Pre-retirement: How to minimize my tax bill - Step 3 of 5

Pre-retirement: How to minimize my tax bill - Step 3 of 5 (0 min 35 s)

Added on June 27, 2012

Description

Are you nearing retirement and have many questions regarding your financial planning? Desjardins experts can guide you. With the help of their expertise and skills, they will provide the best tips to effectively prepare for this critical stage of life.

Video: Pre-retirement: How to minimize my tax bill - Step 3 of 5

Pre-retirement: How to minimize my tax bill - Step 3 of 5 (0 min 35 s)

Added on June 27, 2012 | Personal

Question: My biggest expense is still income tax. I already contribute to my RRSP and I want to reduce my tax bill. But how can I do that?

Answer: People who have used all their RRSP room and have additional savings to invest can put them in a tax-free savings account or TFSA.

You can shelter up to $5,000 a year in a TFSA. Withdrawals are non-taxable and can free up new contribution room for the following year.

Certain investment products also provide tax benefits. Your advisor can explain them to you.