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Financial Services: Tax-Free Savings Account Advice with LMBF

Back in 2008, the government of Canada decided to introduce a brand new personal savings vehicle for eligible Canadians over the ages of 18 with a valid SIN: the TFSA, or tax-free savings account. The TFSA was created to save for different purposes, and unlike an RRSP it offers no up-front tax break and you do not need to pay taxes on any withdrawals. TFSAs are also considered to be more flexible than RRSPs. LMBF can help advise you on how a TFSA can help you to meet your future financial goals, whether that’s in the near future or several decades ahead. Let our advisors discuss with you and get to know your needs.

The Benefits of LMBF’s TFSA Services

Tailored Advice

Tailored Advice

LMBF works hard to develop a personal relationship with our financial services clients in order to help them find the solutions they need to meet their financial goals. We will get to know you and help you decide if contributing to a TFSA account is the best way to meet your needs.

Investment Solutions

Investment Solutions

Your future plans may not come to fruition for several decades, or you might be looking to make investments for the near future. LMBF helps you tailor your investment strategies to meet your financial goals, whatever they may look like.

  Reasons to need a TFSA
  • You want to save for the future
  • You want tax-free withdrawals
  • You want the flexibility of a TFSA
  • You have short-term or long-term financial goals
  Ways that a TFSA may benefit you
  • Tax-deferred savings growth
  • Tax-free withdrawals
  • Withdrawals at any point in your lifetime, for any reason
  • Interest, dividends, and capitals gains are tax-free

What is a TFSA?

A TFSA, or tax-free savings account, is a savings account in Canada that can be contributed to in accordance with the TFSA contribution room regulations. A TFSA allows you to put aside money and watch that money grow tax-free throughout your life. At any point, you can withdraw your TFSA savings - tax-free, for any reason. TFSA interest, dividends, and capital gains are all tax-free for the account holder’s lifetime.

Our TFSA Advisors

In Canada, a TFSA can be a great way to store additional cash for emergency funds, a down payment on a new house, or even retirement. TFSAs basically allow you to save up money without paying any tax which, for many Canadians, is the way to go. Let LMBF’s financial advisors discuss with you and get to know your personal financial needs so that we may provide you some insight on if TFSAs are the strategy for you.

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Looking to Get Started on Your Tax-Free Savings Account in Canada? Get Started By Discussing With LMBF’s Financial Advisors.

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Canadian TFSAs: Some Frequently Asked Questions

A: TFSA, or tax free savings account, were originally introduced in 2008 in order to help Canadians save for different purposes - whether immediately or for well into the future. Account holders may contribute to TFSAs which can hold any investment vessels, whether that’s stocks, bonds, cash, or GICs and mutual funds. The growth of these investments is tax-sheltered.

A: The TFSA contribution limit for 2022 has been set at $6,000, but was as high as $10,000 in 2015. Typically, unused contribution room from one year can be carried over to another year and added to the limit. Withdrawals will also create additional room for the next year.

A: TFSA contribution room is the allotment of investments you can contribute to your tax free savings account per year. You cannot make more contributions to your TFSA than your TFSA contribution room permits.

A: You can have more than one TFSA at any point, but you still cannot contribute more to your TFSA per year than your TFSA contribution room permits. You may have two TFSA accounts at different financial institutions or through two different insurance company issuers.

A: Although TFSA technically was created in 2008, Canadians could begin contributing to TFSAs in 2009. It was intended for individuals ages 18 and older that had a valid SIN who wanted to set tax-free money aside throughout their lifetime.

A: Since the 2022 TFSA limit is currently $6,000, the overall lifetime contribution limit for TFSA is now a grand $81,500. However, if you were not eligible for TFSA since its inception, this does not apply. Your TFSA lifetime limit may only be from when you were eligible for contributions until the current year, if you have not already made contributions.