Ottawa Investment Advisor John Bruce

RRSP Deadline Has Passed- Build Up The TFSA Next

March 16, 2016 · Print This Article

The contribution amount for 2016 has been scaled back from $10,000 to $5,500 effective January 1, 2016.

If you still have not opened a TFSA, as of right now, you can deposit up to $46,500. “Canadian residents, aged 18 and older, are eligible to contribute $5,500 for 2016, $10,000 for 2015, $5,500 for 2014 and 2013, and $5,000 for each year they did not contribute in 2009, 2010, 2011, and 2012. Don’t squander the wealth building capabilities of the TFSA by putting your money in a “Savings Account”. Everything that qualifies for investment in your RRSP also qualifies for the TFSA. You can use stocks, bonds, preferred shares, ETF’s, Mutual Funds among other options. The big plus here is that dividend income, capital gains and interest income is earned totally tax free. Choose good quality, dividend paying stocks and you will benefit from paying no taxes on any growth or dividends realized. This is especially attractive for seniors as there’s no age limit to contributing to TFSAs (you can continue to invest even after the age of 71, the limit for RRSPs.)

Please call me at 613-491-3344 or toll free at 866-860-4190 if you wish to top up your contribution for 2016.

John S. Bruce
Senior Investment Advisor

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