Mary and Susan are a married same sex couple. They have been married for 25 years and own their own home. Their home is valued at $850,000 and they have a $200,000 mortgage. Mary will be 50 this year and Susan will be 45 this year. Mary works for Bell Canada and earns $125,000 per year. She is a member of a DBPP that will provide her with a pension of $60,000 per year at age 65. Mary contributes 6% of her salary to the DBPP annually. This contribution is matched by Bell Canada. The pension entitlement represents 2% of her salary over the best 5 years of employment. Susan works as an office administrator for ABC Company and does not have any form of pension plan. Susan earns $45,000 per year. Their number one goal is retirement planning. Mary loves her job and plans on working until she is 65. Susan wants to retire when Mary does so that they can enjoy retirement and travel extensively. There assets and liabilities are as follows. Mary RRSP $25000 Susan RRSP $13,000 Susan Spousal RRSP $275,000 Mary Income $125,000 Susan Income $45,000 Home Value $800,000 Mortgage $200,000 Mary TFSA $55,000 Susan TFSA $10,000 12. Assuming you are Susan and Marys financial advisor what advice would you provide them in terms of the use of TFSAs

a. Are TFSAs appropriate strategy for Susan and Mary? Why?

b. What is the yearly TFSA limit?

c. What are the benefits of using a TFSA?

d. What savings goals are TFSAs used for?

e. If they have never contributed to an TFSA what would their limits be? (Assume the year is 2019)

f. What happens as it relates to TFSA limits if a withdrawal is made from a TFSA?