Know TFSA
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A Tax-Free Savings Account (TFSA) permits you to save and grow your money on a tax-free basis.
– One can create wonders by properly using TFSA.
– This account is best for an “Emergency Fund”.
A Tax-Free Savings Account (TFSA) permits you to save and grow your money on a tax-free basis.
Most people are unaware about what is ‘tax-free’ in TFSA. You are depositing tax paid money in TFSA, then what is tax free?
The “growth” of the invested fund is tax-free.
- Yearly maximum limit is $6500/-
- It is very important to select the fund to invest.
- Growth depends on the type of funds that you are selecting.
Funds are 3 types depending on the risk :
1) Low risk (security is high, growth is less)
2) Medium risk (security is medium, growth is also medium)
3) High risk (security is less, growth is high)
– If there is no growth, no use of TFSA.
– One can create wonders by properly using TFSA.
– This account is best for an “Emergency Fund”.