Tanner Hassell, CFP, CIM - Springleaf Financial Group

06/04/2026

The Spousal Loan Strategy offers a straightforward, legal way to manage your taxes more efficiently. In Canada, taxes are assessed individually, not by household, which can lead to higher tax payments if one partner earns significantly more than the other. This often results in the higher-income spouse paying taxes at a top marginal rate, sometimes over 50%.

A spousal loan allows couples to redistribute investment income from the higher-earning partner to the lower-earning one. By doing so, the couple can benefit from a lower overall tax rate. This method is not only effective but also approved by the CRA, ensuring that it is a legitimate strategy within the legal framework.

By following specific rules, such as formal agreements and annual interest payments, couples can optimize their tax situation. This approach can lead to significant savings, allowing more resources to be allocated towards other financial goals. Understanding these strategies can make a substantial difference in managing household income effectively. It's a clear reminder of how thoughtful planning can transform financial outcomes.

https://www.springleaf.ca/ -statements

06/03/2026

Not all bonds are taxed the same way, and understanding this can significantly impact your after-tax returns. Premium bonds, which offer higher interest rates than the market, might seem appealing but come with a downside. They often mature at a capital loss, which can't offset the interest income, creating a tax mismatch that reduces your returns.

In contrast, discount bonds are purchased below face value and generate returns as capital gains, which are taxed more favorably. This structure makes them a better choice for taxable accounts, offering improved after-tax outcomes. In Canada, there are discount bond funds designed to maximize these benefits by increasing capital gains and reducing taxable interest income.

Choosing the right type of bond can make a significant difference in your investment strategy. By focusing on discount bonds, you can manage your portfolio more effectively, reducing unnecessary tax burdens and enhancing overall returns. It's all about making informed decisions that align with your long-term financial goals.

https://www.springleaf.ca/ -statements

06/02/2026

When discussing financial planning, the focus often lands on returns or taxes. But the real question is: What makes life good? What truly brings you happiness?

Psychologists and economists have studied this extensively. The way we spend and plan our finances impacts our happiness and the likelihood of fewer regrets later in life.

Happiness is divided into two types: hedonic, the joy of the moment, and eudaimonic, which is deeper and tied to life’s meaning. Balancing these can guide how we spend and plan.

Dr. Martin Seligman’s PERMA model outlines what makes life flourish: Positive Emotions, Engagement, Relationships, Meaning, and Accomplishment. Aligning your spending with these elements can enhance well-being.

A key insight from 'The Psychology of Money' is understanding when enough is enough. It's about expectation drift and recognizing when to stop moving the goalpost.

Interestingly, 40% of our happiness is within our control through choices and behaviors. This is where financial planning intersects with personal fulfillment.

Regrets at life's end often revolve around missed connections and meaningful pursuits. Planning for connections, not just productivity, can lead to a more fulfilling life.

Align your spending with what truly matters. It's not just about money—it's about enriching life through thoughtful planning.

https://www.springleaf.ca/ -statements

05/30/2026

Do you know your CDA balance? Many business owners overlook the hidden machinery that powers their corporation's financial health. These accounts and mechanisms, like the Capital Dividend Account (CDA), RDTOH, and shareholder loans, are crucial yet often ignored. The CDA allows for tax-free access to half of your capital gains, offering a significant advantage when used correctly. It’s important to track this balance because inflation can erode its purchasing power, making timely use essential.

Refundable Dividend Tax on Hand (RDTOH) represents money trapped inside your corporation that can be unlocked with strategic planning. This often goes unnoticed, leading to missed opportunities for tax savings. Shareholder loans provide short-term flexibility, but they come with a one-year repayment deadline, highlighting the need for careful planning and monitoring.

Most professionals are unaware of their own account balances, creating a significant blind spot in their financial strategy. These accounts aren’t mysterious; they’re simply tracking systems that, once understood, can be managed effectively. Knowing and managing these balances ensures you’re not leaving money on the table and helps in maintaining a robust financial strategy.

Understanding these mechanisms and keeping a close eye on them can drastically improve your financial planning. By actively managing your corporation’s hidden machinery, you can unlock potential savings and enhance your overall financial health. It’s about making informed decisions that align with your long-term goals, rather than being caught off guard by unexpected tax implications.

https://www.springleaf.ca/ -statements

05/29/2026

It's tempting to invest with last year’s top-performing fund manager. After all, if they’ve outperformed the market, they must have a winning strategy, right? Unfortunately, the data tells us otherwise. Chasing performance is a common mistake that often proves costly for investors.

Why don't top managers remain on top? Returns are influenced by numerous factors, many beyond a manager’s control. Short-term success often stems from luck or favorable market conditions, not a repeatable skill. Even the most skilled managers can experience downturns when their investment style falls out of favor or markets shift.

Studies show that most funds in the top quartile fail to maintain their performance in subsequent periods. Market leadership rotates as different segments rise and fall. Dimensional Fund Advisors’ analysis underscores this unpredictability, showing how even the largest U.S. stocks frequently drop from top positions.

Instead of chasing past winners, focus on a disciplined investment process. Diversification across managers and asset classes helps mitigate risks. Costs also matter; high fees can erode potential gains. Research supports that broad diversification, low costs, and disciplined rebalancing are more reliable strategies than betting on the next big performer.

https://www.springleaf.ca/ -statements

05/28/2026

Navigating the complexities of corporate investing can be overwhelming for many incorporated professionals. With tax rules, notional accounts, and passive income limits, it’s easy to lose track. Yet, when done right, investing within a corporation provides better control over taxes and a smoother path to retirement income.

