Golombek talks tax-efficient investments at STEP

Advisor.ca is tweeting live from the Society of Trust and Estate Practitioners (STEP) 15th national Canadian conference.

Jamie Golombek, managing director of tax and estate planning for CIBC Private Wealth Management, gives insight on tax-efficient investments.

Here are some of our tweets:

If clients own capital yield funds talk to your fund company. #STEP1

With structured notes, interest is not known until maturity. Is it still interest income if I sell before maturity? CRA has so far allowed it as cap gains. #STEP1

Keep an eye on maturity date to save 50% tax. But CRA may not allow forever. #STEP1

If you buy bond on a date other than coupon date must pay accrued interest to person who sold it to you. Can deduct in year received #STEP1

But technically there may be no income in that year because you didn’t earn coupon on bond. Ppl deduct anyways but watch out. #STEP1

#STEP1 insured annuities: No probate on payout. Same cash flow as GIC but after tax is much more for insured annuity. 528% increase

#STEP1 insured annuities for insurance person makes a lot of sense. 4.87% pretax yield for someone in 31.15% marginal tax bracket.

#STEP1 Line of credit for personal 40%, 60% for investment purposes. I can deduct interest paid on 60%. What if I want to pay some down?

#STEP1 CRA says must pay back pro rata. Can’t just pay back 40% personal. To avoid this problem get 2 lines of credit.

#STEP1 sweet spot for insured annuity is 70. Can buy insurance when healthier, in 60s, then do annuity later.

#STEP1 exempt test changes may threaten insured annuity benefits. So get the annuities in now before they change.

Follow @advisorca on Twitter to read all our live coverage of the STEP conference.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.