CUSTOM JAVASCRIPT / HTML
Account Allocation
The account you hold your investment will maintain or change the tax characteristic of the investment.

Account allocation, not to be confused with Asset Allocation, is an important consideration when constructing your portfolio.
Non-Registered Accounts
NRA - Cash or Margin
Investments maintain their tax structure in non-registered accounts. 

Thus, it is wise to hold the most tax-efficient investments such as growth stocks or dividend payers in them. 

Dividends however are subject to a "gross-up" that can possibly tilt a retiree's income into Old Age Security (OAS) claw-back territory. In such cases, holding dividend stocks in a non-registered account should be carefully considered.
Non-Registered Account
CUSTOM JAVASCRIPT / HTML
The current top marginal tax bracket in Ontario is 53.53%. 50% is use for a simplified display of the calculations.
Corporate Class Funds

A solution to deferring taxation on capital gains, dividends and interest income in an NRA is to hold these investments in a mutual fund corporation, otherwise know as a Corporate Class Fund. 

Corporate Class Funds retain all distributions (capital gains, dividends and interest income) within the mutual fund corporation. Gains are offset with loses to reduce distributions - thereby reducing the issuance of tax-slips.

When a withdrawal is made from the mutual fund corporation, the withdrawal is a mix of a capital gain/loss and/or a return of capital.

The effectiveness of this tax-efficient solution is currently being eroded by new rules implemented by the ministry of finance. However, it still in place and you should take advantage of the tax-efficiency provided while it is available.
Registered Accounts
RRSP/RIF/LIRA/LIF, etc.
There is no tax on investment distributions while held in registered accounts. 

Tax is deferred until withdrawals are made at which time, 100% of the withdrawal is taxed as regular income at the account holder's marginal tax rate. 

Since tax-efficiency is lost once a withdrawal is made, it would make sense to hold your most highly taxed investment in the account - such as interest bearing investments.

You still benefit from the original tax-deduction on contribution and tax-deferral.

If this is your only account then Accountt Allocation will not matter.

If you have a Non-Registered Account (NRA) and/or a Tax-Free Savings Account (TFSA), you will benefit from reallocating your investments across the accounts.
Registered Accounts
CUSTOM JAVASCRIPT / HTML
The current top marginal tax bracket in Ontario is 53.53%. 50% is use for a simplified display of the calculations.
Tax-Free Savings Accounts
TFSA
All withdrawals from a TFSA are done without incurring any taxes.

Interestingly, most people hold the most conservative and low interest bearing investments in these accounts! 

In this low interest rate environment, the tax-free advantage are only marginal

A better strategy would be to hold your most aggressive investments in the TFSA (if you have the ability and or the risk-tolerance to do so).

Should your investments do exceedingly well, you will pay no taxes on the gains. The downside is that you will not be able claim any capital losses.

This is one of the reasons why an investment strategy using options to minimize risk can do exceedingly well in a TFSA.
Tax-Free Savings Account
CUSTOM JAVASCRIPT / HTML
The current top marginal tax bracket in Ontario is 53.53%. 50% is use for a simplified display of the calculations.
CUSTOM JAVASCRIPT / HTML
CUSTOM JAVASCRIPT / HTML