Investing & the Taxman

While less important than your investment time horizon, risk tolerance and risk capacity, tax is an important consideration to keep in mind. The reason we own investments is to make money. However, whenever we make money, the taxman expects to share in our good fortune. Tax-savvy investors make good use of tax planning techniques to keep as much after-tax income as possible.

In this section of the ProsperiGuide website, Investing and the Taxman, we'll explore some implications of investing and taxes, including:

  • Investment accounts and your marginal tax rate (MTR)
  • Types of investment income
    • Capital gains and losses
    • Transferring non-registered assets
    • Taxing long-term incentives
  • Deductions and leverage
  • How to be a tax-efficient investor

Whenever tax is reduced or deferred on investment income or capital gains in your portfolio, the money remains in your portfolio where it continues to grow and compound investment returns. Over the course of your working career and into retirement, focusing on tax efficiency and low-cost investments offers real returns, which means more money for you.