ok. I heard about this before, and have read some stuff on it. But I'm still confused, because for some reason I require to be spoon fed the information.
This is what its all about, for those who want to know:
Link to Information on the TFSA
So, I understand some of the details:
You can put in up to 5G per year. If you don't put in, you can bank the space I think. If you take out, the amount you took out becomes room to put in more at a later time.
The money is not taxed.
The money you put in is NOT tax deductable.
The questions I have are these:
- I do not know how much interest this account plans to make, or whether it is based on a solid investment or market volatility.
- If it does not work as an RRSP whereas the contributions are tax deductable, then isn't that just like a regular account where you can add money and take it out at will without tax penalty?
Someone, please explain a scenario where this account is going to help me. Again, I need spoon feeding on this one. If the scenario involves investing the money into something else, I'm all ears as well.