How to Optimize Your Investments to Pay the Least in Tax, for Canadians (Featuring Brendan Wood from Passiv)

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Today, you’re going to learn how you can save money on your investments, by having the right investments, in the right accounts so that you pay as little tax as possible here in Canada.

For example, if you hold Canadian stocks, or ETFs that hold Canadian stocks, should you put those in your RRSP? Your TFSA? Or your taxable account? Which one of those is the most tax efficient?

What about your US and other international ETFs and stocks? What accounts should they go into so that you pay the least foreign tax on those investments?

For us Canadians, different investments are taxed differently depending on what those investments include, and what investment accounts you put them in.

It’s essentially an optimization puzzle that you can solve, by putting the right investments in the right accounts to pay the least Canadian and foreign tax, on those investments.

If you choose to optimize to this extent like I do, you can essentially reap the benefits of these tax savings for the rest of your life, since those savings will compound over your investment lifetime, and can accelerate your net worth, since every dollar saved in taxes on your investments, is a dollar that stays invested, and continues to grow and compound for you.

Resources Mentioned:

• You can get a free Passiv account at this link.
• Instructions on how to get the free PREMIUM account from Passiv is here.
• The video guide on: How to Setup Passiv to Pay the Least in Investing Taxes (for Canadians)
• My guide on How to do Norbert’s Gambit
• Ben’s excellent video on asset location mentioned in the episode. 

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Questions Covered:

1. Let’s go through what investments to hold in each account for maximum tax efficiency, both in terms of how to pay the least Canadian tax, as well as foreign withholding tax.
   
   
2. What are your thoughts on actually not being 100% optimized all the time, so that we have the flexibility of having different ETFs in different accounts when living off our portfolio?
   
   
3. How can listeners set up Passiv to have it help rebalance their portfolio in the most tax efficient manner? and can you tell us where listeners can go to get a free premium account in Passiv?

Disclaimer:

This podcast presentation is for informational purposes only. No part of this presentation may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, recording or otherwise, without the written permission of BMO Investments Inc. or BMO Asset Management Inc. (collectively, BMO GAM) ).

For greater certainty, no part of this presentation may be provided to investors and/or potential investors without the written permission of BMO GAM. The information contained herein is not, and should not be construed as, investment advice and or tax advice to any individual. Investments should be evaluated relative to the individual’s investment objectives and professional advice should be obtained with respect to any circumstance. This communication is intended for information purposes only. Any statement that necessarily depends on future events may be a forward-looking statement. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Although such statements are based on assumptions that are believed to be reasonable, there can be no assurance that actual results will not differ materially from expectations. Investors are cautioned not to rely unduly on any forward-looking statements. In connection with any forward-looking statements, investors should carefully consider the areas of risk described in the most recent simplified prospectus. BMO GAM undertakes no obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other such factors which affect this information, except as required by law.