Tradeopolis.com

With gas and food prices climbing we start to feel the pinch in our wallet.

For many the RRSP strategy will be the only investment strategy that they will use their entire life.

With 80% of Canadians retiring financially challenged does it really make sense to be doing what the masses are doing when it come to money? Probably not. The challenge is, people don’t get educated, instead; they get sold too. My industry is largely the problem.

In his book: “The 10 Secrets Revenue Canada Doesn’t Want You To Know,” Author David Voth shares secret #8 with us: Create a Tax Shelter.

Actually, this isn’t a secret at all but a widely used strategy by many professionals and financial planners.

What does it do? Well, it can give you tax free income. Let’s compare it to the RRSP. When we retire and we take money our of our RRSP/RRIF it is fully taxable at our marginal tax bracket (no different than the paycheck you are getting right now.)! The government doesn’t care how old you are they tax it all the same.

With a personal investment tax shelter that has been set up correctly you can create the possibility of having tax free income. Meaning, if you were getting $100K from your RRSP today in income after tax you’d have about $53,000 to spend - exciting isn’t it? With a personal investment shelter you’d have $100K - I wonder why the government isn’t promoting this?

Are these tax shelters hard to set up? Not at all, it’s as easy as setting up an RRSP, you just need a financial Advisor who is Insurance Licensed.

What are the investments like? The investments are the same as your RRSP, for most it will be a mutual fund, and you can have the best available.

Tyler Hoffman, FMA

Vancouver’s Wealth Coach

http://www.tylerhoffman.ca

Article Source: http://EzineArticles.com/?expert=Tyler_Hoffman