The TFSA is Your Ticket to Tax Freedom
Make sure you contribute $5,000 for each resident adult in the family every year. $5500 for 2013 and going forward .
Earnings are not taxed either in the plan or when they are removed. It provides an excellent parking place for transferred assets from the higher-income taxpayer to lower-income taxpayers in the family.
The TFSA is an absolute gift to your future financial freedom. It will help you create a tax-free pension. Given its full accumulation period (age 18 to date of death, every resident of Canada has the opportunity to become a millionaire, by simply investing $5,000 each year. Being very conservative, if you deposit $5,000 each year, indexed by 2%, for 50 years in a TFSA that earns only 4.5% interest on those deposits, the balance after the last deposit will be over $1,103,000.