Stop Paying Interest-Free Loans to CRA And Keep More Of What You Earn.
The Best Selling Book: The 10 Secrets Revenue Canada Doesn’t Want You To Know!
“Taxes: The less you know, the more you pay!” - David M Voth
Taxes Can Be Significantly Changed Up Or Down, By The Way You Arrange Your Financial Affairs!
Introduction:
If you make any kind of Salary income in Canada you already know that "CRA has what it takes to take away what you have." That is why CRA Intercepts your employer and takes up to 30% - 52% of your pay cheque before you even get to see your hard-earned money in your bank account.
If that is not enough they also want to use your money interest-free for a year, and return (that is if you know how) without growth and after one year of inflation.
Annually, Canadians eagerly await the arrival of a tax refund, often seeing it as a reward from the CRA for their holiday expenses. However, behind this windfall lies a harsh truth: a tax refund means an overpayment to the Canada Revenue Agency (CRA) throughout the year.
Don’t celebrate large tax refunds, eliminate it today to Retire Early and Wealthy than Traditional Methods.
With that said, here are Ways to start paying the right amount of Tax today! 👊
1. Overpaying Withholding Tax Is A Big Mistake
Essentially, it’s like giving out an interest-free loan each month to the government, out of your hard-earned money and receiving your own money back as a tax refund, with no growth, no interest, after one year of inflation on your money.
Good news! Here's a way to keep more of your hard-earned money. (Yes, your tax accountant or advisor should have told you long ago!)
2. “the right way” is paying the right amount of taxes
If you tell the CRA that you'll put money into a non-payroll RRSP account, pay interest expenses on investment loans, claim child care expenses, alimony, maintenance or support payments, even on employment expenses they'll authorize you to lower the taxes taken from your paycheck by your employer and reduce the taxes you pay throughout the year.
This means you'll get more money each month. What you do with this additional cash flow depends on your goals.
For Financial Freedom, debt elimination followed by wealth accumulation by investing for an early and wealthy retirement should be a priority over spending the additional money from CRA.
3. The Power of Compounding
Just this small additional cash flow of a few hundred dollars reclaimed from CRA every month invested during your active working years for compounding growth in tax advantaged way using a Systematic Investment Plan (SIP) will cut out many years of work before you can retire with a Total Financial Freedom.
The Compound Effect is the principle of reaping huge rewards from a series of small, smart choices. -Darren Hardy
4. How to 'Request to Reduce Tax Deductions at Source'
Everyone and every blog posts tells you "what to do" and very few tell you "how to do it"
I do not want to be that person. Here are the resources to actually do it and keep more of your money
Download the CRA’s T1213 Request to Reduce Tax Deductions at Source
Quebec residents must also complete form TP-1016-V
5. Universal Rules of Money - It drives long-term results
There is a great way to get more mileage out of your savings to achieve Total Financial Freedom much earlier than conventional wisdom pushed by capitalist financial institutions. However, it's important to embrace and implement the fundamentals of "How money works" to achieve the desired results for you.
3 Universal Rules of Money
The Power of Compounding
Never lose the Principal invested
Pay the Right Amount of Tax
6. Mistakes Retail investors make
3 big mistakes many retail investors make while managing their hard-earned savings:
Not clear on where to put the money
Not knowing Where to look for results
Not knowing What results to look for
Knowing and understanding modern financial concepts can help you have and enjoy financial freedom. Those concepts I share with my clients are in the webinar link below.
The 5 Simple Shifts To Grow Your Wealth 3X Faster and Retire Early
Disclaimer:This communication is provided as a general source of information only and should not be considered personal tax, accounting, investment or legal advice and should not be relied upon in that regard. Professional advisors should be consulted before acting based on the information contained in this communication to ensure that any action taken concerning this information is appropriate to their specific situation. The facts provided are believed to be reliable as of the date of writing this article.
