Retirement Mistake No.23: Overlooking a Powerful One-Two Tax Punch in Retirement
Posted In: Retirement Planning for Entrepreneurs

Don’t Just Buy a Mutual Fund–Combine Corporate Class and T- SWP

As mentioned in the previous chapter, some companies allow you to set up a T-SWP tax-advantaged withdrawal program. You can also switch between investments without triggering tax. Now you get the best of both worlds, corporate-class and SWP or T-SWP. The final kicker is that any capital gains you have can be given to charity at a zero tax base. That is correct, you can set up a corporate-class fund and generate income from T-SWP, mostly tax-free, and name a charity–with no tax consequences when you die. Wow, what a great concept. It actually works and conforms to the Income Tax Act; just ask your accountant and financial professional for details before proceeding. But it is simple–have your cake (corporate-class) and eat it, too (income-tax efficient and free upon death when given to a charity).

Opportunity dances with those who are ready on the dance floor. – Jackson Brown, Jr.

Don’t wait for extraordinary circumstance to do good; try to use ordinary situations. – Charles Richter


Published with permission from Grant Hicks