INVESTING IN CANADA
As taxpayers, Canadians are often left with a limited amount of cash flow after taxes and expenses. Most Canadians feel that they can't increase their wealth nor attain their financial goals with the limited resources remaining.
However, Canadian investors do have ways to reduce taxes or receive bonuses on their contributions:
RRSP (Registered Retirement Savings Plan): annual contributions to the plan will reduce your income tax bill and tax-defer until withdrawal
TFSA (Tax-Free Savings Plan): any contribution made to this plan will grow tax-free
RESP (Registered Education Savings Plan): The Canadian government will match 20% of your annual contributions up to $500 per year to a lifetime maximum of $7200.
Whole Life Insurance (Cash Value Growth): investing in Whole Life Insurance not only guarantees a death benefit for your beneficiary, but it also grows cash value within the policy. The Canadian Insurance Tax Act allows for this cash value to grow tax-free and the policyholder can access this cash value tax-free.
Insurance Wealth Financial knows that there are only so many hours in the day for Canadians to earn income, so we work with our clients to increase their wealth even while they're working, eating or sleeping. Insurance Wealth Financial also offers ways to protect your income and investments.
Diversifying Your Investments
Not only is investing within your risk tolerance important, but diversification is key as well if you want to reduce risk. Remember the old adage, "never put all your eggs in one basket".
Using Life Insurance as an asset class, gives you the ability to grow cash value tax-free at the lowest risk. You also have the ability to use this cash value to leverage (Infinite Banking Concept). Using whole life insurance within a corporation will also reduce the taxes owing in your estate.
When investing with mutual funds, although each mutual fund is diversified, it's still a good idea to diversify your portfolio with more than one mutual fund. Learn more >>>
Diversify your assets. Investing in mutual funds does reduce your risk, but if you do have a higher risk tolerance or if there is a specific company you would like to invest in, there are trading platforms available. In Canada, dividend income from Canadian corporation stocks is taxed at a preferential rate. One of the discount brokerage platforms with the lowest fees is Questrade
BITCOIN AND CRYPTOCURRENCIES
2020 has been a year of uncertainty, but it has been a profitable year for Bitcoin...increasing almost 5x its value before the Pandemic started. Other cryptocurrencies have also increased like Ethereum, growing almost 7x its pre-Pandemic value. For those who want to gt on the crypto bandwagon, Bybit is a platform that Canadians can trade Bitcoin, Ethereum, Eos and XRP on.
REAL ESTATE INVESTING
Since the 2008 housing crash, Canadian investors have made profitable earnings in real estate. With a low interest rate environment, investors have been able to leverage their net worth with mortgages, home equity lines of credit, reverse mortgages and accessing their cash values in whole life insurance policies.