There was a bit of debate recently about whether Tax Free Savings Accounts should be re-named to emphasize that you can invest in many options in an account not just in a cash savings account. The word “savings” was also challenged because for some investors it doesn’t emphasize the possibility of retirement saving enough. So maybe they should be Tax Free Investment Accounts or Tax Free Retirement Accounts. Personally, I think compared to “Roth IRA” the name TFSA is at least short and sweet.
Some of my recent posts have been about TFSAs:
- In How to Choose a Standard Bank TFSA I list the costs and charges for TFSA accounts that only hold cash, term deposits, GICs and mutual funds so new investors can choose one with the lowest fees.
- In How to Make a TFSA Contribution to a BMO InvestorLine account I describe the process and document how long it takes for the money to actually land in the cash account ready to purchase investments. You may be unpleasantly surprised.
Other websites have been writing about TFSAs too, including:
Michael James on Money suggests Renaming the TFSA: TFSP. On a more serious note, he also suggests that choosing a RRSP or TFSA Depends on Your Money Personality.
Adam Mayers in the Star tells us why Mr. Flaherty invented TFSAs in Tax free Savings Account Turns 5. Have they achieved his goals?
Echo, er, Engen at Boomer and Echo has some suggestions for Using Tax Free Savings Accounts in Retirement. It includes a timely reminder to designate a Successor Holder on your TFSA if you haven’t already done so.
The Blunt Bean Counter suggests TFSAs are a bit too sweet and may entice investors to spend their savings before retirement in The Kid in the Candy Store: Human Nature, RRSPs, Free Cash and the Holy Grail.
Do you have a favourite TFSA article? Please share it with a comment.