Pay Less Tax In 2023 With These 5 Strategies

➡️Fee For Service Planning: www.parallelwealth.com/planning
➡️Helpful Canadian Taxation Website: www.taxtips.ca/
Everyone wants to pay less tax, so let's go through 5 strategies on how you can achieve this in 2023.
If you have any further questions about this video's topic or any financial planning questions in general, I encourage you to find a certified financial planner in your area or book a consultation with us to get your retirement plan on track.  You can learn more about our services at www.parallelwealth.com/planning
Financial Resources I personally recommend:
➡️Retirement Income for Life: Getting More without Saving More (Second Edition): amzn.to/3tvIdVN
➡️Parallel Wealth Masterclass: www.parallelwealth.com/education
➡️Future Value Calculator: amzn.to/3EA6Qqv
➡️Neo Mastercard - no annual fee and average 5% back! - join.neo.cc/parallelwealth
➡️Free Credit Report with Borrowell: bit.ly/borrowellPWFG
➡️Maximize your Savings with EQ Bank - bit.ly/EQBankPWFG
The above affiliate links are provided for your convenience. If you click on a link and end up purchasing a product or service, this channel may receive compensation for the referral. We have personal vetted each product and service we provide links to.
OUTLINE
0:00 - Happy Holidays
0:59 - 1. Contribute To RRSP
4:00 - 2. Charitable Donations
5:07 - 3. Use TFSA Over Non-Reg
6:40 - 4. Structure Accounts Efficiently
8:25 5. Income Split At 65
This presentation is intended for information purposes only and does not constitute an offer to buy or sell our products or services nor is it intended as investment and/or financial advice on any subject matter. Every effort has been made to ensure the accuracy of its contents. Certain of the statements made may contain forward-looking statements, which involve known and unknown risk, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Returns are not guaranteed and past performance may not be repeated.
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DISCLAIMER: The videos and opinions on this channel are for informational and educational purposes only and do not constitute investment advice. Adam Bornn is not registered to provide investment advice and as such does not provide recommendations - those looking for investment advice should seek out a registered professional. Adam is not responsible for investment actions taken by viewers and his content should not be used as a basis for investment trades.
#retirement

[@J.C.S.77]

Happy (late) merry Christmas to you too Adam! “Give and it will be given to you”! 😊

[@kimmykero2421]

Great reminder Adam! Some of us are aware of these strategies and don't take advantage of them enough!

[@ramican9155]

Great video, thanks Adam. Merry Christmas!

[@johnwillock6787]

Always look forward to The knowledge you pass on with your videos. Best of the season to you!!

[@ParallelWealth]

Thanks John!

[@lunamorris2091]

Thanks for sharing this marvelous video. I'm very pleased to see this video. I enjoy this site - it's so useful and helpful.

[@bethdejuan8909]

As always a treasure to know how to plan for retirement. Thank you, for sharing. Happy Holiday and a Happy New!

[@ParallelWealth]

Happy holidays!

[@busley9837]

Thanks Adam. Appreciate all the advice you have provided. Best to you and your family over the holidays.

[@ParallelWealth]

Thanks Busley. Same to you!

[@enduser2347]

Adam, great message. Taxation is always important to consider. I wish you and your family a Merry Christmas and a healthy and prosperous year 2023.

[@ParallelWealth]

Same to you End User

[@billm.8220]

Straight to the point & quite detailed. Very well done. Happy holidays. Here’s to a prosperous 2023.

[@ParallelWealth]

Thanks Bill. Happy Holidays to you as well.

[@mike330i]

Happy Holidays! Thanks for all the informative videos.

[@ParallelWealth]

Thanks Michael. Happy Holidays

[@jakeleak]

great tips! tyvm and happy holidays!

[@ParallelWealth]

Happy holidays Jakie

[@mikewatson2034]

Merry Christmas Adam to you and your family. Appreciate all the information you have shared with us.

[@ParallelWealth]

Thanks Mike. Merry Christmas to you and yours as well.

[@GaneshD123]

Excellent! Thank you for all the great information and advice you and your team provide. We're so happy we purchased a family plan - it has been an excellent journey to work with your team! Merry Christmas and a healthy and prosperous 2023 to all team members!

