Tax-Free Savings Account (TFSA)

2 Overview  What is a TFSA?  Benefits  How will it work?  Comparison to RRSP  Investors characteristics

3 What is a TFSA?  TFSA offers Canadians a new tax-sheltered option for saving money as of January 2009  It allows individuals, 18 years and older to contribute $5,500 per calendar year and carry forward any unused contributions room from year to year  TFSA contributions will not be deductible, and capital gains and other investment income earned will not be taxed. Withdrawals will also not be taxed

4 Benefits of a TFSA – easy to contribute  Unused contribution room can be carried forward to future years with no limits  Any withdrawals in a year from a TFSA will be added to the contribution room for the following year  Eligible assets are the same as those for RRSPs

5 Benefits of a TFSA – tax advantages You can withdraw funds from your TFSA at anytime, for any reason.  Withdrawals are not subject to taxes, so you can keep all that you have earned  Income and capital gains earned in a TFSA are not taxable  Money you take out of your TFSA won't affect federal income-tested benefits and credits like Old Age Security, the Goods and Services Tax Credit and the Canada Child Tax Benefit

6 Benefits of saving in a TFSA Source Government of Canada

7 How will it work?  Contribute up to $5,500 a year to start  Unused contribution room can be carried forward to future years with no limits  You can hold more than one account, but total contributions across all accounts cannot exceed your accumulated contribution room in any calendar year

8 RRSP vs. TFSA TFSARRSP ContributionsNot tax deductibleTax deductible and reduces income for tax purposes WithdrawalsTax freeAdded to income and are taxed at current rates Although the TFSA is similar to an RRSP, there are some differences

9 TFSA highlights  Inception date: January 2009  Contribute up to $5,500 a year to start  Unused contribution room is carried forward indefinitely  Save and invest tax-free  Income and capital gains earned in a TFSA are tax free  Withdrawals won’t affect income-tested benefits and credits  Eligible investments: Similar to RRSPs

10 The Dynamic Funds advantage Dynamic Funds offers comprehensive investment services that cover the entire spectrum of choice, including mutual funds, tax-advantaged products and high-net-worth programs. For over 50 years, Dynamic Funds has been a financial industry pioneer, offering professional investment management to the public.

11 Important information This presentation is not to be distributed or reproduced without the consent of 1832 Asset Management. Dynamic Funds® is a registered trademark of its owner, used under license, and a division of 1832 Asset Management L.P. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.