Tax Strategies
The Optimal RRSP Contribution
In RRSP season, you may wonder “How much should I contribute to my RRSP?” The proper way to figure this out is to identify your “optimal RRSP/TFSA contribution”. Understanding how to figure out the very best RRSP contribution to make is a vital concept. It is a key factor in every retirement plan. This article was…
Read MoreThe Optimal RRSP/TFSA Contribution
Now that we are in RRSP season, you may be wondering “How much should I contribute to my RRSP?” The proper way to figure this out is to identify your “optimal RRSP/TFSA contribution”. This is a key factor in every retirement plan.
Read MoreConverting 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 MoreTax-Efficient Income
Once you retire, it is important to understand how all your income will be taxed. Your investment choices will affect the type of income your receive. You can save a lot of tax by knowing which type of income is taxed the least by your income level. This article was written for The TaxLetter, a…
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…
Read MoreTFSA vs RRSP – Clawbacks & Income Tax on Seniors
“The future ain’t what it used to be.” – Yogi Berra Tax Free Savings Accounts (TFSA’s) were announced in the 2009 federal budget. At first, it seemed they would be not nearly as useful as RRSP’s since there would be no tax refunds for contributing. However, we are starting to analyze TFSA’s and it seems…
Read MoreTax-Free Savings Account (TFSA) – How should we use it?
The only reason I need these gloves is ’cause of my hands. – Yogi Berra 2009 brings one exciting new development – TFSAs. You may have seen a bunch of news coverage about them. We consider them to be the best new retirement savings vehicle since RRSPs. For many, perhaps most Canadians, they will be…
Read MoreTFSA vs. RRSP – Best Retirement Vehicle?
“You give 100 percent in the first half of the game, and if that isn’t enough, in the second half you give what’s left.” – Yogi Berra Tax Free Savings Accounts (TFSA’s) will be available in 2009. Should we be using them instead of RRSP’s to save for retirement? The short answer is that there…
Read MoreIs 100% Tax-Efficient Investing Possible?
One of the 3 D’s of tax savings is Defer. Paying tax some time far in the future is much better than paying tax now. One of the most effective ways of getting huge, compound growth in your portfolio is to pay as little tax as possible along the way. This is why RRSP investments…
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