REPEAT-BMO Annual TFSA Report: TFSA Turns Three - Adoption Increases Yet Canadians Remain Uncertain on How to Maximize Their Investment
- Nearly half (44 per cent) of Canadians hold a TFSA - up 8 per cent from 2010 - Almost 40 per cent are unaware of what investments are eligible - Canadians contribute on average $3700 to their TFSAs per year
(firmenpresse) - TORONTO, ONTARIO -- (Marketwire) -- 11/08/11 -- As the third anniversary of the Tax-Free Savings Account (TFSA) approaches, BMO Bank of Montreal today announced the results of its Annual TFSA Report, which reveals that, despite an increasing adoption rate and healthy contribution levels, Canadians are still unclear on the fundamentals of TFSAs.
The survey, commissioned by BMO Bank of Montreal and conducted by Leger Marketing, arrives as kicks-off in Canada and showed that despite the fact that 44 per cent of Canadians currently have a TFSA, few know what investments can be held within one:
"The numbers show that while this investment tool is continuing to gain traction among Canadians, we are still seeing some confusion regarding how to make the most of out a TFSA plan," said David Heatherly, Vice President, BMO Bank of Montreal. "A TFSA offers a variety of ways to tax shelter investments within a number of different investment vehicles, making TFSAs a suitable and sensible option for just about any type of investor."
The survey also found that Canadians are contributing an average of only $3700 per year to their TFSAs, leaving valuable contribution room on the table.
"Tax implications should be a key consideration for any investment decision. The main point of differentiation between TFSAs and other investment products is that the earnings are tax-free and allow for significant tax sheltered wealth and growth opportunities," said Mr. Heatherly.
Mr. Heatherly added that a lack of awareness regarding the regulations around TFSA contributions and withdrawals has been a point of concern since TFSAs were introduced three years ago. However, BMO's Annual TFSA Report suggests the level of awareness is improving as the vast majority (87 per cent) of TFSA investors indicated they know the regulations - a good sign as Financial Literacy Month gets underway in Canada.
"Essentially, once you reach your contribution limit for the year, you cannot reinvest or return money that has been withdrawn from your TFSA in the same year," said Mr. Heatherly. "However, that withdrawal amount gets added to the contribution room available in the year following. While that has caused some confusion, this is a well-designed investment product with a lot of financial upside, and Canadian investors appear to be doing their homework."
Other Key Findings:
TFSA Basics:
To learn more about BMO's TFSA offering, please visit .
BMO offers several helpful tools and resources to help Canadians make sense of their investments and minimize the taxes they pay. BMO recently launched BMO SmartSteps for Investing, a program designed to help Canadians make sense of savings and investing and help them keep more of their money, stay on track with their investments and grow their money for the future. Please visit .
The survey was completed on-line from October 17th to October 20th, 2011, with a sample of 1508 Canadians,18 years of age or older. A probability sample of the same size would yield a margin of error of 2.5 per cent, 19 times out of 20.
Contacts:
Matthew Duffin, Toronto
416-867-3996
Sarah Bensadoun, Montreal
514-877-1101
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Datum: 08.11.2011 - 14:00 Uhr
Sprache: Deutsch
News-ID 85181
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TORONTO, ONTARIO
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Commercial & Investment Banking
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