When it comes to personal finance, those who succeed often have one thing in common: they don't overcomplicate matters. Getting the fundamentals right lays the foundation for long-term financial security and wealth.
It has been 14 years since the tax-free saving accounts (TFSA) first came into effect. The results of this RBC survey indicate that Canadians may not fully understand where, in relation to their overall plan, the TFSA fits. From our conversations, we believe the confusion, at least in part, is due to the name itself: TaxFree Savings Account. Specifically, the combination of the words “savings” and “account”. A “savings account” has traditionally been used with a short-term purpose in mind and may have earned a modest amount of interest.
It has been 14 years since the tax-free saving accounts (TFSA) first came into effect. The results of this RBC survey indicate that Canadians may not fully understand where, in relation to their overall plan, the TFSA fits. From our conversations, we believe the confusion, at least in part, is due to the name itself: TaxFree Savings Account. Specifically, the combination of the words “savings” and “account”. A “savings account” has traditionally been used with a short-term purpose in mind and may have earned a modest amount of interest.
