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Our Official Website : http://www.guaranteedinvestments.com
 What
is Tax Planning?
The creation
of a plan specifically designed to minimize the amount of tax
payable or at least deferring payments as much as possible in
compliance with the tax legislation of Ontario, Canada.
Understanding
the Tax Planning Concept
Tax Planning
is a vital part of the Financial Planning Process and is a year
round activity one must do.
Whatever your age or income may be, there are steps you must take
in order to reduce the overall taxes you pay. Under the Canadian
Tax System, the more you earn the higher tax rate you have to
pay. Marginal Tax Rate or Tax Bracket
is basically the tax rate you pay on the last dollar you earned.
This is an important theory you must know as this will determine
how much you would save by reducing your taxable income.
Example:
Let’s assume your marginal tax rate is 25% and you contribute
$1,000 to your Registered Retirement Savings Plan (RRSP) – You
would save $250 just in taxes.
Tax Planning
in Canada
Every year,
approximately 25% of Canadians do their tax planning for the year
– they make their yearly contribution to their RRSPs. In some
cases, this is actually not tax efficient for some people. However,
the main issue here is that there are dozens of simple things
that investors can do to minimize their tax burden on a year after
year basis. Whether an individual is still working, is approaching
retirement, or is retired, a simple review of one’s investments
and investment strategies can potentially save a family thousand
of dollars per year.
 Tax
Planning Considerations
Individuals
need to consider Asset Allocation Strategies, Investment Selection
Strategies, Income Splitting Strategies, Estate Planning Strategies
and much more in deciding what types of investments to hold in
either their non-registered investments or registered investments
including RRSPs, or RRIF (Registered Retirement Income Funds).
Individuals either working for a company or whether they are self
employed need to educate themselves and investigate some of the
benefits of investing into Guaranteed Investment Funds, Segregated
Funds, Prescribed Annuities, Back to Back Annuities (also known
as insured annuities) and other types of investments at Guaranteedinvestments.com
that can provide immediate and deferred tax relief.
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