The Co-operators

The Co-operators

October 07, 2011 09:46 ET

Tax-Free Savings Accounts-Save More for a Secure Future

GUELPH, ONTARIO--(Marketwire - Oct. 7, 2011) - Saving more and preserving more of your earnings are always worthwhile goals. Now you can accomplish them with ease, and more with a proven Tax-Free Savings Account (TFSA).

A TFSA allows you up to $5,000 annual savings in a registered account. In addition, no taxes apply on what you earn from interest income, dividends, or capital gains. Calculations for income tax and benefits such as Child Tax Credits or Employment Insurance and Old Age Security programs are unaffected as no taxes are charged to your account balance or any withdrawals, Even if you were to withdraw any money, your contribution room is restored plus any unused contribution room can also be carried forward to the future.

As soon as you become a legal major, you can begin to save and continue the habit throughout your working years and even post-retirement, making the TFSA the perfect instrument for life-long savings. Over the years, with changing income levels and saving goals, your TFSA will come in handy to help build your savings and use funds when required.

The Benefits of a TFSA

-- Useful funds for everything from a car purchase to home down payment

-- Save for emergencies, home renovations or to support your child's education

-- Retire peacefully – Enhance your RRSP with your TFSA

-- Start saving for health-care expenses post retirement – especially for ailments not covered by the province.

-- Tax-free savings – the best gift for your children

TFSA or RRSP - which works better for you?

Here are some tips to help you decide whether you should opt for a TFSA or RRSP investment or both. In general, an RRSP offers a tax deduction when you first make a contribution, while with a TFSA investment, you can enjoy tax benefits and avoid paying taxes on fund withdrawals. With both TFSA and RRSP, you can save more and faster. TFSA guarantees tax-sheltered earnings while RRSP offers tax-deferred earnings.

Of course, if you believe the experts, you can optimize the value of your retirement savings by investing in both the TFSA and RRSP and allowing them to work for you simultaneously. Both plans offer valuable tax savings and benefits even when you contribute to your TFSA while maximizing on your RRSP or leave the RRSP untouched but utilize the TFSA for sudden big purchases and emergencies.

To understand how a TFSA can work best for you and become a part of your long term financial goals, contact your Co-operators agent or visit http://localagent.cooperators.ca/Tax-Free-Savings-Account-in-Ontario today.

A True Canadian Champion

The Co-operators is a leading Canadian-owned multi-product insurance company with agents in over 600 locations across the country. Together, we protect over one million Canadians with the same care and personal service that have made us a true Canadian champion for over 65 years.

You can also rely on The Co-operators to provide high quality insurance products, such as Auto Insurance, Home Insurance and Life Insurance.

Visit http://localagent.cooperators.ca/ or call your Co-operators agent today for more information on TFSAs and our complete line of insurance and investment products.

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