Coordinate your Registered and Non-registered Investments
Looking at all of your registered and non-registered assets
in concert is a strategy that can help you structure your
portfolio in a way that may increase your cash flow, improve
the tax-efficiency of your investments, and enable you to
minimize or eliminate the Old Age Security (OAS) clawback
repayment. (OAS is subject to an income test, which means
there may be a “clawback” of some or all of your
benefits.)
Because all cash flow that is paid from a Registered Retirement
Income Fund (RRIF) is fully taxable, it generally makes sense
to put the majority of your interest-bearing investments
such as Guaranteed Investment Certificates (GICs), money
market funds, and bonds into your registered accounts. Assets
that earn or distribute more tax-effective cash flow, such
as Canadian dividends, capital gains, and return of capital,
are better held in your non-registered accounts.
By simply arranging or rearranging where your assets are
held, you may be able to significantly increase the amount
of after-tax cash flow you receive from your portfolio.
To learn how this strategy could help you create an investment
portfolio that meets your retirement income needs, speak
with an RBC financial advisor.
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.
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