The big break you get with a TFSA is the tax you save when you invest money in your account. It can really add up over the years. For Dominic, it could mean thousands of dollars extra over time.
Dominic plans to save $200 a month in a regular bank account. He is also going to put $200 a month in a TFSA. He won't pay capital gains or any other tax on the money in his TFSA – not even when he takes it out. After 20 years, he would save an extra $11,045 in his TFSA!
Chart source: Department of Finance, Canada
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