By Jonathan Chevreau
The Financial Post has just published an online version of my piece, entitled The Rising Power of the TFSA. Are RRSPs even relevant any more? Click on the link to read the full article.
In a nutshell, of course RRSPs are still relevant for most of us, and we’d hate to discourage people from topping up their RRSPs before the imminent Mar. 2nd deadline this year. My point really is that while there are certain people who should not RRSP if they have only enough money to fund a Tax-Free Saving Account, it’s not quite the same in reverse.
I really can’t think of a reason why anyone age 18 or over, anyone approaching advanced old age, and the rest of us between those extremes, shouldn’t max out their TFSAs. It’s the gift that keeps on giving — tax-free income, that is. (An aside for any American readers: Canada’s TFSA is the equivalent of the Roth IRA).
We have run several pieces on TFSAs here at the Hub, the most recent one being a joint collaboration between myself and TSI Network.ca’s Patrick McKeough. (TSI is one of his flagship newsletters, The Successful Investor).
In the piece 5 low-risk investments for your TFSA, we provide two suggestions for ETFs to hold in a TFSA, plus three individual stocks for those whose TFSAs have grown large enough and are sufficiently diversified to start taking on the concentration risk of individual stocks.
You can also find the joint article at FindependenceDay.com, with an offer to get a free copy of my book, Findependence Day, with each $59 subscription to The Successful Investor.