Doing Your Taxes VS Tax Planning

As most of my clients know, I talk about taxes a LOT. Why? It’s the easiest place to save money!
No, I am not an accountant. This is much different than accounting. Here is the simplest way to explain it.
Whether you like RRSP’s or not (and if you are a business owner, you shouldn’t), RRSP’s are an excellent tax saving strategy. They reduce your tax and defer tax as long as the money is invested.
RRSP’s are something that I do. I go through them with you and explain the tax savings and tax deferral. I help you pick from a variety of investments to put the money in depending on your investment goals, comfort levels, age, etc.
Your accountant takes the receipts you receive for your RRSP contributions to get you a reduction or a refund of your income tax bill when they do your taxes. They aren’t reviewing the actual investments because that isn’t their expertise.
If you aren’t using RRSP’s, your accountant most likely won’t recommend them. Not because they aren’t good to use, but like I said, that’s not their expertise.
I’m using this example because most people are familiar with an RRSP. There are so many different strategies that I put together for your accountant to use in a similar strategy.
Tax rules change every year. With those tax changes, financial products change in response to adapt to the new tax rules. While both your accountant and I are staying on top of the tax changes for you, I have the added benefit of staying on top of the changes with the financial products.
I try to review with clients every year a lot of the tax changes that will affect them now and, in the future, because they change every year. It’s a good conversation to have with me and it will help your accountant out too!

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