The good news is that Tax Free Savings Accounts (TFSAs) are finally garnering wider use, according to a recent study showing that 50% of all Canadians now have a TFSA, up 23% from 2012.
The bad news is that while 68% claimed to be knowledgeable about TFSAs, only 1 in 10 were able to identify the various types of eligible TFSA investments. Worse yet, 70% of all investments in TFSAs are held in low yielding cash or cash equivalents investments.
Why is this important? In my opinion, these results prove that the vast majority of people are under-utilizing the tremendous long-term benefits of these TSFA plans.