Tax- efficient Asset Location

When you’re building an investment plan, you’ve probably heard about the importance of “asset allocation.” That simply means choosing the right mix of different types of investments —such as fixed income, equities, and cash or cash equivalents—that match your goals, time frame and risk tolerance.

But have you considered asset location?

While asset allocation focuses on what you invest in, asset location looks at where you hold those investments. Asset location refers to how your investments are distributed across various account types, such as registered accounts (like RRSPs and TFSAs), regular (taxable) non-registered account, and in some cases, corporate accounts.

Why does this matter?

This is important because different types of investment income are taxed differently, depending on both the type of income and the type of account in which the investment is held. For example:

  • If you earn interest in a regular (non-registered) account, you may have to pay more tax on it.
  • But if you hold that same investment in an RRSP or TFSA, you could reduce or even avoid paying tax on that income.
  • Capital gains are taxed more favorably than interest.
  • Canadian dividends may benefit from the dividend tax credit when held in a non-registered account.

By carefully considering asset location, you can improve your after-tax returns and keep more of your money working for you. Paying attention to the type of income each investment generates—and ensuring those investments are held in the most tax-efficient accounts—can have a meaningful impact on your long-term investment success.

 

                                                        Are you holding the right investments in the right accounts?

                                                                                               

Disclaimer. This information is not investment advice and should be used only in conjunction with a discussion with your RBC Dominion Securities Inc. Investment Advisor. This will ensure that your own circumstances have been considered properly and that action is taken on the latest available information. The information contained herein has been obtained from sources believed to be reliable at the time obtained but neither RBC Dominion Securities Inc. nor its employees, agents, or information suppliers can guarantee its accuracy or completeness. This report is not and under no circumstances is to be construed as an offer to sell or the solicitation of an offer to buy any securities. This report is furnished on the basis and understanding that neither RBC Dominion Securities Inc. nor its employees, agents, or information suppliers is to be under any responsibility or liability whatsoever in respect thereof. The inventories of RBC Dominion Securities Inc. may from time to time include securities mentioned herein. RBC Dominion Securities Inc.* and Royal Bank of Canada are separate corporate entities which are affiliated. *Member-Canadian Investor Protection Fund. ®Registered trademark of Royal Bank of Canada. Used under licence. RBC Dominion Securities is a registered trademark of Royal Bank of Canada. Used under licence. ©Copyright 2025. All rights reserved

 

RESP Guide.

The basics of establishing and withdrawing from RESPs

It’s hard for new parents—or grandparents, aunts, and uncles—to imagine their little one heading off to university one day. But as anyone with children knows, time flies, especially when raising them. Before you know it, that wide-eyed newborn will be graduating from high school and moving on to post-secondary education, marking the beginning of adult life. While this is an exciting milestone, it also brings the reality of rising university tuition costs into focus.

Planning financially for that big day, no matter how distant it seems, is crucial. You don’t want to be caught off guard by unexpected expenses, so starting to save early is key.

Fortunately, the Canadian government has made it easier to prepare for these costs with the Registered Education Savings Plan (RESP). By opening an RESP and making regular contributions, you can build a savings fund for your child’s education. Plus, the government will contribute additional funds to help boost your savings. By starting now, you can ensure you’re better prepared for the financial demands of post-secondary education.

 

A guide to registered education savings plans - RBC Wealth Management

 

 

National Physicians’ Day!

May 1st is National Physicians’ Day – an incredible opportunity to recognize the extraordinary people who choose to serve in the medical profession.

This particular date was chosen by the Canadian Medical Association in recognition of Dr. Emily Stowe, the first female physician to practice in Canada.

At Corchis Wealth Management we understand that the role medical professionals can be quite demanding and time-consuming, and we truly value the contribution they make to our community. Even in the most difficult circumstances, physicians have shown tremendous dedication, courage, and compassion.

We are incredibly proud of their continued efforts across Canada. Today, let us show our gratitude to these remarkable people.

Whether your goals include transitioning from your practice into retirement, planning for your children or grandchildren’s expenses, or your desire to leave a family legacy, Corchis Wealth Management Services team members can provide advice and suggest strategies to achieve your goals in a tax-efficient manner. Our goal is to take care of the day-to-day investment and wealth planning needs, so that you have more time to focus on your patients, family, and friends.

