What is your TFSA for?

posted 3 years ago in Money
  • poll: What is your TFSA for?
    Retirement : (11 votes)
    18 %
    The wedding/honeymoon : (7 votes)
    12 %
    House/downpayment/renos : (10 votes)
    17 %
    General Savings : (12 votes)
    20 %
    Car : (1 votes)
    2 %
    Emergency Fund : (7 votes)
    12 %
    Other : (2 votes)
    3 %
    A combination of the above (select this option & others) : (8 votes)
    13 %
    I could have a TFSA but don't : (2 votes)
    3 %
  • Post # 3
    Member
    2878 posts
    Sugar bee

    @AB Bride:  Downpayment for a house and emergency funds. I actually have another account for emergencies and I deposit 100$ each month in it, but if ever things go bad for me next year (don’t find a job, etc.), there is a couple K in my TFSA that could be used for that. But its main goal is to save money for a house, so I hope I don’t have to use it to pay rent or groceries.

    Post # 4
    Member
    568 posts
    Busy bee
    • Wedding: July 2014

    taxes on a savings account? Must be a canadian thing. i have a regular savings but i dont get taxed on it. And even though you specifically asked about canadian people, ill just say mine is specifically for my wedding right now, and later will stockpile for our future kids.

    Post # 6
    Member
    376 posts
    Helper bee

    I’m just opening a TSFA. I’ll use it for savings/investments as you don’t pay tax on capital gains. While I have a pension through work, who knows what that’ll look like in 30 years, so I’m saving through the TSFA as well.

    Post # 7
    Member
    2878 posts
    Sugar bee

    @MrsWinTraining2014:  I don’t know for the rest of Canada, but in Québec there are 2 types of savings you can use to have tax deductions : the REER (which is a retirement plan) and the CELI (in english : TFSA). Both have a maximum you can contribute to each year. The difference is, once the money is into your REER, when you want to take it out for retirement, you’ll be taxed for it. When you take money from you TSFA, you’re not taxed. But you cannot put as much money in it each year.

    These are different that the usual savings accounts at your bank. 🙂

    Post # 8
    Member
    568 posts
    Busy bee
    • Wedding: July 2014

    @AB Bride:  it doesnt draw enough interest to have to pay taxes, but if it did then im sure i probably would have to. I didnt think about that. I believe an IRA is specifically for retirement, which i dont have so im not positive. thanks for clearing that up though.

    Post # 10
    Member
    2878 posts
    Sugar bee

    @AB Bride:  Out of curiosity, what is the interest % of TFSA ? Mine is only 1,05% (it is standard, wether I have 5K in it or 500 000K). Retirement plans have a much higher rate though. But if an emergency happens, I can’t take that money out, that’s why I’m using the TFSA for now. I’ll use both when I get a job in my field.

    Post # 12
    Member
    2878 posts
    Sugar bee

    @AB Bride:  It appears to be the same. 

    ETA : I just clicked on ”English” on the page for the CELI, and it brought me to the TFSA page. I thought these were provincial savings, they’re federal. So it must be the same for all Canadians. 

    Post # 13
    Member
    1134 posts
    Bumble bee
    • Wedding: December 2014

    Mine is for everything, really. I throw whatever extra money I get into it. I wish I could contribute the max per year ($5,500), but I can’t right now.

    Post # 15
    Member
    2878 posts
    Sugar bee

    @AB Bride:  Hmm, I don’t understand everything and should definitely look more into this. But basically, at the bank where my CELI (TFSA) is registered, the rate for savings is 1,05%. Whatever the amount that’s in it. I’ve never heard of savings that had a 4 to 6% rate (I would definitely save more if rates were within that range). I’m not sure about FI’s RRSP, it seems to be the exception, but overall, my TFSA is barely offering me more % than a regular savings account at the bank so it’s not worth putting money into it, except for tax deductions.

    Post # 16
    Member
    885 posts
    Busy bee
    • Wedding: October 2013

    It used to be for downpayment and then wedding, but now that both those are out of the way, DH and I are using them for retirement savings.  Right now mine is all just in a savings account, but I’ll be putting a good chunk into index funds soon (going the ‘couch potato’ route).

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