Wednesday, February 22nd, 2012

Tax Minimization Strategies

Tax Minimization StrategiesAccording to Statistics Canada, out of every 100 people starting out in the workforce, after 40 years:

  • 1 will be wealthy
  • 8 will be financially secure
  • 14 will have to continue working past retirement age because they can’t afford to retire
  • 24 will be dead
  • 53 will be dead broke–dependent on meager government pensions, relatives, friends or even charity for a minimum standard of living

Alternative tax planning strategies can help ensure you are one of the 9 who succeed.

Did you know that there are over 60 different forms of taxes in Canada? We are among the highest taxed people in the world, with over 50% of our income on average, going to various taxes. Sales Tax, GST, Income Tax, Provincial Tax, Property Tax, Estate Tax, Gas Tax, School Tax, Excise Tax, etc, etc. . . the list goes on and on. Most of these taxes you have no control over.

Fortunately, the two taxes that are usually your largest taxes, Federal and Provincial Income Taxes, are completely within your control. You just need to apply the proper strategy. These are not strategies reserved only for the extremely rich, but work perfectly for the average Canadian. I can show you how to put virtually all of your income taxes legally back in your pocket. It is done using a Tax Shelter program that complies with both the letter and the spirit of the law.

Although there are risks associated with even the best tax minimization programs, the bigger risk stems from not properly planning your tax affairs. Effective tax planning coupled with the use of well-structured tax minimization programs is a means of freeing-up capital (cash) that may not otherwise be available.

Consider using the cash saved on taxes as a source of funds for wise investments or debt reduction. Your accountant or financial advisor should be consulted to help you build a sound financial plan best suited to your individual requirements.

Tax planning is integral to your financial well-being. When integrated into your overall personal or corporate financial plan, tax minimization programs can be extremely effective.