INTRODUCTION to TFSAs
Since its introduction in 1957, the RRSP has been one of the best tax shelters available. Aside from RRSPs, there are few ways Canadians can shelter income, which limits the growth potential of an investment portfolio.
The investing landscape changed when the federal government implemented an ambitious agenda to reduce taxes and increase personal savings. In the 2008 Federal Budget, the government introduced the Tax-Free Savings Account (TFSA), a registered account designed to provide tax-free income.