HOW MUCH TAXES DO WE PAY? The percentage of tax that Canadians pay is completely outrageous. While some taxes appear to be reduced, others are increased and new ones added, to continually increase revenues for our politicians to squander.
HOW WE AVERAGE 18.90% FOR THE LAST 11 YEARS USING A COMBINATION OF DEMOGRAPHICS AND CONNECTING THE DOTS? 2007: Israel was at war with Lebanon. In August the markets were still flat for the year. In that year, the famed Harry Dent predicted it was going to be a banner year. But the markets hate uncertainty and was not going up. Fearing the markets were heading into the yearly correction period Sept/Oct, Harry Dent told everyone to get out of the markets.
HOW TO AVOID THE RRSP TRAP – TAX TIME BOMB? One of the biggest mistakes we make as investors is forgetting just how much TAX we will pay to CRA, if we continue to blindly add to our RRSPs without thinking about how much tax you are going to be faced with in retirement.
BEFORE YOU BUY RRSPs THIS YEAR, CHECK OUT OUR RETURNS – Last year was another strong year for our clients with robust returns from the following areas. Asian Pacific led the way as both China and Japan had very healthy years and are expected to do the same again this year. The annual return last year in this area was 27.1%. After only one week these funds are leading the way again up 2.71% . Do not miss out on this market.
HOW WE USE THE TAX YOU HAVE TO PAY TO FUND A TAX DEDUCTION AND BUILD WEALTH? First let’s update what the markets have been doing. In my last article I pinpointed that we should start seeing the benefits of “Trumps big Tax cuts”. As it takes 3 -6 months after he announced the cut’s in November to show up in the economy. Since we had just entered the earnings season in which first quarter earnings were announced I was eager to see my prediction come true.
A CASE STUDY REVIEW AND RESULTS AFTER JUST ONE YEAR – We will call this case study RR. RR was referred to us by an existing client who was very happy with what he had done with us in a short time period. RR who is 35, was a self made investor who had accumulated $100,000 in his RRSPs.