February 2023 – When it comes to choosing investments, its not how much you make, its what you get to keep in your pocket that matters. Investing in a non-registered (taxable) account offers opportunities to reduce and/or defer tax, but only if you understand the difference between how interest, capital gains (and losses) and dividends are taxed. The use of tax efficient products and receiving ‘return of capital’ cash flow can also favorably impact your taxes and may increase your government entitlements too.
Considerations will also include age, goals and objectives, risk tolerance and time horizon including if and when you may need income or access to capital. Talk to your Wealth Advisor to find out what makes the most sense for you.
