Comments on: Tax Free Savings Account (TFSA)

By: Four Pillars

Four Pillars — Tue, 12 Jan 2010 13:31:15 +0000

TTS – thanks. Saving money and paying down debt are both great actions and it is hard to go wrong with either choice or some combination of the two.

By: TryingToSave

TryingToSave — Tue, 12 Jan 2010 11:43:42 +0000

Hi Mike,

The information here is fantastic. Thank you so much.

I had a question and I was wondering whether you could help me with it. I have student loans at prime interest rate which I pay monthly and I am wondering whether it would be worth for me to open a TFSA account. The account sounds attractive since I plan to do some investing however should I be paying my student loan instead of putting money into this account?

I look forward to your answer.

-Trying to Save

By: Mike

Mike — Fri, 17 Jul 2009 02:30:38 +0000

When you were a child you probably didn`t have the carseats that your child used – things change.

You can try different banks to see if there are others that don`t require a SIN.

By: The Gibbons Family

The Gibbons Family — Fri, 17 Jul 2009 02:16:26 +0000

A TFSA should be available to anyone, not just those over 17. It just doesn’t make sense to allow an 18 year old to save money in a TFSA, but subject children under 18 to possible taxes.
When I was a chld, I didn’t need a SIN to open a savings account, Today’s children shouldn’t need one either.

By: Mike

Mike — Fri, 17 Jul 2009 01:44:46 +0000

Gibbons Family – Everyone needs a SIN sooner or later. Get the sin for the kid and move on with your life.

I don`t know why kids can`t have TFSAs but they would be a waste of time since most under 18s don`t pay much if any income taxes.

By: The Gibbons Family

The Gibbons Family — Fri, 17 Jul 2009 01:27:32 +0000

I had a savings account opened for me when I was 5 years old. Today as a parent, we tried to open a savings account for my 8 year old, who just started a paper route.
The hassle we have gone through over the past several weeks trying to open this account is too much – and we still don’t have what we wanted. First they said they needed a Birth Certificate. Now they say they need a Social Insurance Number.
Without a SIN for our 8 year old, we came home today with a non-interest bearing chequing account instead of a savings account. That’s a good way of teaching your child the value of saving?
This TFSA is only available to people 18 years and older??? Children younger than 18 have to get a SIN to open a savings account, which is subject to interest?
Who are these people we elect to make these ‘brilliant’ decisions?

No one should have to provide a SIN to a financial institution, unless and until their account earns a large amount of money – or never. It’s just a means of tracking people and double-taxing people.

By: Four Pillars

Four Pillars — Mon, 04 May 2009 18:57:14 +0000

Brian, there is no changes to net income because of contributions or withdrawals to a TFSA.

RRSPs are the best way to accomplish that.

By: brian

brian — Mon, 04 May 2009 17:45:02 +0000

I guess what I mean to ask is, how does a TFSA effect our yearly taxes? Is it calculated on your tax return much the same way a RRSP is? I am looking for ways to reduce my net income at the end of the year without having to pump up my RRSP’s.

By: Four Pillars

Four Pillars — Thu, 30 Apr 2009 13:13:48 +0000

Brian, I don’t understand your question.

By: brian

brian — Thu, 30 Apr 2009 12:40:32 +0000

Hi Mike

Is the TFSA considered a taxible income for the given year? I am trying to figure a way to reduce my taxible income without putting anymore into my RRSP’s.

Any info is greatly appreciated

Thanks