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Investing gets more complicated once you move beyond RRSPs, TFSAs and simple registered accounts. For Canadian corporation owners, incorporated professionals, and investors with taxable accounts, the type of income your investments generate can matter almost as much as the return itself.

In this episode of the Plain English Finance Podcast, Tré and Sierra discuss three core investment concepts that help explain how financial planning, tax planning and portfolio construction fit together for corporation owners. The episode focuses on investment income types, how to think about risk, and why a consistent investment philosophy matters when taxes and corporate accounts are involved.

In this episode, we discuss:

• Why investing becomes more complicated in non-registered and corporate accounts
• The three main types of investment income: interest, capital gains and dividends
• Why GICs, bonds and fixed income create interest income
• Why capital gains are treated differently from interest income
• Why Canadian dividends can have a different tax profile
• Why RRSPs change the tax treatment of investment income
• Why asset location matters across RRSPs, personal taxable accounts and corporations
• Why “risk” should not only mean volatility
• Why fixed income may become riskier over long timeframes
• Why market ups and downs are a feature, not a flaw
• Why low-cost, globally diversified investments can simplify planning
• Why turnover matters in taxable accounts
• How active management can create unexpected taxable capital gains
• Why corporate investment decisions should be made with tax drag in mind

Learn more about working with Tré Bynoe, CFP®, CIM®:
https://trebynoe.ca

This podcast is provided as a general source of information and should not be considered personal investment, tax or legal advice. Consult your financial, legal and tax professionals before making changes to your financial plan.

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