Bonds, GICs, savings accounts, etc. should be held in your RRSP, RRIF, LIRA, & LIFF
Stocks, ETFs, etc., should be held in your TFSA, Non-Registered Accounts, & Corporate Accounts
Here is a common asset allocation on the left. A more tax-efficient solution would be the right. The same exact assets allocation between equity and fixed income, however the different location of the assets creates more tax efficiencies.
Current Asset Allocation
Recommended Asset Allocation
Important: The calculations are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. These calculations are shown for illustrative purposes only because they utilize return data that may not include fees or operating expenses, and are not available for investment. The views expressed are those of Trans Canada Wealth Management and not necessarily those of Harbourfront Wealth Management Inc., a member of the Canadian Investor Protection Fund.
*Assumptions: No withdrawals, Fixed Income grows at 4%, Equity grows at 8%, Average Tax Rate of 40%, Non-Reg accounts only produce capital gains.
Here is a quick video to help explain this strategy further