Income splitting works by transferring the tax liability from higher income to lower income family members, who are taxed at a lower rate. There are several ways to do this, including contributing to spousal RRSPs, creating formal spousal loan arrangements or establish family trust.

In addition to providing your family with financial security, life insurance policies can also help reduce your investment taxes. You can deposit additional amounts into a life insurance policy for investment purposes, and the investment income accumulates on a tax-free basis, similar to an RRSP.

Your Investment Advisor can help you maximize tax-efficient investments and investment plans, including your RRSP, RRIF and TFSA.