Current Investment Portfolio
A common problem we see is holding both equities and fixed income in the same account.
Recommended Investment Portfolio
Instead, by holding your equity and fixed-income investments in specific accounts, you can increase the tax efficiency of your portfolio.
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: Full portfolio liquidation in 12 months, Fixed Income grows at 4%, Equity grows at 8%, Average Tax Rate of 40%, Non-Reg accounts produce capital gains.
Bonds, GICs, savings accounts, etc. should be held in your RRSP, RRIF, LIRA, & LIF
Stocks, ETFs, etc., should be held in your TFSA, Non-Registered Accounts, & Corporate Accounts
Here is a quick video to help explain this strategy further