I have had many conversations with folks recently about the New Year and how on earth could it possibly be 2020. It seems like yesterday we were talking about the year 2000! As the old saying goes: “time flies,” well this brings me to the topic of TFSA contributions for 2020.

It was only 11 short years ago that the TFSA was launched. The cumulative contribution is now $69,500 if you were 18 years of age or older in 2009.

This year’s contribution limit is $6,000. If you haven’t made your contribution yet this year, then act quickly to take advantage of the tax free compounding in your TFSA.

With all the focus on Tax Free Savings Accounts, don’t forget to make your RRSP contribution.

The RRSP maximum contribution limit for 2019 is 18% of the prior year’s earned income with a maximum of $26,500. The deadline is March 2, 2020.

For 2020, the contribution limit is 18% of the prior year’s earned income with a maximum of $27,500. The deadline is March 1, 2021.

Wishing you a wonderful 2020,

Jim Seyers

“How will you replace your current income in retirement?"