[@ParallelWealth]

Merry Christmas! Thanks for trusting our team with your retirement plan.

[@tintinlol7881]

I don't observe Christmas as such, but I love the holidays. Happy Christmas to you, your family and all your subs.

[@ParallelWealth]

Thanks Tin! Appreciate the support. Enjoy your holidays.

[@jasonalcott17]

Thanks for the great information Adam!

[@ParallelWealth]

You bet!

[@chrisdickson8156]

Great content. You provide some of the best content I have seen. In this space. Thank you

[@ParallelWealth]

Thanks Chris, appreciate it.

[@andrewciechanowski8032]

thank you Adam, great video,

[@ParallelWealth]

Thanks Andrew. 👊

[@canpin]

Merry Christmas to you too.

[@ParallelWealth]

Thanks Peter. Have a Merry Christmas.

[@barrydowner7975]

great video, Merry christmas from my family to yours!

[@ParallelWealth]

Thanks Barry. Same to you!

[@eddycpl]

Merry Christmas & Happy Holidays Adam! All good tips especially maxing out TSFA for GIC.. never though of that. 👍

[@ParallelWealth]

Thanks Eddy! Merry Christmas

[@scholargrrl]

Thanks for bringing up donations. Remember that sponsoring a child also counts and your children can communicate with them and learn about another country, community, and just more about the world. And now they can send their letters digitally which makes it faster and more accessible in cases of low attention spans. There are just so many options to give and nothing has to be a "traditional" donation. Pick a passion and see if there is an organization already set up to help. Also, if you want to support your local community, talk to a librarian at your local library for some help too.

[@alnoormanji4689]

Thank you Adam for posting the updates through this timely video. It seems coincidental or my luck that my questions, as I settle through my first year of retirement, are answered through such informative, and well structured content. Wishing you and your loved ones Happy Holidays, with good health, prosperity, success and peace in 2023 and beyond!

[@ParallelWealth]

Thanks Alnoor, same to you

[@Expedition18]

Have a happy holiday with family and friends and keep up the good work helping people feel better about their lives and future👍

[@ParallelWealth]

Thank you! You too!

[@justingt3rs]

7:45 taking into account what you mentioned at the begininng, this means if we are young and filling our tfsa and rrsp, we should not really be focusing on dividend paying stocks, in other words taking on more risk? so we should wait to buy banks, CN etc?

[@SusanGaskin]

Thanks for the awesome advice. My husband and I love your videos! Have you ever done a tax video to help Quebeckers? As you probably know, we have two separate tax forms to complete annually (federal and provincial).

[@ParallelWealth]

Not yet!

[@Abdul-Alhazred]

I have some Pre-IPO. What's your suggestion if I don't want to pay huge amount of tax after it goes public?

[@MegsCarpentry-lovedogs]

Adam....this is what I can call a very kind "Christmas present" from you and your team! The chart regarding combined tax credit for donations was so important to know about! Plus, (wink, wink) you included Prince Edward Island 👍😉🙏. As you pointed out in previous video's, PEI is the second to the highest taxation in Canada...yikes! I was not aware of this...looks like donations are going to be done in this taxation year, as it is the one on "your Christmas list" that applies in my case. Thank you "Santa Adam!"🎅 and do enjoy the special times with your family. They are so precious.🙏🇨🇦🎄

[@ParallelWealth]

Merry Christmas Meg! Thanks for all your comments, feedback and input this year on the channel. Much appreciated.

[@MegsCarpentry-lovedogs]

@@ParallelWealth Absolutely my pleasure Adam. I have been sharing here and there links to some of your vids. Sharing is caring right! Thank you for noticing my comments as you are all so busy monitoring things. There is no doubt I will be looking into big donations soon, before year end, to help with lowering taxes. Honestly, you folks are working hard in finding relevant content and this one was "bang on relevant." Well done to you all. Rest, enjoy and get over that cold the kids keep bringing home to you eh!☺🌬🙏🎄🇨🇦

[@Azel247]

Hey Adam, thanks for this video and merry Christmas! I was struggling with structuring accounts efficiently. I am 36, maxed out TFSA and RRSP and have investments in non-reg account. I decided to put growth ETFs into my TFSA and RRSP and my dividend stocks into non-reg. My thought is that I want my TFSA/RRSP to grow as much as possible for the next 30 years and then convert the growth ETFs to dividend-generating holdings once I retire. Does this sound alright?

