Tuesday, April 5, 2011

Thing 20: Contribute $10,000 to my TFSA

The government kindly advised me that I have $15,000 of contribution room available in my TFSA.  I found this interesting as I don't have a TFSA.  How can there be room in something I don't have?  But I really should have one.

At work, I participate in our GSOP program, which allows me to buy stock in my company with the company matching a portion of what I contribute.  I participate and have since I started there a year ago.  But they don't offer the GSOP program through an RRSP or our RPP or a TFSA.  So my plan is to transfer some of my stock out once a year into a TFSA.  This is where the bulk of the $10,000 will come from.  The rest will come from Thing 101, which is putting $25 into a savings account for every Thing I finish.  This savings account will also be a TFSA.

I've tweaked this slightly to read "Contribute $10,000 to my TFSA" from "Reach a balance of $10,000 in my TFSA" because my eggs are all in my company's basket and with the current interest rate environment, our stock keeps falling since low interest rates are bad for us. So, I'm going to contribute $10,000 instead of worrying about having a balance of $10,000. 

How will I know I'm done?
I will have contributed $10,000 in whatever TFSA account(s) I have.

How am I doing?
So far, I've made a $6,800 contribution to my TFSA by transferring shares from my company GSOP program and I have contributed $950 to my 101 Things TFSA. 

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