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Posts Tagged ‘savings’
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| Taking Advantage of the TFSA |
June 6th, 2009
Canadians are Catching on to the TFSA.
According to a survey by a global market information and insight group, the introduction of the new Tax Free Savings Accounts or TFSAs has caught the attention of many Canadians. ”The combination of advertising by government and financial institutions has translated into a high awareness of the new investment vehicle and good initial uptake,” said Rhonda Grunier, vice-president of TNS Canadian Facts and director of the market research firm’s TFSA study. The survey found that 79 per cent of Canadians are aware of TFSAs, and this is only somewhat behind awareness of the longer running RRSP (94%) and RESP (84%) accounts. There is also little reported confusion between TFSAs and RRSPs. Only 27 per cent say that they do not understand the difference between the two.
Who’s Most Likely to Take Advantage of the TFSA?
According to the survey Middle and Higher Income households are most likely to take advantage.
When it comes to opening a TFSA, already 14 per cent of Canadians have already jumped on the savings wagon. Another 36 per cent of Canadians are either very likely (18%) or somewhat likely to do so (18%) in 2009. Adding those statistics and subtracting from 100 leaves 48 per cent who are not likely to open an account this year.
Not everybody is jumping on the savings wagon.
Although the adoption rate for the new accounts is quite high, it is also true that lower income households are less likely to open an account (28% of Canadians with a household income below $35,000 have opened or plan to open a TFSA versus half of all Canadians).
The number on reason for not opening a TFSA is…
If you haven’t opened up a Tax Free Savings Account chances are it’s not because you don’t see the value. So what is stopping most Canadians from taking control of their financial future? You probably guess it… Money! In fact, among the most frequently cited reasons for not opening a TFSA is a lack of financial resources (41%).
About the TFSA survey.
The survey was conducted using the firm’s national bi-weekly telephone omnibus service, TNS Express Telephone. A total of 1,016 nationally representative Canadian adults were interviewed between February 2 and 5, 2009. For a survey sample this size, the margin of sampling error is plus or minus 3.1 percentage points, 19 times out of 20.
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| statistics | savings, tax free savings account info, Taxes, TFSA | No Comments » |
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| Canadians Thank Government For TFSA |
May 9th, 2009
Canadians Say “Thank You” to the Government of Canada for Introducing the New Tax-Free Savings Account
OTTAWA, ONTARIO–(Marketwire - May 4, 2009) - On May 5, 2009, the Honourable Jim Flaherty, Minister of Finance, and the Honourable Jean-Pierre Blackburn, Minister of National Revenue and Minister of State (Agriculture), will accept a giant thank you card signed by more than 2,000 Canadians from across the country acknowledging the Government’s introduction of the Tax-Free Savings Account. The thank you card will be presented by Mr. Peter Aceto, President and CEO of ING Direct Canada. The news conference will be followed by a question and answer session.
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| News | blackburn, flaherty, government, jim, savings, tax free, Taxes, TFSA | 1 Comment » |
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| Five Common TFSA Myths |
January 19th, 2009
The Tax Free Savings Account (TFSA) is a breakthrough in Canadian finance. The TFSA acts as a high interest savings account where you can grow and withdraw your money completely tax free, whenever you want. Of course, this financial breakthrough has started the rumor mill going as well. Many people are confused about what’s true, what’s false and what the TFSA can really do to help them through the financial hardship.
We’ve outlined the top five myths surrounding the Tax Free Savings Account so you can get a better grasp on TFSA and reap the rewards.
TFSA will negatively impact my OAS, GIS of CCTB:
Fortunately, this is not true. A TFSA will have no impact on your other government benefit plans. Old age security, guaranteed income supplement, Canada pension plans and any other government supplement program, will remain separate from your TFSA. Your TSFA is your money; no one can touch it, regardless of what other accounts you have set up. You can breathe a sigh of relief knowing that, for once, the Government is actually on your side.
Myth 2: TFSA must be withdrawn at a certain time:
Again, not true. The TFSA can be withdrawn at any time, without incurring a withholding fee. Whether you want to use your TFSA as a retirement fund, or use your TFSA as a rainy day fund, or even want to use your TFSA towards your first car purchase or trip around the world, you can withdrawal the amount whenever you feel like it. The only stipulation is that there is a $5000 limit per year ($10,000 for spousal TFSA). How, when, why and where you choose to spend the money is entirely up to you.
Myth 3: TFSA account can…click here to find out all of the most common TFSA myths
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| Tax Free Savings Account Applications | investing, investor, myths, savings, TFSA | No Comments » |
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