One of the single biggest impacts on your family’s financial picture is the taxes we all pay. But the tax code can often be confusing for Canadians. With proper tax planning, you can ensure you are only paying the required amount and taking advantage of programs the Canadian government provides to reduce your personal income tax burden.
Taxes are a key part of any developed country. The taxes we pay as Canadians help the government cover the costs our children’s education and the healthcare of our citizens. They build our roads and help keep us safe.
But taxes are often a source of confusion for Canadians. It’s important to make sure you’re taking advantage of strategies to reduce your taxes. This can be difficult without the proper advice.
Your single greatest expense in life will likely be the taxes you pay. Understanding how taxes impact you and your family can help your money go further. You have more to spend on your own family’s priorities when you plan for greater tax efficiency.
At AAM Financial, we will help insure you are taking advantage of the “three Ds” of tax planning.
- Deduct – These can reduce your taxable income, leaving you with more money in your pocket at the end of the year.
- Defer – It’s almost always better to pay taxes later rather than paying them now. Effective pax planning can help you understand how to pay the right tax at the right time.
- Divide – Income splitting techniques including spousal RRSPs and TFSAs are often overlooked in a family’s tax plan.
Reduce your taxes now and make sure you understand the impact taxes will have on your retirement.