If your income, bonus, or investments changed this year, taxes can get messy fast. The real win isn’t being “smart at filing”—it’s designing your cash flow and investments so you keep more of what you earn, year-round and over your lifetime.

What tax planning really means Tax planning looks at your finances holistically and coordinates decisions about income, savings, investments, giving, and your estate to reduce your overall tax burden where appropriate. Your accountant ensures accurate filings; a wealth advisor helps structure when money moves and where assets sit so fewer surprises show up at tax time. The best results come when both work together.

7 practical ways to lower tax drag

1. Coordinate RRSP vs. TFSA funding

• Use your current marginal tax rate vs. expected future rate to prioritize contributions.
• Pair RRSP contributions with bonus timing to close withholding gaps and avoid a surprise balance due.
• Track RRSP room and carry-forwards so raises and job changes don’t leave tax savings on the table.

2. Asset location (what goes where)

• Hold tax‑inefficient income (e.g., high‑yield bonds, active funds) in registered accounts (RRSP).
• Reserve non‑registered accounts for tax‑efficient equity ETFs and Canadian dividends.
• This small placement change can improve after‑tax returns without changing your overall allocation.

3. Smart tax‑loss harvesting

• Realize losses in non‑registered accounts to offset gains, then reinvest in similar exposure to maintain strategy.
• Watch settlement dates and superficial loss rules so the loss isn’t denied.
• Use tax loss harvesting alongside rebalancing to reduce tax without increasing risk.

4. Charitable giving strategy

• “Bunch” donations into high‑income years.
• Consider donating appreciated securities instead of cash to eliminate capital gains on those positions.

5. Plan distributions and income smoothing

• Estimate mutual fund/ETF distributions and adjust withholding so you’re not under‑withheld.
• For variable or lumpy compensation, align contributions and prepayments to smooth brackets.

6. Multi‑year retirement tax planning

• Map RRSP to RRIF timing, pension splitting, and CPP/OAS start dates to minimize lifetime taxes and clawbacks.
• Use low‑income years (e.g., early retirement) to convert or withdraw strategically.

7. Estate efficiency

• Understand deemed disposition at death and how the spousal rollover can defer tax.
• Keep beneficiary designations current across RRSPs, TFSAs, and insurance.
• Coordinate probate‑minimizing strategies with your legal professional.

Where a financial advisor helps (in tandem with your accountant)

• Build the calendar: contributions, rebalancing, tax loss harvesting windows, key deadlines.
• Optimize asset location and account selection based on your tax profile.
• Coordinate with your tax professional so strategy and filing match.
• Monitor changes (comp, bonuses, distributions, rates) and adjust proactively.

Quick pre-year-end checklist

• Confirm your current marginal tax rate and set RRSP vs. TFSA priority.
• Estimate non‑registered distributions; adjust withholding if needed.
• Identify unrealized losses for tax loss harvesting; line up replacement ETFs to avoid superficial losses.
• If giving, review donating appreciated securities.
• Review beneficiary designations and spousal rollover provisions.
• Set a reminder for early-year RRSP top-up before bonus hits to avoid over/underfunding.

This is general information, not tax or legal advice. Strategies depend on your situation and are subject to CRA rules. Please consult your tax professional. I coordinate with clients’ accountants to ensure alignment.

If you’re busy and want the fast path, I can run a 10‑minute tax drag scan and send you a one‑page summary of 2–3 opportunities based on your situation. No obligation.

• Prefer a summary via email/LinkedIn message, or
• A 15‑minute call to walk through it?

If you have questions or want to discuss your own strategy, I’m happy to help.

Vincenzo Marozzi, CFP®, PFP® Investment and Wealth Advisor

780-935-8637 

vincenzo.marozzi@rbc.com