Learning About Finances: Tax-Free Savings Accounts (TFSA)

March 7, 2010 by vongsundara · Leave a Comment 

I think it’s always important to constantly be challenging your mind to learning. I always find myself reading up on new topics or listening to audio tapes on my iPod while working on other projects. Recently I’ve been focusing my efforts on learning about finances.

You see, I grew up in the ghettos of Winnipeg, and there is a much different mentality surrounding finances in poorer areas. It wasn’t a topic that was discussed a lot, and it certainly wasn’t an area where a lot of focus was placed. After starting my adult life with a series of terrible financial decisions, I have decided to learn more about how to make sound financial decisions.

The first topic I decided to research was Tax-Free Savings Accounts (TFSA), a new tax shelter introduced by the Canadian government in 2009. It’s been said to be the most significant tax shelter for Canadians since the introduction of Registered Retirement Savings Plans (RRSP) decades ago. Unlike RRSPs (which are defer your taxes until your retirement), TFSAs are completely tax free (not tax deferred).

In other words, get a TFSA right now. There’s really no reason not to get one. Each year you are allowed to contribute up to $5000. If you haven’t contributed at all yet, that means you have $10,000 of space to use in 2010.

You are allowed to withdraw from your TFSA at any time without penalty. Whatever amount you have withdrawn can be recontributed to your TFSA the following year (e.g. if you withdraw $1000 from your TFSA now then you will have an extra $1000 of contribution space in 2011). This feature makes TFSAs perfect for those looking to start an emergency fund or those saving up for a car or a home.

If you are retired then you have extra incentive to open a TFSA as you no longer have access to RRSPs after you retire. Also, money withdrawn is not counted as income.

A really important point about TFSAs are that they don’t have to be used for savings accounts at all. You can have your TFSA as your investing account. Just think about that, tax-free investing for up to $5000 a year. That’s really quite amazing for first-time investors looking to get their feet wet.

Please note that I am no financial expert, I’m just sharing the information that I am learning along the way as someone who used to be terrible at finances and hopes to be amazing before all is said and done. Always check with your financial advisor if you have one.

Also important to note is that you have to be 18 years old and Canadian to open an account. Growth (or loss) earned through investments in the TFSA account have a permanent effect on the contribution amount.

Recommended Outbound Links
Financial Post’s TFSA Centre
Canadian government’s TFSA information page
Canadian Money Forum

Filed under: Learning
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My First Live Taping, One Night Stand Up for MTV’s Logo Network

March 6, 2010 by vongsundara · 1 Comment 

Downlinke.com's One Night Stand at Great American Music Hall for MTV Logo Network

Downlinke.com's One Night Stand at Great American Music Hall for MTV Logo Network

I’m super excited to announce that I am headed down to San Francisco on Thursday, April 8, 2010, to tape a live performance to apear on MTV Logo Network called Downlinke.com’s One Night Stand Up. This will be my very first American performance, and it’ll appear on television no less! The show will also feature Rebecca Donohue, Sapna Kumar, Cathy Lewis, Ali Mafi and D.J. Pierce.

It all started a few weeks back when I was surfing the internet on my computer while updating my website. I had been wanting to implement a contact me form on my website for a while to give people a way to contact me, and I was determined to finish the form before I went to bed. Thankfully I was able to finish on time and get a good night’s sleep.

The next day, I received my very first notification that someone had left me a message using my contact form. The person so happened to be Andrea Meyerson, President of All Out Films, the production company that had produced the memorable Laughing Matters documentary a few years back. I can’t believe the timing of it all; it was too good to be true. If I had waited another day to finish my contact form, who knows what would have happened or what opportunities would have passed me by.

The poster for the show is attached at the top of this post, and I’m trying my best to hold in my nervous excitement long enough to prepare for the show. I have 20 minutes on stage and haven’t decided on the material I will be performing. I’m sure I’ll include Super Power Bottoms as the central piece, but that leaves me with another 10 minutes of stage time. I have a few weeks to come up with the material, so I’m not too worried.

Another strange coincidence is that I downloaded Lonely Planet’s San Francisco Guide for my iPhone a few months back because they had a sale on it for just $1.99. I had no intention of going to San Francisco, but I thought it would be neat to check out what Lonely Planet’s applications had to offer before I bought one at full price for a city I would actually visit. Who knew that I would end up going to San Francisco a few months later.

I’ll definitely let you know how it all went, so stay tuned for updates!

Related Outbound Links
Great American Music Hall Ticket Purchase
All Out Films homepage

Filed under: Performing
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