Ottawa Investment Advisor John Bruce

When You Should Not Contribute to your TFSA

November 20, 2017

I have noticed that many of my clients do not contribute to their TFSA or do not maximize their contribution. If you do not have the money then that is a good reason. If you do and you’re still not doing it, then the following are the only reasons that justify NOT contributing at this time.

1.  If you are fearful of risk and would only consider a GIC or similar investment then you would be better to pay down a mortgage if the tax-free rate of return (ROR) is less than the interest cost of the mortgage debt or any other higher interest debt.
2.  If you have carry-forward room in your RRSP and do not maximize your contribution, you would be better served to get the tax deduction from contributing to the RRSP.
3.  You have an RESP for your children and you do not maximize the contribution of $2500 per child per year and any previous year that you did not contribute, to obtain the 20% free grant of $500 per child.
4. You are part of an employee share purchase plan or contributory RRSP savings plan and the company is matching your contributions, and you have not maximized your allowable contribution.

If none of these apply to your circumstances then call me to open up your TFSA or to set up regular contributions so that you do not squander this wonderful wealth building tool.

As a reminder, if you are receiving any pension income, your returns from the TFSA will have no effect on your amounts received from CPP or OAS or individual pension plans.

Call me directly if you would like to learn a simple trick that I can show you that may create a tax savings that can be used to feed your TFSA. But hurry and do so as the trick I can show you needs to be completed and sent off to your employer before the end of December. Call me at 613-491-3344 or Toll-Free at 1-866-860-4190.


John S. Bruce
Senior Investment Advisor
Private Client Division
Direct Line- 613-491-3344
Fax- 613-491-2292
Toll Free- 866-860-4190

Assistant – Brian Donegan
Direct Line – 416-860-7787
Toll Free – 1-844-860-7787
Fax – 416-860-7671
Email –

The information in this letter is solely the opinion of the writer and does not reflect the opinions of Mackie Research Capital. Before acting on any of the above, please contact me for individual financial advice based on your personal circumstances.

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