Tax-Efficient Investing
Are your non-registered investments as tax-efficient as they could be?
What Is Tax-Efficient Investing?
Investments in a non-registered account are subject to taxation each year. Whether you are invested in mutual funds, exchange-traded funds, GICs, individual stocks or bonds, your income and/or wealth accumulation will be eroded by the steady drain of taxes. Just like investment fees, the impact of loss due to taxes compounds over time, potentially becoming your single largest investment expense!
Proper tax-efficient investing requires expertise and ongoing effort. From a financial planning perspective, maximizing your contributions to tax-sheltered investment accounts like TFSAs and RRSPs can be an easy way to defer or avoid taxes. The more difficult task is how to manage the investments that cannot be sheltered. The challenge for investment providers is to optimize the risk/return trade-off of individual investment objectives with the three forms of investment income: interest, dividends and capital gains. Unfortunately, most investment providers are either unwilling or incapable of doing so.
Justwealth’s Approach To Tax-Efficient Investing
Justwealth appreciates that every investor’s tax circumstances are unique, so every client receives personal attention from their dedicated Personal Portfolio Manager. Client accounts are managed separately, using tax-efficient and low-cost exchange-traded funds to create a tax-efficient portfolio that will be customized to either grow your assets, generate steady and predictable income, or preserve your assets.
Transferring your non-registered account can result in a significant one-time tax loss due to capital gains. Justwealth will manage the transfer tax efficiently by allowing in-kind transfers, creating a transition plan that allows for realizing capital gains over multiple tax years and holding certain securities indefinitely upon request. Transition plans are complemented by our annual tax-loss harvesting strategies that can be used to accelerate or defer the realizing of capital gains, whichever is in each client’s best interest!
What others say about our tax-efficient portfolios…
It’s obvious that those with a more complicated scenario and those with a higher net worth might benefit greatly from Justwealth’s added layers of product offerings and features and planning services. The benefits can be real and meaningful. The potential value created with tax efficient portfolios and tax planning can be in the range of additional returns of 1% annual or more.
Right from Day 1 you get a dedicated Personal Portfolio Manager (who has a fiduciary responsibility to you). This person will guide you through tax-efficient portfolios, tax-loss harvesting, and explain any rebalancing moves that have been made within your account.
In addition to uniquely constructed portfolios, low fees and a dedicated personal portfolio manager, there are many other benefits that come with a Justwealth account including Tax Efficiency: your portfolio is managed in a way that minimizes your taxes. Non-registered accounts benefit the most from these portfolios as they are designed to improve after-tax performance without increasing risk.
Our tax-efficient investment strategy was highlighted in
Canadian MoneySaver Magazine!
Read the article
To summarize, Justwealth can offer the following:
Dedicated Personal Portfolio Manager
Portfolio transition planning
Annual tax-loss harvesting
Low, tax-deductible management fee of 0.5%
Low Portfolio Turnover
Tax-efficient portfolio construction
Comprehensive Tax Reporting
In-kind transfers
Are You Ready To Invest Tax-Efficiently?
Prefer to speak with us?
Schedule a time for one of our knowledgeable representatives to call you and answer any questions you may have.
Time to Review Your Portfolio?
Justwealth’s Portfolio Review Service allows our investment professionals to provide their professional opinion on how your investment portfolio is invested.
Learn about Justwealth
FAQs
For any questions we haven’t answered yet
Pricing
View our low-cost & transparent fee structure
Performance
Check out our tax-efficient portfolios
