Income Tax Planning

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…

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It’s not what you make, it’s what you keep

“The question is not, ‘Can I grow money outside of an insurance policy?’; Or, ‘Will there be short-term volatility in the equity markets?’’; Or even, ‘Do I need more earned income in the current tax year?’ The real question is: ‘Am I doing what I need to in order to meet my objectives?’ It’s not what…

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The battle of the heavyweights

“The bottom line is that RRSPs and TFSAs are both great planning tools, but neither is intrinsically superior to the other. Which one is right for you will be determined by your objectives and your personal circumstances, including; what do you want to use the money for, when do you want to use the money,…

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Using the right tool for the job

“Sometimes people say to me, “I hate RRSPs.” Honestly, that statement does not make a lot of sense. A Registered Retirement Savings Plan is just a tool to get a job done. It would be like someone saying, “I hate hammers,” or “I hate needle nose pliers.” Usually when people tell me that they hate…

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A Lousy Use of a Great Opportunity

With the Tax Free Savings Account you will pay less tax. I’m a big fan. Who doesn’t want to pay less tax? I just think that a lot of people aren’t using TFSAs as effectively as they could. Here’s how it works: With a TFSA you invest your money as appropriate to your objectives. There…

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