Sightline in The Globe and Mail: Tax Reduction Tips for High-Income Earners
Executives and other high-income earners might get large paychecks that help fund vacation properties, luxurious cars and enviable lifestyles. However, even if you have visible wealth, there are still hurdles to face when building significant savings that can last for generations. One of the biggest threats for executives in Canada is the prospect of higher taxes. Fortunately, as Sightline Wealth Management tells The Globe and Mail in a recent article, there are steps high-income earners can take to reduce their tax burdens and protect their wealth.
Some things to consider might be to maximize RRSP and TFSA contributions, income splitting to even out spousal incomes, spousal RRSPs, potentially making low-interest spousal loans, and maxing out RESPs for children. “I find even though those are table stakes, it is not always a forgone conclusion that these are all maximized,” says Sightline Senior Investment Advisor Paul de Sousa.
However, taxes are not the only concern executives need to address to protect their wealth. They could increase their insurance coverage to ensure their income is replaced in case of death, illness, injury or inability to work.
“If we had a machine that produced $750,000 a year, we would insure that machine. I find people are often woefully under-insured and relying on their corporate plan, which might not come near to replacing their income,” comments de Sousa. “They are basically hoping that nothing goes wrong, and hope is not a strategy.”
Sightline Wealth Management LP (“Sightline”) is not a tax or insurance advisor. Please consult your respective accountant and/or insurance broker for more information.
Sightline Wealth Management LP (“Sightline”) is an investment dealer and is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF). Sightline provides management and investment advisory services to high-net-worth individuals and institutional investors.
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