Investing is always hard; there is an overwhelming amount of options from TFSA, RESP, RRSP, Life Insurance, Etc. How does one determine what to chose? A good start for novice investors is opening a TFSA account. A TFSA account put shortly is a “Tax Free savings account”. An easy way to understand is to think of a TFSA as a shelter, and anything you put in is not taxable by the government. All earnings/interest gained within a TFSA investment is not taxed. The max contribution for a TFSA acount in Canada is $5500 per year.
There is a wide variety of investment options when it comes to TFSA accounts. You can invest your hard earned cash in GICS, mutual funds, stock, bonds and ETFS. If you are unsure of where to put your money it is always best to speak with a financial expert. You can book a free consultation at your local bank. Even if you are unfamiliar with how to invest it always best to try and max the amount you are contributing to a TFSA. The earlier you start the better, as you research and develop new investment strategies you won’t regret having started contributing into a TFSA.