New Canadians Finance 101- TFSA

TFSA is another registered account like the RRSP.

For those of you, who haven’t quite understood the difference between registered and non-registered account, allow me to dwell into the basics.

It provides an opportunity for any resident of Canada (including foreign students, and permanent residents) over the age of 18 to save and invest tax-free.

Quite contrary to the investment philosophy in an RRSP, contributions made to your TFSA are not deductible for income tax purposes, however, any capital gains, dividends, or interests generated on your TFSA investment are tax- free (tax-sheltered) for life.

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