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A positive outcome from the health crisis is the shift in focus among Canadians. Suddenly, building rainy day funds or saving for the future is the preoccupation. Rather than spending their pandemic money, people increased their overall Tax-Free Savings Account (TFSA) contributions.
According to the results of
BMO’s annual TFSA survey released in December 2020, about 68% of Canadians have TFSAs. The same survey also reveals that about 72% of millennials and Canadians over 55 maintain a TFSA. The TFSA is an investment gem for investors because money growth could be 100% tax-free.
All interest, gains, or dividends earned inside the account are untouchable by the Canada Revenue Agency (CRA). The tax agency will only impose tax penalties or withholding taxes when TFSA users themselves commit three costly mistakes.
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Is there a way that Canadians in their twenties can achieve financial independence and retire far earlier than others? Early retirement is the desire of many, although clocking out from the mainstream is rarely without its challenges. The key is to create a comprehensive retirement planning and see the plan through.
Think hard before you embark on a journey to early retirement. The financial goal is enormous, so it entails a lot of sacrifices and scrimping. If you belong to the twenty-something group, the following options could help you make your dream come true.
1. FIRE movement strategy
Presented by: Illustration: Veronica Park
If youâre a practicing physician whoâs thinking about retiring down the road, you might already know it can get complicated. Here are some simple questions that can help get you started.
If youâre a physician practicing in Canada, you might know that retirement can lookâ¦well, a little different for doctors. Many health care professionals spend years building and serving their practice, a calling that can be complicated and all-consuming. It can be hard to visualize what retirement even looks like, let alone know how much youâll need to save or where your retirement income will come from.
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