“To invest successfully over a lifetime does not require a stratospheric IQ, unusual business insight, or inside information. What’s needed is a sound intellectual framework for decisions and the ability to keep emotions from corroding that framework.”
~ Warren Buffett
Don’t pay tax on someone else’s gains
“So who needs to watch out for this? Just mutual fund investors looking to make large purchases in taxable accounts before the end of the year. If you are buying individual securities you are safe because they won’t have these type of year-end distributions. If you are buying mutual funds in a tax-sheltered account like an RRSP or a TFSA you are safe because any distributions are tax sheltered. And, realistically, if you are making a small mutual fund purchase you may be just fine because the tax bill may not be a noticeable amount.”
Posted in All Columns, Income Tax Planning