Looking at the asset mix of a portfolio is the easy part. Deciding how to break out where investments should be held is not so easy. Decisions about where to hold investments can have a significant long-term effect on your wealth. I believe that for wealthy Canadians, this is where some of the biggest investment mistakes occur.
Conventional wisdom suggests that it is important to start out with a well thought out review of your overall asset mix. The next step is to maximize it for tax purposes. If an Ontario resident has $60,000 of income, the tax rate on interest is 31 per cent, on capital gains it is 16 per cent, and on dividends from eligible corporations (most publicly traded Canadian companies), the tax rate is 10 per cent. The preferred shares are in the cash account for safety, but also because they produce dividend income, which is taxed at a much lower rate than interest.
Source: CTV
Related Articles:
The most after-tax bang for your investing buck
Posted by D4L | Saturday, February 05, 2011 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
-
BDCs can be excellent investment options for those seeking high returns, particularly when acquired at favorable valuations and supported by...
-
How high is too high when it comes to dividend stocks? Of course, every income investor wants as much yield as possible. However, they also ...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.