Tax Advisory Tax-Efficient Investment Planning
At Sophia Financial, tax-efficient investment planning is crucial to ensure you gain maximum benefit of every dollar of your hard-earned money within the regulations put forward by the Canada Revenue Agency. This may involve deferring taxes through different types of investments such as Registered Retirement Savings Plans (RRSPs), or Tax-Free Savings Accounts (TFSAs), but can also involve structuring investments within your accounts to benefit from the lower taxation rates on specific types of income such as dividends and capital gains.
As part of our financial planning process, we review your portfolios to help ensure that tax efficiency is maintained at all times. This includes reviewing current as well as future tax liabilities.
At specific stages in your life, this planning takes on even more importance. For example, after retirement, it is important to review your various income streams from pensions, investments, real estate income and annuities to make sure they are well coordinated to pay the least amount in taxes. Tax planning is also crucial when families go through divorce or separation to review the tax treatment of property divisions and support payments. Finally, tax-planning issues need to be addressed in the process of estate planning and the transfer of assets to the next generation. Solutions may involve trusts and the use of tax-free life insurance proceeds.