[@ParallelWealth]

Sounds like you are on the right track! Merry Christmas.

[@markandrew5352]

Thanks for the great content. If I may ask, does the charity need to be a canadian one? The one I’m looking to donate is in the US. Happy new year!!

[@ParallelWealth]

For the tax credit, yes it does. Many US charities have an affiliate up North, so check with them first.

[@radosuites7058]

how does income splitting from a rrif look like in practise ?

[@ll_distribution]

Great and clear information thank you! Fyi EQ bank changed their GIC "TFSA" cur. 4.30) only their regular savings GIC carry 5% right now. There are other offers out there.. as an example People's trust GIC TFSA cur. 5.10% Merry Christmas!

[@ParallelWealth]

Thanks Louise, rates are constantly changing! Merry Christmas.

[@johnnyboyvan]

Frohe Weinachten to you and your family, Adam. I will be contacting you for a plan in the Neues Jahr. Hohoho Santa 🎅

[@ParallelWealth]

Sounds great!

[@shafieghadiri7352]

I am 67 years old and I don't have any RRSP. So I guess I don't have to worry about my tax and I will pay more

[@MegsCarpentry-lovedogs]

Adam, the strategy of donating is interesting. I have done the draft on 2022 income tax reporting and for some reason the provincial tax credit for donations isn't being used, only the federal tax credit for donations. I have been researching on the internet for answers and it has come down to returning to this vid to hope you are still viewing comments on this topic. Is the PEI provincial tax credit for donations not showing up because other provincial tax credits are considered first before donation tax credits? Perplexed, hope to hear from anyone. 🤔🙃🥴 ☺🇨🇦

[@Coyotehello]

Happy holidays to you and yours Adam. Great video as usual. I suspect I know the answer but can Parallel wealth also act as our accountant?

[@ParallelWealth]

No, we are not licensed or trained for tax returns...

[@Coyotehello]

@@ParallelWealth I thought that might be the answer. L. Finding a one-stop-shop would have been nice. Happy Holidays!

[@ParallelWealth]

@Alain Pascal convenient yes, but will you get the expertise you need? Maybe not.

[@minstrelca]

Really like your videos. Just a question so if my wife makes like 49K is there no point or tax benefit to contributing to an RRSP at all? Just put it into TFSA instead? I was going to get her to contribute but wasn't sure. We are not retired and she is still in her 30s but we were not sure how much exactly she should contribute but after watching your video I guess if you make too little it won't matter anyway? Thanks!

[@nickchartier6540]

Adam, for the ones 10 years away from retirement, would it be wise to put all of your TFSA money in your RRSP so that you have a lot of space once you start taking the RRSP money out

[@ParallelWealth]

Not likely all of it, and will depend on your tax rate. If you get a big pay bump before retiring and can't max out your RRSP, then moving some from TFSA to RRSP could make sense. Very case specific tho. Important to have TFSA as you enter retirement.

[@jacquelinehart5334]

If my OAS & CPP equal $17,500.00, how much can I take from my RRIF before paying tax?

[@stephenn88]

Does the TSFA account cap grow as the investment goes up?

[@ParallelWealth]

If you cash it out, you will get the equal amount of room back the following year. So in theory yes it does.

[@garth217]

Make a donation to a Children's Hospital!!! You get the tax credit and you get something much more important. I like Calgary's Children's hospital for one reason that regular viewers of this channel will understand

[@ParallelWealth]

Thanks Garth. 👊 I can't say enough how much this means to our family. Much love and Merry Christmas.

[@strokerace4765]

Horrible advice, with standard deduction so high, that would be throwing money away!

[@skyluke2445]

Wondering......If I buy a 1 yr GIC from EQ Bank can that be held in a TSFA to save tax on interest paid?

[@grantboucher2696]

yes mine holds cash stocks etfs etc.

