Capital Matters

So it Begins....

Hello, this is my first of many financial oriented articles I will be posting on my blog. I will endeavor to answer/inform on questions and situations I have dealt with in my years as an Investment Advisor. If you have any suggestions or topics you would like me to cover feel free to contact me at

If there is enough interest in a specific topic I may post it to the blog.


Tax Free Savings Account

In 2008 the Federal Government introduced the new Tax Free Savings Account (TFSA). The rules around the accounts allow the contribution limits to accumulate starting from 2009 for each year during which a person turned or was 18 years of age, held a social insurance number and was a resident of Canada. However, at Haywood Securities, you must have achieved age of majority in order to open a TFSA. So, if you live in British Columbia, Newfoundland and Labrador, Nova Scotia or New Brunswick, then you can't actually open a TFSA until you are 19, which is the age of majority in those provinces. However, you will accumulate contribution room from the time you are 18. 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 A TFSA is more than just a tax deferral investment because your money is not taxed when it is withdrawn from the plan.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 are currently entitled to contribute $5,500 to the plan each year. (the Government has rolled back the $10,000 to $5,500 indexed to inflation going forward) 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, dividend and interest income 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.


The Chart below shows the allowable Limits from inception of the program to this year:

Date - Limit
2009 - $5,000
2010 - $5,000
2011 - $5,000
2012 - $5,000
2013 - $5,500
2014 - $5,500
2015 - $5,500
2016 - $10,000