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@Parveen so we have our children’s RESPs with IA FINANCIAL, we work with a rep who does everything for us.. where would be the best place to open a tfsa? How do you even start? Does someone invest it for me or do we do it ourselves?
I have one with questrade and I filled out a form and it asks you a bunch of questions and invests for you. I obviously went for the most aggressive portfolio with the highest risk. You can set one up with your bank too. Any financial institute will do it and you can even do it online. It literally like any other bank account.
TFSA is a tax free account. Meaning when you invest in it ( buy stocks ) and you make a profit , you don’t need to pay taxes on the profit you made unlike any other account. Also in comparison to RRSP if you pull your money out of it , again , you don’t need to pay tax. Any financial institution can open this account for you. Bear in mind you have a limit of how much money you can put in it. You can see your maximum room in your CRA account. Mine is in Questrade and I invest in high risk stocks. It’s up to you how aggressive you want to spend. The rule of thumb is your basics in life ( mortgage, food, transportation, kids school, etc.) won’t get affected if you lose this amount. I started with $1200 in 2020 and I’m at capacity at the moment.
I would go to your bank and ask these questions. They will give you all the info. Some banks have phone appointment options as well. Ideally for savings and retirement. they will advise you to open a TFSA and RRSP. They will explain the pros and cons of each and they will set up the right investment for you like GIC or stocks or mutual funds. Go to your bank. These accounts are free there. PS- at one point of time I was a financial advisor in the branch of a bank advising people of the same things. It is a longer conversation hence will not give you a download here.
You have to do something with it...it's just an account like everything else. You can put it into investments like stocks etc otherwise it's a tsfa savings account.