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What’s on Your Mind? January 2022

TFSA Planning, Contributions and Investments-What Are You Waiting For?

Happy New Year. A time of reflection and planning. We are at the beginning of a new year, again. How time flies. Is it just me or is time whizzing by at a lightening pace? I remember like it was yesterday the introduction of TFSAs. That was 2009. Now here we are at the beginning of 2022.

TFSAs are becoming more important to your overall retirement plan than anyone could have imagined. In the beginning some people thought that $5,000 would not really make an impact.  Now the total contribution room is $81,500 for an individual and a whopping $163,000 for a couple. This is something worth looking at. We are beginning to see big growth potential.  For those people that are still unsure of the features and benefits I would like to recap TFSAs.

Any person 18 and older whether you have earned income or not can open and contribute to a TFSA.  You have a wide selection of investment choices.  Your contribution room carries forward from year to year.  TFSAs never impact any other form of income on your tax return. No income tax to pay on interest, growth or dividends from a TFSA. There is no time when you must redeem.  TFSAs allow you to redeem tax free and repay any withdrawals in the following year without
penalty. You can rollover your TFSAs to a spouse tax free upon death even if your spouse has  maximized their own plan.

Upon a divorce if you are on the receiving end of a TFSA rollover, you could end up with double the room for life. If you are the one that has to rollover TFSA assets you would be better off to cash out and provide your partner the proceeds so you can recontribute to your plan the following year. If you choose the rollover you would lose the re-contribution benefit of these assets. Shouldn’t a TFSA contribution be a priority when you start your New Year planning. The time is right for you to contribute to your plan. How about calling us to make this year’s contribution count.

If you have any questions, concerns or just want to discuss your personal situation feel free to book an appointment through our online calendar on our website.

Linda J. Levesque, CFP ® , FMA, FCSI®
Sr. Investment Advisor
Director, Private Client Group
iA Private Wealth
Levesque Wealth Planning
Insurance Advisor*
iA Private Wealth Insurance
One Corporate Plaza, 2075 Kennedy Road, 5 th Floor, Toronto, ON M1T 3V3
Tel: 416-412-8018 / 1-800-322-4030
Fax: 416-332-6772
linda@levesquewealthplanning.com

Daniel Fearon, MBA, CFA, CPA(CA)
Sr. Investment Advisor
Director, Private Client Group
iA Private Wealth
Levesque Wealth Planning
One Corporate Plaza, 2075 Kennedy Road, 5 th Floor, Toronto, ON M1T 3V3
Tel: 416-412-8018 / 1-800-322-4030
Fax: 416-332-6772
daniel@levesquewealthplanning.com

‘Saving Today for a Richer Tomorrow’®
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