HFI Financial

Keith L. Hatton, CFP, CLU, ChFC, TEP

financial planner planners Canadian planning advisor

We are a Canadian Financial services organization specializing in advanced tax sheltering, wealth accumulation planning, business succession, and retirement planning. We have also been very successful in reducing costs of employee programs and providing more tax effective compensation.

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We are a Canadian Financial services organization specializing in advanced tax sheltering, wealth accumulation planning, business succession, and retirement planning.

Financial, RRSP, Mutual Fund, Estate Planning, IPP, RRIF, Employee Benefits, Life Insurance, Universal Life, Tax Shelter, Living Buyout, Financial Planning, Retirement Planning, Shared Ownership, Pension, Trusts, Offshore, Shareholder Agreements, Accident and Sickness Insurance, Group Insurance, Canadians Can Now Purchase an Affordable US Health Care Plan

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Smart Strategies

Maximize investment returns.
Growing and preserving your estate.

Whatever your goals, the strategies outlined following can help identify ways to accomplish them more tax efficiently. Because the benefits for each strategy depend on your personal circumstance, it is important to talk to your financial advisor to discuss which ones best fit your overall plan.

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1. Maximize RRSP contributions

I don't know what the Seven Wonders of the World are but I know that the Eighth Wonder is: Compound Interest

RRSPs are tax-sheltered, which means any investment income earned will grow at a faster rate than money invested outside the plan. There are two primary RRSP benefits: tax deferral and tax sheltering. Tax Deferrals Reduce Taxable Income By contributing to an RRSP, you defer some of "today's" income until your retirement. By deferring the income, you obtain an immediate tax deduction for the amount invested. Assuming a marginal tax rate of 50%, tax sheltering $5,000 within an RRSP is the equivalent of investing $10,000 outside an RRSP. Tax-Sheltered Income In addition to reducing your taxable income, another important advantage of RRSPs is they provide tax-sheltered growth. Any income earned by investments held within an RRSP is not taxable until withdrawn from the plan. Over an individual's working career, tax-sheltered growth results in a significant investment advantage.

The graph shows the compound growth of a $10,000 deposit to an
RRSP and a non-registered vehicle like a savings account using a
10% annualized return and a marginal tax rate of 50%.

Any Canadian resident who is under age 69 and has
qualified earned income is eligible to contribute an RRSP

RRSP Contribution Limits

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