 

How To Find Out Your RSP And TFSA Contribution Room

Please note: If you are checking your contribution room in the first few months of a new year, the CRA will not be up-to-date for the previous year’s transactions. Therefore if you have made contributions or withdrawals in the current or previous calendar year, you may need to adjust for these until the CRA has updated these details (this is typically done in April each year). 

CRA Website - My Account for Individuals

1. Visit the CRA website My account for individuals

2. Although you can use Option 1, we recommend proceeding with Option 2 as the information will be more complete. Click on “CRA Login”, or “CRA Register” if this is your first time accessing.

3. After you log in you can scroll the main page until you see your RRSP and TFSA Room

4. Click "Go to RRSP and TFSA details"

5. Click “View TFSA details”

6. Click “Transaction Summary” and then "Next" to obtain your full TFSA contribution history

Contact CRA Directly - Tax Information Phone Service 1-800-267-6999

  • Call 1-800-267-6999
  • Press 1 (for English)
  • Press 5 (for registered accounts)
  • Press 3 (for TFSAs)
  • Press 1 (for room)
  • You will need your date of birth, SIN and Line 1500 (used to be line 150) from last year’s return on your Notice of Assessment.

August 2023  

     In this quarter's spotlight, we will be discussing the critical importance of having an up-to-date will and estate plan. It's a topic that is often overlooked but is essential for securing your assets and protecting your loved ones. It's essential to realize that life is ever-changing, and there are various events in your life that may necessitate updating your will and estate plan. For example, your marital status, the birth of a new child, a significant change in your financial or health status, and even moving to a new state can all be triggers for updating your will to ensure it reflects your current circumstances and wishes. Therefore, it's crucial to periodically review your estate plan and make necessary changes to ensure it aligns with your current situation. 

When should you review your Will or estate plan? 

Disclaimer. This information is not investment advice and should be used only in conjunction with a discussion with your RBC Dominion Securities Inc. Investment Advisor. This will ensure that your own circumstances have been considered properly and that action is taken on the latest available information. The information contained herein has been obtained from sources believed to be reliable at the time obtained but neither RBC Dominion Securities Inc. nor its employees, agents, or information suppliers can guarantee its accuracy or completeness. This report is not and under no circumstances is to be construed as an offer to sell or the solicitation of an offer to buy any securities. This report is furnished on the basis and understanding that neither RBC Dominion Securities Inc. nor its employees, agents, or information suppliers is to be under any responsibility or liability whatsoever in respect thereof. The inventories of RBC Dominion Securities Inc. may from time to time include securities mentioned herein. RBC Dominion Securities Inc.* and Royal Bank of Canada are separate corporate entities which are affiliated. *Member-Canadian Investor Protection Fund. ®Registered trademark of Royal Bank of Canada. Used under licence. RBC Dominion Securities is a registered trademark of Royal Bank of Canada. Used under licence. ©Copyright 2023. All rights reserved.

November 2023

As year-end approaches, taking some time to review your financial affairs may yield significant tax savings. To ensure that you leave no stone unturned, here is a summary of some common year-end tax planning strategies. 

 

Year-end tax planning strategies

                                                                                         

 

Disclaimer. This information is not investment advice and should be used only in conjunction with a discussion with your RBC Dominion Securities Inc. Investment Advisor. This will ensure that your own circumstances have been considered properly and that action is taken on the latest available information. The information contained herein has been obtained from sources believed to be reliable at the time obtained but neither RBC Dominion Securities Inc. nor its employees, agents, or information suppliers can guarantee its accuracy or completeness. This report is not and under no circumstances is to be construed as an offer to sell or the solicitation of an offer to buy any securities. This report is furnished on the basis and understanding that neither RBC Dominion Securities Inc. nor its employees, agents, or information suppliers is to be under any responsibility or liability whatsoever in respect thereof. The inventories of RBC Dominion Securities Inc. may from time to time include securities mentioned herein. RBC Dominion Securities Inc.* and Royal Bank of Canada are separate corporate entities which are affiliated. *Member-Canadian Investor Protection Fund. ®Registered trademark of Royal Bank of Canada. Used under licence. RBC Dominion Securities is a registered trademark of Royal Bank of Canada. Used under licence. ©Copyright 2023. All rights reserved

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