Are Your Investments Tax Efficient?
When it comes to securing your retirement, the types of accounts your investments are held in is crucial.
Why you ask? It’s all about TAXES! TAXES! TAXES! TAXES! TAXES!
Holding an investment in the wrong account can lead to a hefty tax bill.
A quick review of a recent investment statement can stop you from needlessly overpaying thousands of dollars in taxes.
Simply email us a recent investment statement and our team will gladly review it for tax inefficiencies.
Save Thousands of Dollars In Taxes
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.
Results
Judy and Dave's investment risk is still the same, however, their tax savings could be as high as
$95,000* in under 12 months
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.
Want to review yourself?
As a general rule of thumb
Fixed Income
Bonds, GICs, savings accounts, etc. should be held in your RRSP, RRIF, LIRA, & LIF
Equities
Stocks, ETFs, etc., should be held in your TFSA, Non-Registered Accounts, & Corporate Accounts
Watch this video!
Here is a quick video to help explain this strategy further