Golombek talks tax-efficient investments at STEP

Here are some of our tweets:

If clients own capital yield funds talk to your fund company. #STEP1

With structured notes, interest is not known until maturity. Is it still interest income if I sell before maturity? CRA has so far allowed it as cap gains. #STEP1

Keep an eye on maturity date to save 50% tax. But CRA may not allow forever. #STEP1

If you buy bond on a date other than coupon date must pay accrued interest to person who sold it to you. Can deduct in year received #STEP1

But technically there may be no income in that year because you didn’t earn coupon on bond. Ppl deduct anyways but watch out. #STEP1

#STEP1 insured annuities: No probate on payout. Same cash flow as GIC but after tax is much more for insured annuity. 528% increase

#STEP1 insured annuities for insurance person makes a lot of sense. 4.87% pretax yield for someone in 31.15% marginal tax bracket.

#STEP1 Line of credit for personal 40%, 60% for investment purposes. I can deduct interest paid on 60%. What if I want to pay some down?

#STEP1 CRA says must pay back pro rata. Can’t just pay back 40% personal. To avoid this problem get 2 lines of credit.

#STEP1 sweet spot for insured annuity is 70. Can buy insurance when healthier, in 60s, then do annuity later.

#STEP1 exempt test changes may threaten insured annuity benefits. So get the annuities in now before they change.

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