FOR IMMEDIATE RELEASE
LAURENTIAN BANK OUTLINES THE DIFFERENT USES OF THE TFSA Montréal, January 25, 2012 - The Tax Free Savings Account (TFSA) constitutes an excellent savings vehicle. However, according to Laurentian Bank's financial planners, its degree of effectiveness for tax purposes will depend on the choice of product in specific situations.
Since 2009, the TFSA has served as a means for individuals to
accumulate tax-sheltered savings throughout the course of
their lives. Thus, as at January 1, 2012, a couple could hold
up to $40,000 in this plan (whose contribution rights are
cumulative and can, therefore, be carried over to subsequent
years), in addition to any returns earned. Consequently, the
TFSA represents a good source of tax-free revenue at
retirement.
"The TFSA can become an important element of a financial plan
as long as people know how to make proper use of it,"
underlines Guylaine Dufresne, Laurentian Bank's Director of
Financial Planning for the Northwestern Québec region. "The
most beneficial way of looking at a TFSA is to consider it as
being primarily an investment vehicle and not a conventional
savings account from which to make short-term withdrawals. In
fact, certain types of eligible investments can generate much
more attractive returns than a simple savings account,
particularly when we focus on medium- and long-term
investment products."
A TFSA may be invested in various different ways and
instruments. These include mutual funds, guaranteed
investment certificates, bonds and stock.
Laurentian Bank is advising its clients who have reached
their RRSP contribution limit that the TFSA also enables them
to enjoy tax-free savings. "A TFSA is not a replacement for
an RRSP, but it can serve as a more appropriate vehicle in
certain cases," explains Guylaine Dufresne. "For example,
people with a relatively low income, like those just starting
out on a career, will not be eligible for a particularly
interesting tax saving with their RRSP. However, if they
place their savings into a TFSA to later transfer them into
an RRSP, they will receive a greater tax refund once they
begin to earn more income."
All Canadian residents aged 18 and over can invest up to
$5,000 per year in a TFSA. Investment earnings (interest,
dividends and capital gains) are not taxable and will never
be, even if the sums accumulated in a TFSA are withdrawn.
Moreover, subsequent to withdrawals from a TFSA, contribution
rights can be recuperated for ensuing years.
To learn more about the benefits of the Tax Free Savings
Account in specific situations, Laurentian Bank clients are
invited to consult a personal banking financial planner or
advisor at any of the Bank's 158 branches.
Laurentian Bank of Canada is a banking institution operating
across Canada and offering its clients diversified financial
services. Distinguishing itself through excellence in
service, as well as through its
simplicity and proximity, the Bank serves individual
consumers and small and medium-sized businesses.
The Bank also offers its products to a wide network of
independent financial intermediaries through B2B Trust, as
well as full-service brokerage solutions through Laurentian
Bank Securities.
Laurentian Bank is well established in the Province of
Québec, operating the third-largest retail branch network.
Elsewhere throughout Canada, it operates in specific market
segments where it holds an enviable position. Laurentian Bank
of Canada has more than $24 billion in balance sheet assets
and more than $35 billion in assets under administration.
Founded in 1846, it has been selected as the
Québec and Atlantic Canada regional winner of the Canada's 10
Most Admired Corporate CulturesTM
program presented by Waterstone Human Capital. The Bank
employs close to 3,700 people.
-30-
FOR IMMEDIATE RELEASE
Information:
Mary-Claude Tardif
Public Relations Advisor
514 284-4500, extension 4695
mary-claude.tardif@banquelaurentienne.ca
distribué par | Ce noodl a été diffusé par Laurentian Bank of Canada et initialement mise en ligne sur le site http://www.laurentianbank.ca. La version originale est disponible ici. Ce noodl a été distribué par noodls dans son format d'origine et sans modification sur 2012-01-27 18:15:12 PM et restera accessible depuis ce lien permanent. Cette annonce est protégée par les règles du droit d'auteur et toute autre loi applicable, et son propriétaire est seul responsable de sa véracité et de son originalité. |
Documents associés | |
LAURENTIAN BANK OUTLINES THE DIFFERENT USES OF THE TFSA |