Tax Free Savings Account -Go open one!!

[Cameron]

I suggest everyone goes to their financial advisor or institution to open a TFSA.
I pre-registered and opened one on January 2nd with my broker @ Scotia McLeod and Tradefreedom.


Some Details:

How the TFSA Works

* Starting in 2009, Canadians aged 18 and older can save up to $5,000 every year in a TFSA.
* Contributions to a TFSA will not be deductible for income tax purposes but investment income, including capital gains, earned in a TFSA will not be taxed, even when withdrawn.
* Unused TFSA contribution room can be carried forward to future years.
* You can withdraw funds from the TFSA at any time for any purpose.
* The amount withdrawn can be put back in the TFSA at a later date without reducing your contribution room.
* Neither income earned in a TFSA nor withdrawals will affect your eligibility for federal income-tested benefits and credits.
* Contributions to a spouse’s TFSA will be allowed and TFSA assets can be transferred to a spouse upon death.


If you have any questions about them and how they work please do not hesitate to ask me. I will be happy to answer your questions.

[Mrfish55]

I have a RTEF (Reef Tank Expense Fund)

How the RTEF Works

* Starting in 1990, I have spent up to $5,000 every year in a RTEF.
* Contributions to a RTEF will not be deductible for income tax purposes but investment income, including frag sales, earned in a RTEF will not be taxed, unless you are dumb enough to declare them.
* Unused RTEF contribution room can be carried forward to future years.
* You can withdraw funds from the RTEF at any time for any tank expense.
* The amount withdrawn can be put back in the RTEF at a later date if you are carefull to hide it from your spouse.
* Neither income earned in a RTEF nor withdrawals will affect your eligibility to purchase additional livestock.
* Contributions to a spouse’s RTEF (if your lucky to have an understanding spouse) will be allowed and RTEF assets can be transferred to a spouse upon upgading to a larger tank.

[Trigger Man]

Originally Posted by Mrfish55

I have a RTEF (Reef Tank Expense Fund)

How the RTEF Works

* Starting in 1990, I have spent up to $5,000 every year in a RTEF.
* Contributions to a RTEF will not be deductible for income tax purposes but investment income, including frag sales, earned in a RTEF will not be taxed, unless you are dumb enough to declare them.
* Unused RTEF contribution room can be carried forward to future years.
* You can withdraw funds from the RTEF at any time for any tank expense.
* The amount withdrawn can be put back in the RTEF at a later date if you are carefull to hide it from your spouse.
* Neither income earned in a RTEF nor withdrawals will affect your eligibility to purchase additional livestock.
* Contributions to a spouse’s RTEF (if your lucky to have an understanding spouse) will be allowed and RTEF assets can be transferred to a spouse upon upgading to a larger tank.

Hey I got one of those!

[dkcrx]

Originally Posted by Mrfish55

I have a RTEF (Reef Tank Expense Fund)

How the RTEF Works

* Starting in 1990, I have spent up to $5,000 every year in a RTEF.
* Contributions to a RTEF will not be deductible for income tax purposes but investment income, including frag sales, earned in a RTEF will not be taxed, unless you are dumb enough to declare them.
* Unused RTEF contribution room can be carried forward to future years.
* You can withdraw funds from the RTEF at any time for any tank expense.
* The amount withdrawn can be put back in the RTEF at a later date if you are carefull to hide it from your spouse.
* Neither income earned in a RTEF nor withdrawals will affect your eligibility to purchase additional livestock.
* Contributions to a spouse’s RTEF (if your lucky to have an understanding spouse) will be allowed and RTEF assets can be transferred to a spouse upon upgading to a larger tank.

that's awsome, best thing i've read in a long time. lol

[fkshiu]

Originally Posted by Mrfish55

I have a RTEF (Reef Tank Expense Fund)

How the RTEF Works

* Starting in 1990, I have spent up to $5,000 every year in a RTEF.
* Contributions to a RTEF will not be deductible for income tax purposes but investment income, including frag sales, earned in a RTEF will not be taxed, unless you are dumb enough to declare them.
* Unused RTEF contribution room can be carried forward to future years.
* You can withdraw funds from the RTEF at any time for any tank expense.
* The amount withdrawn can be put back in the RTEF at a later date if you are carefull to hide it from your spouse.
* Neither income earned in a RTEF nor withdrawals will affect your eligibility to purchase additional livestock.
* Contributions to a spouse’s RTEF (if your lucky to have an understanding spouse) will be allowed and RTEF assets can be transferred to a spouse upon upgading to a larger tank.

My RTEF plan is the reason I'm on the road to Freedom 95.

[Treebeard]

Hilarious!

Originally Posted by Mrfish55

I have a RTEF (Reef Tank Expense Fund)

How the RTEF Works

* Starting in 1990, I have spent up to $5,000 every year in a RTEF.
* Contributions to a RTEF will not be deductible for income tax purposes but investment income, including frag sales, earned in a RTEF will not be taxed, unless you are dumb enough to declare them.
* Unused RTEF contribution room can be carried forward to future years.
* You can withdraw funds from the RTEF at any time for any tank expense.
* The amount withdrawn can be put back in the RTEF at a later date if you are carefull to hide it from your spouse.
* Neither income earned in a RTEF nor withdrawals will affect your eligibility to purchase additional livestock.
* Contributions to a spouse’s RTEF (if your lucky to have an understanding spouse) will be allowed and RTEF assets can be transferred to a spouse upon upgading to a larger tank.

[Reef_Geek]

oh man, I'm just cracking up thinking about that second post.

So it's been a few years now since the government implemented this TFSA tool to encourage Canadians to save, and in just a few weeks for this new year, we get the new allowance which is also going up to $5500 (instead of $5000/yr).

So if you have not opened one of these... you have accrued your prior years of contribution room and can put $20,500 of investments into this status and all earnings within this contribution allowance is absolutely not taxable. Huge. This TFSA along with RRSP are two tools that are highly under-utilized by a significant percentage of Canadians... yet they are two very effective tools to protect our assets from The Man.

So curious, for those using TFSA, what are you going to do with your next year's contribution?

Are you braving equities? Do you think fixed income focused instruments are going to crash a little? What about this outlook with the US Economic Fiscal Cliff?

[Nizzmo]

Did you know not a single person has ever gone to jail for not paying their taxes in Canada since income tax was implemented.

sorry off topic but fairly interesting

[Reef_Geek]

Originally Posted by Nizzmo

Did you know not a single person has ever gone to jail for not paying their taxes in Canada since income tax was implemented.

sorry off topic but fairly interesting

I'm not sure about that... http://www.cra-arc.gc.ca/nwsrm/rlss/...80123-eng.html

you know the saying... two certainties... death and taxes

[kien]

How does anybody on this board have money to put into a savings account?!?! What am I doin wrong?! Do I need to buy another reactor?? Run more GFo? Carbon? LED Lights? Help!