Most Canadians Are Unsure About A TFSA

I was just reading this article from the London Free Press at which talks about how most Canadians are unsure about opening a TFSA account due to the economy. As mentioned on the site, apparently less than 46% of Canadians intend to open an account.

As expected, a lot of the comments from the banks are that everyone should open an account since funds can be withdrawn without the fear of being taxed. Some interesting details I did learn from the article is that some investment firms like the National Bank will be automatically transferring their GIC rate of 4.1% to a TFSA beginning next year.

The article also brought up a good point on how since people may pull out funds whenever they want it can create a lot of short term thinking in managing one’s fund. Good point I thought and it is something that one needs to be disciplined and educated to not do.