PAY LESS TAX
Are you paying more tax than you need to?
If you have significant assets you don’t plan to draw from for a while, you have several options at your disposal. You can:
- Continue to invest in non-registered taxable investments. Assuming you earn on average 6% return in your portfolio, you will pay tax on the investment income every year. As your portfolio slowly grows, this tax will increase every year.
or, you can:
- Implement a tax-sheltered Universal Life (UL) to enjoy tax-sheltered growth of your investment portfolio.
Why do it?
The cost of buying life insurance is less than the cost of tax in a non-registered portfolio. By investing in life insurance, you can tax-shelter funds over and above current RRSP contribution limits (18% of earned income or a maximum of $22,000 for 2010). The earlier the plan is set up, the more compounded tax you’ll save on the growth of the investment.
Contact us today for more ideas to minimize your tax bill.