Many people understand what a TFSA is but for those who don’t, I will briefly explain. A TFSA is a Tax Free Savings Account to which a Canadian over the age of 18 can deposit funds or equivalent securities up to a fixed amount each year without having to pay tax on what they withdraw.

What I would like you to consider, is a situation that currently is not offered but should be offered. The government should allow life annuities to be bought and held inside a TFSA. This would enable people to receive tax free periodic payments for the entirety of their life. Not only would it help Canadians but it would greatly increase participation in the TFSA program.

Doing something of this nature would be another financial vehicle to provide for retirement. Of course you would need enough funds inside your TFSA to buy an annuity however over time this will occur.

Please consider the above suggestion and write to your member of Parliament if you think it makes sense. Suggestions for the upcoming budget may be helpful.