TORONTO, Oct. 10 /CNW/ - Mackenzie Investments today announced it is
among the first mutual fund companies to make available applications for
Tax-Free Savings Accounts (TFSA). Starting today, Canadian investors 18 years
of age and older can complete their Mackenzie Tax-Free Savings Account
application with contributions accepted beginning January 2, 2009.
A variety of investments will be eligible for investment in a Tax-Free
Savings Account at Mackenzie including:
- Equity mutual funds
- Fixed income funds
- Asset allocation funds
- Target date funds
- Segregated funds
- Money market funds, and
"Now we can all say 'yes' to saving and 'no' to tax," says Wilmot George,
Specialist, Tax and Estate Planning with Mackenzie Investments. "The
government has built a great investing tool with the Tax-Free Savings Account,
but with a product this versatile, advice is key. A financial advisor can help
you figure out how it fits into your overall financial plan."
The Mackenzie Tax-Free Savings Account will, as permitted by federal law,
allow individuals to deposit up to $5,000 every year. Savings can grow, and be
withdrawn at anytime, without incurring any tax. And the money can be used for
any purpose, from short-term saving opportunities such as buying a new car, to
home renovations, to longer-term retirement needs.
For more information on the Mackenzie Tax-Free Savings Account, go to
www.mackenziefinancial.com/tfsa, or talk to your financial advisor. Your
advisor can also provide more information on the Mackenzie TFSA High Interest
Sample TFSA investors:
While suited to anyone with investible assets, a Tax-Free Savings Account
can fit into different investors' life stages for varying purposes. A
financial advisor can help Canadians build a TFSA into their overall
investment plan, but here are some examples of who a TFSA is suited to:
Canadians interested in investing money each year, but reluctant to lock
away assets long term for fear of unpredictable ad hoc expenses such as car
repairs, home renovations or emergencies. The TFSA is an attractive
alternative to taxable investment accounts.
Typically younger Canadians in a lower tax bracket, these investors may
prefer to forego up-front RRSP tax deductions in exchange for the tax-free
growth and withdrawals of a TFSA - particularly if they expect to withdraw the
money later when they're in a higher tax bracket.
Higher-income earners who are able to maximize their RRSP contributions
each year. Excess assets can be invested in a TFSA for additional tax saving
opportunities. Plus, the tax refund generated from RRSP contributions can be
used to further increase TFSA contributions.
Married or common-law couples now have another way to split income
outside of an RRSP. Where there is one primary income earner in a family, each
spouse or common-law partner receives $5,000 of TFSA contribution room each
year - unlike RRSPs, TFSA contribution room is not based on income earned. The
primary income earner can contribute $5,000 to his or her own TFSA, and give
$5,000 to fund the TFSA of his or her spouse or common-law partner, allowing
for tax-free growth on $10,000 each year.
Seniors with excess cash flow (possibly from mandatory Registered
Retirement Income Fund (RRIF) payments) can use a TFSA to accumulate tax free
growth. And, withdrawals from a TFSA can be made without fear of reducing
government benefits such as Old Age Security and the Guaranteed Income
Mackenzie Investments: Mackenzie Investments was founded in 1967, and is
a leading investment management firm providing investment advisory and related
services. With $64.7 billion in assets under management as of September 30,
2008, Mackenzie Investments distributes its services through a diversified
network of third-party financial advisors. Mackenzie Investments is a member
of the IGM Financial Inc. (TSX: IGM) group of companies. IGM Financial is one
of Canada's premier financial services companies with over $118 billion in
total assets under management as of September 30, 2008.
(1) The Mackenzie TFSA High Interest Cash Builder will be a guaranteed
deposit offered through M.R.S. Trust Company, a federally-regulated
trust company and a wholly-owned subsidiary of Mackenzie Financial
Corporation. It will offer capital protection while providing
competitive interest rates and will be eligible for Canada Deposit
Insurance Corporation (CDIC) insurance subject to maximum limits.
For further information:
For further information: Catharine Marion, Environics Communications,
(416) 969-2809, firstname.lastname@example.org