The TFSA leaves you free to do anything you might have in mind, such as...

Shelter money that would otherwise go into a taxable account
If you have FÉRIQUE funds in an unregistered investment account, it would be to your advantage to make future investments within a TFSA. It might also be a good idea for some people to transfer their existing funds into a FÉRIQUE TFSA to shelter future returns from taxes. Note, however, that this kind of transfer could have a significant tax impact. Be sure to talk to one of our advisors before deciding on this course of action.

Contingency fund
It only makes sense for everyone to have a financial reserve to cover at least three months of living expenses. A TFSA is an ideal vehicle for this type of fund. We should point out, however, that you cannot use the TFSA to make deposits and withdrawals as if it were a simple chequing account. The TFSA is designed for accruing savings, not for day-to-day transactions. It cannot be your personal bank machine.

The windfall
A long-lost relative has left you a large inheritance? You won the lottery? You received a scholarship, but don’t need to spend the whole thing? Use the TFSA to keep this money – and more specifically the income it earns – sheltered from taxes. Don’t forget that you can deposit $5,000 into your TFSA every year, and this contribution room will accrue if you don’t use it: after a few years, your TFSA contribution limit could be many thousands of dollars.

Thinking of doing something else? Contact a FÉRIQUE advisor to find out how the FÉRIQUE TFSA can help you do it – your way.

For more information or to open your FÉRIQUE TFSA:
Use our toll-free line from wherever you are, with no waiting, 8:00 a.m. to 8:00 p.m., Monday to Friday.

1 800 291-0337

You can also reach us by e-mail at: service.ferique@bnc.ca