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Email this8:32 am
May 15, 2007
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Source: http://news.nationalpost.com/2.....l-deficit/
"The details will be revealed in a fall update, expected around Halloween."
That would be a huge jump from the current $5,500.
9:16 am
September 11, 2013
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This is great news - thanks, Peter, for the head's up so we can start saving up!
11:01 am
September 5, 2013
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way to go! thanks
11:37 am
October 27, 2013
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If I were a politician, I would talk about it in the Fall update and then include it in their Spring budget to take effect during the 2015-2016 (first surplus) fiscal year (after they are re-elected)....effective 1/1/2016.
4:34 pm
October 21, 2013
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2 years ago, this story ran in the Globe and Mail, and I think it still applies.
http://www.theglobeandmail.com.....le5671686/
Today's article speculates on whether the Conservative govt might help young families with child care credits, income splitting, etc. And maybe they will. It will depend on whether they are going after the senior vote or the young parents' vote. In the past, they have favoured the senior vote. Perhaps they will think they can do both by next year.
I think AltaRed is right. It ain't coming in 2015. It's candy for the election. But that's another topic.
10:03 pm
November 4, 2014
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This would be great news for savers and investors. My adviser was showing me that even with a modest 4.05% compound interest rate, a 25 year old would have $1,000,000 by the time they are 65 years old.
He told me that it is income tax free and does not cut pension and tax benefits. A couple would have $2,000,000.
He told me interest rates are low today but over many decades this is very achievable. I hope annual TFSA limits get to $10,000 as soon as possible.
12:45 am
October 27, 2013
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That won't happen. The contribution room will be capped at some point, e.g. something like the old $100k lifetime capital gains exemption. Rationale: The government cannot afford to lose that level of tax revenues.
12:51 am
November 4, 2014
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AltaRed, this is what hypocrites do, government that is. They want us to save more for our retirement and future but they don't want to do what is necessary.
However, this government did at least keep it's promise and raise the $5,000 annual TFSA contribution limit to $5,500 indexing it to inflation over the last 4 years. Any other government will raise taxes for sure.
1:25 am
November 4, 2014
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AltaRed, it would take the next 25 years at the same increased inflation indexing to the annual TFSA contribution limit that they did in the last 4 years to get a $10,000 annual TFSA contribution limit.
All the way to 2039 to turn $5,500 to $10,000. What a long time, indeed.
10:02 am
December 23, 2011
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AltaRed said
If I were a politician, I would talk about it in the Fall update and then include it in their Spring budget to take effect during the 2015-2016 (first surplus) fiscal year (after they are re-elected)....effective 1/1/2016.
If I was a politician I would do it now if I wanted the vote from seniors. While we seniors have worked hard and survived 18% mortgage rates and continue to watch the majority of young folks over extend themselves and continue to be coddled with low interest rates and income tax breaks like income splitting and other changes....there is nothing there for the retired folks and an increase to 10,000 in the TFSA contribution room or better yet an increase in interest rates is long overdue. 
11:16 am
October 27, 2013
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Think y'all have misinterpreted my post. What I was saying is that cumulative contribution room will be capped at some point, perhaps at the $50k or $100k level.
Gov't cannot afford to keep adding room indefinitely and that is what Greg's advisor was inferring they could do. You cannot get to $1,000,000 or more with a 4.05% compounding rate otherwise. If gov't increased contribution room to $10k in 2015, I would love that too.... now cumulative contribution room becomes $41,500. I just would not count on an additional $10k room each year for another 10 years.
11:28 am
December 23, 2011
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AltaRed said
Think y'all have misinterpreted my post. What I was saying is that cumulative contribution room will be capped at some point, perhaps at the $50k or $100k level.
Gov't cannot afford to keep adding room indefinitely and that is what Greg's advisor was inferring they could do. You cannot get to $1,000,000 or more with a 4.05% compounding rate otherwise. If gov't increased contribution room to $10k in 2015, I would love that too.... now cumulative contribution room becomes $41,500. I just would not count on an additional $10k room each year for another 10 years.
I am only looking for the promise to be executed, no more, no less. Maybe the criteria has not been met BUT if it close....do it....and the government should maintain meeting the goal. I would be happy with 10000 a year.....and if other financial goals are met then perhaps $500 permanent increments or one time bonus options (with no carry over) could be put in place. Never the less retired folks need more tax breaks and the TFSA is one. I also realize the TFSA is a help to some retirees and not all retirees.
2:51 pm
November 4, 2014
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Kanaka, I agree they should keep their promises about the TFSA $10,000 annual limit but they, this federal government did give seniors more tax breaks from pension, RRIF income splitting to a higher pension, RRIF pension amount and much higher age amount.
AltaRed, the capital gains lifetime exemption was $500,000 at some point according to what my father told me. They did cut it down to $100,000 afterwards.
Saying that, the capital gains tax rules are now 50% income tax free so actually higher net worth investors are better off.
If they have $350,000 in capital gains from, investment property, stocks over a person's lifetime, for example, $175,000 is now capital gains exempt. What I see as a probable change in government to raise taxes on us and raise their tax revenues is starting to require a minimum required distribution or withdrawal like RRSP's to RRIF's.
This would not make the interest, dividends, capital gains etc. tax free raising potential billions in new tax revenues.
I heard from my cousin in Chicago that in the U.S., the U.S. Obama government is trying to float the idea of requiring minimum annual distribution from roth IRA's which are tax free like in Canada with our TFSA's.
3:19 pm
November 4, 2014
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AltaRed, if you contribute $10,000 a year to a non-registered account earning the same annual compound interest of 4.05% and you are in a 30% income tax rate, it would grow to $747,896. The income tax hit is $252,104.
If we were in a more normal interest rate environment such as back in the 1990's, a GIC or government bond, zeros, savings bonds etc. was easily paying 5.75% to 6.00% which would make $10,000 annual investments compounding for 40 years after paying 30% income taxes be worth $1,000,000.
People have to realize that the federal, provincial, municipal governments are saving $1.5-$2.0 billion dollars a week in interest costs. This is much more than lost tax revenues from TFSA's and lower tax rates on RRSP's, RRIF's etc.
Please write your comments in the forum.