top of page

Tax Savings

Tax Savings | Greenfeld Financial Management, Delta, BC

Greenfeld Financial will work hard to identify areas in your financial circumstance that allow for tax savings strategies.

 

These could include one or more of the following:​

RIF Meltdown

RIF Meltdown - for your Retirement

Strategy:
If you expect your tax rate to be higher later in life, rather than earlier, it is more efficient to make withdrawals from your RRSP or RRIF earlier in life rather than after the age of 71.

Can you withdraw money from my RRSP tax-free? The answer is Yes. There is a strategy known as the RRSP (RIF) meltdown which can assist Canadians in getting their RRSP payments out without paying tax. The RIF meltdown strategy involves obtaining an investment loan and paying the accrued interest with the deregistered payment from your RRSP. When your RRSP payment equals your loan interest payment, you are effectively offsetting the income inclusion of your RRSP or RIF payment with an interest expense deduction resulting from your loan.

RIF Meltdown

RRSP Contributions

Strategy:
The advantage of investing in an RRSP is you can use your contribution as a tax deduction and all of the growth in the account grows tax-free until you withdraw.

As a Canadian, one of the many tools available to help you build retirement wealth is a Registered Retirement Savings Plan (RRSP). When the time comes to convert your RRSP into a RIF, the withdrawals are usually taxed at a lower marginal tax rate than during your working years.

​

A great way to start building retirement wealth is to start monthly contributions or take out an RRSP loan.

RIF Meltdown

TFSA Contributions - tax free investment growth

Strategy:
All the growth, dividends, interest and capital gains are tax free and you can hold a large variety of investments inside the account.

Another great tool available to you is the Tax-Free Savings Account (TFSA). The annual contribution limit for 2025 is $7000 and is available to anyone 18 years of age and older (to a maximum of $95,000).

 

Any withdrawals are also tax-free and when used with proceeds from a First Home Savings Account (FHSA) and the Home Buyers Plan (HBP), it is a great way to come up with a deposit for your first home! 

RIF Meltdown

Tax Efficiency - for your golden years

Strategy:
If you are retiring soon and seeking a tax-efficient source of cash outside your RRSP/RIF without wanting to trigger Old Age Security (OAS) clawbacks.

Tax efficient programs allow you invest in products that do not increase your taxable income and allow for tax deferral. A conservative payout strategy can provide extended tax-free cash flow and help to maximize investment potential. This is ideal for investors seeking to draw cash flows from their portfolio while maintaining the potential for growth through exposure in the market. Tax efficiency programs allow for customized levels of cash flow within diverse portfolios.

Personal tax credits

Personal Income Tax Credits - reduce your net income at tax time

Strategy:
For those who want to identify various tax credits that will ultimately reduce the net income at tax time.

Common credits can include:
 

  • RRSP contributions

  • Disability

  • Union dues

  • Business investment loss

  • Moving for employment

  • Support payments

  • Non-capital losses

​

  • Child care

  • Pension adjustments

  • Caregiver

  • Donations

  • Home buyers’ amount

  • Climate action incentive

Greenfeld 2024 Logo.jpg
CFP Logo Greenfeld Financial
RIS designation Greenfeld Financial
EPC Logo Greenfeld Financial
LBA 2025.png

4877 Delta Street
Delta, BC Canada
V4K 2T9

Tel: 604.940.8617
Fax: 604.940.8561

Jeff@greenfeldfinancial.com

  • Black LinkedIn Icon
  • Facebook
  • Instagram

©2019 Greenfeld Financial Management

bottom of page