived in Canada.
Like every other trading platform Virtual Brokers has its pros and cons. Read more to find out if the platform suits you. See if Virtual Brokers is good.
No, you are not allowed to do day-trading within a Tax-free savings account in Canada. TFSA is an investment account and not a trading account as such.