Fidelity research shows British Columbians most likely to open a TFSA, Atlantic Canadians the least likely

    TORONTO, Nov. 25 /CNW/ - As Fidelity Investments gears up to offer
Tax-Free Savings Accounts (TFSAs) to all Canadians, new research shows that
initial interest is not evenly spread across the country. According to the
fourth annual Fidelity Canada Retirement Survey, 44% of British Columbians who
are aware of TFSAs, plan on opening this new account compared to 36% of
Ontarians and 35% of Quebecers. In contrast, only three-in-ten Canadians (30%)
from the Prairie Provinces and one-in-four (24%) Atlantic Canadians are likely
to open a TFSA.
    When these same Canadians were asked what types of investment or savings
vehicles they planned on holding in their TFSA, 38% of Canadians indicated
that they will hold equity-driven investments including mutual funds and
individual stocks to help grow their savings. Guaranteed Income Certificates
(GIC's) were another popular choice (41%), while keeping cash in their TFSA
(26%) and investing in bonds (15%) were less popular choices.
    "Whether investors choose investments for their TFSA that aim to produce
interest income, capital gains, or a combination of both, they can achieve
their objectives with mutual funds," said Darren Farkas, Vice President,
Product Solutions, Fidelity Investments Canada. "Investors should work with
their financial advisors to assess what type of TFSA investment will help them
meet their individual financial goals."

    Should I put my money into a TFSA or RRSP?

    Along with deciding on the investment vehicles to use in a TFSA, many
Canadians are trying to decide between putting their savings into a TFSA or
their RRSP or both.
    "TFSAs and RRSPs have different advantages. The important thing to
remember is that the TFSA is an additional tool you can use to save and invest
for the future. TFSA's can be used alone or in concert with other savings and
investment vehicles to save tax and leave more money in your hands," said
Farkas.
    The decision between investing in a TFSA or RRSP depends on the
investor's goals. TFSAs are flexible and can be used to meet either short-term
goals or long-term objectives, whereas RRSPs are designed almost exclusively
for retirement savings. An investor should consider several important factors
before making this decision, such as understanding when the money will be
needed plus short-term priorities and long-term goals.
    To help make these decisions easier, the new TFSA section on Fidelity's
website provides investors and financial advisors with a wealth of information
including commentary from Fidelity's experts, tax planning scenarios, webcasts
and answers to frequently asked questions. Advisors can also download
easy-to-use application forms in both English and French. Please visit
www.fidelity.ca.
    "TFSAs represent one of the most important tax savings and investment
vehicles available to Canadians and Fidelity is making it easy for investors
and financial advisors to take advantage of these new accounts," said Farkas.

    About the Fidelity Canadian Retirement Survey

    The 2008 Retirement Survey was conducted by The Strategic Counsel. The
survey was conducted on-line from September 24 to October 6, 2008 among a
representative sample of 1000 adult Canadians 45 years and older. In order to
participate in the study, respondents were required to be the person in the
household with the main responsibility or shared responsibility for savings
and investing decisions.
    The sample reflected the regional, age and household income composition
of Canada's population of those 45 years +, based on 2001 Census data. Results
for the total nationwide proportionate sample of 1000 are considered accurate
to within +/-2.6 percentage points, 19 times out of 20. The margin of error
will be larger within regions and for other sub-groupings of the survey
population.

    About Fidelity Investments

    Fidelity Investments Canada ULC is the country's sixth largest mutual
fund company and part of the Fidelity Investments organization of Boston, one
of the world's largest providers of financial services. In Canada, Fidelity
manages a total of $40 billion in mutual fund and institutional assets. It
offers Canadian investors a full range of domestic, international and income
oriented mutual funds. Fidelity funds are available through a number of
advice-based distribution channels including financial planners, investment
dealers, banks, and insurance companies. Fidelity Investments also administers
defined contribution plans and manages assets for institutional clients
including public and corporate defined benefit pension plans, endowments,
foundations and other corporate assets on behalf of clients across Canada.
Fidelity is a proud supporter of the Boys and Girls Clubs of Canada and we are
dedicated to helping young Canadians realize their full potential as
productive, responsible and caring citizens.

For further information: Chris Pepper, Director, Corporate Affairs,
Office: [phone], Mobile: [phone], Email: [e-mail]