The primary benefit of a corporation is tax deferral. Business income left in the corporation is taxed at a lower rate than personal income, freeing up capital for investment. However, this is temporary, as eventually, funds must be withdrawn and taxed personally. The aim is to manage and defer tax in a way that aligns with your life, especially if you expect to be in a lower tax bracket in retirement.

Understanding notional accounts like RDTOH and CDA is crucial. RDTOH allows tax refunds on passive income when dividends are paid, while CDA tracks tax-free amounts that can be distributed to shareholders. Many professionals miss out on these benefits simply because their balances aren’t monitored.

The salary vs. dividends debate is not black and white. A dynamic approach, adjusting year by year based on income and cash flow, often yields better after-tax outcomes. It keeps options open, such as using an Individual Pension Plan (IPP) or making strategic RRSP contributions.

Don’t overlook registered accounts like RRSPs and TFSAs. They offer tax-sheltered growth, complementing corporate assets. Even personal non-registered accounts can play a role, allowing you to diversify your withdrawal strategy when funds are withdrawn at a low tax rate.

Lastly, beware of overconcentration in the corporation. This can lead to unused refundable taxes and higher passive income taxes. Gradually drawing funds, topping up RRSPs and TFSAs, and funding personal accounts can spread out your tax burden and add flexibility to your retirement planning.

Align your corporate strategy with your bigger life picture. More money than needed in your corporation is a good problem but requires intentional planning. Aligning your capital with your values can bring true meaning to your financial journey.

https://www.springleaf.ca/ -statements

05/27/2026

Most people never file this form, but it could be a game-changer for your financial health. The T1213 form, a lesser-known tool, can help you reduce the tax withheld from your paycheques, offering you a smoother cash flow throughout the year instead of a lump sum refund at tax time.

So what is the T1213? Officially known as the 'Request to Reduce Tax Deductions at Source,' this form lets you ask the CRA to lower the income tax your employer withholds. Why is this beneficial? Because many of us are already making payments that reduce our tax bill, like RRSP contributions, childcare expenses, or interest on investment loans, but the CRA doesn’t consider these until you file your return.

Imagine contributing $24,000 to your RRSP annually. At a 40% tax rate, you'd receive a $9,600 refund. With the T1213, you could have an extra $800 a month in your pocket year-round. This extra cash could boost your TFSA contributions, help pay down debt, or simply improve your monthly cash flow.

One often-overlooked scenario involves borrowing to invest. The interest on such loans is deductible, but without the T1213, the CRA won't adjust your withholding for it. Despite its benefits, the form is underutilized due to its annual paper submission and lack of promotion. But when used correctly, it can significantly enhance financial flexibility.

Remember, this tool doesn’t reduce your tax bill but optimizes the timing of payments. It's wise to work with an accountant to ensure your numbers are accurate and fit into a broader financial strategy. This is about smart planning, not just quick fixes.

Springleaf Financial offers access to investment, insurance and financial security planning in Kelowna, BC

05/26/2026

When managing corporate finances, understanding the strategic timing problem is crucial. Waiting too long to start withdrawing funds from your corporation can lead to significant tax challenges down the line. Balancing the benefits of deferral with the risks of indefinite accumulation is key.

Imagine you’re approaching retirement with a corporation full of accumulated wealth. Suddenly, the tax implications of withdrawing large sums become daunting. Instead, consider starting small extractions early. This gradual approach can prevent a massive tax hit later.

Consider the dynamics between salary and dividends. Salaries create RRSP contribution room, but dividends might be more tax-efficient depending on your situation. By carefully planning your withdrawals now, you can optimize your tax strategy and ensure a smoother financial transition into retirement. Start letting money out early to avoid costly panic moves in the future.

https://www.springleaf.ca/ -statements

05/25/2026

Critical Illness Insurance offers vital financial support during health crises by providing a tax-free lump sum if diagnosed with conditions like cancer, heart attack, or stroke. This flexible financial aid can be used for treatment costs, taking time off work, or simply reducing financial stress.

Consider these statistics: 1 in 2 Canadians will face cancer, and heart disease and stroke are leading causes of disability. With many medical expenses not fully covered by provincial health care, having this insurance is crucial. For a healthy 35-year-old male, $100,000 coverage costs about $29/month, making it affordable when secured early.

Policies today also offer valuable support services such as virtual second opinions from top specialists, providing peace of mind. It's not just about financial protection; it's about comprehensive support when you need it most. Understanding the real costs of health challenges underscores the importance of having a financial buffer in place.

https://www.springleaf.ca/ -statements

05/24/2026

For Canadian business owners, choosing how to pay yourself is a strategic decision that affects more than just your taxes—it's about building a sustainable financial future. The right mix of salary, dividends, and retained earnings can shape your CPP contributions, retirement income, and eligibility for certain credits. While many default to dividends to avoid CPP, it's crucial to see CPP as a valuable, inflation-protected savings plan.

Salaries provide the added benefit of generating RRSP contribution room, an overlooked advantage that dividends don't offer. RRSPs remain one of the most effective tools for tax deferral and income smoothing, especially beneficial for those in higher tax brackets. Additionally, the General Rate Income Pool (GRIP) allows for more tax-efficient eligible dividends if your corporation earns above the $500,000 threshold.

When it comes to passive income, not all sources are equal. Interest and foreign dividends are heavily taxed when held inside a corporation, potentially leaving less than 35 cents on the dollar after taxes. This underscores the importance of strategic planning when allocating these assets. Balancing salary and dividends can help trigger refunds and align with broader financial goals.

As your business grows, your compensation strategy should evolve. A one-size-fits-all approach may not suit changing circumstances. Consider how integrating different income types can optimize your financial outcomes. By aligning your strategy with your personal and corporate goals, you ensure a robust financial future. Remember, adapting your strategy as your business scales is key to long-term success.

https://www.springleaf.ca/ -statements