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

The information provided on this site/blog page is solely for general and educational purposes and is based on the perspectives and opinions of the owners and writers. It is provided with the understanding that it may not be relied upon as, nor considered to be, the rendering of tax, legal, accounting, or professional advice. Please consult an appropriate professional regarding your particular circumstances. This site/blog page may also contain links to other sites which are not maintained or controlled by us. Access to or use of sites to which links are provided are subject to the terms and conditions of such sites. References to third party goods or services should not be regarded as an endorsement of those goods or services. All information provided is believed to be accurate and reliable, however, we cannot guarantee its accuracy. It may also include forward looking statements concerning anticipated results, circumstances, and expectations regarding future events. Forward-looking statements require assumptions to be made and are, therefore, subject to inherent risks and uncertainties. There is significant risk that predictions and other forward looking statements will not prove to be accurate. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus and/or the fund facts before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

Let's Chat