There are both affective
and effective ways of doing things. With the same expense
of energy, perhaps less, you can achieve a better bottom line
simply by knowing the rules of the game and applying the techniques
and strategies available to maximize the money you keep in
good example of tax strategizing is income splitting, which
may enable you to share the tax burden with other family members.
By attributing income to other family members, you can have
them taxed at a lower marginal tax rate than your own, leaving
more after tax cash in your pocket.
Ask yourself if you are taking advantage
of all the tax benefits available to you.
All income is not equal for tax purposes.
Interest income is fully taxable, just like earned income.
Dividends and capital gains benefit from preferential tax
treatment, except within an RRSP. Are your investments appropriate
for your tax position?
At DD Humes, we may be able to help you
reduce your tax burden. Such intervention may help increase
the assets you are able to accumulate over your lifetime.
To decide how those assets should be treated, we move on to
Step 8: The Estate