While taxes shouldn’t necessarily drive your investment decisions, they are an important consideration.
Contribute as much as you’re able to tax-efficient investing vehicles, such as specialized funds (AIF, RAIF etc). Such funds can provide the opportunity to build wealth over time while minimizing taxes.
Consider managing the tax impact of investment gains by minimizing turnover, harvesting losses, and choosing tax-efficient investments.
While tax rules and rates may change over time, the value of keeping taxes in mind when making investment decisions does not. The reason? Taxes can reduce your investment returns from year-to-year, potentially jeopardizing your long-term goals.
The higher your current marginal income tax rate, the more beneficial it may be for you to consider the impact of taxes when making changes to your investments.
Be sure to consult our professional tax-smart investment advisor, before making any decisions that could affect your taxes.