Tax Free Savings Account

In 2008 the Federal Government introduced the new Tax Free Savings Account.(TFSA)

A TFSA is your own personal tax shelter and is recognized under the Income Tax Act.

Your savings grow within the plan free of any tax on interest, dividends and capital gains. A TFSA is more than just a tax deferral investment because your money is not taxed when it is withdrawn from the plan. You are free to take out part or all of your money at any time, for any reason.

The plan is very flexible. You may re-contribute any withdrawn funds at any time without penalty. You are entitled to contribute $5000 to the plan each year. If you miss a year, not to worry because you are allowed to carry forward unused contributions indefinitely. It is however recommended that you contribute each year, preferably early on in the year so as to benefit from the power of compounding growth. The advantage of compound growth on a tax free basis can be significant.

The TFSA offered to you by Haywood Securities is particularly flexible because it enables you to invest in the shares of public companies if you choose to do so. Again, the capital gains that you realize within the plan will be tax free.

If you would like to set up your Tax Free Savings Account or have any questions relating to this valuable financial tool please contact me directly.

Jennifer Taylor

Vice President - Investment Advisor - Haywood Securities Inc.

Suite 301, 808 First Street SW
Calgary, AB
Canada
T2P 1M9

Telephone: (403) 509-1950
Toll:  (877) 604-0044
Facsimile: (403) 509-1990

E-Mail:  jtaylor@haywood.com