Lower My Tax Payments

By on February 25, 2013

Lower My Tax Payments

 

Like all Canadians, you pay your fare share of taxes. You do need to know that there are CRA approved strategies to lower your tax payment.

While you are working you can access…

  • RSP – Savings designed for retirement. All income is tax sheltered during your saving phase. Your benefit is that all money placed into a RSP will qualify for a tax refund at year end.
  • TFSA – Savings designed for pre-retirement or after retirement. Interest is tax sheltered.
  • IPP – Individual Pension Plan. This is for people who are high earners and have maximized their RSPs. The rules are similar to RSPs and you can place more funds into these structures.
  • Charitable giving with life insurance – This concept allows you to have a tax deduction annually or at death. In addition you leave a legacy for your favourite charity and the premiums are usually a lot less than the tax bill you would have paid.
  • Guaranteed Life Withdrawal Income – Allows you to save funds with a minimum 5% annual guaranteed increase to your account value.
  • Alternative investments that can be placed inside your RSP, IPP or TFSA.

When you retire, and accessing your money, you can use your:

  • RSP at a high tax rate.
  • TFSA with no tax payable.
  • Savings and investments – Tax is payable only on income generated annually.
  • Annuities – Taxed at a much lower rate than income from savings or investments.
  • Guaranteed Life Withdrawal Income – Taxed similar to savings and adds a guarantee of annual income starting after age 65.

At Marathon we help you choose the best combination of solutions to fit your family’s needs and plans.