"Trudeau, Mulcair pledge to pull back TFSA contribution limit" http://www.theglobeandmail.com/report-on-business/tfsas-surface-as-election-issue-as-opposition-vows-to-reverse-increased-limit/article26316436/
Well, isn't that a shot at those who use this excellent vehicle for saving and building for their retirement.
Typical of so many politicians who can't see beyond the ends of their noses.
The foresight of having an expanded tax-free savings vehicle and the implications on the potential for generations of savers to reduce their dependancy on the system are at risk here.
Because tampering with TFSA's may be the first step in dismantling them altogether.
Governements should be encouraging savings and the building of wealth instead of discouraging it.
“The doubling of it is irresponsible,” Mr. Trudeau said. “It’s only the wealthiest Canadians who have $10,000 laying around at the end of the year that they can put into that.”
I would bet that whoever is handling Mr. Trudeau's wealth has maxed out his TFSA for him (and takes full advantage of all the tax efficiencies that can be taken advantage of).
The point is not to wait to "have $10,000 laying around at the end of the year", but to have a plan that allows you to regularly save enough to generate $10,000 a year.
Instead of taking shots at those who save (and as a result may find themselves with some "wealth"), they should be focused on financial literacy and promoting the benefits of saving and the eventual advantages to be had.
If you have ever forecasted your wealth, it is amazing what the compounding of tax-free growth can accomplish.
I hope that this makes a difference for some of you who read this blog. I think this should be a huge issue. Maybe worth getting vocal about.
Scott Tomenson,CIM Managing Partner, Chief Investment Strategist