Using Corporate Funds to provide Income for my retirement

My FA is setting up my Retirement Plan, we are trying to minimize Quebec tax. He wants to a add a Bond that provides Interest and Capital gains which have some tax benefits. My question, would it not be better to use Solid companies offering nice dividends? This way we have growth and we can use the Dividend Tax Credit as a tax benefit.

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Asked on November 7, 2023 9:50 am

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Private answer

This really all depends on your overall risk tolerance and what you're trying to achieve with your investment portfolio.
Tax mitigation is only one element, and I find a lot of people actually structure their portfolio very poorly in an effort to save taxes. Sure, they'll end up paying less taxes, but they may end up realizing lower returns that will more than offset that tax mitigation. A prime example is investors who solely focus on buying exclusively Canadian dividend stocks and avoiding the US market just to qualify for cheaper dividend taxation.
Your financial advisor has a much better idea of your overall situation than we do, so ultimately we cannot answer what would be best for you.

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Posted by Dan Kent

Answered on November 13, 2023 9:20 am

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