Not exact matches
The other thing I would suggest is to consider the tax implications of each
investment and then
balance them across multiple
accounts; ie, the stuff that generates interest and that is taxed at the highest rates (Bonds, GICs, REITs) goes
in your TFSAs, International stuff goes into your RRSPs so there's no withholding of foreign dividends, and stuff that generates Canadian dividends goes
in your
taxable account to get the Canadian gross up tax dividend.
Investors who can benefit the most from asset location strategies are those who follow a
balanced investment strategy and have
investments in both
taxable and tax - advantaged
accounts.
Let's assume I pose the following set of facts: 1) I need to plan for a 60 year retirement, 2) I want to have at the end of Year 60 100 % of my original
balance (inflation adjusted obviously), 3) Only 10 % of my savings /
investments is
in tax deferred
accounts (e.g., the bulk are
in a
taxable accounts), 4) I need a 6 % withdrawal rate pre-tax, and 5) I am indifferent to strategy (VII, etc) and asset choices (annuity vs. dividend blend vs. income, etc) but to guarantee the goals above.