When so much of your financial life is intertwined, doesn’t it make sense to have tax planning, estate planning and investment advice under one roof?
We think so. We offer this service to all our clients, not just the ultra-wealthy. Our clients see the benefits of consolidation. They feel the confidence that comes with knowing experts from different fields are working together for their well-being. And they especially feel it at tax time.
Most people are shocked by how much they can lower their tax bill with a simple investment strategy. In fact, the Canadian government and the Canada Revenue Agency (CRA) actively encourage through investment programs like the Registered Retirement Savings Plan (RRSP). Use the Globe and Mail’s RRSP Tax Savings Calculator to find out how your contributions could lower your tax bill. This is only the first part of the RRSP tax benefit equation, though.
The second half is taking full advantage of the RRSP’s long-term tax benefit: the tax-free growth of the assets you hold in your RRSP. Achieving this requires an investment strategy that prioritizes safe growth opportunities with limited potential for significant losses.
Your Optimize advisor will create an RRSP portfolio tailored to your needs, decreasing your yearly taxes, increasing the size of your retirement savings, and helping you achieve your unique goals.
When it comes to taxes, doing well with your investments is a double-edged sword because better returns lead to more yearly income and a higher tax bill. A smart investment strategy will pay in the long run. But giving attention to the tax implications of your investment choices can also help you in the short term. This kind of extra thought is what sets the Optimize experience apart.
Diversification includes a mix of return potential to minimize your taxes. Stocks, bonds, funds, gold, cash and crypto will grow at different rates. Building the right mix and allocating assets to the appropriate accounts, such as RRSPs or TFSAs, can help manage your tax burden. Your Optimize advisor can show you some interesting options.
Leverage the global advantage.
Your Optimize advisor can also show you investment account types that offer tax credits or reimbursement for taxes paid abroad. For instance, US stocks held in an RRSP are exempt from the withholding tax.
Offset capital gains with losses.
When an asset loses too much value, it makes sense to cut bait. It happens to even the best investors. But it’s not all terrible. You can sell the asset and subtract the loss from your total capital gains tax obligation. Your Optimize advisor will show you how to do this, and how to maintain a diversified portfolio after a sale.
As a member of the Optimize family, you’ll receive expert financial and tax advice throughout the year. You can talk to us about your estate planning and have your will created here. And you can use our insurance brokerage to get the best rates.
For years, this kind of comprehensive service was only offered to the wealthiest families. We believe everyone who wants to protect their wealth with intention should have the opportunity, and we’re here to see that they do.
*This article is for informational purposes only. Please refer to a licensed tax professional for tax advice.