Your TFSA could be more to you than just a savings account
There’s a whole lot of uncertainty in Alberta right now. Unemployment in Edmonton hit 8% in January – 7.1% for Calgary. Even with new pipeline announcements, it’s clear to almost everyone that the energy industry is unlikely to return to the boom times that used to fuel provincial revenues. The Province is focused on cuts across the board – but especially in large program areas like health and education.
We don’t yet know what the future is going to bring, but the chances are strong that there will be challenges before things get better.
But don’t worry, this isn’t one of those “Doom and Gloom” posts (like the infamous Everything is Awful post from Fall 2018). Let’s look at how we protect ourselves!
We’re big believers that the best protection for uncertainty is planning. Look at it this way: if you’re paddling down a calm river, you never plan to flip your canoe – but if you do, you’ll be glad you were wearing your life jacket!
So why not let your TFSA be your “life jacket” for financial uncertainty?
It’s pretty simple really:
1 Sign up for your Group TFSA. The forms are right here on our site or contact us for help.
2 If you have cash you can transfer from your Savings account, great! Do that. But if not, set up an Online Contribution to automatically pay yourself every month directly from your bank account. It’s as easy as paying your phone bill. Instructions are here.
3 Your savings will grow – and earn compound interest on investments – until you need them
4 When uncertainty strikes – a job loss, a health scare, a lockout, or your furnace finally gives up the battle against winter – you’re able to pull out those funds tax free
5 When things return to normal, you can re-contribute savings back into the TFSA. You never lose your contribution room.
If you haven’t made use of the TFSA, you could have up to $69,500 in contribution room that the CRA will let you put into your savings.
Where else can you sign up?
• If you’re a teacher, look for us at every Teachers’ Convention in the Province. You can sign up on the spot!
• We’re also partnering with the ATA to offer Financial Wellness sessions across the Province this winter / spring. Contact your local representative or the ATA’s Teacher Welfare for details.
• If you’re with an organization that works with Capital for your Group RRSP / TFSA, let them know that you’d like a Financial Wellness session too – or even just a sign up day where people can show up in person.
One final note: every year, without fail, we run into people who tell us, “Yeah, I meant to do that last year but didn’t.” Statistically, 100% of the people who don’t sign up for their TFSAs don’t end up having TFSAs.*
It will take 5 minutes to fill out the form. We really encourage you to do it right now while you’re actually thinking about it. Here are the application forms...!
*It’s science.