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Tax Planning

Tax Planning is a vital component of Comprehensive Financial Planning.  Planning ahead for taxes by taking advantage of tax reduction and deferral strategies can significantly improve your after-tax return on assets and investments.  Poor tax planning results in lower annual cash flow for clients reducing the disposable income available for deposits into investment plans designed to fund your long-term financial goals.  The compounding of reduced annual free cash flow and the opportunity cost of lower investment capital throughout the client's lifetime can have a dramatic affect on the projected asset levels in the later years of the projections which can cause a later expected retirement date and reduced lifestyle in retirement.  A Comprehensive Financial Plan allows me to anticipate your tax liabilities both for investment and estate planning purposes.  Effective Tax Planning ensures as much of your money stays in your hands and that your assets can also pass on to the next generation in the most efficient manner possible to keep as much of your hard earned legacy in the hands of your heirs.


Tax Planning begins with an analysis of your current income streams, your projected income streams through retirement and how your estate assets are positioned for taxes on death.  Cash flow and investment management are considered for your tax planning strategy to keep marginal tax rates as low as possible to keep more money in your hands.  Tax Planning is also deeply intertwined with Estate Planning and Risk Management as Insurance is a common strategy used to cover tax liabilities upon death leaving other assets whole so they can be efficiently passed on to the next generation.  Analysis includes;

  • Current Marginal Tax Rates

  • Projected Marginal Tax Rates

  • Current and Deferred Tax Liabilities

    • Unrealized Capital Gains​

    • Registered Account Balances on Death

  • Composition of Taxable Income​

    • Interest Income, Capital Gains, Dividends, Pension Income, etc.​

Points of Interest

  • Coordination of Tax Planning efforts with your Accountant if applicable

  • Current Savings Allocation to RRSP Contributions to Defer Current Income Tax

  • Spousal RRSP Contributions

  • Registered Account Beneficiary Designations

    • Tax Free Spousal Rollovers​

  • Minimizing realized income and gains in taxable investment accounts​

  • Life Time Capital Gains Exemption

  • Income Splitting Strategies to lower the average Marginal Tax Rate

  • The use of Trusts for Tax and Estate Planning

  • Estate Planning to minimize taxes on death to keep assets necessary for the surviving spouse or other financial goals

  • Any legacy or charitable donation aspirations

John and Jane are twins, with the exact same financial situation.  Due to Tax Planning with her Advisor Jane has $15,000 of annual disposable income for investing while John only has $10,000
Both need an additional $250,000 in savings to retire and expect to earn 5% on investments.  In how many years can each retire?
Jane - 12.4 years
John - 16.6 years
(Jane will have the family cottage all to herself for over 4 years!!)
Taxes are the biggest drag on Wealth accumulation and a Comprehensive Financial Plan helps optimize your tax positioning to improve cash flow and returns on investments allowing you to reach your goals faster.
Fraser Institute: Taxes versus the Necessities of Life: The Canadian Consumer Tax Index 2019 Edition
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