In this day and age, investors are inundated with investment information. It’s difficult not to be alarmed by some of today’s business headlines. It is a daunting task to build an investment portfolio from scratch. At Niagara Wealth, we work with you to build and maintain a well-balanced, diversified portfolio that will help you reach your long-term goals at a level of risk that is acceptable to you. You will have peace of mind just knowing that you have someone to help you navigate today’s volatile financial markets.
Many Canadians are feeling confused by today’s investment climate. There are thousands of financial products available with different degrees of complexity. Knowing where and when to invest can seem overwhelming. However, making the most of your money still boils down to a few essentials:
- Reduce the impact of taxes
- Diversify to manage risk
- Invest long term
One of the most effective ways to increase your investment returns is to decrease the amount of taxes that you pay on the returns. In fact, studies indicate that creating a tax-efficient portfolio has one of the greatest impacts on creating wealth. At Niagara Wealth, we can help you take advantage of all the opportunities the world has to offer while minimizing the tax that you pay. One of the easiest ways to minimize tax is by maximizing the investment within a tax-deferred environment, such as a Registered Retired Savings Plan (RRSP), where your investments can grow sheltered from tax.
When investing outside a registered plan, it is important to focus on investments that generate capital gains or dividend income as they’re both taxed more favorably than interest income.
There are other strategies that can be utilized depending on your personal financial circumstance. Contact Niagara Wealth to learn how we can create a tax-efficient investment portfolio for you.