Financial Post | Business

You’re young, sitting on a small pile of money with an eye on the housing market but don’t know what do with that cash in the interim.

It’s a scenario that the tax-free savings account almost seems made for, given it’s flexibility in terms of withdrawal while maintaining a tax advantage. Word yesterday that the government is upping the annual contribution in 2013 by $500 to $5,500 just gives young Canadians — and anybody looking for an alternative to a traditional retirement savings plan — one more reason to choose a TFSA first.

We are seeing more and more buyers using the TFSAs as a saving vehicle as they build up their down payment

TFSAs have grown up since they were first introduced in 2009 and by next year Canadians will have had the opportunity to contribute $25,500 to their plans, enough cash that the accounts can be used for…

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