Retirement Planning Wisdom
Converting Income to the Right Type with Corporate Class Funds
Investing for income can mean that you have to chose between the most appropriate investment and the most tax-efficient one. You can convert investment income into the right type using corporate class funds. The most highly taxed income is interest. There is a significant benefit for you if you can convert interest income into dividends…
Read MoreTFSA, RRSP or Both?
Ever since tax-free savings accounts (TFSAs) were introduced, there has been a debate about which is the best for retirement investments – TFSAs or RRSPs? To fully understand this debate, you need to consider your tax rates before and after retirement, including the clawbacks on seniors. I have seen no other articles anywhere that properly…
Read MoreClawback Strategies
In Canada, government benefits are often paid only to those with lower incomes and then “clawed back” based on your income. Clawbacks are really additional income tax. Understanding clawbacks is a critical part of knowing whether to invest in RRSPs or TFSAs. The correct answer depends on your tax bracket while working compared to your…
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