Use Your Car to Get Tax Free Savings

A recent news report said that Canadians are notcontributed since TFSAs began in 2008. (You might
saving nearly enough money to ensure theirwin; don't be so pessimistic.) Anyway, that might
continued financial security. Our pensions are ineven be as much as $15,000 if you haven't made
jeopardy, too. So, in 2008, the Canadian governmentany contributions so far-a lot of bucks the feds can't
was worried enough about our savings habits theytouch. And there's no limit-every year, another $5000
introduced Tax Free Savings Accounts-TFSAs-togets added to what you're eligible to contribute. Or,
encourage us to save more.put in a bit every month. You don't have to put in
A TFSA allows every Canadian aged 18 years orthe whole $5000 all at once.
older to contribute up to $5000 in after tax dollars toSounds appealing, doesn't it? Or, are you thinking,
a TFSA. You can take the money out again"Nice idea, but where will I ever get that kind of
whenever you like-no hidden penalties, taxes, orcash"? Think your car-or truck-or any other vehicle
other limitations, either. And you can contribute onyou own that's under eight years old. You can apply
behalf of your spouse or common-law partner,for a car title loan and use your vehicle as collateral.
income splitting to benefit the higher wage earner inEven if you have bad credit or a bankruptcy in your
your home. You can contribute to a TFSA for othercredit history, because your car is your collateral
family members, too.against the loan, odds are you'll get the loan since it's
A TFSA can help you set money aside for yoursecured. You get to keep your car, and get a wad
children's education, a special family vacation, or aof cash, possibly as much as 40% of the wholesale
down payment on a new home. Because the interestvalue of your vehicle.
you earn on your deposits isn't taxed, and there areThat's a good start on a TFSA. Think about those
no penalties for taking your money out wheneverthings you want, like a down payment for a new
you want, TFSAs are a great way to save morehome, something really special for yourself, or maybe
money faster. TFSAs also do not affect your GSTa family vacation. Use a car title loan to get you the
credit, Old Age Security, the Child Tax Credit orcash to jumpstart your savings for that extra special
other similar federal programs.purchase. Don't wait to see if you can make life
And, if you can only save a portion of the $5000better for yourself. Apply for a car title loan today.
each year, the unused amount rolls over into theIt's a simple form you fill out online. And you'll hear
next year. So, if you win the lottery next year, youback quickly, usually in less than one day. Don't wait;
can load up your TFSA with whatever you haven'tyour Tax Free Savings Account is waiting for you.