Maximize after-tax cash flow
Since the various sources of investment income are taxed differently,
it's important to structure your retirement portfolio to minimize the amount
of tax you pay
and maximize your cash flow.
The chart below illustrates the after-tax earnings on
$1,000 of investment income earned as interest, dividends, capital
gains, or return of capital.
|
|
Source: Ernst & Young Personal Tax Calculator; reflects known rates as of March 4, 2005.
Based on an Alberta taxpayer earning $75,000. For illustration only; actual tax rates will vary.
|
As you can see from the example above, the difference in after-tax income for various sources of
investment income can be significant. By working with an RBC financial advisor, however, you can
create a portfolio designed to maximize cash flow, minimize taxes, and provide the financial support
you need throughout retirement.
Please stop by your nearest branch and ask us to review your
retirement income plan with you, or contact us at 1-866-365-2123.
RBC has a lineup of retirement cash
flow solutions to
help you make your assets last so you can retire with confidence.
Important information about our financial planning services can be found at the bottom of our
homepage.
|
