Folks say they want the best retirement investment available, but quite often what they really mean is 'they want the best retirement investment vehicle available' and this is especially important during uncertain financial times.
They want to know the best ways to protect their investments.They don't want to lose money, but they want an investment that will give them the best rate of return with the least amount of risk.
A retirement investment vehicle needs to meet certain criteria, other than great returns and low risk to be considered the best. Tax efficiency is a must without all the great returns and low risk become meaningless.
So let's break down what we mean by the best retirement investment vehicle. As mentioned earlier there is criteria of six important issues that must be addressed for any vehicle to be considered the best.
First requirement would be--the rate of return-the investment inside the vehicle would have to beat the rate of inflation with its rate of return on a consistent basis.
Requirement two would be--tax efficiency. An investment needs to shelter the income from tax. (Very few investment vehicles offer this). RRSPs only shelter the money from tax while the cash is held within the RRSP. Once the monies are withdrawn the tax is payable at your full marginal tax rate.
The investment vehicle must shelter the investment from tax -legitimately.
Requirement three--is that it would need to make sure the income from the vehicle will cause no reduction in government benefits. You don't want your OAS (Old Age Security) being clawed back. That is virtually the same as double tax!
The forth requirement--would mean it is versatile offering numerous investment options like: Equity investments both domestic and foreign with a choice of a growth or value bend, plus offer good choices of fixed income products.
Number five--requirement would be the fact it is creditor proof. It could not be taken away with any creditor's court action including anything initiated by the government (CRA) Canada Revenue Agency.
Requirement number six would be--that it has the capacity to transfer to a named beneficiary-- tax-free and probate fee-free, should you die prematurely regardless of any debt owed by your estate.
They want to know the best ways to protect their investments.They don't want to lose money, but they want an investment that will give them the best rate of return with the least amount of risk.
A retirement investment vehicle needs to meet certain criteria, other than great returns and low risk to be considered the best. Tax efficiency is a must without all the great returns and low risk become meaningless.
So let's break down what we mean by the best retirement investment vehicle. As mentioned earlier there is criteria of six important issues that must be addressed for any vehicle to be considered the best.
First requirement would be--the rate of return-the investment inside the vehicle would have to beat the rate of inflation with its rate of return on a consistent basis.
Requirement two would be--tax efficiency. An investment needs to shelter the income from tax. (Very few investment vehicles offer this). RRSPs only shelter the money from tax while the cash is held within the RRSP. Once the monies are withdrawn the tax is payable at your full marginal tax rate.
The investment vehicle must shelter the investment from tax -legitimately.
Requirement three--is that it would need to make sure the income from the vehicle will cause no reduction in government benefits. You don't want your OAS (Old Age Security) being clawed back. That is virtually the same as double tax!
The forth requirement--would mean it is versatile offering numerous investment options like: Equity investments both domestic and foreign with a choice of a growth or value bend, plus offer good choices of fixed income products.
Number five--requirement would be the fact it is creditor proof. It could not be taken away with any creditor's court action including anything initiated by the government (CRA) Canada Revenue Agency.
Requirement number six would be--that it has the capacity to transfer to a named beneficiary-- tax-free and probate fee-free, should you die prematurely regardless of any debt owed by your estate.