Tax Now, Tax Later, Tax Never

    We live in such an amazing country and have such wonderful places to visit, but did you ever wonder how as Canadians we get taxed significantly? Believe it or not, we are one of the most taxed countries in the world. If you are earning at least a 6 figure income, the income tax can be more than 40% just to the government at the end of the year. Some people aren't even aware of it, but let's say you go traveling, there are travel taxes, we also have to pay taxes for hotels, gas taxes for the car, and so forth while naming a few. The more you dig into it, just makes you start doubting everything around you. It is very important we take account of how much we pay in taxes as it can greatly affect the amount of income we can earn overtime. If structured properly, we want to reduce it as much as we can and utilize as many deductions as we can to save our money for the future. Today I want to focus on 3 simple taxes concepts that I believe everyone should know:

Tax Now

- These are you open accounts such as savings which you can utilize to grow your money, and in these accounts, we can take advantage that its only 50% taxable of the what you make inside that will get taxed

Tax Later

- This one of the most popular accounts called RRSP, it has tax-deferred benefits, but it has an age limit to 71; contribution limit of 18% of your last year income; its well worth to take advantage since in the future, you can utilize this account for the Home Buyers Plan.

Tax Never

- What a lot of people do not think about is how actually life insurance can be used as a saving vehicle, as it has a "Cash Value" component to it. Not only will it provide protection in the beginning and but also invests your money. It can by-pass probates and estate and go directly to your next-generation tax-free. This is by far one of the best strategies, I would suggest you to discuss this with your personal financial advisor as this can also be withdrawn tax-free for the future for retirement income.