What Is a TFSA? It's Not Just a Savings Account

What is a TFSA? The short answer: it's a tax shelter, not a savings account. It can hold cash, but also stocks, ETFs, bonds and GICs, and what they earn inside usually isn't taxed. The goal is to help you understand money, not tell you what to do with it. Educational, not financial advice. THE RULE THAT CATCHES PEOPLE Money you take out only comes back as room next January. Put it back sooner without enough room, and the extra is taxed 1% a month. CHAPTERS 0:00 What is a TFSA? 0:56 What it actually is 2:20 The room rule 3:29 The withdrawal trap 4:36 Things people don't expect CHECK IT YOURSELF Every fact in this video comes from the Canada Revenue Agency. The main pages: What is a TFSA: https://www.canada.ca/en/revenue-agen... Contribution room: https://www.canada.ca/en/revenue-agen... Withdrawals: https://www.canada.ca/en/revenue-agen... Tax on excess amounts: https://www.canada.ca/en/revenue-agen... The examples with people and amounts are made up to show the idea. NEXT TFSA vs RRSP, and what that choice depends on. Stay curious. #TFSA #Canada