TFSA will soon be coming to Assumption Life!
Assumption Life, who will offer the tax-free savings account as of January 2, is getting ready to help its clients take advantage of this new investment vehicle. A great deal has been written about this account; countless investors are looking forward, and with good reason, to the TFSA’s arrival!
Contributions are not tax deductible; however, investment income (interest, dividends, capital gains or income trust distributions) earned in this account are tax-sheltered. "Still, its irresistible appeal for many investors lies in the fact that money withdrawn from this account is tax-free and will not affect their eligibility for federal income-tested benefits and credits, which are based on the taxpayer’s income," explained Larry Boudreau, vice president of sales and marketing at Assumption Life.
"The TFSA will serve as a complement to RRSPs. It’s a great tool to encourage savings and its flexibility will undoubtedly meet the needs of many," said Mr. Boudreau.
Canadians aged 18 and over will gain from investing in the TFSA, for example
• young adults or couples with young children (to prepare for the unexpected, using the TFSA as an emergency fund; for a down payment on a home or vehicle)
• high-income workers (to build up additional income in a tax-free environment ahead of retirement)
• retirees seeking to set aside additional income from a pension or RRIF; since withdrawals from a TFSA are not classified as income, they do not affect the Old Age Security Pension or Guaranteed Income Supplement.
Other features of the TFSA
• Offered to those aged 18 and over
• Allows a $5,000 maximum annual contribution
• No restrictions on withdrawals
• Option to carry forward unused contribution room
• Contribution rights recoverable after withdrawal
• Investments options: guaranteed interest accounts (GIAs), segregated funds
We recommend that investors to talk to a financial advisor today and find out how they can maximize their savings.
Founded in 1903, Assumption Life offers a full range of products, including life and critical illness insurance, group insurance, travel insurance as well as financial services and mortgage loans. The company now operates throughout all 10 Canadian provinces. Its head office is in Moncton, New Brunswick.
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FFI:
Nathalie Allaire
Communications and Marketing Advisor
Tel.: 506-383-5236
nathalie.allaire@assumption.ca
