TFSAs - make sure you use them
TFSAs I have been living in Canada since 2011. Tax Free Savings Accounts (TFSAs) have been around since 2009. When I came to Canada I knew of the existence of TFSAs but as money was tight in those first few years I couldn't take advantage of them and I didn't even research how they worked. As time passed and my income situation settled, I opened up a cash savings TFSA and started putting spare cash into it. I even maxed out my annual contribution one year. This was better than nothing but I wasn't maximizing the tax advantages that TFSAs give. For one, I was only using cash savings TFSAs. The interest rate of these in the last few years has been less than 1%, which is less than the rate of inflation. So in effect, the spending power of the money in the account was declining over time. Secondly, I didn't realise that I had unused contribution room. I had only deposited the maximum annual amount once and didn't know that you don't "lose" the unused room...