I couldn't believe my luck, and the timing. We need a new roof and have been wondering how we were going to pay for it!
North Vancouver, BC (PRWEB) March 5, 2009
The Government of Canada introduced the Tax-Free Savings Account (TFSA) January 1, 2009, but local retiree Elizabeth Woods didn't wait for the January launch. Instead, she opened a HeadStart account at North Shore Credit Union (NSCU) last fall, putting the maximum $5,000 contribution into a holding account in order to have it ready for the official TFSA on day one. Doing so, she was also entered into NSCU's HeadStart contest, where the winning member would see the full amount invested matched by NSCU.
Ms. Woods' name was drawn and she was contacted by her Financial Advisor, Jason Chow, from NSCU's Parkgate branch to let her know that she was $5,000 richer.
So, how did Ms. Woods feel about not only investing smart with the TFSA, but finding an extra $5,000 in her pockets? "I couldn't believe my luck, and the timing. We need a new roof and have been wondering how we were going to pay for it!" Now she knows.
As Ms. Woods and thousands more Canadians have discovered, the TFSA is a great option for smart saving. Investment income earned within a TFSA, including interest, dividends or capital gains, is not taxed, even when withdrawn. And unused TFSA contribution room can be carried forward to future years. Although there are no tax deductions for TFSA contributions, time and compounding work in investors' favour.
As well, funds can be withdrawn from the TFSA at any time for any purpose, and then put back in the TFSA at a later date without reducing contribution room. Neither income earned in a TFSA nor withdrawals affect eligibility for federal income-tested benefits and credits, such as the Guaranteed Income Supplement and Canadian Child Tax Benefit.
To make the offer even more appealing for seniors, the TFSA provides a tax-free vehicle to meet ongoing savings needs, something seniors have only limited access to once they reach age 71 and are required to begin drawing down their registered retirement savings. Since investment earnings within a TFSA do not affect Old Age Security benefits, it's a great option.
For more information about the Tax-Free Savings Account, and how it may fit within your savings and investment plan, contact a North Shore Credit Union advisor at 604.982.8000 or toll-free at 1.888.713.6728.
About North Shore Credit Union
With 12 branches in communities from Burnaby and downtown Vancouver to Whistler, Squamish and Pemberton, North Shore Credit Union provides expert advice on banking, loans, investments and insurance. North Shore Credit Union has $1.9 billion in assets under administration, nearly 300 employees and 40,000 members. Its subsidiaries include United Mortgage Group, North Shore Capital Corporation, North Shore Leasing Ltd. and Pacific Spirit Properties Ltd. NSCU is designated a Caring Company by the Canadian Centre for Philanthropy and is a proud member of Canada's IMAGINE program. The Credit Union has also been honoured numerous times as one of the most technologically innovative financial institutions in North America.
For more information, please contact:
Employee & Corporate Communications Manager
North Shore Credit Union