Now that RSP season is over with, what are you going to do with that big refund? You ARE getting a big refund, right? Great to hear it! One suggestion is to use the cash to pay off debt. Another is to enjoy the cash and have fun right now. Yet a third, and in my opinion the best way, is to invest in a fully paid-up life insurance policy that will create a flow of non-taxable income, or create a lasting legacy for your loved ones or favorite charity.
Alternatively, investing your proceeds for a few years in well-chosen assets increases your wealth and can set up a lifetime of passive income for you. The question then becomes how much growth, risk, and tax are you willing to accept to achieve this goal?
You see, rich people become wealthy by getting to a point, as quickly as they can, where their money is working hard so they do not have to. It?s called creating PASSIVE INCOME? for life. Poor people just keep doing what they?re already doing?working hard.
Pay much less tax and earn much more money. Great concept! Too bad the majority of Canadians who complain about being poor do virtually nothing about it.
Maybe you try your hand in the stock markets? Many have made a fortune there [of course, just as many have LOST everything]. So one must be cautious.
Is there another option? Well, as it happens, there is. Perhaps one could consider investing in solid, asset-backed, well-managed OFFSHORE structures. Take, for example, certain programs that have performed so well in the past that, if it was to continue [and there are never any guarantees] your wealth could grow much faster than you would typically expect year after year.
The poor man will almost always say, ? It?s a got to be a scam!? and walk away. The rich man, realizing that this may be yet another opportunity to create wealth, will look a little deeper, ask a lot of tough questions, look at the reputations and track records of those involved, maybe go offshore in person to investigate the opportunity and discover for himself what the real deal is.
There exist many such opportunities for those wishing to diversify, to increase wealth and lower taxation. You just have to know about them. Then you have to DO something about it.
Our next trip to Costa Rica to investigate just such an investment opportunity departs Canada in a few weeks. So now you know. Any takers?
Alain Durand is an advisor specializing in aggressive tax minimization strategies, life insurance and other areas of financial interest.
He can be reached at 204 237 1788 or visit www.smarttaxstrategies.com
PS: Past performance is no indication of future return?unless you are referring to human nature!