Is your TFSA making the grade?
 The Tax-Free Savings Account (TFSA) can help you make the most of your hard-earned dollars. BEFORE you make an investment decision, EXPLORE your options with us.
Investing your money in a savings account, at today's low interest rates-will limit your returns. Instead, you can invest in mutual funds in your TFSA-we'll help you choose the right funds for your goals: whether short-term, medium or long-term.
That way, your TFSA can benefit from stock market recovery and growth, and you pay no tax on any gains.
Did you Know?
Five out of seven of Educators Financial Group mutual funds have yielded more than 4% over 5 years.
Find out how.
Why limit yourself to low interest rates? We have a number of other solutions for members of the education community. We'll help you choose the TFSA investment that is most suited to your financial strategy.
Give me shelter!
Tax shelter, that is. Here's a comparison to help you understand the reasons why you need both an RRSP and TFSA.
| |
RRSP |
TFSA |
|---|
| What is the annual contribution limit? |
Amount stated on your Notice of Assessment. For working teachers roughly only $2,500. |
$5,000 per year plus any unused contribution limit for the previous year plus any withdrawals from the previous year. |
| Are contributions deductible from your taxable income? |
Yes. You pay less income tax this year. |
No. |
| Is the interest or income earned tax-free? |
No. It is tax deferred; i.e., taxable when you withdraw it from the plan. |
Yes. You will never pay tax on the interest earned in your account. |
| Can I withdraw funds without penalty? |
No. Withdrawals from an RRSP are fully taxable at source. |
Yes. Withdraw anytime and pay no tax. So, it's ideal for short-term needs such as renovations or a vacation. |
| I'm retired. Where should I put my savings? |
Continue to save in your RRSP up to age 71. |
Also save in your TFSA. There's no age limit. |
| I'm working. Where should I put my savings? |
Contribute the maximum to your RRSP to build retirement income and save taxes now. |
Also contribute to a TFSA and shelter additional money from tax. |
Commissions, trailing commissions, management fees and expenses may all be associated with mutual funds. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
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