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Financial Planning

By David Hodges on October 14, 2015
Estimated reading time: 1 minute

The cost of rolling back the $10,000 TFSA

By David Hodges on October 14, 2015
Estimated reading time: 1 minute

High-income earners stand to lose $53K over a lifetime

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No matter what your political leanings, this year’s federal election has shown there’s one thing the majority of Canadians agree on: you don’t want to see the new $10,000 Tax-Free Savings Account contribution room limit rolled back to $5,500. These are the findings from an Angus Reid survey, which found that 67% of Canadians aren’t in favour of any political party reversing the increase. So what would losing an additional $4,500 a year of extra tax-sheltered savings room in a TFSA cost high-income earners over a lifetime of investing? Plenty, as you can see below. Screen shot 2015-10-13 at 2.52.35 PM

Screen shot 2015-10-13 at 2.52.35 PM

Assumptions: We’ve assumed 5% equity returns and a combined federal and provincial tax rate of 50%.

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