What if you could keep more money without investing one more dollar? It sounds too good to be true. But it is all about where you put things.
In this clip, Tony shows three investors. They each have the same $1 million. Half is in an RRSP. Half is in a regular cash account. They all earn 10%, or $100,000 a year. They all pay a 50% tax rate.
Investor 1 keeps stocks in the RRSP and mortgages in the cash account. All $100,000 is taxed in full. They pay $50,000 in tax and keep $50,000. Half goes to the government!
Investor 2 owns the same things but flips them. Mortgages go in the RRSP. Stocks go in the cash account. Now the stock gains are only half taxed. They pay $37,500 and keep $62,500. That is $12,500 more, just for swapping.
Investor 3 keeps mortgages in the RRSP too. But in the cash account, they buy into an apartment limited partnership. It gives them a tax deduction of about $75,000. That wipes out the $50,000 of taxable income. They keep all $100,000. And they still have $25,000 in deductions left over!
What can you do with extra deductions? Three things:
- Use them against other income, like your paycheque or pension.
- Go back up to three years and get past taxes refunded.
- Save them for up to 20 years and use them when you need them.
Same money. Same return. Very different results.
Watch the clip, then book a call. Let’s see where your money is sitting.
Get the full webinar and slides
Want to see the whole presentation? Fill in the form below, and we will email you the full Tax Efficient Portfolio, Explained webinar video and the slides.
This post is general information only. It is not tax or investment advice.
Leave a Reply