According to a recent poll conducted for CIBC, most Canadians have never spoken with a financial advisor about how to make the most of their Tax Free Savings Accounts (TFSAs), and half are unsure about what they may hold as investments.
The survey of more than 3000 Canadian adults revealed that 80% of Canadians have never consulted an advisor about their TFSAs, and 50% admitted they were not sure what they are able to hold.
While 40% of those surveyed knew they could keep cash in an interest-bearing savings account in their TFSAs, only 23% knew they could hold bonds, and just 22% knew they were permitted to hold shares of publicly-listed companies. What's more, only 49% of the respondents were aware of the fact that unused contribution room can be carried forward and accumulates in future years.
"It seems most people still view TFSAs as rainy day funds rather than vehicles to help them achieve their longer-term financial goals, such as building up your retirement nest egg or saving for a down payment on a house," comments David Scandiffio, president of CIBC Asset Management.