The tax-free savings account (TFSA) is the favourite investment choice for Canadians.
According to the most recent Manulife Investor Sentiment Index, it has remained the favourite choice since the index began tracking it in December 2010.
Prior to the introduction of TFSAs, RRSPs were the most popular investment choice for the 15 years that Manulife has been publishing the index.
According to the Department of Finance, only three years after its introduction, the TFSA has approached the RRSP in terms of contribution flow even though TFSAs are drawn from after-tax dollars.
Results from the index show that Canadians’ preferences in savings vehicles are in order of preference: TFSAs, RRSPs, registered educations savings plans, mutual funds and segregated funds.
The index also notes that Canadians rank investing in their own home (58%) and paying down debt (29%) as their top financial priorities.
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