New tool for building nest egg

by investor on 24/01/09 at 12:40 pm

TAX FREE SAVINGS PLAN

Tracy Broeze, a financial advisor with ExcelPlan Financial/FundEX Investments Inc. of Burlington, Ont.

(Photo-Glenn Lowson/NationalPost) Tracy Broeze, a financial advisor with ExcelPlan Financial/FundEX Investments Inc. of Burlington, Ont.

Its tremendous versatility and wide-ranging applicability may have taken some explanation but the new tax-free savings accounts (TFSAs) are rapidly being embraced by investors, say financial experts across Canada.

“They are extremely popular with my clients,” says Tracy Broeze, a financial advisor with ExcelPlan Financial/FundEX Investments Inc. of Burlington. Ont. “It initially took some explanation as to what they are and what they can achieve for clients, but once that was done almost every one of them opened a TFSA.”

The TFSA, first proposed in last year’s spring federal budget and available since Jan. 1, allows anyone aged 18 or over go to a financial institution and open a special registered savings account in which they can place any kind of investment allowed in Registered Retirement Savings Plans up to a value of $5,000 a year. From then on the interest or capital gains grow tax-free.

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