A.T. Financial Newsletter
INVESTING
Despite its name, your TFSA is not a savings account
In a recent survey1 by one of Canada's Big Five banks, cash holdings made up fully 57% of its customers' Tax-Free Savings Accounts (TFSAs). Not only that, but just 11% of respondents could even identify TFSA-eligible investments.That's unfortunate, because TFSAs can hold a wide range of investments that may provide significantly higher returns than cash.

Way more than just savings
Just because it's called a tax-free "savings account" does not mean you have to treat it like one. In fact, TFSAs are so much more flexible than a traditional savings account and the range of investments they can hold is so broad, they're suitable for just about any investment goal. How broad? Well, virtually any investment you can hold in your Registered Retirement Savings Plan (RRSP) can also be held in your TFSA.
The MONEY file
TIPS AND TACTICS TO HELP YOU GET AHEAD
By all means, use your TFSA as a short-term parking spot while you save up for a car or a down payment on a house. But don't forget that it's equally valuable as a long-term strategic component in your retirement plan.

Matching investments to goals
The specific investments in your TFSA should reflect the express goals you have for the money you're putting aside: cash and equivalents for short-term purposes and equity-based investments for longer-term objectives.

Let's look at the intentions you have for your TFSA money and the investments you're using to achieve them. Even if you are holding your TFSA at your bank or other financial institution, we would be pleased to review it.

While we're at it, let's see if we can't capitalize on this year's $500 bump in contribution room - for 2014, you can invest up to $5,500. If you haven't yet opened a TFSA, you could have as much as $31,000 in contribution room - that's a significant opportunity to set up a tax-free portfolio.
1 BMO Annual TFSA Report, Jan. 2, 2014.
RETIREMENT PLANNING
Considering a golden handshake?
According to Statistics Canada, workers aged 55—64 who leave their jobs do not necessarily sail off into full-time retirement. In fact, over half of them are re-employed within 10 years of leaving their job.1

The return of post-retirement seniors to the workforce is a genuine trend: One in six Canadian workers is currently over the age of 65, up from one in nine in 2001.2 Even if you're not planning to go back to work after you get your gold watch, you may change your mind. Many seniors return to the workforce voluntarily, driven by personal reasons such as boredom or the desire to take on a challenge, rather than financial necessity.

If you have been offered a severance package or suspect that one might be in the works, call us. Such a significant change affects every facet of your financial plan, including your regular investment contributions, your emergency fund, employersponsored health benefits, pension, and retirement savings, to name just a few.

It's especially important that we revisit your plan if your offer comes a few years before you were planning to retire. We can help you decide if you should accept it, consider how it can fit into your overall plan, and address the best way for you to transition into the retirement lifestyle you want. And should you decide to go back to work or join the ranks of the self-employed, we can help you fine-tune your plan to accommodate the additional income and support your changing goals.
1 Statistics Canada, The Daily, "Study: Employment transitions among older workers leaving long-term jobs," Jan. 28, 2014.
2 Government of Canada, Working for seniors, Age-Friendly Workplaces: Promoting older worker participation, May 15, 2013.
For more information,
please contact us at

(647) 833-2782