I have two questions for you to answer;

1) If you thought the best way to save for retirement was not the best way, then when would you want to know? Now is the time to discover the best way to accumulate more money safely. The sooner you empower yourself with the knowledge to attain financial independence, the greater your net worth will become.

2) If you were a farmer, would you rather save the tax on the seed in the springtime and pay tax on the sale of your harvest in the fall, or would you rather pay the tax on the seed and sell your harvest without any tax on the gain?

Instead, I would purchase the seed with after-tax dollars and sell my harvest tax-free.

One of the biggest mistakes we make as investors is forgetting how much tax we will end up paying CRA if we rely too much on RRSP savings for our retirement, and it only compounds when you add a company pension to it, as this will increase your tax bracket.

Here is an example using a 45-year-old person

Let’s say this person was convinced to purchase the maximum amount of RRSP funds yearly by their accountants, banks, and CRA.

We are all programmed to do this in the pursuit of lowering our taxes. They continue to push them and never bring up the long-term tax consequences, but it is like a radar trap, except instead of taking your money for speeding, they take your money for investing in their tax time bomb.

Let’s say this 45-year-old person has accumulated a nice sum of $200,000 in RRSP funds.

Without any further deposits into their RRSP, their money will grow as follows:

Using the rule of 72 times an interest rate will give you the amount of time for your money to double, and we are using a 10% return for our example. Therefore his money will double every 7.2 years.

Their money will double to $400,000 by the time they reach 52.5 years old.

And it will double again to $800,000 by the time they reach 60 years old.

By the time they reach 67.2 years old, this money has climbed to $1,600,000.

Would you be happy with that amount of money in your retirement program if I asked you? You would probably say yes.

Until I tell you, you have a greedy partner called CRA that can take up to 53.55% of your income when you convert it to an RRIF and start receiving the gain while you are alive and more than half of your principal when you die unless you have an estate plan.

If you only take the profits each year of the 10% of your earnings and leave the principal intact, your income would be $160,000, which is 100% taxable.

Depending on your tax bracket, you could be paying taxes of $52,281 (an increase of $2,853.70 over the previous year) for the rest of your life until you die. Assuming there are no more tax increases [when has that not happened].

Is that what you wanted?

Therefore you get to keep $107,719. While CRA, your partner will take $52,281, which will probably go up yearly.

Having other income may push you up to the highest tax bracket, 53.55%.

For those of you, who do not have an estate plan in place, you may have named your children as beneficiaries in your will, and it does not, however, mean they will receive all your hard-earned money when passing away if it is in the form of Registered capital.

If you are married, when you die, your RRSP funds are transferred to your spouse, tax-free but still registered. Therefore, no tax is paid at this time.

After your spouse passes away, 100% of your Registered funds, along with all of your spouse’s Registered funds, will be lumped together, which may increase their tax bracket when the estate is taxed.

Therefore, assuming the $1,600,000 remains intact and no money was added to your spouse’s RRSP funds.

The tax bite is at the highest level, 53.55%, for any amount over $220,000.

The tax payable for the first $220,000 earned income will currently be $81,384.

The next $1,380,000 tax payable currently will be $738,990.

Before any money goes to the children, the combined tax is $820,374.

Your children will then get $779,626.

Then they will be faced with Probate and executor fees on the will. This is also where Lawyers get involved and charge fees. Our program eliminates these costs.

I always ask my clients,

” Who were you saving all your hard-earned money for your family or CRA”?

Not only is there a better way to keep 100% tax-free, but there is also a way you can move your money out of RRSP funds now without paying taxes.

The highest income tax bracket has increased over the last ten years from 46.3% to 53.55%, an increase of 7.25%.

At the same time, the average inflation rate over the same period was 1.73%. That adds up to 17.3% over those ten years, which decreases the purchasing value of your money.

The combined effect of inflation and taxes in the last ten years has decreased the purchasing value of your dollar by a whopping 24.55%. So the $1,600,000 they have now, in 10 years, will only have a purchasing value of $1,207,200 or a loss of $392,800.  

When you see your Bank or Advisor is only making you 5-7% per year, which 90% of them offer, you can see how important taxes and inflation can impact you. So if they do not include this advice in your meetings, get another advisor asap; they are costing you unnecessarily. 

You not only need to reduce this tax time bomb but also increase your returns, and we can show you how unless you want to keep sharing your income with the taxman.

Proper Tax planning will increase your nest egg by 2/3.

This amount of income will also cause clawbacks to Government Benefits.

Over their lifetime, most people have paid over $80,000 to the Government for those benefits. If you are subjected to a clawback and do not get a refund for all those contributions, isn’t this a form of added taxes?

90% of Financial Planners do not dissect your portfolio like this; therefore, you would miss out on creating real wealth that could have been yours if you had a better plan.

Reducing taxes is the best option to create wealth for everyone, not only the rich.      

If you are not reducing your taxes, you’re not creating wealth for yourself, and you are for CRA.

It is not how much you make. It is how much you keep from CRA that can make a huge difference.

Benjamin Franklin said, “An investment in knowledge pays the greatest interest”.

I have spent hours creating this knowledge for you.

Again I want to remind readers that I no longer sell Insurance or investment products; I only advise as a consultant, which I am allowed to do as I spent 35 years in the Financial service industry.