Tax Smart Fixed Income Selections

Your fixed income selections are always tax smart. The income from different fixed income securities is taxed differently. Interest income is fully taxable, dividends on Canadian preferred shares benefit from the Canadian dividend tax credit, and capital gains are only taxed when realized.

The careful, informed choice of the right fixed income security and where it is held – taxable account, TFSA, RRSP, trust account – makes a significant difference to your long-term results. Pacific Spirit’s wealth management service considers all relevant factors in making investment choices.

Quality is very important in the selection process because no amount of extra income can compensate for a loss of principal.