How do you Avoid the RRSP Tax Time Bomb Trap? One of the biggest mistakes we make as investors is that we forget just how much TAX we have to pay to CANADA REVENUE AGENCY, especially if we rely on RRSP savings for our retirement income.
WHAT WOULD YOU SAY IF I SAID MONEY GROWS ON TREES? All our clients know that we have a way to create tax free income using your RRSP’s. But now we have developed a Money Tree that will feed itself and grow until you die. The best part about the Money Tree is that you do NOT need to feed it with your own dollars. Our Demographic Linked Program can transfer your RRSP’s tax free to a Tax exempt investment indirectly.
HOW MUCH TAXES DO WE PAY? 95% of all Canadians retire broke, dependent on friends, family or the federal government for their primary source of income. According to Bank of Canada and statistics Canada in 2009 the majority of Canadians spend $1.60 for every $1.00 they bring in. How much tax do we pay? Firstly Ontario has a progressive Tax system in place the more you make the more tax you pay.
WHAT IS A SEGREGATED FUND? A Segregated Fund (Seg Fund) is a type of investment fund administered by Canadian insurance companies in the form of individual, variable life insurance contracts offering certain guarantees to the policyholder such as reimbursement of capital upon death. As required by law, these funds are fully segregated from the company’s general investment funds, hence the eponym. A Seg Fund is synonymous with the U.S. insurance industry “separate account” and related insurance and annuity products.
WE ARE MAKING MONEY, ARE YOU? We continue to see the results of “Buy in November and go away in May in all the markets except the Health Care funds. After making over 20% on average for the last 5 years, these funds have been under attack since before the US Presidential election by Trump. I think he just does not like the word “Obamacare”.