Leave a comment1) Pay tax on income you do not need. Look for investments that produce “return on Capital” rather then interest. Look for investment strategies that maximize investment growth and minimize distributions.
2)Invest in high tax rate income such as Fixed Income investments.
3) Be too quick to pay out retained earnings. Corporation owners should consider retaining the income with in the corporation rather then paying it out to themselves. This can allow for tax deferral and long term after-tax benefits.
4) Trigger OAS clawbacks, consider investments that produce “return on Capital” rather then interest.
5) Indulge in DIY tax and investment planning. The tax laws are complex and changing, always consult with an accountant. And while you may have definite ideas on what you want in your portfolio consulting a financial advisor is prudent and having the two professionals communicate can help to iron out some of life’s financial bumps.