Tax Free Millionaire - Part 2

Tax Free Millionaire Strategy – Part II of III

In our previous posting, The Tax Free Millionaire, we illustrated how maximizing household TFSA contributions with a return of 6.5% per year would lead to more than $1,000,000 of TFSA assets in 25 years. We strongly encourage all investors to contribute to these accounts to benefit from the tax free growth. The missed opportunity for annual growth in the TFSA from the investment portfolio return is something that cannot be recovered. We are reaching a point where the investment return will soon be as important as the contribution.

Clients that we recently met with to implement the “Tax Free Millionaire Strategy” had the same concern as many others, “How do we save an extra $11,000 per year?” We recommend that they use our “Household Dashboard” analysis to determine their saving capacity. By answering five key questions, we were able to complete their current Household Dashboard (Before and After) analysis.

After completing this analysis, we were able to identify a number of areas where we were able to save unnecessary fees they were currently paying.

In this one specific example, a mere 7.38% change in spending put our clients on the path to becoming Tax Free Millionaires

They are now able to maximize their TFSA Investments while still making the RRSP contribution that is matched by their employer. Their lifestyle was not altered dramatically and they now will become Tax Free Millionaires much sooner than they could have dreamed.

We strongly encourage everyone to achieve a 10% savings rate. Our Household Dashboard analysis is a great way to identify strategies to accomplish this goal. Please visit our website, and click on the “Open an Account” link to get started working with our dedicated team.

You will be impressed by the efficiency of our process. Please watch for our next article in July on the difference between tax deferred income and tax free income.

National Bank Financial is an indirect wholly-owned subsidiary of National Bank of Canada. The National Bank of Canada is a public company listed on the Toronto Stock Exchange (NA: TSX). National Bank Financial is a Member of the Canadian Investor Protection Fund. The particulars contained herein were obtained from sources we believe to be reliable, but are not guaranteed by us and may be incomplete. The opinions expressed are based upon our analysis and interpretation of these particulars and are not to be construed as a solicitation or offer to buy or sell the securities mentioned herein. The opinions expressed herein do not necessarily reflect those of National Bank Financial. The securities or sectors mentioned herein are not suitable for all types of investors. Please consult your investment advisor to verify whether the securities or sectors suit your investor's profile as well as to obtain complete information, including the main risk factors, regarding those securities or sectors.


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