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Miff Its not what you make When youve invested time money and effort to build your investrhehts last thing you want is to pay more tax than you have to If youre looking for taxrsmartjStrategies to save and grow your wealth read on THE RETIREMENT SAVINGS PLAN You may already be farhiljar with the tax savings- and taxdeferred growth that an offers Yet there are several strategies that make the most of your including Contribute to a spousal RSR If your spouse earns less than you and as a result expects in the future to pay tax at a lower marginal tax rate you can split your income with them so your two smaller retirement incomes are taxed at a lower combined rate instead of youriafger retirement income beirjg at a higher rate You can do this by contributing to a spousal on of ypurlpwerincome spouse who will theft receive mcorrie from the spousal during retirement Shelter interestbearing investments In a regular nonregistered account interest income say from GICs and bonds is fully tax able at your marginal rate Consider allocating more these interestbearing investments to your where you can maximize tax- deferred growth Then your more taxefficient investments like Canadian dividendpaying stocks can be placed in your nonregistered account Closing up your contribution room with the forgotten contribution If you turn 71 in 2010 you cannot have an Support For Depression If you feel alone or depressed experience feelings of hopelessness have thoughts of suicide Attend Support for Depression Weekly groups in York Region Call CMHA York Region for more information 9058413977 wwwcmhayronca a member of after December 3 1 201 consider mak- ing your expected year 201 1 RSP contribution in December 2010 before converting your RSP to allowing you to claim the deduc- tion on your 1 income tax return Although you will have to your the tax savings realizedshould easily outweigh the penalty of 1 per month For example tlie penalty on a 22450 RSP contribution for 1 will only be a maximum of 22450 if you make this 201 RSP contribution inDecember 2010 However the tax savingsbn the 22450 RSP deduction in 201 1 could be over 10000 delaying conversion to aRlF If you can delay converting your intoaRIF until the end of the year in which you turn 71 so you can continue to benefit from taxdeferred growth For an income stream draw from other sources that are not taxadvantaged such as from a taxable nonregistered account THE SAVINGS ACCOUNT Although the maximum contribution is currently 5000 annually when compound ed taxfree over the long term such as on a 20year timeframe its growth can be nothing less than surprising ANNUITIES An insured annuity is an insurancebased strategy in which you invest a lump sum in a life insurance policy and receive a guaranteed stream of income for life Tlie payments com prise taxableinterest income and a taxfree return of your original capital which is greater after tax compared to conventional GICs plus a portion of each payment funds tlie policy Its important to note that youre required to commit and lockin your capital at a fixed rate which means you dont have access to it after tlie fact So this strategy may be best for some of your assets but not all The Insured Retirement Plan If you are at least 10 to 15 years away from retirement are maximizing your annual contributions and you are locking for addi tional tax-deferral- strategies an may be appropriate for you Willi an IRP you lock in assets that would otherwise be exposed to your high tax a taxexempt insurance policy Wliilejhe funds are permanently lockedin you can take out taxfree bank loans for retire ment income using the policy as collateral When your estate is settled the proceeds of tlie policy are used to pay back loans and the balance goes taxfree to your beneficiaries you live in Canada taxes are apart of life But with proper planning and consultation with a tax planning specialist you can mizethe faxes you do pay Talk to us today to secwhat your options are litis article is supplied by- Kevin Murdoch Vice President and Investment Advi sor with RBQDominion Securities hie Member CIPF This article is for information purposes only Please consult with a professional tax or legal advisor before taking any action based on information ittthis article Kevin Murdoch can be reached at 9058958417 United Way of York Region This message brought to you as a community service of The EraBanner Creditors calling Stop the financial insanity Call today for a FREE initial consultation and we will explain all of your options Immediate Appointments Available Newmarket 17310 Unit Yonge St and Millard Ave Keswick llic Queensway South Queensway S and Glenwoods Ave 1866J7S8836 DOMINION SECURITIES THE FINANCIAL CRISIS IS OVER BUT YOUR RETIREMENT DREAMS ARENT If your retirement savings suffered a setback during last years financial crisis its not too late to get them back on track With some careful planning you may not have to settle for less Take back your retirement with a professional financial planner on your side Introducing Janice Walsh Financial Planning Specialist Janice Walsh is a Chartered Accountant CA Certified Financial Planner CFPJ and a member of the Society of Trust and Estate Practitioners Her role at RBC Dominion Securities is to provide tax trust estate and retirement advice and work with Advisors in presenting comprehensive financial plans for their clients Take control of your retirement planning Set a meeting with Janice today to get back on track Robert Davidson Branch Manager 18882700321 RBC Dominion Securities Leslie Street Suite Newmarket ON 8K7 Dominion Inc and Royal Bank of Canada are separate connotate which are affiliated Member ClPf Registered trademark of Royal Bank of Canada Used under licence Dominion Securities Is a registered trademark of Royal Bank of Canada Used under licence All rights reserved