Tax Strategies
TFSA or RRSP? – The Right Answer for You
TFSA vs. RRSP is one of the most common questions I am asked. If you want to know for sure which is better for you, then you need a financial plan. Many articles have been written on this topic that list pros and cons with general opinions. The truth is that: When you include the…
Read MoreRRSP Gross-up Strategy – Easily Contribute 40-70% More to Your RRSP
Wouldn’t it be great if you could save a lot more for your future without affecting your day-to-day cash flow? One of the main things people learn when they first have a retirement plan done is that you need to invest more than you thought to have the future that you want. But with all…
Read MoreShould I Delay CPP & OAS Until Age 70? – Complete Answer with Real-Life Examples
Most seniors start their CPP and OAS when they retire or at age 65, without evaluating the options. The truth is that many seniors would benefit from delaying CPP until age 70. Here is how you can figure out what is best for you. The government pensions, CPP and OAS, are full of cool opportunities…
Read MoreThe Lowest Taxed Type of Investment Income – 6 Ways to Invest for Deferred Capital Gains
Of all types of investment income, you pay the lowest tax on deferred capital gains. Paying tax 20 years from now on a capital gain is much better than paying tax on a dividend or capital gain this year. How do you invest for deferred capital gains? In recent years, many investors have been…
Read MoreCapital Gains Refund Mechanism – Why Mutual Fund and ETF Investors Potentially Pay Less Tax
When I see tax returns for do-it-yourself investors, I am often struck by how much tax they pay on their investments. Many high net worth investors also pay a lot of tax on their investments. However, when I see tax returns for mutual fund investors, most of the time they pay very little tax on their investment…
Read MoreTax Refund is NOT a Benefit of RRSPs
Getting a tax refund is one of the main motivators for contributing to RRSPs. However, there are two main benefits of RRSPs and the tax refund is not one of them. The benefits of RRSPs are: Tax-free growth (same as the TFSA). Tax gain or loss depending on your post-retirement tax bracket when you withdraw…
Read MoreSmith Manoeuvre – Convert your mortgage to tax deductible interest
This article was written for The TaxLetter, a subscription newsletter for accountants and tax specialists. It discusses the tax implications of the Smith Manoeuvre strategy in depth. Read more… TTL_Maximize Tax Savings_2013 06
Read MorePaying too much tax? How much is too much?
Do you ever wonder whether you are paying more tax than you need to? Do you hear stories about people claiming all kinds of deductions or about rich people being able to avoid tax? At tax time each year, these questions are foremost in Canadians’ minds.
Read MoreCase Study: Figuring Out Your Optimal RRSP/TFSA Contribution
In the last article, Ed Rempel discussed the steps to creating your optimal RRSP/TFSA contribution. Here is a case study to help put the steps into practice. Case Study: Optimal RRSP/TFSA Contributions for John and Mary Smith To understand the interplay between these six factors, lets look at an example. John Mary Income $100,000 $60,000 Marginal…
Read More7 Steps to Determine Your Optimal RRSP/TFSA Contribution Strategy
Put all the pieces together to create your optimal RRSP/TFSA strategy to determine the optimal contributions for you to make this year and in future years.
Read More