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TORONTO, Oct. 10 /CNW/ -- TORONTO, Oct. 10 /CNW/ - Mackenzie Investments today announced it is among the first mutual fund companies to make available applications for Tax-Free Savings Accounts (TFSA). Starting today, Canadian investors 18 years of age and older can complete their Mackenzie Tax-Free Savings Account application with contributions accepted beginning January 2, 2009.

A variety of investments will be eligible for investment in a Tax-Free Savings Account at Mackenzie including:

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- Equity mutual funds
- Fixed income funds
- Asset allocation funds
- Target date funds
- Segregated funds
- Money market funds, and
- Deposits(1)
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"Now we can all say 'yes' to saving and 'no' to tax," says Wilmot George, Specialist, Tax and Estate Planning with Mackenzie Investments. "The government has built a great investing tool with the Tax-Free Savings Account, but with a product this versatile, advice is key. A financial advisor can help you figure out how it fits into your overall financial plan."

The Mackenzie Tax-Free Savings Account will, as permitted by federal law, allow individuals to deposit up to $5,000 every year. Savings can grow, and be withdrawn at anytime, without incurring any tax. And the money can be used for any purpose, from short-term saving opportunities such as buying a new car, to home renovations, to longer-term retirement needs.

For more information on the Mackenzie Tax-Free Savings Account, go to www.mackenziefinancial.com/tfsa, or talk to your financial advisor. Your advisor can also provide more information on the Mackenzie TFSA High Interest Cash Builder.

Sample TFSA investors:

While suited to anyone with investible assets, a Tax-Free Savings Account can fit into different investors' life stages for varying purposes. A financial advisor can help Canadians build a TFSA into their overall investment plan, but here are some examples of who a TFSA is suited to:

Flexibility Seeker

Canadians interested in investing money each year, but reluctant to lock away assets long term for fear of unpredictable ad hoc expenses such as car repairs, home renovations or emergencies. The TFSA is an attractive alternative to taxable investment accounts.

Low-Income Investor

Typically younger Canadians in a lower tax bracket, these investors may prefer to forego up-front RRSP tax deductions in exchange for the tax-free growth and withdrawals of a TFSA - particularly if they expect to withdraw the money later when they're in a higher tax bracket.

RRSP Maximizer

Higher-income earners who are able to maximize their RRSP contributions each year. Excess assets can be invested in a TFSA for additional tax saving opportunities. Plus, the tax refund generated from RRSP contributions can be used to further increase TFSA contributions.

Income Splitter

Married or common-law couples now have another way to split income outside of an RRSP. Where there is one primary income earner in a family, each spouse or common-law partner receives $5,000 of TFSA contribution room each year - unlike RRSPs, TFSA contribution room is not based on income earned. The primary income earner can contribute $5,000 to his or her own TFSA, and give $5,000 to fund the TFSA of his or her spouse or common-law partner, allowing for tax-free growth on $10,000 each year.

Satisfied Senior

Seniors with excess cash flow (possibly from mandatory Registered Retirement Income Fund (RRIF) payments) can use a TFSA to accumulate tax free growth. And, withdrawals from a TFSA can be made without fear of reducing government benefits such as Old Age Security and the Guaranteed Income Supplement.

Mackenzie Investments: Mackenzie Investments was founded in 1967, and is a leading investment management firm providing investment advisory and related services. With $64.7 billion in assets under management as of September 30, 2008, Mackenzie Investments distributes its services through a diversified network of third-party financial advisors. Mackenzie Investments is a member of the IGM Financial Inc. (TSX: IGM) group of companies. IGM Financial is one of Canada's premier financial services companies with over $118 billion in total assets under management as of September 30, 2008.

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(1) The Mackenzie TFSA High Interest Cash Builder will be a guaranteed
deposit offered through M.R.S. Trust Company, a federally-regulated
trust company and a wholly-owned subsidiary of Mackenzie Financial
Corporation. It will offer capital protection while providing
competitive interest rates and will be eligible for Canada Deposit
Insurance Corporation (CDIC) insurance subject to maximum limits.
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