Tax planning is an essential part of the holistic planning process. Taxes are one of the key elements that can eat away at investment returns and capital and determine whether you have a successful retirement or not.
Too much capital taken out of a Registered Account could trigger an Old Age Security claw back. As such, a schedule to determine the most appropriate income stream needs to be taken.
Strategies relating to which investments should be held in taxable accounts and which should be held in tax sheltered accounts need to be put in place.
Corporations with too much passive income can see their small business deduction reduced or eliminated all together.
US citizens living in Canada need to be aware of investments that can create tax issues when filing their US taxes. As well, a tax-sheltered account like a TFSA will probably not be a suitable option.