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2 Giant TFSA Mistakes to Avoid if You Want to Keep it Tax-Free
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The Tax-Free Savings Account (TFSA) has become an amazing tool for Canadians. It is a gift that the Canadian government introduced in 2009 to encourage Canadians to improve their savings practices. While people were slow to begin using the TFSA, its popularity has exploded in recent years.
Financially savvy Canadians have started using it as an investment vehicle that maximizes their returns. The tax-free status of the account and zero withdrawal penalties make it an excellent investment vehicle to consider. However, the flexible and convenient account comes with its limitations.
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Opinion
Pay the mortgage early or save in an RRSP? This is the more tax-efficient option for young homeowners Frederick Vettese Published February 23, 2021 Bookmark
Everyone knows they need to save for retirement. But homeowners also have to pay for an increasingly expensive roof over their heads and frankly, that might take priority for those in their 20s and 30s.
If they can’t afford to do both, how should young adults choose between ramping up their monthly mortgage payments and making valuable contributions to a registered retirement savings plan?
We’ve all heard about the importance of saving early to benefit from the magic of compound interest within an RRSP, especially since the investment income is not taxed during the accumulation phase.