Your investing questions, our clear answers.

Our response:

While we are not able to provide advice, we do try to provide general information to help you find the next step. The amount of tax you pay when you invest depends on four things:

1. Whether your investments are held in a tax-sheltered or tax-deferred plan
2. The type of investment you made and the income they earn (e.g. interest, dividends or capital gains)
3. The tax laws where you live
4. Your income

Some ways to reduce tax include:

1. Invest in tax-sheltered or tax-deferred investments and plans (e.g. RRSPs or TFSAs)
2. Apply capital losses to reduce tax on unsheltered capital gains
3. Make Canadian dividends your only source of income

If saving on taxes is a big goal of your overall investment plan, speak to a registered financial advisor or tax professional to help you make a plan based on your goals and personal circumstances.