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Wealth Professional | 13 Nov 2015, 09:00 AM Agree 0
Dialing back the TFSA to $5,500 was a popular campaign promise, but advisors are now asking Justin Trudeau to ditch the plan in order to protect the people who ushered him to power
  • Fred Godbolt | 13 Nov 2015, 10:48 AM Agree 0
    I completely agree (and share the same client experience) as Glen Rankin
  • Michael (advisor) | 13 Nov 2015, 10:56 AM Agree 0
    I completely agree with Glen. This potential change to the TFSA limit hurts middle class more than the wealthy.
  • Niki | 13 Nov 2015, 11:36 AM Agree 0
    The only people the TFSA reduction in contribution limits hurts is the middle class. Does anyone really believe--of those who dove head on into the Liberal rhetoric--that reducing the contribution room to $5500 from $10,000 would have any effect on the wealthy? Let's test that notion shall we? What would someone with a 10 million a year income do with a TFSA that has reduction room reduced by 4500 a year? Does anyone really think they even notice it at year end when the tax effect hits home? Promises made on false assumptions are... .
  • Ken MacCoy, CHS | 13 Nov 2015, 03:11 PM Agree 0
    My esteemed colleague, Glen Rankin, and I don't always agree. However, in this case Glen hit the nail on providing not one, but two logical reasons why the TFSA rollback from $10,000 to $5,500 does NOT make sense.
  • Russ | 13 Nov 2015, 10:57 PM Agree 0
    I agree that the difference between putting $5K and $10K into a TFSA is insignificant to the wealthy multimillionaire, but that doesn't mean the Liberal plan doesn't make sense. The very example cited, that of the senior citizen moving money from a non-registered account (or, I might add, unneeded funds from a mandatory RRIF distribution) suggests that the senior is rather well off indeed. The other people likely to contribute to a $10K-annual-limit TFSA are folks with a discretionary income substantial enough that they can afford to put away that much extra money and not have it materially affect their lifestyle. They may not be "wealthy" as this article seem to define the term, but they are by no means the typical middle-class person who would find it difficult to absorb the impact of even a slight increase in interest rates on their mortgage. Frankly, I think that if you have the means to put $10K into your TFSA, then you don't need to.
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