Imagine this: You're sitting across from me, and I slide three envelopes across the table to you. I encourage you to take and keep one of them. 

The first envelope holds a cheque for $1,000,000. 

The second, $900,000. 

And the third, $800,000. 

Which do you choose? 

Most people reach for the $1,000,000. But not so fast! 

Suppose the $1,000,000 is fully taxable. 

The $900,000 is partly taxable. 

And the $800,000 is TAX FREE. 

Now, which one do you choose?   

Well, while a cheque for a million dollars is tempting, the $800,000 cheque would definitely be the better choice. 

You see, bigger isn’t always better, particularly when it comes to saving for your retirement. 

 
How can you pay less taxes in retirement?  

It starts with recognizing that most traditional retirement plans are fully taxable.  This includes your Canada Pension Plan (CPP), Old Age Security (OAS), Registered Retirement Savings Plan (RRSP), or an Employer Pension.  While these sources of retirement income will be helpful, without a strategic plan, you will give too much of the income to the government in taxes.  

During their working years, many people load up their RRSPs to reduce taxes now, without considering that every dollar will be taxed later, including all the earnings from the growth of the RRSP investment account.  

Then they hit retirement and realize: 

“I can’t access my money without a huge tax hit!”. 

At this point, basically, they are stuck. If they want to enjoy a nice lifestyle in retirement, which will require a higher income, then they have to take more money from their retirement plans and pay more taxes.  Many will look back and wish they had created a tax-efficient retirement strategy earlier, which requires help.  

How do I build your tax-efficient plan?  

As a long-time advisor with BGIP, the first thing I will do is listen. I want to really understand what your money “big picture” looks like. What priorities you have and what you really want to accomplish in life. 

Then, when I have your dream future in my hands, I will build out a one-of-a-kind plan that checks all your boxes.  

This includes a strategically built TFSA (Tax Free Savings Account) so you can have tax-free flexible money when you want it the most, while also enjoying long-term tax-free growth. 

I will also outline a clear Income Plan that utilizes RRSPs, TFSAs, Government and Employer Pensions, and non-registered savings. 

When these are combined, we are creating multiple streams of income in your retirement that are not all taxed the same. 

The result is that you have more flexibility and control over your money in retirement, while paying less taxes at the same time. 

This type of tax planning makes a significant difference in your quality of life and the peace of mind that comes with having a well-designed plan, which results in paying less taxes and getting to keep more of your hard-earned dollars for your future.  

Book a free consultation today:

https://www.bgip.ca/contact

We look forward to working with you soon, 

John Knox and the BGIP Team