Investment Accounts

Endowment Investment Strategy, Toronto

Unregistered Investment Accounts can have a significant, positive impact on wealth creation and should be part of any longterm investment strategy.

While not completely tax sheltered, there are still many tax advantages of using unregistered investment accounts to build wealth. Foremost among the reasons is that there are no tax implications for withdrawing monies from investment accounts. The funds in these accounts can be accessed at any time without tax penalty.

There are also some powerful tax advantages that can be had by making certain investments inside these accounts over regular personal income or rental income from properties.

Stocks held inside investment accounts can accrue capital gains over time. These capital gains can be triggered in a strategic way so as to limit the tax burden in any one particular year. Capital gains also have a preferred tax rate over regular personal income and therefore help build wealth more quickly.

Dividends from shares held in investment accounts also attract preferable tax rates over regular income and are subject to the dividend tax credit. This tax credit system allows you to keep more money after tax when you receive a dividend over other types of income. This also allows you to build wealth more quickly and can have a significant impact on wealth creation over time.

Talk to us about investment strategies that would work best in this type of account and how it may help you build wealth outside of traditional registered account investing.

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