John's July Home News

Pontoon Boat Is In The Water

Taking out the pontoon boat is a new experience for me. I am quite comfortable docking my 16' fishing boat, but the 22' pontoon is a new challenge, for now it is a two person job to bring it safely back to the dock.

We got the boat into a the water a little later than we would normally start the boating season due to the fact that I had to build a new dock to be able to accommodate a larger vessel than what the original dock was designed for. The next challenge won't be until the fall when we go to take the dock out but let's enjoy a summer of it taking no more than 2 minutes from saying "Hey let's go out for a boat ride" to actually being on the boat as it is tied out on the river in front of the new home.

Between Caroline and I we still have not agreed to what is the front and what is the back of our house. I like to think the front is the side that faces the water, she likes to think the front is the side with the street address and the "front door". We can safely agree to disagree on this one.

RESP or Rental Property To Fund Your Child's Education

Anyone that has had a recent discussion about the cost of sending children to university knows that the costs are increasing each year and few plans will fully fund the requirements.

Putting money aside is a great idea, and I have done some recent calculations that compare what your RESP plan will be worth, compared to what it could look like if you were to put that same monthly contribution into the purchase of a revenue property.

To help parents figure out how an investment property could fund their children's education, I have put together a short recorded video presentation that you can watch for free with the following link:

RESP VS RENTAL PROPERTY

After watching the presentation feel free to reach out to me and we can take a look at your specific numbers and compare the two results.

Tax Optimization Is Not Tax Evasion

Talking about tax optimization will always bring some naysayers out of the woodwork who will say you are teaching people to scam and avoid their legal tax duty – so let’s clarify for the haters.

When we talk about tax optimization, it’s crucial to understand it’s not about evading taxes. It’s about smart financial planning to ensure you’re only paying what you owe.Paying taxes is an essential contribution to the services and infrastructure we all enjoy in Canada, but that doesn’t mean you should pay more than necessary due to inefficient tax planning.Tax evasion is illegal—it involves deliberately concealing income or information to reduce tax liabilities. Tax optimization, however, is about using the rules to your advantage, legally and ethically.Strategies like cash damming are perfect examples of tax optimization. They’re approved by tax authorities and designed to make your financial plan more efficient. Cash damming allows homeowners who also own rental properties to manage their finances more effectively. By using rental income to pay down the mortgage on your primary residence, you’re able to convert non-deductible interest into deductible interest.This shift not only complies with tax laws but also reduces your taxable income, enhancing your cash flow and allowing you to reinvest savings in ways that can generate further income.The principle here is simple: optimize your tax situation so you can keep more of your hard-earned money working for you, rather than losing it to taxes unnecessarily.Implementing cash damming doesn’t mean you’re paying less than your fair share of taxes; it means you’re managing your obligations in a way that aligns with both legal frameworks and your personal financial goals.Remember, tax optimization through strategies like cash damming can lead to significant long-term financial benefits. It’s about making sure every dollar you earn has the maximum possible impact on your wealth.By effectively using tools like cash damming, you’re not just saving on taxes. You’re building a foundation for greater financial security and potential wealth for the future.If you’re looking for ways to enhance your tax efficiency without stepping over legal lines, let’s explore how cash damming and other strategies can be integrated into your financial planning.