TFSA a tax dodge for the rich.

[I Think]

So a wealthy individual can now stash $10,000 annually into a TSFA, so the rich rascal stashes 10K for himself and 10K for his wife into self managed accounts. Invested in what evers, the income earned is tax free, and the money can be pulled out of the TFSA and not be counted as income.
This means our rascal can build up hundreds of thousands of dollars stashed in TFSA's and since they do not qualify as income, when withdrawn. Upon retirement, he/she can declare no income and therefore qualify for the Guaranteed Income Supplement, and free BC Med and perhaps other things, just like the poor people do.
Methinks tis time to heave steve, as he gives future tax breaks to his cronies the rich rascals, thus putting more of the tax burden on the working stiffs.

[Static]

You can open a TFSA too.

[Muzza]

It is definitely not just for the rich! Someone here had some figures that 80% of the people taking advantage of TSFAs are not rich. I can't remember the details. If I can find it I will post it. I was even surprised at the numbers of lower income people who were taking advantage of it, and I am a TSFA supporter.

People can do the same that I do for RSPs, borrow part of the money and pay it back over the year.

Also, remember that it is after tax income that is used to put in to the TSFA.

[JLives]

It's definitely not just for the rich. Mine has been a great investment tool. However, I don't support raising the yearly limits. I think it was good where it was.

[Muzza]

I found it faster than I thought I would. Captain Awesome posted it. Not sure where is is from:

'

Individuals with annual incomes of less than $80,000 accounted for more than 80 per cent of all TFSA holders and about 75 per cent of TFSA assets as of the end of 2013. About half of TFSA holders had annual incomes of less than $42,000.

[Static]

It's an effective savings tool that is accessible to everyone. It can make a middle class earner wealthy. It is just another thing that makes Canada a great country.

[Muzza]

It's definitely not just for the rich. Mine has been a great investment tool. However, I don't support raising the yearly limits. I think it was good where it was.

For many, such as myself, I will use it as an alternative to RSPs (which are an immediate "tax dodge" for the rich because it reduces your tax payable, so I'm not sure why the person starting this thread accepts RSPs but not TSFAs...).

Some years, I may put more in to TSFAs and other years, more in to RSPs. I'm ok with the increase, but think it is high enough.

[Captain Awesome]

For many, such as myself, I will use it as an alternative to RSPs (which are an immediate "tax dodge" for the rich because it reduces your tax payable, so I'm not sure why the person starting this thread accepts RSPs but not TSFAs...).

Some years, I may put more in to TSFAs and other years, more in to RSPs. I'm ok with the increase, but think it is high enough.

You can use them together too. You put money into RRSP and that gives you a nice refund. You take the refund and dump it into TFSA.

[Static]

The RRSP is a tax deferment plan. Plus, withdrawals from the RRSP have to be paid back. Withdrawals are taxed as income. RRIFs are a gamble. The people retiring now and getting stuck with 1-2% rates are most likely kicking themselves. I would definately max the TFSA before touching the RRSP.

[logicalview]

so the rich rascal .

yes heaven forbid you make any money in this country, all that happens is the envious and selfish want to chastise you for it.

[I Think]

Not against TFSA's but can see the wrinkle that lets someone with a few hundred thou in a TFSA declare very low income and qualify for GIS and free BC medical, which are intended for low income seniors.

[logicalview]

Not against TFSA's but can see the wrinkle that lets someone with a few hundred thou in a TFSA declare very low income and qualify for GIS and free BC medical, which are intended for low income seniors.

you get that "few hundred thou" is after-tax money, in that all of the taxes have been paid on it, so the taxes have gone to pay for the BC Medical and the GIS. You understand that right?

[Captain Awesome]

The RRSP is a tax deferment plan. I would definately max the TFSA before touching the RRSP.

I've come across specific investment strategy for getting money out of RRSP with minimized taxes called "RRSP meltdown". So, there's a way to avoid or at least minimize your taxes when the time comes. But TFSA is still so much better and hassle free.

[I Think]

so the taxes have gone to pay for the BC Medical and the GIS. You understand that right?

One hopes you understand the difference between needing the GIS and gaming the system, right?

[The Green Barbarian]

One hopes you understand the difference between needing the GIS and gaming the system, right?

So if someone works their butt off, earns a million bucks after taxes, puts it in a bank account, and then claims GIS when they retire, you are cool with that, but instead if that million is sitting in a TFSA and is drawn out its "gaming the system"? Really? And what about everyone who is able-bodied and just continually sits on welfare? Are they also "gaming the system?" There are a lot of ways to "game the system" and collect government cash (the best way is to be named a senator), so why are you just focusing on this one alone?