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Taxes are a pain, aren't they?
And no matter how hard we try, at some point, our tax mess has to get cleaned up. We have to pay them. It's as simple as that. 

But can we avoid what will likely be our biggest tax bill? 
The answer is yes, we can avoid it. 

I guess I should start at the beginning. 

I'm a big believer in generational wealth transfer. I want to pass money on to my children and future grandchildren. I plan to teach them to be good money stewards; to give, save, bless others, and be disciplined with money. To make the world a better place with what they have. And then I would like to give them the opportunity to do that better than I was able to. 

How about you? What's your view on generational wealth transfer?

The problem is many who plan to pass money onto their children are disappointed to find out they are going to receive their biggest tax bill when they pass away, leaving their children and grandchildren with half of what they were hoping to give them. 

Let me explain: 
The money you've saved in RRSPs are fully taxable when you withdraw money from them. When you pass away, all the money left in your RRSPs is withdrawn and seen as taxable income, thus increasing your tax bill. 

As an example:
Bill had $500,000 in RRSPs. He wanted to pass this $500,000 to his 2 adult children. Upon Bill's death, that $500,000 was withdrawn from his RRSPs and deemed taxable income. This $500,000 income moved him into the top tax bracket at 50.4%. Because of this, CRA (Canada Revenue Agency) received a whopping $252,000 of that $500,000 and his children only received the remaining $248,000. 

That's a massive tax bill.
That $252,000 tax bill could have been avoided had Bill chosen to use tax-free tools to grow his future wealth. 
That's a major tax bill you can avoid too, by using tax-free saving tools to grow your money. 

Remember, your future income will already be highly taxed - your group RRSPs, pension plans, CPP (Canada Pension Plan), and OAS (Old Age Security) are all taxable. To limit your tax exposure and your biggest tax bill in the future, save some of your money using tax-free tools. 

If you'd like to know what tax-free tools you should use to you grow your money, I'd love to help.
The TFSA is not your only option. 

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