[@sandray7609]

Yes they have TFSA accounts

[@skyluke2445]

@@sandray7609 thanks.,..Saven Financial has 1 yr GIC with 5.30% interest but there a Ont credit union having something called FSRA deposit protection.... not sure

[@sandray7609]

@@skyluke2445 I haven't checked lately but EQ Bank usually has the best rates. Not familiar with Saven

[@breezybre2670]

Adam... I can't find an answer from anyone to this question. How do we know that one will be in a lower tax bracket in retirement? Personally I don't want to take a huge pay cut at age 60 when my husband retires . I would like to make more money then than we do now.

[@ParallelWealth]

Get a plan done - that's the best way. And remember, a lower tax bracket doesn't mean less income - just more tax efficiency.

[@breezybre2670]

@@ParallelWealth Are these plans done with the input of chartered accountants?

[@ParallelWealth]

@Breezy Bre the software is consulted by CPAs, but the plans themselves work more on tax efficiency around income and drawdown planning - something very few accountants have training in.

[@cloudedjourney]

sad that most Canadians don't give. We seem to expect the government to do everything.

[@katalystcruz8864]

Disagree on one point Adam. A multi million dollar rrsp...is a big mistake in my opinion. Yes its great, but they gotta pay taxes on the money drawn out. Where as a TFSA...there would be no tax implications.

[@ParallelWealth]

Yes, but you have failed to realize they did not put that much in...string investment performance did most of the work. A few of these clients made a boatload on Tesla for instance! I agree, funding your RRSP with millions makes no sense, but many will have them grow that big. A good 'problem' to have.

[@hacikistanbul2543]

A really good question would be if you can transfer RRSP funds to a RRIF BEFORE age 65 and still take advantage of the Pension Income Tax Credit ($2000) tax free ?????

[@ParallelWealth]

You can transfer before age 65, but the credit can't be used until 65.

[@hacikistanbul2543]

@@ParallelWealth Thank you. By the way, my mistake. I don't think it's a Tax Free credit. The calculation allows you 15% of $2000= $300 credit ???

[@SteveRCPilot]

My wife is staying at home to raise our new baby. Her income is zero. Can I income split with her? Im 45 she is 35

[@ParallelWealth]

Nope! Only in retirement.

[@raygeez]

Will taxes in the future be higher or lower than today? Having all your nest egg in a Government Program like an RRSP means this tax bucket might be subject to higher taxation in the future. if you are planning your future retirement income to come from RRSP + CPP + OAS, these are still considered earned income and taxed accordingly by the Government. Having an open, non-registered account could prevent locking your money into the most restrictive place to park your funds, the RRSP. If you do not need a tax deduction, max out your TFSA, if you have the means, look into the Infinite Banking Concept as a permanent tax shelter like the 1% has been doing for centuries to create a tax-free retirement pension.

[@elterrifico9522]

How do you melt down $3M in RRSP savings without being clobbered by the tax man? 🧐

[@ParallelWealth]

A great plan!! We saved that client over a million in taxes.

[@elterrifico9522]

Yeah, okay

[@sharky0]

First ?

[@ParallelWealth]

Welcome!! Lol.

[@ronwiebe4816]

We do fondu every Christmas Eve - chocolate

[@ParallelWealth]

So good!!

[@georgemircea3201]

I hate commercials with English accent,

[@daves6488]

Can you explain the rrsp a bit more in regards to taxes. If you already have than maybe I can't find the video. But you put money in and get your refund based on your marginal tax rate. When you pull it out you pay taxes on it like regular income so you'd use an average tax rate since we have progressive tax brackets correct? So even if you make the same income in retirement, you'd be pulling out at a lower tax rate than you put in? Everyone always says if you make less in retirement rrsp is the way to go. But it seems like you can make the same income or even more and still pay tax at a lower rate?

[@ParallelWealth]

You are correct in all your comments. And yes, with some of the income and age credits, your average tax rate in retirement can be lower than pre retirement with the same or higher income

[@marcflaro2011]

How do I get your help

[@ParallelWealth]

You can learn more about our services at www.parallelwealth.com/planning