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Email this11:04 am
April 27, 2017
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Interesting that average balance continues growing with age even passed 80. Suggests people use TFSAs as tax efficient inheritance pots rather than maximizing tax-efficient funding of their reimbursements.
11:25 am
October 27, 2013
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Plus it may be that those seniors are not in need of their full minimum annual RRIF withdrawals and use the funds to contribute to TFSAs. My ex and I both do that, i.e. our minimum RRIF withdrawals come out in mid/late December and some of that withdrawal funds TFSAs a few weeks later on Jan 2nd.
For the most part those 80 and older have been retired for the full life of TFSAs since 2009, no longer have debt or employment income related expenses and are in withdrawal mode anyway. Those aged 80 today were age 65 in 2009.
11:41 am
October 13, 2023
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mordko said
Interesting that average balance continues growing with age even passed 80.
Could survivorship issues play a role in this? Fewer holders but increased value?
11:51 am
October 27, 2013
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Case1030 said
Could survivorship issues play a role in this? Fewer holders but increased value?
Good point and a logical conclusion because I think any unused contribution room is lost when the TFSA is transferred over to a successor holder.
5:50 am
November 18, 2017
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I've been maxed out on TFSA accounts since the beginning, and only once took a withdrawal to do the end-of-year transfer thingie. Zero unused contribution room but just a bit over $100K total. The tax-free function, though, allowed me to reduce my taxable income enough to get increased benefits.
I have the cash ready for the new year already.
RetirEd
7:34 am
March 30, 2017
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instead of total asset size which incl the contribution, it will be interested to see the breakdown by return vs principal. Obv for the 5MM guys, its all returns more or less.
For a more moderate risk account, I think 50%-100% ROI is considered normal.
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