There are both affective and effective ways of doing things. With the same expense of energy, perhaps less, you can achieve a better bottom line simply by knowing the rules of the game and applying the techniques and strategies available to maximize the money you keep in your pocket.

A good example of tax strategizing is income splitting, which may enable you to share the tax burden with other family members. By attributing income to other family members, you can have them taxed at a lower marginal tax rate than your own, leaving more after tax cash in your pocket.

Ask yourself if you are taking advantage of all the tax benefits available to you.

All income is not equal for tax purposes. Interest income is fully taxable, just like earned income. Dividends and capital gains benefit from preferential tax treatment, except within an RRSP. Are your investments appropriate for your tax position?

At DD Humes, we may be able to help you reduce your tax burden. Such intervention may help increase the assets you are able to accumulate over your lifetime. To decide how those assets should be treated, we move on to Step 8: The Estate Creator.

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