How to Optimize Your Investments to Pay the Least in Tax (for Canadians)

Build Wealth Canada Podcast

Today, you’re going to learn how you can save money on your investments, by having the right investments, in the right accounts so that you pay as little tax as possible here in Canada.

For example, if you hold Canadian stocks, or ETFs that hold Canadian stocks, should you put those in your RRSP? Your TFSA? Or your taxable account? Which one of those is the most tax efficient?

What about your US and other international ETFs and stocks? What accounts should they go into so that you pay the least foreign tax on those investments?

For us Canadians, different investments are taxed differently depending on what those investments include, and what investment accounts you put them in.

It’s essentially an optimization puzzle that you can solve, by putting the right investments in the right accounts to pay the least Canadian and foreign tax, on those investments.

If you choose to optimize to this extent like I do, you can essentially reap the benefits of these tax savings for the rest of your life, since those savings will compound over your investment lifetime, and can accelerate your net worth, since every dollar saved in taxes on your investments, is a dollar that stays invested, and continues to grow and compound for you.

Resources mentioned in the episode:

• My guide on How to do Norbert's Gambit
• The video guide on: How to Setup Passiv to Pay the Least in Investing Taxes (for Canadians)
• You can get a free Passiv account at this link.
• Instructions on how to get the free PREMIUM account from Passiv is here.