Here is a short something for you to ponder today:
Investments and Taxes and Shoes
If I give you $1 and it doubles every year for 20 years (meaning you make 100% return on it every year):
In a Tax-Free Account You would have
$1,048,576
If you were taxed 50.67% on the growth (an average marginal tax bracket in Canada) you would have
$3,040
This is why you need:
- An awesome Certified Financial Planner to help you navigate the tax world
- An awesome CPA or accountant to work with your advisor on financial strategies
- A great pair of shoes (I just threw that in, because it’s just truth!)
BOTTOM LINE: All the talk in the investment world right now is about fees and returns, which don’t hold a candle to the real issue, which should be making sure that tax planning comes first, because nothing will KILL YOUR INCOME, ASSETS, NETWORTH, BUSINESS & ESTATE more than taxes.
The cold hard truth is this: When considering your investments, income, assets, business, and estate, are you buying JUSTIN T. (note: NOT Timberlake) new designer shoes when really you deserve a pair for yourself?
Start Planning. Start a conversation with your fav CFP, one that understands that shoes are as important as taxes!
