Minimizing your family’s tax obligations is a key part of the overall wealth planning process your Investment Advisor is able to provide. Your Investment Advisor can introduce several tax-minimization strategies that can benefit you and your family, including:
- Family income splitting: Income splitting works by transferring the tax liability from higher-income to lower-income family members, who are taxed at a lower rate. There are several ways to do this, including contributing to spousal RRSPs, creating formal spousal loan arrangements or establishing family trusts.
- Investing through tax-exempt insurance: In addition to providing your family with financial security, life insurance policies can also help reduce your investment taxes. You can deposit additional amounts into a life insurance policy for investment purposes, and the investment income accumulates on a tax-free basis, similar to an RRSP.
- Tax-efficient asset allocation: Your Investment Advisor can help you maximize tax-efficient investments and investment plans, including your RRSP, RRIF and TFSA.
These and other strategies are available through your Investment Advisor to help you build and protect your wealth in a tax-efficient manner.
Take the next step…talk to an advisor.
Our Investment Advisors will recommend the solutions and services that are best for you. To learn more, request a no-obligation conversation with an Investment Advisor.