The announcement of the TFSA limit increase to $10,000 annually is a significant opportunity for Canadian investors.
Most clients now have a lifetime limit of $41,000 they can invest in a TFSA, proposed to increase to $51,000 in 2016, $61,000 in 2017 and so on. For a couple, the figures are double that amount.
This represents a tremendous opportunity for Canadians to invest for their futures on a tax-free basis. However, the majority of TFSAs are earning next to nothing in bank GICs and savings accounts.
Source: Richardson GMP
If your TFSA is earning 1 or 2%, how much tax are you saving? This is a missed opportunity. So in coming months, Marianne, Matt and I will redouble our efforts to help clients and their extended family top up their TFSAs and transfer in TFSAs orphaned at the bank and those missing out on the opportunity of a TFSA.