Book Review
Léo Richer | Chair, Pension and Financial Wellness Committee
The Ultimate TFSA Guide
Gordon Pape, a Canadian fi nancial author, gives a
primer on how tax-free savings accounts should be the
foundation of every Canadian adult’s plan for fi nancial
independence.
TFSAs were implemented in
Canada on January 1, 2009. Since
then, many Canadians have been
able to set aside up to $63,500
in tax-free money. In addition,
any growth accumulated in the
plan does not incur any tax and
the sum total can be transferred
tax free to a surviving spouse or
common-law partner. Cash can be
taken out of the plan at any time
tax-free. Upon death, benefi ciaries
can receive the assets of a TFSA
tax-free and the plan would then
be terminated.
This book is an easy read.
The book is divided into
sixteen chapters and is well
structured. Most chapters end
with a summary to review the
major concepts and outline
strategies one should undertake.
It gives a history of TFSAs, its
basic rules, and the ‘magic’ of
TFSAs. It compares registered
retirement savings plans (RRSPs)
and tax-free savings accounts
(TFSAs), explains the practical
uses of TFSAs, gives tax-saving
approaches, and gives tax-relief
advice for seniors. One chapter is
dedicated to estate planning: the
highlight is that money generated
in TFSAs does not attract any tax
at death. According to Pape, one of
the priorities of older people who
want to maximize the after-death
value of their estates should be to
move as much money as possible
from non-registered investment
accounts into TFSAs.
Other chapters include topics on
how to invest, dangers with TFSAs
to be avoided, and choosing a
plan. The book ends by answering
common questions provided to the
author by interested readers.
Gordon Pape has written at least
three books on TFSAs. The one
reviewed here is his second, and
his third book is called Tax-Free
Savings Accounts Revised
Edition: How TFSAs Can Make
You Rich.
Pape promotes tax-free savings
accounts as the most powerful
investment option for Canadians
since the introduction of RRSPs
more than a half-century ago.
Properly managed, they off er an
opportunity for even modest-
income earners to amass a small
fortune over time — and perhaps
even attain millionaire status. ●
The Ultimate TFSA Guide:
Strategies for Building a
Tax-Free Fortune
by Gordon Pape
Toronto: Penguin Canada
2010
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