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CM in si de ha lto n. co m O ak vi lle B ea ve r | T hu rs da y, M ay 3 , 2 01 8 | Committed to Youth Development. Kerr Street Mission is deeply committed to developing our youth. We believe they can create new possibilities for their future through positive influences, role models and support. Every year, Oakville celebrates National Youth Week with FREE activities, learning opportunities and events for youth ages 11-19. Throughout the week, youth will have FREE access to all drop-in youth programs, open houses at all Town of Oakville youth centres, creative activities with the Oakville Public Library and so much more! Enjoy FREE activities, learning opportunities and events for youth aged 11 to 19. Connect with us on social media for more details about Youth Week and youth opportunities for a chance to win cool prizes. Plus, drop by any of our three youth centres! Share your photos using #OakvilleYouth V is it oakvilfe.ca fo r deta ils . Kerr Street Mission has partnered with other community partners like Oakville Public Library, Halton Environmental Network, Halton Regional Police, Oakville Fire Department, Oak Park Neighbourhood Centre, Oakville Soccer Club, and YMCA of Oakville to bring Oakville Youth Week to our Youth. As always, if you are interested in learning how you can help, please v is itwww.kerrstreet.com or call 905.845.7485 Kerr Street Mission 485 Kerr Street, Oakville P: 905.845.7485 Charitable Reg. No. 897106845RR0001 OPINION T a x p l a n n i n g a n d a s s e t l o c a t i o n For most investors, it is better to hold stocks within an investment account, writes Peter Watson Do you pay too much in­ come tax every year? The solution could be asset lo­ cation. For individuals who have an investment portfo­ lio that includes a RRSP or RRIF, and a regular invest­ ment account, this column will be of particular inter­ est. Consider this a practi­ cal tax planning guide. Ze­ ro math skills are required, however, you may want to refer to your investment statements. The basis for this idea is that not all tax rates are considered equal. In short, where your assets are lo- PETER WATSON C o lu m n cated could mean you pay more taxes than necessary. Employment income and interest income are taxed at your full tax rate. You are taxed at a lower rate on capital gains and Canadian dividend in­ come. Most investors' portfo­ lios w ill consist o f stocks and bonds. Stocks have the ability to provide capital gains and dividends. Only 50 per cent o f a capital gain is included in your taxable income. Eligible Canadian dividends provide an at­ tractive dividend tax credit which lowers the taxes you pay on dividends. From a tax perspective, stocks are good. Interest income earned from bonds and other fixed income investments is taxed at your full tax rate. From a tax perspective, interest income is bad. No taxes are paid on in­ vestment earnings o f any kind within a RRSP or RRIF. When funds are eventually withdrawn from either o f those ac­ counts, the total amount withdrawn will be added to your taxable income. For most, withdrawing money from a RRSP or RRIF is many years away, so there is the added advan­ tage of delaying tax pay­ ment. In a regular invest­ ment account, you are taxed on any investment income earned in the year that income is received. For most investors, it is bet­ ter to hold stocks within an investment account and hold interest paying bonds in a RRSP or RRIF. In my experience, about 90 per cent o f taxpayers hold stocks and bonds in the wrong account. Conse­ quently, there is a 90 per cent chance you pay more taxes than needed. I f you fix this mistake you could save hundreds or even thousands o f dollars every year. - Peter Watson, of Peter Watson Investments MBA, CFP®, R.F.P., CIM, FCSI, offers a weekly financial planning column, Dollars & Sense. He can be contact­ ed through www.peterwat- soninvestments.com. Interlocking & Concrete Specialists a f f i m a r Landscaping Ltd. Pebble Concrete • Stamped Concrete Interlocking • Flagstone • Walkways Garage Floors • Patios • Driveways Curbs (French) Call Mario 905.842.7171 sunmarlandscape.com A P P R O ED ON NOW AT THE BRICK! T e offiCK" l f f lE O H E W T S IR R I f f l im l SAVING YOU MORE For more details go instore or online @thebrick.com. TM http://www.kerrstreet.com http://www.peterwat-soninvestments.com http://www.peterwat-soninvestments.com