Investors are often comforted by investing in what is familiar. For Canadians, that may include investing a greater share of their portfolio in Canadian securities.
During accumulation, investors enjoy a tax deferral when the price of their holdings increases. In tax terms, this is known as an unrealized capital gain, and works whether securities are held directly or within a mutual fund.
As an investor you may hold stocks and bonds directly, or you may hold them inside a mutual fund. Either way, your investment objectives will be a combination of principal protection, income generation and capital growth.
You harnessed your spending habits to set aside savings. You researched the investments you deemed worthy of your hard-earned dollars. And now, as you admire your accumulating wealth, there’s a dark cloud ahead – income tax.
Artificial Intelligence (AI) is revolutionizing how we invest, offering a smarter way to navigate complex financial markets.
Most Canadians can benefit from having a registered retirement savings plan (RRSP) and a tax-free savings account (TFSA) — both are great tax-sheltered savings vehicles.